Financial Analysis

COMMITMENTS AND CONTINGENCIES Certain conditions may exist as of the date the financial statements are issued which may result in a loss to the Company, which will only be resolved when one or more future events occur or fail to occur. Teams management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, Teams legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in our financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. We accrue for contingencies where the occurrence of a material loss is probable and ca …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT As of December 31, 2025 and 2024, our total long-term debt and finance lease obligations are summarized as follows (in thousands): December 31, 2025 2024 2022 ABL Credit Facility 1 $ 58,786 $ 112,671 First Lien Term Loan 1 166,241 2025 Second Lien Term Loan 1 62,063 ME/RE Loans 1 22,119 Corre Uptiered Loan 1 143,955 Corre Incremental Term Loan 1 39,824 Equipment Financing Loans 1,436 1,399 Total 288,526 319,968 Finance lease obligations 2 8,675 5,143 Total debt and finance lease obligations 297,201 325,111 Current portion of long-term debt and finance lease obligations (3,858) (6,485) Total long-term debt and finance lease obligations, less current portion $ 293,343 $ 318,626 _________________ 1 Comprised of principal amount outstanding, less unamortized debt issuance costs. See below for additional information. 2 For information on our finance lease obligations see Note 12 - Leases . The following table summarizes scheduled maturities of our debt for the years succeeding December 31, 2025 (in thousands): December 31 2026 $ 2,169 2027 2,560 2028 61,862 2029 3,056 2030 227,958 Thereafter Total 1 $ 297,605 1 The total excludes unamortized debt issuance cost of $9.1 million. 2022 ABL Credit Agreement On February 11, 2022, we entered into a credit agreement, with the lender parties thereto, and Eclipse Business Capital, LLC, a Delaware limited liability company, as agent (Eclipse) (such agreement, as amended by Amendment No.1 dated as of May 6, 2022, Amendment No.2 dated as …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

A disaggregation of our revenue from contracts with customers by geographic region, by reportable operating segment and by service type is presented below: Revenue by geographic area (in thousands): Twelve Months Ended December 31, 2025 United States Canada Other Countries Total Revenue: IHT $ 403,133 $ 42,187 $ 13,559 $ 458,879 MS 277,569 34,624 125,411 437,604 Total $ 680,702 $ 76,811 $ 138,970 $ 896,483 Twelve Months Ended December 31, 2024 United States Canada Other Countries Total Revenue: IHT $ 374,657 $ 39,699 $ 12,366 $ 426,722 MS 263,005 27,241 135,304 425,550 Total $ 637,662 $ 66,940 $ 147,670 $ 852,272 Revenue by operating segment and service type (in thousands): Twelve Months Ended December 31, 2025 Non-Destructive Evaluation and Testing Services Repair and Maintenance Services Heat-Treating Other Total Revenue: IHT $ 359,038 $ 142 $ 68,207 $ 31,492 $ 458,879 MS 426,930 679 9,995 437,604 Total $ 359,038 $ 427,072 $ 68,886 $ 41,487 $ 896,483 Twelve Months Ended December 31, 2024 Non-Destructive Evaluation and Testing Services Repair and Maintenance Services Heat-Treating Other Total Revenue: IHT $ 336,582 $ 154 $ 67,893 $ 22,093 $ 426,722 MS 417,699 932 6,919 425,550 Total $ 336,582 $ 417,853 $ 68,825 $ 29,012 $ 852,272 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

SHARE-BASED COMPENSATION In June 2018, the Company adopted the 2018 Team, Inc, Equity Incentive Plan (as amended and restated in May 2021 and May 2024, the 2018 Plan) pursuant to which our Board of Directors may grant stock options, restricted stock, stock units, stock appreciation rights, common stock or performance awards to officers, directors and key employees. As of December 31, 2025, the 2018 Plan had 490,465 shares available for issuance of which 338,403 performance award shares were granted in 2023 and 2025 which become issuable if 100% of performance target is achieved, and can be settled in shares, cash or a combination thereof when vested. These performance awards are discussed in further detail below. Compensation expense related to share-based compensation totaled $0.8 million and $2.3 million for the years ended December 31, 2025 and 2024, respectively. Share-based compensation expense reflects an estimate of expected forfeitures. As of December 31, 2025, $0.9 million of unrecognized compensation expense related to share-based compensation is expected to be recognized over a remaining weighted-average period of 0.9 years. There was no income tax benefit recognized for the years ended December 31, 2025 or 2024. Restricted Stock Units (RSUs) Restricted stock units are settled with common stock upon vesting unless it is not legally feasible to issue shares, in which case the value of the award is settled in cash. We determine the fair value of each stock unit based …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

INCOME TAXES For the years ended December 31, 2025 and 2024, our income tax provision resulted in an effective tax rate of 5.5% and 9.4%, respectively. Our income tax provision for the years ended December 31, 2025 and 2024 was $2.6 million and $3.3 million, respectively, and includes federal, state and foreign taxes. The components of our tax provision and benefit were as follows (in thousands): Current Deferred Total Twelve months ended December 31, 2025: U.S. Federal $ 504 $ (407) $ 97 State & local 373 373 Foreign jurisdictions 1,749 361 2,110 Tax provision $ 2,626 $ (46) $ 2,580 Twelve months ended December 31, 2024: U.S. Federal $ 305 $ (61) $ 244 State & local 481 481 Foreign jurisdictions 3,514 (963) 2,551 Tax provision $ 4,300 $ (1,024) $ 3,276 The components of loss before income taxes for the years ended December 31, 2025 and 2024 were as follows (in thousands): Twelve Months Ended December 31, 2025 2024 Domestic $ (53,056) $ (42,477) Foreign 6,426 7,487 Loss before income taxes $ (46,630) $ (34,990) The income tax provision in 2025 and 2024, respectively, differed from the amounts computed by applying the U.S. federal income tax rate of 21% in 2025 and 2024, as a result of the following (in thousands): Twelve Months Ended December 31, 2025 2024 Computed income taxes at statutory rate $ (9,792) 21.0 % $ (7,347) 21.0 % Domestic: State and local income taxes, net of federal income tax effect 239 (0.5) % 320 (0.9) % Effect of cross-border tax laws Subpart F 63 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (ROU) assets, Current portion of operating lease obligations and Operating lease obligations on our consolidated balance sheets. Finance leases are included in Property, plant and equipment, net, Current portion of long-term debt and finance lease obligations and Long-term debt and finance lease obligations on our consolidated balance sheets. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments and short-term lease payments (leases with initial terms less than twelve months) are expensed as incurred. We have lease agreements with lease and non-lease components for certain equipment, office, and vehicle leases. We have elected the practical expedient to not separate lease and non-lease components and account for both as a single lease component. We have operating and finance leases prima …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Newly Adopted Accounting Standards In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. This guidance requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. ASU 2023-09 is effective for all annual periods beginning after December 31, 2024, and is applied prospectively, while retrospective application is permitted. We elected to adopt ASU 2023-09 retrospectively during the year ended December 31, 2025. The adoption of ASU 2023-09 did not have a material impact on our Consolidated Financial Statements. Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires the disaggregation of certain expenses in the notes of the financials, to provide enhanced transparency into the expense captions presented on the face of the income statement. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods beginning …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS Defined contribution plan. Under the Team, Inc. Salary Deferral Plan (the Plan), contributions are made to the Plan by qualified employees at their election and our matching contributions to the Plan are made at specified rates. Our contribution for the plan years ended December 31, 2025 and 2024 was approximately $7.4 million and $6.0 million, respectively. Defined benefit plans. In connection with our acquisition of Furmanite, we assumed liabilities associated with the defined benefit pension plan covering certain United Kingdom employees (the U.K. Plan). Benefits for the U.K. Plan are based on the average of the employees salary for the last three years of employment. The U.K. Plan has had no new participants added since the plan was frozen in 1994 and accruals for future benefits ceased in connection with a plan curtailment in 2013. Plan assets are primarily invested in unitized pension funds managed by U.K. registered fund managers. The most recent valuation of the U.K. Plan was performed as of December 31, 2025. Pension benefit costs and liabilities are dependent on assumptions used in calculating such amounts. The primary assumptions include factors such as discount rates, expected investment return on plan assets, mortality rates and retirement rates. The discount rate assumption used to determine end of year benefit obligations was 5.5% as of December 31, 2025. These rates are reviewed annually and adjusted to reflect current conditions. These …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS In connection with our debt transactions, we engaged in transactions with Corre and affiliates and APSC to provide and/or repay funding as described in Note 11 - Debt . In connection with the issuance of Series B Preferred Stock on September 11, 2025, the Company entered into a Purchase Agreement with the Stellex Holder, see Note 16 - Redeemable Preferred Stock for further details. On the same date, the Stellex Holder acquired $10.0 million of the Companys outstanding loan under the Second A&R Second Lien Term Loan Agreement. The terms of the loan remain unchanged following the acquisition. In September 2025, $15.0 million of the Companys outstanding loan under the Second A&R Second Lien Term Loan Agreement was acquired by JFL Credit Opportunities Fund II, L.P. and affiliates, in which one of the Companys independent directors is an equity partner. The terms of the loan remain unchanged. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Disaggregation of revenue. Essentially all of our revenues are associated with contracts with customers. A disaggregation of our revenue from contracts with customers by geographic region, by reportable operating segment and by service type is presented below: Revenue by geographic area (in thousands): Twelve Months Ended December 31, 2025 United States Canada Other Countries Total Revenue: IHT $ 403,133 $ 42,187 $ 13,559 $ 458,879 MS 277,569 34,624 125,411 437,604 Total $ 680,702 $ 76,811 $ 138,970 $ 896,483 Twelve Months Ended December 31, 2024 United States Canada Other Countries Total Revenue: IHT $ 374,657 $ 39,699 $ 12,366 $ 426,722 MS 263,005 27,241 135,304 425,550 Total $ 637,662 $ 66,940 $ 147,670 $ 852,272 Revenue by operating segment and service type (in thousands): Twelve Months Ended December 31, 2025 Non-Destructive Evaluation and Testing Services Repair and Maintenance Services Heat-Treating Other Total Revenue: IHT $ 359,038 $ 142 $ 68,207 $ 31,492 $ 458,879 MS 426,930 679 9,995 437,604 Total $ 359,038 $ 427,072 $ 68,886 $ 41,487 $ 896,483 Twelve Months Ended December 31, 2024 Non-Destructive Evaluation and Testing Services Repair and Maintenance Services Heat-Treating Other Total Revenue: IHT $ 336,582 $ 154 $ 67,893 $ 22,093 $ 426,722 MS 417,699 932 6,919 425,550 Total $ 336,582 $ 417,853 $ 68,825 $ 29,012 $ 852,272 For additional information on our reportable operating segments and geographic information, refer to Note 18 - Segment and Geographic Di …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT AND GEOGRAPHIC DISCLOSURES We conduct operations in two segments: IHT and MS. Managements determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the services we offer. The reportable segments results are reviewed regularly by the chief operating decision maker (CODM), who is our Chief Executive Officer, in deciding how to allocate resources and assess performance. Our CODM evaluates the segments operating performance based on adjusted EBITDA defined as net income (loss) before income taxes, interest expense, depreciation and amortization, and other non-recurring and non-operational items. Our CODM uses adjusted EBITDA as a measure to make resource allocation decisions for each segment for the budgeting process and reviews budget-to-actual variances to access performance and allocate capital. Segment data for our two operating segments are as follows (in thousands): Twelve Months Ended December 31, 2025 IHT MS Total Revenues $ 458,879 $ 437,604 $ 896,483 Adjusted operating expenses 1 340,738 311,290 652,028 Adjusted selling, general and administrative expenses 2 61,089 81,553 142,642 Adjusted EBITDA $ 57,052 $ 44,761 $ 101,813 Twelve Months Ended December 31, 2024 IHT MS Total Revenues $ 426,722 $ 425,550 $ 852,272 Adjusted operating expenses 1 316,831 298,473 615,304 Adjusted selling, general and administrative expenses 2 60,388 80,960 141,348 Adjusted EBITDA $ 49,503 $ 46,117 $ 95,620 _____ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES Description of Business . Unless otherwise indicated, the terms Team, the Company, we, our and us are used in this report to refer to either Team, Inc., to one or more of our consolidated subsidiaries, or to all of them taken as a whole. We are a global, leading provider of specialty industrial services offering customers access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services. We deploy conventional to highly specialized inspection, condition assessment, maintenance and repair services that result in greater safety, reliability and operational efficiency for our customers most critical assets. We conduct operations in two segments: Inspection and Heat-Treating (IHT) and Mechanical Services (MS). Through the capabilities and resources in these two segments, we believe that we are uniquely qualified to provide integrated solutions involving: inspection to assess condition; engineering assessment to determine fitness for purpose in the context of industry standards and regulatory codes; and mechanical services to repair, rerate or replace based upon the customers election. In addition, we are capable of escalating with the customers needs, as dictated by the severity of the damage found and the related operating conditions, from standard services to some of the most advanced services and integrated asset integrity and reliability management solutions availab …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY Shareholders Equity (Deficit) and Preferred Stock As of December 31, 2025 there were 4,532,240 shares of our common stock outstanding and 12,000,000 shares authorized with a par value of $0.30 per share. As of December 31, 2025 there were 75,000 shares of preferred stock outstanding, designated as Series B Preferred Stock, and we had 500,000 authorized shares at $100.00 par value per share of preferred stock (see Note 16 - Redeemable Preferred Stock for more detail). Warrants As of December 31, 2025, and December 31, 2024, APSC Holdco II, L.P. held 500,000 warrants and certain affiliates of Corre collectively held 500,000 warrants, in each case providing for the purchase of one share of the Companys common stock per warrant at an exercise price of $15.00. If not exercised, the warrants will expire on December 8, 2028. The warrants were accounted for as a component of Additional Paid-in Capital and a debt warrant discount. The discount was amortized over the term of the related debt. On September 11, 2025, in connection with the issuance of the Series B Preferred Stock, the Company issued warrants to the Stellex Holder to purchase: 982,371 shares of the Companys common stock at an initial exercise price of $23.00 per share (Tranche A), and 470,889 shares of the Companys common stock at an initial exercise price of $50.00 per share (Tranche B). The warrants are classified as equity and were initially recorded in Additional Paid-In Capital at their estimated …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTSAs of March12, 2026, the filing date of this Annual Report onForm10-K, we evaluated the existence of events occurring subsequent to the end of fiscal year 2025 and determined that there were no events or transactions that would have a material impact on our results of operations or financial position. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Certain conditions may exist as of the date the financial statements are issued which may result in a loss to the Company and which will only be resolved when one or more future events occur or fail to occur. Teams management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, Teams legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in our financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. We accrue for contingencies where the occurrence of a material loss is probable and …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT As of September 30, 2025 and December 31, 2024, our total long-term debt and finance lease obligations are summarized as follows (in thousands): September 30, 2025 December 31, 2024 (unaudited) 2022 ABL Credit Agreement $ 67,886 $ 112,671 First Lien Term Loan 1 166,351 2025 Second Lien Term Loan 1 59,804 ME/RE Loans 1 22,119 Corre Uptiered Loan 1 143,955 Corre Incremental Term Loan 1 39,824 Equipment Finance Loans 666 1,399 Total 294,707 319,968 Finance lease obligations 8,116 5,143 Total long-term debt and finance lease obligations 302,823 325,111 Current portion of long-term debt and finance lease obligations (4,003) (6,485) Total long-term debt and finance lease obligations, less current portion $ 298,820 $ 318,626 1 Comprised of principal amount outstanding, less unamortized debt issuance costs. See below for additional information. 2022 ABL Credit Facility On February 11, 2022, we entered into a credit agreement, with the lender parties thereto, and Eclipse Business Capital, LLC, a Delaware limited liability company, as agent (Eclipse) (such agreement, as amended by Amendment No.1 dated as of May 6, 2022, Amendment No.2 dated as of November 1, 2022, Amendment No.3 dated as of June 16, 2023 (ABL Amendment No.3), Amendment No.4 dated as of March 6, 2024, Amendment No.5 dated as of September 30, 2024, Amendment No.6 (ABL Amendment No.6) dated as of March 12, 2025, and ABL Amendment No.7 (defined below), the 2022 ABL Credit Agreement). On September 11, 2025, we entered …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

A disaggregation of our revenue from customer contracts by geographic region, by reportable operating segment and by service type is presented below: Geographic area (in thousands): Three Months Ended September 30, 2025 (unaudited) United States Canada Other Countries Total Revenue: IHT $ 99,374 $ 10,525 $ 3,879 $ 113,778 MS 71,127 8,656 31,415 111,198 Total $ 170,501 $ 19,181 $ 35,294 $ 224,976 Three Months Ended September 30, 2024 (unaudited) United States Canada Other Countries Total Revenue: IHT $ 94,375 $ 10,103 $ 3,126 $ 107,604 MS 63,192 5,201 34,761 103,154 Total $ 157,567 $ 15,304 $ 37,887 $ 210,758 Nine Months Ended September 30, 2025 (unaudited) United States Canada Other Countries Total Revenue: IHT $ 307,758 $ 32,749 $ 9,882 $ 350,389 MS 204,403 24,063 92,802 321,268 Total $ 512,161 $ 56,812 $ 102,684 $ 671,657 Nine Months Ended September 30, 2024 (unaudited) United States Canada Other Countries Total Revenue: IHT $ 281,662 $ 29,323 $ 9,301 $ 320,286 MS 195,322 21,168 102,200 318,690 Total $ 476,984 $ 50,491 $ 111,501 $ 638,976 Operating segment and service type (in thousands): Three Months Ended September 30, 2025 (unaudited) Non-Destructive Evaluation and Testing Services Repair and Maintenance Services Heat-Treating Other Total Revenue: IHT $ 89,064 $ $ 15,665 $ 9,049 $ 113,778 MS 103,824 77 7,297 111,198 Total $ 89,064 $ 103,824 $ 15,742 $ 16,346 $ 224,976 Three Months Ended September 30, 2024 (unaudited) Non-Destructive Evaluation and Testing Services Repair …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

INCOME TAXES We recorded an income tax provision of $0.9 million and $2.2 million for the three and nine months ended September 30, 2025, compared to a provision of $0.5 million and $2.0 million for the three and nine months ended September 30, 2024. The effective tax rate, inclusive of discrete items, was a provision of 9.1% for the three months ended September 30, 2025, compared to a provision of 4.7% for the three months ended September 30, 2024. For the nine months ended September 30, 2025, our effective tax rate, inclusive of discrete items, was a provision of 5.0%, compared to a provision of 7.1% for the nine months ended September 30, 2024. The change in effective tax rate for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 is due to the mix of pretax income in non-valuation allowance jurisdictions and pretax losses in valuation allowance jurisdictions, along with changes in permanent differences. On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law. The Act includes changes to U.S. tax law with varying effective dates, with certain provisions effective in 2025 and others implemented through 2027. Based on our initial assessment, we do not anticipate the Act will have a material impact on our consolidated financial statements. Additional disclosures may be provided in future periods as the impact of the legislation is determined. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS We have a defined benefit pension plan covering certain United Kingdom employees (the U.K. Plan). The pension plan was frozen in 1994 and no new participants have been added since that date. Net periodic pension credit includes the following components (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (unaudited) (unaudited) (unaudited) (unaudited) Interest cost $ 722 $ 678 $ 2,108 $ 1,981 Expected return on plan assets (879) (879) (2,567) (2,571) Amortization of prior service cost 9 8 25 24 Amortization of net actuarial loss 93 82 274 240 Net periodic pension credit $ (55) $ (111) $ (160) $ (326) Net pension credit is included in Other income (expense), net on our condensed consolidated statements of operations. The expected long-term rate of return on invested assets is determined based on the weighted average of expected returns on asset investment categories for the U.K. Plan as follows: 6.1% overall, 9.9% for equities and 6.0% for debt securities. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS In September 2025, $15.0 million of the Companys outstanding loan under the Second A&R Second Lien Term Loan Agreement was acquired by JFL Credit Opportunities Fund II, L.P. and affiliates, in which one of the Companys independent director is an equity partner. The terms of the loan remain unchanged. In connection with the Companys debt transactions, the Company engaged in transactions with Corre and its affiliates to provide and/or repay funding as described in Note 10 - Debt. In connection with the Series B Transactions as discussed in Note 1 - Discussion of Business and Basis of preparation, on September 11, 2025, the Company entered into the Purchase Agreement with the Stellex Holder. In addition, $10.0 million of the Companys outstanding loan under the Second A&R Second Lien Term Loan Agreement was acquired by the Stellex Holder on September 11, 2025. The terms of the loan remain unchanged. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Disaggregation of revenue. Essentially all of our revenues are associated with contracts with customers. A disaggregation of our revenue from customer contracts by geographic region, by reportable operating segment and by service type is presented below: Geographic area (in thousands): Three Months Ended September 30, 2025 (unaudited) United States Canada Other Countries Total Revenue: IHT $ 99,374 $ 10,525 $ 3,879 $ 113,778 MS 71,127 8,656 31,415 111,198 Total $ 170,501 $ 19,181 $ 35,294 $ 224,976 Three Months Ended September 30, 2024 (unaudited) United States Canada Other Countries Total Revenue: IHT $ 94,375 $ 10,103 $ 3,126 $ 107,604 MS 63,192 5,201 34,761 103,154 Total $ 157,567 $ 15,304 $ 37,887 $ 210,758 Nine Months Ended September 30, 2025 (unaudited) United States Canada Other Countries Total Revenue: IHT $ 307,758 $ 32,749 $ 9,882 $ 350,389 MS 204,403 24,063 92,802 321,268 Total $ 512,161 $ 56,812 $ 102,684 $ 671,657 Nine Months Ended September 30, 2024 (unaudited) United States Canada Other Countries Total Revenue: IHT $ 281,662 $ 29,323 $ 9,301 $ 320,286 MS 195,322 21,168 102,200 318,690 Total $ 476,984 $ 50,491 $ 111,501 $ 638,976 Operating segment and service type (in thousands): Three Months Ended September 30, 2025 (unaudited) Non-Destructive Evaluation and Testing Services Repair and Maintenance Services Heat-Treating Other Total Revenue: IHT $ 89,064 $ $ 15,665 $ 9,049 $ 113,778 MS 103,824 77 7,297 111,198 Total $ 89,064 $ 103,824 $ 15,742 $ 16,346 $ …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT DISCLOSURES We conduct operations in two segments: IHT and MS. Managements determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the services we offer. The reportable segments results are reviewed regularly by the chief operating decision maker (CODM), who is our Chief Executive Officer, in deciding how to allocate resources and assess performance. Our CODM evaluates the segments operating performance based on adjusted EBITDA defined as net income (loss) before income taxes, interest expense, depreciation and amortization, and other non-recurring and non-operational items. Our CODM uses adjusted EBITDA as a measure to make resource allocation decisions for each segment for the budgeting process and reviews budget-to-actual variances to access performance and allocate capital. Segment data for our two operating segments are as follows (in thousands): Three Months Ended September 30, 2025 IHT MS Total (unaudited) (unaudited) (unaudited) Revenues $ 113,778 $ 111,198 $ 224,976 Adjusted operating expenses 1 84,148 79,458 163,606 Adjusted selling, general and administrative expenses 2 14,760 21,545 36,305 Adjusted EBITDA $ 14,870 $ 10,195 $ 25,065 Three Months Ended September 30, 2024 IHT MS Total (unaudited) (unaudited) (unaudited) Revenues $ 107,604 $ 103,154 $ 210,758 Adjusted operating expenses 1 79,568 74,234 153,802 Adjusted selling, general and administrative expenses 2 15,038 19,864 34,90 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY Shareholders Equity (Deficit) As of September 30, 2025 there were 4,498,854 shares of our common stock outstanding and 12,000,000 shares authorized at $0.30 par value per share. As of September 30, 2025 there were 75,000 shares of preferred stock outstanding, designated as Series B Preferred Stock, and 500,000 shares authorized at $100.00 par value per share (see Note 13 - Redeemable Preferred Stock for more detail). Warrants As of September 30, 2025, and December 31, 2024, APSC Holdco II, L.P. held 500,000 warrants and certain affiliates of Corre collectively held 500,000 warrants, in each case providing for the purchase of one share of the Companys common stock per warrant at an exercise price of $15.00. If not exercised, the warrants will expire on December 8, 2028. The warrants were evaluated and classified as equity, with their fair value recorded in Additional Paid-In Capital. On September 11, 2025, in connection with the issuance of the Series B Preferred Stock, the Company issued warrants to the Stellex Holder to purchase: 982,371 shares of the Companys common stock at an initial exercise price of $23.00 per share (Tranche A), and 470,889 shares of the Companys common stock at an initial exercise price of $50.00 per share (Tranche B). The warrants are classified as equity and were initially recorded in Additional Paid-In Capital at their estimated fair value of $20.9 million as of the issuance date with no subsequent remeasurement. The warrants are …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS As of November 12, 2025, the filing date of this Quarterly Report on Form 10-Q, management evaluated the existence of events occurring subsequent to the quarter ended September 30, 2025, and determined that there were no events or transactions that would have a material impact on the Companys results of operations or financial position. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing