Acuren Corporation’s Earnings Call: Growth Amidst Challenges

Acuren Corporation ((TIC)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call of Acuren Corporation presented a balanced view of TIC Solutions’ performance, highlighting significant growth and strategic progress, particularly in the Consulting Engineering and Geospatial segments. However, challenges in the Inspection and Mitigation segment and increased expenses were also noted. The company’s successful integration and increased synergy targets are promising, yet market-specific challenges remain.

Revenue Growth

The third quarter saw substantial revenue growth for TIC Solutions, with figures reaching $473.9 million. This growth was bolstered by a two-month contribution from NV5 following its August acquisition. Year-to-date revenue growth stands at approximately 4.7%, indicating a positive trajectory for the company.

Consulting Engineering Segment Expansion

The Consulting Engineering segment experienced impressive double-digit growth, largely driven by data center projects for hyperscaler clients. This expansion is not limited to domestic markets but extends internationally, showcasing the segment’s robust performance and strategic importance.

Strong Geospatial Performance

Geospatial data collection and analytics services reported mid-single-digit growth, supported by compelling margins. The segment benefited from healthy utilization rates and increased demand in aerial hydrospatial, underscoring its strong market position.

Increased Synergy Targets

Integration efforts have led to an increase in cost synergy targets from $20 million to $25 million, with full realization expected by mid-2027. This reflects the company’s commitment to optimizing its operations and enhancing financial efficiency.

Strong Balance Sheet and Liquidity

Acuren Corporation completed a $250 million private placement, significantly strengthening its balance sheet. This move provides the company with the flexibility needed to pursue growth opportunities and navigate market challenges.

Inspection and Mitigation Segment Decline

The Inspection and Mitigation segment faced a revenue decline of approximately 3% year-over-year. This was influenced by reduced project work and softness in the chemicals customer base, highlighting areas that require strategic attention.

Increased SG&A Expenses

Adjusted SG&A expenses for the quarter rose to 19.7% of revenue, up from 12.9% in the previous year. This increase is primarily attributed to the inclusion of NV5 operations, reflecting the costs associated with recent acquisitions.

Challenges in Chemicals Market

The chemicals market continues to show softness, potentially impacting the performance of the Inspection and Mitigation segment. This ongoing challenge requires careful monitoring and strategic adjustments to mitigate its effects.

Forward-Looking Guidance

Looking ahead, TIC Solutions has reaffirmed its full-year 2025 guidance, projecting revenue between $1.530 billion and $1.565 billion and an adjusted EBITDA range of $240 million to $250 million. For 2026, the company anticipates revenue growth between 3% and 5% and an adjusted EBITDA margin of 15.5% to 16.5%. The integration of the NV5 acquisition and the capture of cost synergies estimated at $25 million by mid-2027 remain key strategic priorities.

In summary, the earnings call of Acuren Corporation highlighted a balanced performance with significant growth in key segments, despite facing challenges in others. The company’s strategic initiatives, such as increased synergy targets and a strengthened balance sheet, position it well for future growth. However, market-specific challenges, particularly in the chemicals sector, will require ongoing attention and strategic management.