Quarterly Revenue Growth
First quarter revenue rose 8.3% year-over-year to $215.0 million, the highest Q1 revenue since 2019, driven by stronger activity across core segments.
Large Increase in Adjusted EBITDA and Margin Improvement
Adjusted EBITDA increased 45.2% year-over-year to $7.7 million, with adjusted EBITDA margin improving by 90 basis points versus the prior year period — the best Q1 levels since before 2019.
Segment Revenue Strength — Inspection & Heat Treating
Inspection and Heat Treating revenues increased by $9.8 million, up 8.6% year-over-year, boosted by increased project and call-out activity in the U.S. and Canada.
Segment Revenue Strength — Mechanical Services
Mechanical Services revenues increased by $6.6 million, up 7.8% year-over-year, supported by higher project and turnaround activity with both new and existing customers.
Operating Income Improvement
Operating income improved by $2.6 million, up 43.8% year-over-year, driven by stronger revenues in the U.S. and Canada and lower corporate costs.
Improved SG&A Efficiency
Adjusted SG&A (excluding non-cash and non‑representative items) decreased as a percentage of revenue by 150 basis points year-over-year, indicating improving scalability and operating leverage despite a slight increase in absolute dollars.
Constructive Full-Year 2026 Guidance
Management guided full-year 2026 revenue between $920 million and $945 million (midpoint implying ~4% growth vs. 2025), gross margin between $240 million and $260 million (midpoint ~8% increase vs. 2025), and adjusted EBITDA between $68 million and $73 million (midpoint ~16% increase vs. 2025).
Strategic and Workforce Initiatives
Leadership highlighted workforce investments (a hire-to-retire career path, enhanced benefits, annual satisfaction surveys), disciplined commercial focus on margin-accretive work, and planned cost optimization (supply chain, simplification, systems) aimed at sustainable margin expansion.