Leadership Transition and Strategic Focus
New CEO Gary Hill (first earnings call) with 30+ years experience; emphasizes accelerating top-line growth, margin expansion, efficiency improvements, and investment in people and infrastructure to drive future growth.
Capital Structure Refinancing and Lowered Interest Costs
Refinanced in March 2025, lowering blended interest rate by more than 100 basis points and extending term loan maturities to 2030, improving financial flexibility and reducing cost of capital.
Private Placement and Debt Paydown
Closed a $75 million private placement of preferred stock and warrants in September 2025; used proceeds to pay down approximately $67 million of debt and amended credit facilities to increase ABL commitment by $20 million and lower interest margins.
Liquidity and Net Debt Position
Exited 2025 with $77.4 million of liquidity and net debt of $279.0 million, down from about $289.6 million at year-end 2024 (reduction of roughly $10.6 million).
Fourth Quarter Revenue and Segment Growth
Q4 revenue increased $11.5 million or 5.4% year-over-year; driven by Mechanical Services (+8.9%) and Inspection & Heat Treating (+1.9%).
Fourth Quarter Operating Income and Adjusted EBITDA Improvement
Q4 operating income rose $4.4 million or 200% year-over-year; adjusted EBITDA increased by nearly $2.0 million to $16.4 million in the quarter.
Full Year Revenue and Adjusted EBITDA Growth
FY2025 revenue up $44.0 million or 5.2% year-over-year with Inspection & Heat Treating +7.5% and Mechanical Services +2.8%; generated $60.7 million of adjusted EBITDA, ~12% improvement vs. 2024.
Margin Expansion and Cost Management
Adjusted EBITDA margin expanded to almost 7.0% in 2025 from 6.4% in 2024; adjusted SG&A was reduced by $1.0 million in absolute terms and improved by 150 basis points as a percentage of revenue in Q4, reflecting ongoing cost management initiatives.