Company: TISI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0000318833-25-000070
Chunk: 101

Company: TEAM INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 101
---
 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 

13 

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.

10. 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, 2025December 31, 2024(unaudited)2022 ABL Credit Agreement$67,886 $112,671 First Lien Term Loan1166,351 — 2025 Second Lien Term Loan159,804 — ME/RE Loans1— 22,119 Corre Uptiered Loan1— 143,955 Corre Incremental Term Loan1— 39,824 Equipment Finance Loans666 1,399 Total 294,707 319,968 Finance lease obligations8,116 5,143 Total long-term debt and finance lease obligations302,823 325,111 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,