Despite achieving 108.4% year-over-year revenue growth to $488.0 million, the company continues to face profitability challenges with a -6.0% operating margin in 2026Q1.
| Sales/Revenue | 1.78B | 1.53B | 1.1B | 1.05B |
| Revenue Growth % | - | 39.45% | 4.51% | - |
| Cost of Goods Sold | 1.22B | 1.08B | 831.73M | 810.53M |
| COGS % of Revenue | - | 70.64% | 75.79% | 77.19% |
| Gross Profit | 566.99M | 449.36M | 265.66M | 239.52M |
| Gross Margin % | 31.78% | 29.36% | 24.21% | 22.81% |
| Gross Profit Growth % | - | 69.15% | 10.91% | - |
| Operating Expenses | 538.05M | 440.83M | 312.88M | 185.02M |
| OpEx % of Revenue | - | 28.81% | 28.51% | 17.62% |
| Selling, General & Admin | 538.7M | 440.83M | 0 | 185.02M |
| SG&A % of Revenue | - | 28.81% | - | 17.62% |
| Research & Development | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 312.88M | 0 |
| Operating Income | -11.09M | 8.53M | -47.21M | 54.5M |
| Operating Margin % | -0.62% | 0.56% | -4.3% | 5.19% |
| Operating Income Growth % | - | 118.07% | -186.63% | - |
| EBITDA | 215.35M | 186.86M | 45.88M | 149.32M |
| EBITDA Margin % | 12.07% | 12.21% | 4.18% | 14.22% |
| EBITDA Growth % | - | 307.31% | -69.28% | - |
| D&A (Non-Cash Add-back) | 226.44M | 178.33M | 93.09M | 94.82M |
| EBIT | -27.91M | 8.53M | -6.01M | 55.74M |
| Net Interest Income | -100.64M | -87.62M | -70.44M | -58.78M |
| Interest Income | 0 | 0 | 0 | 1.24M |
| Interest Expense | 100.64M | 87.62M | 70.44M | 60.02M |
| Other Income/Expense | -120.76M | -106.7M | -75.95M | -58.78M |
| Pretax Income | -131.85M | -98.17M | -123.17M | -4.28M |
| Pretax Margin % | -7.39% | -6.42% | -11.22% | -0.41% |
| Income Tax | -28.98M | -11.06M | -2.01M | 2.01M |
| Effective Tax Rate % | 21.98% | 11.26% | 1.63% | -46.94% |
| Net Income | -102.87M | -87.12M | -121.16M | -6.29M |
| Net Margin % | -5.77% | -5.69% | -11.04% | -0.6% |
| Net Income Growth % | - | 28.1% | -1826.46% | - |
| Net Income (Continuing) | -102.87M | -87.12M | -121.16M | -6.29M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.47 | -0.59 | -0.13 | -1.25 |
| EPS Growth % | - | -353.85% | 89.6% | - |
| EPS (Basic) | - | -0.59 | -0.13 | -1.25 |
| Diluted Shares Outstanding | 218.25M | 157.6M | 121.48M | 5.02M |
| Basic Shares Outstanding | 217.25M | 156.6M | 121.48M | 5.02M |
| Dividend Payout Ratio | - | - | - | - |
Persistent Operating Margin Deficit
As indicated by the most recent quarterly data, TIC achieved a significant 108.4% year-over-year revenue growth, reaching $488.0 million, which suggests a substantial increase in market activity or successful project acquisition despite the underlying instability in the company's broader operational performance and recurring revenue base.
The sharp acceleration in top-line growth appears to be driven by a surge in project-based industrial maintenance demand. However, investors should monitor whether this growth is sustainable or merely a reflection of lumpy, non-recurring turnaround contracts that may not provide long-term revenue durability.
According to the provided financial statements, TIC's gross margin has improved from 18.6% in 2025Q1 to 33.1% in 2026Q1, reflecting a more efficient deployment of labor resources during peak service periods despite the persistent challenges in maintaining profitability at the operating level for the firm.
The expansion in gross margin suggests that management is successfully optimizing technician utilization rates on-site. Nevertheless, the inability to translate these gains into positive operating income implies that overhead costs remain disproportionately high relative to the current scale of operations.
Based on reported figures, TIC's operating margin of -6.0% in 2026Q1 highlights a failure to achieve operating leverage, as SG&A expenses of $150.3 million continue to outpace the gross profit generated, suggesting that the company's current cost structure is not yet optimized for its revenue scale.
The disconnect between rising revenue and negative operating income indicates that the company is struggling with high fixed costs or inefficient administrative overhead. This warrants further investigation into whether these expenses are temporary investments in growth or structural inefficiencies that could threaten long-term solvency.
As reported in the latest income statement, TIC continues to post negative net income, with a loss of $41.5 million in 2026Q1, which appears to be exacerbated by non-operating items and the absence of consistent bottom-line profitability despite the company's aggressive top-line expansion efforts.
The persistent net losses suggest that the company's core business model is currently unable to cover its total cost of capital and administrative burden. Investors should be cautious of the reliance on non-operating adjustments, as they may be masking deeper issues within the company's fundamental earnings power.
While TIC reports strong revenue growth, the company's history of negative net margins, as shown in the quarterly data, suggests that the current business model may be fundamentally flawed, with short-sellers likely focusing on the high cash burn and the inability to achieve consistent operational profitability.
The reliance on high-volume, low-margin project work may be creating a cycle of revenue growth that fails to generate shareholder value. If the company cannot demonstrate a clear path to positive operating margins, the current valuation may be at risk of significant downward revision.
Quick answers to the most common questions about buying TIC stock.
For fiscal year 2025, TIC Solutions, Inc. (TIC) reported total revenue of $1.53B. This represents a 45.7% increase compared to $1.05B in 2023.
TIC Solutions, Inc. (TIC) reported a net loss of $87.1M for the fiscal year ending 2025.
TIC Solutions, Inc. (TIC) reported an operating income of $8.5M, resulting in an operating profit margin of 0.6%. This margin reflects the operational efficiency of the business before interest and taxes.
TIC Solutions, Inc. (TIC) generated $449.4M in gross profit for the year, representing a gross profit margin of 29.4%. This demonstrates the company's core pricing power and production efficiency.