Team, Inc. (TISI) Balance Sheet

The consistent decline in retained earnings, which reached -$476.2 million in 2026Q1, indicates that the company is systematically consuming its book value to cover operational losses. This trajectory suggests that the balance sheet is becoming increasingly fragile, leaving little margin for error in managing its substantial debt obligations.

The reliance on $357.4 million in total debt against a shrinking equity base suggests that the company's financial flexibility is severely constrained. Investors should monitor whether the firm can maintain covenant compliance, as the current leverage profile leaves virtually no room for operational underperformance.

With cash levels representing a small fraction of total debt, the firm appears to lack the liquidity buffer required to navigate cyclical downturns in the refinery services market. This tight cash position suggests that any disruption in project-based cash inflows could immediately threaten the company's ability to meet its near-term obligations.

The concentration of assets in PPE, which stood at $157.0 million in 2026Q1, reflects the capital-intensive nature of the firm's mechanical service model. The reduction in goodwill warrants further investigation, as it may signal that the carrying value of past acquisitions is being adjusted downward to reflect current operational realities.