Which segments have higher growth visibility for the next 12 months, and will Geospatial's quarterly volatility continue?

Geospatial's revenue will continue to move around due to large fixed-price contracts. Consulting & Engineering has strong visibility due to its 20% backlog increase. I&M is expected to contribute to overall growth in H2 and next year, having seen positive year-on-year growth in June. “With GEO, just with the large fixed price contract, that does move around a little bit more than the other segments. Obviously, C&E is performing extremely well. And with that backlog being up 20%, we've got really strong visibility into its continued growth.”

What are the key levers for the 17% growth in C&E, specifically organic growth, cross-selling, and other factors?

Data centers are a significant driver, but C&E still grew 7% excluding data centers, primarily organically. Power and utilities, and infrastructure are also strong contributors, aligning with megatrends. Cross-selling within the segment is contributing, and improvements in utilization and a robust M&A pipeline are also driving growth. “And data centers is driving a lot of it. But what I really like is that if you remove data centers from the growth, it's actually still growing at a pace of about 7%. And the vast majority of this is organic.”

Can you provide more color on the improving indicators in the I&M segment?

Management highlighted June revenue turning positive year-on-year as a key indicator, the first time in a long period. They also noted new site wins, particularly in the Gulf Coast, and successful pricing actions on contracts, attributing the improvements to structural changes made in the business. “Obviously, the June being -- it's only 1 month, but being up year-on-year is really -- it's the first time we've been able to say that in a long time.”

TIC

TIC Solutions (TIC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 6, 2026

Source: earnings call transcript

Executive summary

TIC Solutions Q2 FY26 — Record Backlog and Improving I&M Trajectory

TIC Solutions delivered solid Q2 FY26 results, marked by strong growth in Consulting & Engineering and Geospatial segments, alongside improving commercial indicators in Inspection & Mitigation. The company achieved a record backlog and made progress on synergy realization, reinforcing confidence in its full-year guidance and long-term targets. Management emphasized the success of cross-selling initiatives, strategic M&A, and disciplined capital allocation to drive margin expansion and deleveraging, despite I&M's temporary revenue decline.

Highlights

Consolidated adjusted EBITDA margin improved 40 basis points year-over-year to 16.2%.
Record combined Consulting & Engineering and Geospatial backlog increased 20% year-over-year to $1.18 billion.
Consulting & Engineering revenue grew 16.8% year-over-year to $207 million.
Geospatial revenue grew 7.9% year-over-year to $81 million.
Annualized run rate synergy savings reached $20 million, up from $17 million in Q1, on track for $25 million by year-end.

Concerns

Inspection & Mitigation (I&M) revenue decreased 5.5% year-over-year to $297 million, impacted by approximately $30 million from 2025 site losses and timing of planned outage work.
Adjusted SG&A increased to 22.1% of revenue from 21.2% last year, driven by higher incentive compensation, indirect labor, legal reserves, benefit costs, and overhead from acquired businesses.
Bank calculated net leverage increased to 3.7x, primarily due to seasonal working capital build and share repurchases.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$2.15 billion to $2.25 billion high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$330 million to $355 million high materiality	FY26	High
Third Quarter Revenue	$610 million to $630 million medium materiality	Q3 · FY26	High
Third Quarter Adjusted EBITDA	$100 million to $110 million medium materiality	Q3 · FY26	High
Full-year 2026 Net Interest Expense	$95 million to $105 million low materiality	FY26	Medium
Full-year 2026 Cash Taxes	$25 million to $30 million low materiality	FY26	Medium
Full-year 2026 Capital Expenditures	$50 million to $65 million low materiality	FY26	Medium
Long-term Revenue Target	$3 billion high materiality	FY29	High
Long-term Adjusted EBITDA Margin Target	18% high materiality	FY29	High
Long-term Free Cash Flow Conversion Target	85% high materiality	FY29	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Consulting & Engineering (Q2 FY26) Growth driven by continued strength in power and utilities, buildings, infrastructure, and data centers. Improvement in adjusted gross margin by 75 basis points reflected favorable mix and improved operating execution. Excluding data centers, growth was approximately 7% organically. Recent wins include grid hardening work and a multiyear agreement with a large California utility. Battery storage is an additional area of growing activity. Data center trailing 12-month revenue: $98 millionData center backlog: $110 million	$207 million	16.8%	—	47.2% adjusted gross margin
Inspection & Mitigation (Q2 FY26) Revenue decline primarily reflected 2025 site losses and timing of planned outage work, totaling approximately $30 million. Adjusted gross margin was down 45 basis points due to lower outage activity. Commercial indicators significantly improved, with fallout work growing and multiple new run and maintain sites awarded. June revenue turned positive year-over-year. Expanding into data centers, bridges, and traditional public infrastructure.	$297 million	-5.5%	—	28.3% adjusted gross margin
Geospatial (Q2 FY26) Growth primarily driven by power and utilities clients and broader private sector markets. Adjusted gross margin improved 360 basis points due to favorable mix and project timing. Completed a major high-profile pilot for federal offshore mapping. Revenue and margins can vary quarter-to-quarter based on timing and mix of large fixed-fee contracts.	$81 million	7.9%	—	51.5% adjusted gross margin
Consulting & Engineering (H1 FY26) Strong performance in the first half of the fiscal year.	$394 million	13.3%	—	47.4% adjusted gross margin
Inspection & Mitigation (H1 FY26) Revenue decline in the first half of the fiscal year.	$532 million	-3%	—	26.6% adjusted gross margin
Geospatial (H1 FY26) Solid performance in the first half of the fiscal year.	$147 million	6.3%	—	51.3% adjusted gross margin

Orderbook & backlog

Combined C&E and GEO backlog $1.18 billion Q2 FY26

up 20% YoY

Provides high visibility as we enter the second half of 2026 and into next year.

Deals & partnerships

Multiple undisclosed companies Bolt-on acquisitions adding technical capabilities and broadening geographic density.

Completed 3 bolt-on acquisitions during the quarter. One smaller acquisition closed last month. The company aims to deploy $100 million to $150 million annually for bolt-on M&A.

Undisclosed client Multiyear Master Service Agreement (MSA) for LNG work. $30 million multiyear

A new MSA landed for the Inspection & Mitigation segment.

Risks & headwinds

Inspection & Mitigation (I&M) revenue decline Q2 FY26

Down 5.5% YoY, approximately $30 million combined impact

Mitigation:Work shifting from Q2 into H2 FY26; commercial momentum building with new site wins and robust proposal pipeline; June revenue turned positive YoY; segment positioned to return to consistent growth profile in H2 FY26.

Increased Adjusted SG&A as a percentage of revenue Q2 FY26

22.1% of revenue in Q2 FY26, up from 21.2% last year

Mitigation:Focus on improving SG&A leverage through cost management, integration initiatives, and growth across the business.

Increased bank calculated net leverage as of June 30, 2026

3.7x

Mitigation:Expect cash conversion to increase in the second half as collections catch up with revenue; focus on deleveraging the balance sheet over time.

What to watch in Q3 FY26

I&M revenue growth

Second half of 2026

Current Down 5.5% YoY in Q2; June revenue positive YoY

Target Consistent growth profile

Why it matters

Indicates successful conversion of commercial momentum and planned outage work, crucial for overall company growth.

As we move through the second half of 2026, we expect I&M to benefit from normal seasonal activity, continued site win conversion and further progress in commercial execution. The segment is positioned to return to a more consistent growth profile while maintaining margin discipline.

Find out whether TIC delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you quantify the revenue impact of cross-selling for 2026 and 2027, and its contribution to organic growth?

Management stated that while specific cross-selling numbers are not reported, its impact is reflected in the record backlog and end market exposure. They highlighted numerous successful projects resulting from the breadth of services and growing momentum in company-wide collaboration.

“While we're not sort of reporting on the cross-selling numbers itself, it is showing up in the record backlog numbers that we're talking about and the end market exposure that each of our segments are now getting through the cross-selling program.”

asked by Christopher Moore · answered by Benjamin Heraud

2 min read 5 chapters

Detailed narrative

Cross-Selling Momentum and Life Cycle Model

TIC Solutions is seeing positive commercial results from its integrated platform and cross-selling initiatives, which are expanding the scope of work and creating opportunities that would not have existed as separate businesses. This momentum is reflected in a record combined C&E and GEO backlog of $1.18 billion, up 20% year-over-year.

An example includes a municipal client awarding multiple assignments for bridge and water pump station life cycle support, including digital twin development, engineering, inspection, and mitigation, creating a repeatable model for global infrastructure owners.

End Market Strength and Diversification

The company benefits from strong demand in essential, high-growth end markets. Buildings end market revenue increased 28% to $115 million, industrial manufacturing and metals grew over 40% to $56 million, power and utilities increased 11% to $90 million, and aerospace and defense saw over 40% growth to $10 million.

These markets align with megatrends like aging infrastructure, growing energy demand, and increasing data consumption, reinforcing the company's strategy to expand capabilities and improve margins.

AI Initiatives for Efficiency and Margin Expansion

TIC Solutions is leveraging technology and AI to improve efficiency across its operations. Initiatives include a procedure knowledge assistant for field technicians and an engineering report assistant to streamline historical data access. Document intelligence tools are also used to identify inconsistencies and risks in contracts and RFPs.

These tools are expected to cumulatively support utilization, cost discipline, and margin expansion over time, without impacting pricing or work acquisition.

Inspection & Mitigation (I&M) Turnaround

Despite a 5.5% revenue decline in Q2 due to prior site losses and outage timing, I&M showed significant commercial improvement, with June revenue turning positive year-over-year. Fallout work grew, new run and maintain sites were awarded, and the commercial proposal pipeline is robust.

The segment is expanding into attractive adjacent end markets like data centers, bridges, and traditional public infrastructure, with new multiyear engagements like a bridge inspection and NDT contract. Management expects I&M to return to a consistent growth profile in H2 2026.

Capital Deployment and Integration Progress

The company completed three bolt-on acquisitions in Q2, adding technical capabilities and geographic density. It repriced its $1.6 billion term loan, reducing annual cash interest by $4 million, and repurchased 1.9 million shares for $16 million. Total liquidity stood at $474 million.

Integration efforts continue to yield results, with $20 million in annualized run rate synergy savings achieved by Q2, on track for $25 million by year-end, with $6 million realized in H1 and $15 million expected for FY26.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.