TIC Solutions Lifts 2026 Outlook as Q3 Revenue Rises 12.5%

TIC Solutions (NYSE:TIC) raised its full-year revenue guidance to a range of $2.24 billion to $2.27 billion, up from $2.15 billion to $2.25 billion, after posting third-quarter revenue of $640 million, up 12.5% from $569 million a year earlier. Growth showed up in all three business segments, and management signaled more of the same for 2027.

The topline acceleration came from within. Organic growth (revenue excluding acquisitions) jumped to 8.4% from just 2.5% in the second quarter. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose 19% to $107 million, with margin expanding to 16.8% from 15.9%. Adjusted diluted EPS came in at $0.18, up from $0.14 in the prior quarter. Year-over-year comparisons use a non-GAAP combined view of legacy Acuren and legacy NV5.

What's driving the growth?

CEO Ben Heraud credited cross-selling services across the combined business. The consulting and engineering plus geospatial backlog hit a record $1.29 billion, up 23% year over year.

By segment, the quarter split three ways:

• Inspection and mitigation: revenue up 8.5% to $318 million, on callout, outage and capital project activity, including work shifted out of the second quarter. Adjusted gross margin rose 80 basis points to 29.2%.
• Consulting and engineering: revenue climbed 20.3% to $223 million, with adjusted gross margin roughly flat at 47.4%. Buildings, infrastructure, and power and utilities all contributed.
• Geospatial: revenue up 9.3% to $98 million, supported by power and utilities and military programs plus acquisitions — but adjusted gross margin fell 330 basis points to 44.9% on project timing, mix, execution and a higher share of pass-through work.

Heraud called inspection a low- to mid-single-digit grower with a robust commercial pipeline, and CFO Kristin Schultes noted rope access work grew more than 20% in the quarter. On the geospatial margin slip, Heraud said TIC has made leadership changes there and is importing project-management practices from consulting and engineering. Schultes said the company doesn't expect further margin degradation in the fourth quarter, though it hasn't issued segment-level guidance.

How big is the data center business now?

Data center revenue doubled to $38 million for the quarter. That brought trailing 12-month revenue to $117 million, clearing the company's earlier $100 million target, and Heraud said the unit carries a backlog of more than $120 million. Roughly 80% of data center revenue sits in Asia Pacific, 20% in the U.S., with a small amount in Europe.

The takeaway: a small segment is compounding fast enough to become a real growth lever.

What did acquisitions and the balance sheet do?

TIC announced three strategic acquisitions during the quarter — Canadian surveying and geomatics business GeoVerra, utility-focused GIS consulting and data services provider WDI, and European commissioning consultancy Core Group. Together they generate approximately $90 million in annualized revenue, Heraud said.

The company deployed $170 million in net cash on acquisitions in the quarter, including an additional bolt-on deal. Schultes said two of the four businesses were somewhat larger than the others, and that the quarter's acquisition multiples landed at the high end of TIC's stated five-to-seven-times range.

Leverage moved up with the spending. Bank-calculated net leverage rose to 3.9 times, against a long-term target of 2.5 times, as TIC invested in working capital and deals. Schultes said revenue concentrated in August and September lifted receivables, with collections on delayed inspection work expected partly in the fourth quarter and the remainder in early 2027.

Integration savings are tracking ahead: approximately $22 million in annualized run-rate savings were actioned by Sept. 30, keeping TIC on pace for its $25 million year-end target, with roughly $15 million expected to be realized in 2026.

What does the outlook imply?

Alongside the raised revenue guidance, TIC narrowed its adjusted EBITDA forecast to $342 million to $350 million from $330 million to $355 million, lifting the midpoint to $346 million. That implies fourth-quarter revenue of $528 million to $558 million and adjusted EBITDA of $82 million to $90 million — midpoints that work out to roughly 7% and 13% year-over-year growth, respectively, Schultes said.

She told analysts the fourth-quarter outlook implies organic growth with only a small contribution from acquisitions, given their timing and the seasonality of the acquired businesses. For 2027, TIC is planning for mid-to-high single-digit revenue growth, with adjusted EBITDA growing faster than revenue and consulting, engineering and geospatial outpacing inspection and mitigation. Formal 2027 guidance comes later.

Bottom line: a guidance raise, a doubling data center business and record backlog — offset only by a levered balance sheet TIC intends to work down.