UBS Reiterates Neutral Rating on Acuren Corp. (TIC)

UBS analyst Joshua Chan reiterated a Neutral rating and $11.00 price target on Acuren Corp. (NYSE: TIC).

The analyst commented, "Shares could trade lower today after TIC announced lower preliminary Q3 results, with revenue and adjusted EBITDA both coming in below our estimate for the quarter. This is the first quarter inclusive of NV5 (partial quarter), and we understand the softer results stemmed more from core Acuren with NV5 seemingly in line with expectations. Management also provided full-year revenue/EBITDA guides that are below our estimate, but this seems driven by the shortfall in Q3 with implied Q4 ranges bracketing us. We anticipate shares trading lower today as investors calibrate for the near-term results."

"TIC anticipates Q3 revenue of $460-480m, below our estimate of $492m. Results include a partial quarter of NV5 since the completion of the transaction in early August. We understand the relative softness was mostly driven by the legacy Acuren business, with NV5 (since deal close) closer to expectations. The company expects Q3 adjusted EBITDA of $75-80m, below our estimate of $84m. At midpoints of both ranges, these imply adjusted EBITDA margin of 16.5%, slightly below our estimate of 17.1%."

For an analyst ratings summary and ratings history on Acuren Corp. click here. For more ratings news on Acuren Corp. click here.

Shares of Acuren Corp. closed at $13.31 yesterday.

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