Acuren Corporation Reports Q3 and Year-to-Date Results for 2024
Acuren Corporation has announced its financial results for the third quarter and the nine months ended September 30, 2024. These results reflect the impact of Acuren’s acquisition of ASP Acuren Holdings, and the transition from the Company’s predecessor to its successor entity. The acquisition of ASP Acuren, completed in July 2024, significantly influenced the comparability of the Company’s operating results for the periods ended September 30, 2024, January 1, 2024 to July 29, 2024, and the nine months of 2023.
Third Quarter 2024 Financial Performance
Acuren’s performance in the third quarter of 2024 showed positive growth, despite the impact of the acquisition and operational shifts. For the period from July 30, 2024, to September 30, 2024 (Successor), the Company reported significant changes in its financial metrics:
- Revenue: The 2024 Predecessor Revenue was $101.5 million, and the Successor Revenue reached $201.5 million. This compared to the Predecessor Revenue of $265.5 million in Q3 2023. Combined revenue for the third quarter of 2024 amounted to $303.0 million, an increase of 14.1% over the prior Predecessor period.
- Gross Profit: The gross profit for the Predecessor period was $25.5 million, or 25.1%, while the Successor gross profit stood at $49.2 million, or 24.4%. In comparison, the Predecessor gross profit for Q3 2023 was $64.2 million or 24.2%. Combined Adjusted Gross Profit for Q3 2024 was $89.8 million, a margin of 29.6%, improving slightly from the previous year’s 29.3%.
- Income from Operations: Income from operations for the 2024 Predecessor period was $2.4 million, while the Successor segment posted a loss from operations of $79.2 million. This compares to the Predecessor income from operations of $16.1 million in the third quarter of 2023.
- Net Income: The Predecessor Net Income for Q3 2024 was $3.9 million, while the Successor recorded a Net Loss of $89.8 million. This is a significant contrast to the Q3 2023 Predecessor Net Income of $1.0 million.
- Adjusted EBITDA: Acuren achieved a combined Adjusted EBITDA of $51.3 million, reflecting a 14.8% increase compared to the previous Predecessor period. The Combined Adjusted EBITDA margin stood at 16.9%, compared to 16.8% in Q3 2023.
Nine-Month 2024 Financial Performance
For the nine months ending September 30, 2024, Acuren experienced substantial changes as it integrated ASP Acuren into its operations. Key financial results for the nine-month period are as follows:
- Revenue: The Predecessor revenue for the first nine months of 2024 was $633.9 million, with Successor revenue for the period from July 30, 2024, to September 30, 2024, totaling $201.5 million. This represents a decrease from the 2023 Predecessor revenue of $779.9 million. Combined revenue for the first nine months of 2024 reached $835.4 million, an increase of 7.1% from the previous period.
- Gross Profit: The Predecessor gross profit for the first nine months of 2024 was $162.0 million, or 25.6%, with Successor gross profit of $49.2 million, or 24.4%. This compares to a Predecessor gross profit of $180.6 million, or 23.2%, in the same period of 2023. Combined Adjusted Gross Profit for the nine-month period was $244.8 million, or 29.3%, reflecting a slight improvement from 28.4% in the previous year.
- Income from Operations: The Predecessor income from operations for the nine months of 2024 was $36.1 million, while the Successor segment posted a loss from operations of $79.2 million. This compares to $44.7 million in income from operations for the first nine months of 2023.
- Net Income/Loss: Acuren reported a Predecessor Net Loss of $2.8 million for the first nine months of 2024, compared to the 2023 Predecessor Net Income of $8.2 million. The combined result for the period was a loss of $92.6 million.
- Adjusted EBITDA: The Company reported combined Adjusted EBITDA of $145.9 million, a 15.2% increase from the previous Predecessor period, with a combined Adjusted EBITDA margin of 17.5%, up from 16.2% in 2023.
CEO and Co-Chairman Commentary
Tal Pizzey, CEO of Acuren, expressed optimism about the Company’s strong performance. He noted, “Our year-to-date results demonstrate our continued growth in service revenue and improved margins, fueled by strong demand from existing clients, expansion into new markets, and successful pricing initiatives in 2023. Our S-4 marks an important milestone as we continue to work towards our public market debut. We are confident that our unique services, loyal client base, and market presence provide a solid foundation for further growth in asset integrity testing, positioning us as a leader in the global testing, inspection, certification, and compliance space.”
Robert A.E. Franklin, Co-Chairman of Acuren, highlighted the Company’s strategic direction, saying, “With the successful filing of our S-4 registration statement, we anticipate starting trading on the OTC Market soon, with a planned listing on the NYSE in early 2025. Our robust balance sheet, strong EBITDA growth, improving margins, and commitment to operational excellence position us to create long-term value for our shareholders and capitalize on future opportunities.”
Planned Relisting
In July 2024, Acuren completed its acquisition of ASP Acuren for $1.88 billion. On December 16, 2024, the U.S. Securities and Exchange Commission declared the Company’s S-4 Registration Statement effective. This marks a key step in Acuren’s re-domiciliation from the British Virgin Islands to Delaware. The Company anticipates its common stock will begin trading on the OTC Market before the end of 2024, with plans to apply for listing on the New York Stock Exchange during the first quarter of 2025.
