Dallas-based Permian Investment Partners reported buying nearly 4.9 million additional shares of TIC Solutions, Inc. (TIC 8.99%) in a November 14 SEC filing.
What Happened
According to a Securities and Exchange Commission (SEC) filing dated November 14, Permian Investment Partners increased its stake in TIC Solutions, Inc. (TIC 8.99%) by nearly 4.9 million shares during the third quarter. The position’s dollar value rose by approximately $86.9 million from the prior quarter, and the holding now totals nearly 14.6 million shares worth $193.9 million as of September 30.
What Else to Know
TIC Solutions now represents about 21.9% of reportable AUM, making it the largest position in the portfolio.
Top holdings after the filing:
- NYSE:TIC: $193.9 million (21.9% of AUM)
- NASDAQ:GRFS: $173.8 million (19.6% of AUM)
- NYSE:KBR: $150.5 million (17% of AUM)
- NYSE:NRG: $125 million (14.1% of AUM)
- NYSE:ARMK: $81.7 million (9.2% of AUM)
As of Monday, shares were priced at $10.34, down nearly 20% since the stock was listed on the New York Stock Exchange in February.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Monday) | $10.34 |
| Market Capitalization | $2.3 billion |
| Revenue (TTM) | $1.1 billion |
| Net Income (TTM) | ($121.2 million) |
Company Snapshot
TIC Solutions, Inc. provides specialty business services focused on nondestructive testing and inspection. The company provides nondestructive testing, inspection, engineering, and laboratory testing services across the United States and Canada. It operates as a specialty business services provider and serves clients in regulated industries that require technical inspection and compliance services.
Foolish Take
Permian’s decision to load up on TIC Solutions shows growing conviction in a business built around recurring, compliance-driven demand rather than cyclical spending. TIC operates in testing, inspection, certification, and engineering services where work is frequently mandated, repeat in nature, and difficult to displace once embedded. That kind of revenue profile can compound quietly, even when headline results look noisy.
The company’s latest quarter underscores that dynamic. Third-quarter revenue reached $473.9 million, boosted by the NV5 merger, while adjusted EBITDA climbed to $77.3 million, up 51% year over year on a combined basis. While TIC still reported a net loss (of $13.9 million), margins improved and management raised its identified cost synergy target to $25 million, signaling confidence in integration execution. Plus, liquidity remains solid with $282.9 million available at quarter end, providing flexibility as the company works toward longer-term goals.
Within the portfolio, TIC now sits alongside sizable positions in KBR and GRFS, reinforcing a clear preference for asset-light service businesses with technical barriers to entry. The stock’s decline since its NYSE debut may reflect some skepticism, but for patient investors, expanding scale, resilient end markets, and improving cash generation could outweigh near-term volatility if execution stays on track.
Glossary
13F reportable assets under management: The total value of securities a fund must disclose in quarterly SEC filings, per regulatory requirements.
AUM (Assets Under Management): The total market value of all investments managed by a fund or investment firm.
Trailing twelve-month (TTM): The 12-month period ending with the most recent quarterly report.
Alpha: A measure of an investment's performance compared to a benchmark, indicating excess return or outperformance.
Nondestructive testing: Inspection methods that evaluate materials or structures without causing damage, often used for safety and quality control.
Net value change: The difference in the dollar value of a position after buying or selling securities.
Reportable AUM: The portion of a fund’s assets that must be disclosed in regulatory filings, such as the SEC’s Form 13F.
Top holding: The investment that represents the largest percentage of a fund’s portfolio.
52-week high: The highest price at which a security has traded during the past year.
Market close: The end of the regular trading session for a stock exchange on a given day.
