Download PDF

1. Company Snapshot

1.a. Company Description

TETRA Technologies, Inc., together with its subsidiaries, operates as a diversified oil and gas services company.It operates through Completion Fluids & Products Division and Water & Flowback Services segments.The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa.


This segment also markets liquid and dry calcium chloride products.The Water & Flowback Services segment provides water management services for onshore oil and gas operators.This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States and Mexico, as well as in various basins in Latin America, Africa, Europe, and the Middle East.


The company was incorporated in 1981 and is headquartered in The Woodlands, Texas.

Show Full description

1.b. Last Insights on TTI

TETRA Technologies, Inc.'s recent performance was negatively impacted by a Q4 earnings miss, with GAAP income from continuing operations coming in at $102 million, below the Zacks Consensus Estimate. The company's adjusted income from continuing operations was $3.9 million, a 16% sequential improvement, but still fell short of expectations. Additionally, the company faced a nomination notice from a shareholder group led by Brad Radoff, which was subsequently withdrawn, but may have contributed to market uncertainty.

1.c. Company Highlights

2. TETRA Technologies Delivers Strong Q1 2025 with Record EBITDA and Strategic Progress

TETRA Technologies reported a standout first quarter for 2025, with record adjusted EBITDA of $32.3 million, marking a 41% increase both sequentially and year-over-year. Total revenue rose to $157 million, up 17% sequentially and 4% year-over-year, driven by robust performance in its Completion Fluids and Products segment. Adjusted EBITDA margins expanded to 20.5%, reflecting strong cost control and operational efficiency. The company also generated $4.2 million in free cash flow, bolstered by the sale of Kodiak shares, and maintained a solid balance sheet with $219 million in liquidity and net leverage of 1.5x. Management raised the lower end of its first-half adjusted EBITDA guidance to $57-$65 million, signaling confidence in its near-term outlook. On the earnings front, EPS came in at $0.11, surpassing consensus estimates of $0.08.

Publication Date: May -01

📋 Highlights
  • Record Adjusted EBITDA: Achieved $32.3 million in Q1 2025, up 41% sequentially and year-over-year, with margins of 20.5%.
  • Revenue Growth: Total revenue of $157 million, increasing 17% sequentially and 4% year-over-year, driven by Completion Fluids and Products segment.
  • Segment Performance: Completion Fluids and Products revenue rose 35% sequentially to $93 million, with adjusted EBITDA margins improving to 35.7% from 27.3% in Q4.
  • Automation and Cost Control: 25% of fleet now automated, exiting lower-margin Polypipe business, and prioritizing higher-margin water treatment and recycling.
  • Strong Free Cash Flow: Generated $41 million year-over-year improvement, funding bromine plant investments of $40-$50 million without equity or debt.

Segment Performance and Strategic Initiatives

The Completion Fluids and Products segment was a standout performer, with revenue surging 35% sequentially to $93 million and adjusted EBITDA of $33.2 million, up 77% sequentially. The segment's margins improved significantly, rising to 35.7% from 27.3% in the prior quarter. Meanwhile, the Water and Flowback Services segment saw revenue decline 2% sequentially to $64 million, though margins remained resilient at 8.3% due to cost control and automation efforts. The company is actively shifting its focus toward higher-margin opportunities, including water desalination and recycling, while exiting lower-margin businesses like Polypipe. CEO Brady Murphy highlighted the transformative potential of these initiatives, stating, "These initiatives are transformational for the company." TETRA is also advancing its Arkansas Evergreen Brine Production Unit and a bromine plant, with capital expenditures of $40-$50 million planned for the year, funded entirely by free cash flow.

Valuation and Outlook

From a valuation perspective, TETRA currently trades at a P/E ratio of 3.16 and a P/B ratio of 1.28, with an EV/EBITDA of 4.31, suggesting the market is pricing in moderate growth expectations. The company's free cash flow yield of -2.42% reflects ongoing investments in growth initiatives, though management expects over $50 million in free cash flow for the year. Analysts have pegged next year's revenue growth at 9.9%, aligning with TETRA's strategic focus on deepwater projects and water management solutions. The company remains optimistic about its outlook, particularly in the Permian Basin, where its water desalination technology is gaining traction. With a strong balance sheet and a clear path to long-term value creation, TETRA appears well-positioned to capitalize on emerging opportunities in energy and water management.

3. NewsRoom

Card image cap

Thiogenesis Reports Positive Interim Phase 2 Trial Results for MELAS and Announces Pipeline Advancements in Leigh Syndrome and Cystinosis

Nov -04

Source: newsfilecorp.com

Card image cap

TETRA Technologies, Inc. (TTI) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

Card image cap

Tetra Technologies (TTI) Meets Q3 Earnings Estimates

Oct -28

Source: zacks.com

Card image cap

TETRA TECHNOLOGIES, INC. ANNOUNCES STRONG THIRD QUARTER 2025 RESULTS

Oct -28

Source: prnewswire.com

Card image cap

TETRA TECHNOLOGIES, INC. ANNOUNCES CFO TRANSITION WITH PLANNED RETIREMENT OF ELIJIO SERRANO AND APPOINTMENT OF MATT SANDERSON

Oct -27

Source: prnewswire.com

Card image cap

TETRA TECHNOLOGIES, INC. ANNOUNCES THIRD QUARTER 2025 EARNINGS RELEASE CONFERENCE CALL AND WEBCAST

Oct -13

Source: prnewswire.com

Card image cap

Tetra Technologies (TTI) Moves 5.2% Higher: Will This Strength Last?

Oct -07

Source: zacks.com

Card image cap

Thiogenesis Announces Extension to Investor Relations Agreement

Oct -03

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Water and Flowback Services

Expected Growth: 12%

TETRA Technologies' Water and Flowback Services segment growth is driven by increasing demand for water management solutions in the oil and gas industry, coupled with the company's expansion into new markets and its ability to provide cost-effective and efficient services. Additionally, the growing need for water conservation and recycling in hydraulic fracturing operations also contributes to the segment's 12% growth.

Completion Fluids and Products

Expected Growth: 18%

TETRA Technologies, Inc.'s Completion Fluids and Products segment growth is driven by increasing demand for oil and gas exploration, rising shale gas production, and growing need for efficient well completion. Additionally, the company's innovative products and services, such as its proprietary Completion Fluids and patented Downhole Cleanup Tools, contribute to its 18% growth.

7. Detailed Products

Completions Fluids

TETRA Technologies, Inc. provides a range of completion fluids designed to optimize wellbore construction, improve well productivity, and reduce operational risks.

Production Enhancement

TETRA offers a suite of production enhancement services and products to improve oil and gas production, including acidizing, hydraulic fracturing, and scale inhibition.

Well Abandonment

TETRA provides well abandonment services, including plugging and abandonment, to ensure safe and environmentally responsible well closure.

Water Management

TETRA offers water management services, including water treatment, disposal, and recycling, to minimize environmental impact and reduce operating costs.

Compression Services

TETRA provides compression services, including equipment rental and operation, to optimize gas production and processing.

Industrial Services

TETRA offers industrial services, including industrial cleaning, maintenance, and repair, to support a range of industries, including oil and gas, power generation, and chemical processing.

8. TETRA Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TETRA Technologies, Inc. is medium due to the availability of alternative products and services in the oil and gas industry.

Bargaining Power Of Customers

The bargaining power of customers for TETRA Technologies, Inc. is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for TETRA Technologies, Inc. is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for TETRA Technologies, Inc. is low due to the high barriers to entry in the oil and gas industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for TETRA Technologies, Inc. is high due to the competitive nature of the oil and gas industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.98%
Debt Cost 14.13%
Equity Weight 47.02%
Equity Cost 14.97%
WACC 14.52%
Leverage 112.68%

11. Quality Control: TETRA Technologies, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NCS Multistage Holdings

A-Score: 5.3/10

Value: 7.9

Growth: 4.8

Quality: 6.9

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
TETRA Technologies

A-Score: 4.6/10

Value: 4.5

Growth: 5.2

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Dawson Geophysical

A-Score: 4.5/10

Value: 7.2

Growth: 4.6

Quality: 3.2

Yield: 4.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Superior Drilling Products

A-Score: 4.3/10

Value: 7.2

Growth: 5.4

Quality: 7.2

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Newpark Resources

A-Score: 3.8/10

Value: 5.5

Growth: 1.7

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
DMC Global

A-Score: 3.4/10

Value: 9.1

Growth: 3.8

Quality: 3.1

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.24$

Current Price

8.24$

Potential

-0.00%

Expected Cash-Flows