TETRA Technologies (TTI) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached $157.1 million, up 17% sequentially and 4.1% year-over-year, driven by strong Completion Fluids & Products performance and deepwater Gulf of America projects.

• Adjusted EBITDA hit a record $32.3 million, up 41% sequentially and year-over-year, with margins of 20.5%.

• Net income attributable to stockholders was $4.0 million, a significant increase from $0.9 million in Q1 2024.

• The company advanced strategic growth initiatives, including produced water desalination, energy storage electrolyte supply, and bromine/lithium extraction in Arkansas.

• Water & Flowback Services saw a 13% revenue decline year-over-year due to weaker U.S. onshore activity.

Financial highlights

• Gross profit increased 38% year-over-year to $42.9 million, with margin improving to 27.3%.

• Completion Fluids & Products segment Adjusted EBITDA margins increased to 35.7% from 27.3% in Q4.

• First quarter adjusted free cash flow was $4.2 million, with $15.4 million from base business, including $19 million from Kodiak share sale.

• Capital expenditures totaled $18 million, with $11.2 million invested in the Arkansas bromine facility.

• Net income per diluted share was $0.03, up from $0.01 in Q1 2024.

Outlook and guidance

• Raised lower end of first half 2025 Adjusted EBITDA guidance to $57–$65 million, up from $55–$65 million.

• Revenue guidance revised to $315–$345 million.

• Expect record high Adjusted EBITDA for the first half if guidance is met.

• Anticipate full benefit from European industrial chemicals seasonal peak and completion of key deepwater projects in Q2.

• Cautious outlook for Water & Flowback Services due to oil price volatility.