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TETRA Technologies Reports First Quarter 2025 Financial Results

On April 29, 2025, TETRA Technologies, Inc. announced its financial performance for the first quarter of 2025, showcasing an impressive revenue of $157 million, marking a 17% increase sequentially. Net income before taxes stood at $5.1 million, slightly down from the previous quarter due to changes in unrealized gains. However, the company's Adjusted EBITDA reached $32.3 million, reflecting a solid rise of 41% compared to the last quarter. This positive momentum is attributed to the robust performance of Completion Fluids and Products, which has become a central focus for TETRA.

Brady Murphy, President and CEO of TETRA, expressed satisfaction with the company’s results, particularly highlighting the 41% sequential growth in Adjusted EBITDA. He remarked that the increase in revenue is not only 17% higher than the previous quarter, but also 4% up from last year, underscoring TETRA's resilience and commitment to sustainable operations.

Business Performance Breakdown

During the quarter, TETRA successfully executed its first of three scheduled TETRA CS Neptune wells and made notable strides on the second well, which was completed in April. The company's Completion Fluids and Products segment saw revenues rise to $93 million, a 35% increase sequentially and 20% year-on-year. This segment posted substantial gains, with a net income before taxes of $30.7 million and a remarkable adjusted EBITDA margin of 35.7%.

Conversely, the Water Flowback Services segment experienced a 2% decline in revenue, reflecting an overall drop in U.S. frac activity. Yet, adjusted EBITDA margins slightly dropped to 13.0%, which still represents an improvement year-on-year. TETRA's strategic focus on technology, automation, and cost control has allowed them to maintain solid margins despite market challenges.

Revised Guidance for First Half of 2025

Given the positive performance in the first quarter, TETRA raised the lower end of its Adjusted EBITDA guidance for the first half of 2025 to a range between $57 million and $65 million. The revenue forecast has also been adjusted, now expecting between $315 million and $345 million. Management anticipates that these targets will be near record highs for the company despite the uncertain macroeconomic environment.

Murphy also highlighted the expected growth from seasonal industrial chemicals, the culmination of the multi-well deepwater project in Brazil, and ongoing expansion initiatives, particularly in the European market. TETRA believes this diversified growth will mitigate the impact of external factors like fluctuating oil prices.

Expansion and Investment Focus

Throughout the quarter, TETRA maintained a solid cash flow profile, generating $3.9 million from operating activities, with adjusted free cash flow amounting to $4.2 million. The company kept its capital expenditures at $18 million, primarily allocated to its Arkansas bromine facility. Moreover, recent approvals from the Arkansas Oil and Gas Commission (AOGC) related to future extraction projects reinforce TETRA’s commitment to sustainable growth and operational efficiency.

Looking ahead, TETRA is optimistic about its capacity to navigate through the current macroeconomic uncertainties and leverage emerging growth opportunities in critical minerals and desalination projects.

As TETRA Technologies continues to innovate and adapt, it remains well-positioned to address the evolving landscape of the energy sector, striving to meet the demand for sustainable energy solutions while ensuring maximum shareholder value.

For further inquiries, TETRA will host a conference call to discuss these results on April 30, 2025, at 10:30 a.m. Eastern Time, providing an opportunity for stakeholders to engage directly with management about the company’s future trajectory and strategic initiatives.