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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.

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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Additionally, the company faced a nomination notice from a shareholder group led by Brad Radoff, which was subsequently withdrawn, but may have contributed to market uncertainty.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' Q3 2025 Earnings: A Strong Step Towards One TETRA 2030

TETRA Technologies reported a revenue of $153 million for its third-quarter 2025 earnings, representing an 8% year-over-year increase. The adjusted EBITDA stood at $25 million, marking a 7% rise from the previous year. The company's EPS came in at $0.04, in line with analyst estimates. The Completion Fluids & Products segment witnessed a significant 39% increase in revenue compared to the previous year, with adjusted EBITDA margins rising by $6.9 million. In contrast, the Water & Flowback Services revenue declined 2% sequentially and 18% year-over-year, although adjusted EBITDA rose 18% sequentially due to better cost controls.

Publication Date: Nov -17

📋 Highlights
  • Revenue & EBITDA Growth:: Q3 2025 revenue hit $153M (+8% YoY), adjusted EBITDA at $25M (+7% YoY).
  • Completion Fluids Segment Surge:: Revenue rose 39% YoY, with $6.9M EBITDA margin expansion.
  • 2030 Strategy Targets:: Aims to double revenue to $1.2B and triple EBITDA to $300M by 2030.
  • Bromine Plant Impact:: Expected to deliver $200–250M incremental revenue and $90–115M EBITDA annually.
  • Argentina Expansion:: Forecasts doubling 2026 revenue, driven by Eos Energy and deepwater markets.

Guidance Update and CFO Transition

The company updated its 2025 guidance, projecting total year EBITDA to be between $107 million and $112 million. Additionally, Elijio Serrano, CFO, announced his retirement, and Matt Sanderson will replace him as CFO. The One TETRA 2030 strategy aims to more than double revenue to over $1.2 billion and triple adjusted EBITDA to over $300 million by 2030.

Operational Highlights

TETRA's Arkansas bromine plant is on schedule and under budget, with a planned capacity to process 75 million pounds of bromine per year. The company expects to generate between $200 million to $250 million in additional revenue and between $90 million and $115 million of adjusted EBITDA from the plant. The company also completed the installation of its bulk delivery system, which will significantly increase electrolyte volumes in 2026.

Cash Flow and Balance Sheet

The company is focused on generating free cash flow from its base business to maintain a strong balance sheet and self-fund its bromine project. It ended the third quarter with $67 million of cash on hand and a net leverage ratio of 1.2x. The company expects to reduce lease expense by approximately $2 million per year after relocating to a new corporate office.

Valuation and Outlook

With a P/E Ratio of 8.4, P/B Ratio of 3.46, and EV/EBITDA of 12.29, the market seems to have priced in a reasonable growth trajectory for TETRA Technologies. Analysts estimate next year's revenue growth at 4.2%. The company's management team expressed confidence in their business prospects, citing a strong base business and a promising outlook related to their One 2030 strategy. The journey towards One TETRA 2030 remains on schedule, with materializing milestones including increasing Eos volumes and the bromine plant on schedule and within budget.

Growth Drivers

TETRA Technologies' management team discussed the company's prospects for 2026, highlighting confidence in their deepwater business, driven by growth in key markets such as the Gulf of America, Brazil, and the North Sea. The company expects a strong performance in 2026, fueled by several growth drivers, including a doubling of revenue in Argentina and contributions from their Eos Energy business.

3. NewsRoom

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TETRA TECHNOLOGIES, INC. AND MAGRATHEA METALS, INC.

Dec -02

Source: prnewswire.com

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Tetra Technologies (NYSE:TTI) versus Core Laboratories (NYSE:CLB) Head to Head Review

Dec -02

Source: defenseworld.net

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TETRA TECHNOLOGIES, INC. TO PARTICIPATE IN THE WELLS FARGO 24TH ANNUAL ENERGY & POWER SYMPOSIUM

Dec -01

Source: prnewswire.com

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Thiogenesis Therapeutics Expands on Plans for Phase 3 Pivotal Trial of TTI-0102 in Nephropathic Cystinosis

Nov -24

Source: newsfilecorp.com

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

Nov -04

Source: newsfilecorp.com

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

Oct -29

Source: seekingalpha.com

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Tetra Technologies (TTI) Meets Q3 Earnings Estimates

Oct -28

Source: zacks.com

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TETRA TECHNOLOGIES, INC. ANNOUNCES STRONG THIRD QUARTER 2025 RESULTS

Oct -28

Source: prnewswire.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

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Value: 7.9

Growth: 4.8

Quality: 6.9

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

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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

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Quality: 7.2

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Value: 5.5

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Quality: 5.4

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Value: 9.1

Growth: 3.8

Quality: 3.1

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.42$

Current Price

8.42$

Potential

-0.00%

Expected Cash-Flows