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Tetra Technologies (TTI)
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Tetra Technologies (TTI) AI Stock Analysis

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TTI

Tetra Technologies

(NYSE:TTI)

Rating:63Neutral
Price Target:
$3.50
▼(-5.91%Downside)
The overall stock score reflects a balanced view of Tetra Technologies' current standing. Key strengths include undervaluation and improved profitability. However, challenges with revenue consistency, balance sheet leverage, and liquidity constraints temper the outlook. Technical indicators show stability, while the earnings call suggests cautious optimism.
Positive Factors
Market Demand
Constructive outlook driven by robust backlog of deep-water projects and strong demand for its PureFlow battery.
Product Launch
Launched TETRA Oasis TDS, an end-to-end water treatment and desalination technology for beneficial re-use and mineral extraction applications.
Revenue Forecast
TTI expects revenues to increase 8-12% vs 2024 and FCF to exceed $50mn.
Negative Factors
Service Division Performance
Strong activity in Completion Fluids will offset softness in Water & Flowback Services.

Tetra Technologies (TTI) vs. SPDR S&P 500 ETF (SPY)

Tetra Technologies Business Overview & Revenue Model

Company DescriptionTetra Technologies, Inc. (TTI) is a diversified oil and gas services company based in The Woodlands, Texas. The company focuses on providing comprehensive solutions to the energy industry, primarily through its water and flowback services, compression services, and chemical services. Tetra Technologies operates in various sectors, including oil and gas exploration, production, and transportation, offering its clients innovative and efficient solutions tailored to their specific needs.
How the Company Makes MoneyTetra Technologies generates revenue through a multi-faceted business model that encompasses various service lines within the energy sector. A significant portion of its income is derived from its water and flowback services, which include water management, treatment, and recycling solutions essential for hydraulic fracturing operations. Compression services also contribute to Tetra's earnings, where the company provides equipment and expertise for natural gas compression, enhancing production and transportation efficiency. Additionally, Tetra's chemical services division supplies specialty chemicals used in drilling and completion activities, further diversifying its revenue streams. Strategic partnerships and contracts with major oil and gas operators play a crucial role in sustaining and expanding its market presence, allowing the company to maintain a stable revenue flow amidst the industry’s cyclical nature.

Tetra Technologies Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 34.78%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
TETRA reported strong financial performance and progress in strategic initiatives, particularly in deepwater operations and emerging growth sectors. However, challenges in U.S. land activity and a slight decline in Water and Flowback Services revenue present potential concerns. The overall outlook is cautiously optimistic, despite some uncertainties in the market.
Q1-2025 Updates
Positive Updates
Record First Quarter Adjusted EBITDA
TETRA achieved a record first quarter adjusted EBITDA of $32.3 million, with adjusted EBITDA margins of 20.5%.
Significant Revenue Growth
Total revenue increased 17% sequentially and 4% from last year, reaching $157 million.
Completion Fluids and Products Segment Performance
Adjusted EBITDA margins increased to 35.7% from 27.3% in the previous quarter, driven by strong deepwater operations.
Free Cash Flow Improvement
Year-over-year free cash flow improved by $41 million, including proceeds from the sale of Kodiak shares.
Emerging Growth Initiatives
Progress in desalination of produced water with TETRA Oasis TDS and collaborations with EOG Resources; strategic supplier of electrolyte products for Eos Z3 utility energy storage systems.
Arkansas Brine Production Unit Expansion
Approval from Arkansas Oil & Gas Commission and completion of drilling operations for test wells indicating good reservoir results.
Negative Updates
Decline in Water and Flowback Services Revenue
Revenue from the Water and Flowback Services segment declined 2% sequentially.
Challenges in U.S. Land Activity
Anticipation of weaker U.S. land activity due to current oil prices, leading to cost actions and reduction in CapEx for this segment.
Uncertainty in Oil Prices and Tariffs Impact
Current oil price environment creates uncertainty for U.S. land activity, though limited financial impact from tariffs is expected.
Company Guidance
During TETRA's First Quarter 2025 Earnings Call, the company provided detailed guidance on its financial performance and strategic initiatives. The guidance highlighted a record adjusted EBITDA of $32.3 million with margins of 20.5%, driven by robust activity in the Completion Fluids and Products segment, which saw adjusted EBITDA margins rise to 35.7%. Total revenue increased to $157 million, up 17% sequentially and 4% year-over-year. TETRA anticipates a strong second quarter, raising the lower end of its first-half 2025 adjusted EBITDA guidance to $57 million to $65 million from the previous $55 million to $65 million. The company generated strong free cash flow with a year-over-year improvement of $41 million. TETRA is strategically focused on automating its Water and Flowback Services segment, which faced a 2% revenue decline but outperformed the U.S. frac activity decline of about 10%. The company expects to complete key projects, including deepwater wells, and is advancing its bromine and lithium extraction initiatives to support future growth.

Tetra Technologies Financial Statement Overview

Summary
Tetra Technologies shows improvement in profitability metrics, with a notable turnaround in net income and operational efficiency. However, challenges remain with consistent revenue growth and balance sheet leverage. The cash flow statement suggests potential liquidity constraints due to high capital expenditures, despite a positive trend in operational cash flow.
Income Statement
67
Positive
Tetra Technologies shows a mixed income statement performance. The company has improved its EBIT and net income over recent years, indicating a turnaround from previous losses. However, revenue has declined from previous highs, and recent gross profit margins have decreased. EBIT and EBITDA margins improved significantly in the latest year, reflecting operational efficiencies.
Balance Sheet
58
Neutral
The balance sheet reveals a moderate financial position. The debt-to-equity ratio has decreased over the years, indicating reduced leverage, but it remains relatively high. The equity ratio is low, suggesting high liabilities relative to total assets. However, improved net income has positively impacted return on equity in the latest year.
Cash Flow
52
Neutral
Cash flow analysis points to volatility. Operating cash flow has fluctuated, with a significant decrease in free cash flow due to higher capital expenditures. The operating cash flow to net income ratio indicates effective cash conversion, but the free cash flow to net income ratio highlights challenges in maintaining liquidity.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue599.11M626.26M553.21M388.27M377.71M
Gross Profit139.85M153.65M121.11M59.24M67.54M
EBITDA86.93M88.38M59.82M35.16M32.05M
Net Income108.28M25.78M7.84M-16.80M-26.84M
Balance Sheet
Total Assets605.20M478.96M434.37M398.27M1.13B
Cash, Cash Equivalents and Short-Term Investments36.99M52.48M13.59M31.55M67.25M
Total Debt213.60M196.80M192.36M191.47M237.46M
Total Liabilities351.89M331.63M327.97M299.70M1.06B
Stockholders Equity254.57M148.59M107.63M99.70M71.06M
Cash Flow
Free Cash Flow-24.16M32.05M-21.10M-15.88M47.53M
Operating Cash Flow36.52M70.21M18.96M4.66M76.91M
Investing Cash Flow-59.06M-27.03M-36.50M-5.17M6.04M
Financing Cash Flow8.87M-4.66M40.00K-50.05M-17.63M

Tetra Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.72
Price Trends
50DMA
3.26
Positive
100DMA
3.11
Positive
200DMA
3.48
Positive
Market Momentum
MACD
0.09
Negative
RSI
60.96
Neutral
STOCH
92.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTI, the sentiment is Positive. The current price of 3.72 is above the 20-day moving average (MA) of 3.47, above the 50-day MA of 3.26, and above the 200-day MA of 3.48, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 60.96 is Neutral, neither overbought nor oversold. The STOCH value of 92.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTI.

Tetra Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$304.23M17.996.77%22.64%78.46%
71
Outperform
$277.63M14.097.41%1.78%-7.56%30.51%
70
Outperform
$375.27M27.5312.80%11.97%188.31%
67
Neutral
$15.27B9.946.24%5.21%4.47%-70.67%
63
Neutral
$500.35M4.4355.55%-4.08%429.70%
59
Neutral
$355.75M66.320.75%-9.04%
58
Neutral
$247.27M-32.34%7.31%-326.94%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TTI
Tetra Technologies
3.72
0.08
2.20%
FTK
Flotek
12.35
8.03
185.88%
FET
Forum Energy Tech
19.71
2.01
11.36%
NGS
Natural Gas Services Group
24.35
4.65
23.60%
OIS
Oil States International
5.78
0.39
7.24%
RNGR
Ranger Energy Services
12.35
1.24
11.16%

Tetra Technologies Corporate Events

Executive/Board ChangesShareholder Meetings
Tetra Technologies Holds Annual Meeting, Elects Board Members
Neutral
Jun 12, 2025

On April 16, 2025, TETRA Technologies, Inc. announced the approval of its Third Amended and Restated 2018 Equity Incentive Plan, which includes an increase of 4,000,000 shares of common stock available for issuance and enhancements to governance provisions. The plan now totals 20,365,000 shares available for issuance. At the Annual Meeting held on June 12, 2025, stockholders voted on several key matters, including the election of eight board members, approval of executive compensation, ratification of Grant Thornton LLP as auditors, and the approval of the Amended Plan. John F. Glick was reappointed as Chair of the Board, and board committees were reconstituted.

The most recent analyst rating on (TTI) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Tetra Technologies stock, see the TTI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025