NYSE$TTI

TETRA Technologies Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced third-quarter 2022 financial results, reflecting a mix of revenue growth and seasonal impacts.

TETRA Technologies reported third-quarter revenue of $135 million, a 41% increase year-over-year, but a 4% decrease from the previous quarter due to seasonality in the European industrial chemicals business. Net income was break even, while adjusted EBITDA reached $18.6 million, up 24% year-over-year.

  • Water & Flowback Services revenue increased 15% quarter-on-quarter, driven by differentiated technologies and integrated water management strategy.
  • Completion Fluids & Products revenue decreased 21% from the second quarter due to seasonal factors, but Adjusted EBITDA margins improved to 24.9%.
  • The company announced exclusive technology agreements for recycling produced water from oil and gas wells for beneficial re-use.
  • TETRA completed a maiden inferred bromine and lithium brine resource estimation report, highlighting a significant resource on their Arkansas brine leased acreage.

Headline financials

Total Revenue

$135M

Previous: $95.5M+41.4%
EPS (adj)

$0.02

Previous: $0.01+100.0%
Adjusted EBITDA Margin

13.8%

No prior period
Net Leverage Ratio

1.7

No prior period
Capital Expenditures

-$32.7M

Previous: -$14.6M-123.5%
Free Cash Flow

-$32.4M

Previous: -$12.1M-167.6%
Net Income

$278K

Previous: $2.51M-88.9%
Operating Income

$5.65M

Previous: -$86.6M+106.5%
Gross Profit

$29.5M

Previous: $15.7M+87.2%
Cash & Equivalents

$25.2M

Previous: $41.9M-39.7%
Total Assets

$413M

Previous: $411M+0.5%
Stock-Based Comp

$1.1M

Previous: $1.06M+3.9%

Revenue & EPS history

TETRA · Revenue · Quarterly

$135M

Q3 2022+41.4%vs Q3 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

TETRA · $175M total across 2 segments · Q2 2023

  • Completion Fluids & Products
    $98.2M
  • Water & Flowback Services
    $77.2M

Forward guidance

TETRA anticipates continued growth in its core businesses, particularly in the offshore and deepwater markets, and is making strides in its low carbon initiatives, including bromine and lithium resource development.

Tailwinds

  • Stronger activity expected in the North America onshore business.
  • Growth in Latin America.
  • Continued expansion into battery storage markets.
  • Expected profits from bromine and lithium assets.
  • Significant value in net income to cash flow conversion from tax loss carryforwards.

Headwinds

  • Supply chain challenges persist, especially with certain chemicals and raw materials.
  • Inflationary pressures continue to impact margins.
  • Supply chain constraint impacting a European supplier is improving but is not yet back to full production levels.
  • Key raw material prices in North America are still very inflated.
  • Fulfilling demand with spot market bromine which impacts margins.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.8%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-1.8%

Avg return

30 days after

52%

35 / 67 earnings

Positive

+37.4%

Q2 2015

Best reaction

-18.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-4.5%+5.0%
Q4 2025-18.7%-23.9%-22.6%
Q3 2025-7.6%-7.8%-0.1%
Q1 2025+3.3%-1.4%-2.9%
Q4 2024-4.1%-11.5%-12.0%
Q3 2024+14.2%+3.5%+21.5%
Q2 2024-0.6%-13.0%-12.2%
Q1 2024-18.0%-12.4%-18.2%
Q4 2023+5.7%+2.3%+14.8%
Q3 2023-14.6%-17.8%-15.3%
Q2 2023+14.4%+20.5%+26.7%
Q1 2023-1.8%+2.5%-8.8%
Q4 2022-8.0%-7.0%-33.1%
Q3 2022-16.0%-12.1%-20.8%
Q2 2022-10.7%-15.1%-9.1%
Q1 2022+19.6%+22.6%+48.6%
Q4 2021+5.4%+18.4%+32.0%
Q3 2021+12.1%+19.2%-22.6%
Q2 2021+9.1%+7.1%+1.6%
Q1 2021+30.1%+38.6%+51.0%
Q4 2020+9.1%+3.3%+14.0%
Q3 2020-1.5%-1.8%+50.9%
Q2 2020-0.8%-15.5%-14.1%
Q1 2020+14.3%+12.2%-2.4%
Q4 2019-11.9%-24.5%-74.8%
Q3 2019-16.3%-21.2%-31.0%
Q2 2019+23.0%+33.1%+18.0%
Q1 2019-2.8%-2.8%-31.1%
Q3 2018-10.8%-21.3%-40.8%
Q2 2018+13.4%+18.2%+1.7%
Q1 2018+8.3%+10.0%+3.3%
Q4 2017-3.7%+2.4%+0.3%
Q3 2017+17.8%+13.3%+26.9%
Q2 2017-15.6%-16.9%-15.6%
Q1 2017+11.7%+7.1%-1.9%
Q4 2016-0.4%-3.8%-9.4%
Q3 2016-5.4%+6.2%+13.7%
Q2 2016-1.7%-1.9%-0.3%
Q1 2016-11.3%
Q4 2015-6.0%
Q3 2015+13.8%
Q2 2015+37.4%
Q1 2015+7.0%
Q4 2014+10.2%
Q3 2014-7.0%
Q2 2014+1.5%
Q1 2014-5.6%
Q4 2013-1.7%
Q3 2013-3.1%
Q2 2013+14.4%
Q1 2013-3.8%
Q4 2012-0.3%
Q3 2012+8.4%
Q2 2012+0.1%
Q1 2012+3.7%
Q4 2011-6.5%
Q3 2011-4.2%
Q2 2011+8.9%
Q1 2010+8.9%
Q1 2011+3.8%
Q4 2010+2.1%
Q4 2008+2.1%
Q3 2009+0.8%
Q3 2010+0.8%
Q2 2009+3.2%
Q4 2009+3.2%
Q2 2010+3.2%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro