NYSE$TTI

TETRA Technologies Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Announced third quarter 2023 financial results, showing revenue growth and improved profitability.

TETRA Technologies reported a strong third quarter with a 12% year-over-year increase in revenue, improved net income, and significant growth in adjusted EBITDA. The company also achieved a key milestone with the approval of its Arkansas brine unit application and positive results from its second test well.

  • Third quarter revenue increased 12% year-over-year to $151.5 million.
  • Net income before discontinued operations improved to $5.5 million.
  • Adjusted EBITDA increased 40% year-over-year to $26.1 million.
  • The Arkansas Oil & Gas Commission approved the 6,138 acre joint brine unit application.

Headline financials

Total Revenue

$151M

Previous: $135M+12.2%
EPS (adj)

$0.07

Previous: $0.02+250.0%
Adjusted EBITDA Margin

17.2%

Previous: 13.8%+24.6%
Net Leverage Ratio

1.4

Previous: 1.7-17.6%
Capital Expenditures

-$30.2M

Previous: -$32.7M+7.5%
Free Cash Flow

-$24.8M

Previous: -$32.4M+23.4%
Net Income

$5.42M

Previous: $278K+1849.6%
Operating Income

$10.6M

Previous: $5.65M+86.7%
Gross Profit

$37.9M

Previous: $29.5M+28.7%
Cash & Equivalents

$33.8M

Previous: $25.2M+34.0%
Total Assets

$472M

Previous: $413M+14.3%
Stock-Based Comp

$1.43M

Previous: $1.1M+30.3%

Revenue & EPS history

TETRA · Revenue · Quarterly

$151M

Q3 2023+12.2%vs Q3 2022
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 strong cash from operating activities and Adjusted Free Cash Flow in the fourth quarter of 2023, driven by the EPF sale and working capital improvements. Total year 2023 cash from operating activities is expected to be between $70 million and $79 million, while Adjusted Free Cash Flow is expected to be between $35 million and $40 million.

Tailwinds

  • Strong cash from operating activities expected in Q4.
  • Adjusted Free Cash Flow expected to be strong in Q4.
  • Cash proceeds from the EPF sale will boost cash flow.
  • Working capital improvements are expected.
  • Full year 2023 cash from operating activities is expected to be between $70 million and $79 million.

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 2023

Historical avgQ3 2023

+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%

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