NYSE$TTI

TETRA Technologies Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and total year 2023 results, with revenue increasing 4% year-over-year and adjusted EBITDA increasing 19% year-over-year.

TETRA Technologies reported a 4% year-over-year increase in fourth quarter revenue to $153.1 million. The company's adjusted net income from continuing operations improved by 51% year-over-year to $3.8 million, with adjusted EPS at $0.03. Adjusted EBITDA increased by 19% year-over-year to $24.1 million. Net loss before discontinued operations was $4.2 million, with a net loss per share of $0.03. Net cash provided by operating activities was $19 million, and adjusted free cash flow was $20 million.

  • Fourth quarter revenue increased 4% year-over-year to $153.1 million.
  • Adjusted net income from continuing operations was $3.8 million, a 51% year-over-year improvement.
  • Adjusted EBITDA increased 19% year-over-year to $24.1 million.
  • Net cash provided by operating activities was $19 million, while adjusted free cash flow was $20 million.

Headline financials

Total Revenue

$153M

Previous: $147M+3.9%
EPS (adj)

$0.03

Previous: $0.02+50.0%
Adjusted EBITDA Margin

15.8%

Previous: 13.8%+14.5%
CF&P Adj EBITDA Margin

25.3%

No prior period
W&FS Adj EBITDA Margin

14.0%

No prior period
Capital Expenditures

-$7.91M

Previous: $7.38M-207.2%
Net Income

-$3.89M

Previous: -$1.9M-104.5%
Operating Income

$31.7M

Previous: -$1.16M+2825.7%
Gross Profit

$27.1M

Previous: $31.1M-12.7%
Stock-Based Comp

$6.42M

Previous: $3.52M+82.5%

Revenue & EPS history

TETRA · Revenue · Quarterly

$153M

Q4 2023+3.9%vs Q4 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

The company anticipates further growth in 2024 and expects to continue to generate strong free cash flow from its base business to fund investments in its Arkansas projects.

Tailwinds

  • Strong recovery in chemicals business.
  • Continued strong activity in offshore completion fluids business.
  • Modest growth in Water & Flowback Services segment.
  • Recently completed the engineering design for our first produced water desalination plant for beneficial re-use applications.
  • Expect to see a material ramp up in electrolyte deliveries during the second half of 2024.

Headwinds

  • Water & Flowback Services business experienced a slowdown as several customers paused activity over the holidays.
  • Some year-end customer destocking activity in our industrial chemicals business resulted in lower activity.
  • Lower Adjusted EBITDA compared to the third quarter.
  • Completion Fluids & Products also experienced a year-end slowdown driven by industrial chemicals, as several customers went through destocking activities.
  • Margins were impacted by lower utilization and lower production volumes.

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 Q4 2023

Historical avgQ4 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%

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