TETRA Technologies(TTI) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 total revenue was $157 million, a 17% sequential increase and a 4% year-over-year increase[3] - Adjusted EBITDA for the first quarter reached $32.3 million, up 41% sequentially from $22.8 million[3] - Revenues for the three months ended March 31, 2025, were $157,140,000, an increase of 16.8% compared to $134,504,000 for the previous quarter[29] - Gross profit for the same period was $42,906,000, representing a gross margin of 27.3%[29] - Adjusted net income for the three months ended March 31, 2025, was $14,336,000, significantly higher than $3,889,000 in the previous quarter[33] - Adjusted net income per share increased to $0.11 for the three months ended March 31, 2025, compared to $0.03 in the previous quarter[33] - Revenues for the three months ended March 31, 2025, totaled $157,140,000, representing an increase from $150,972,000 in the same period of 2024[34] - Adjusted EBITDA for the three months ended March 31, 2025, was $32,267,000, with an adjusted EBITDA margin of 20.5%[34] - Net income before taxes and discontinued operations for the three months ended March 31, 2025, was $5,086,000, compared to $1,295,000 in the same period of 2024[35] - Total Adjusted Free Cash Flow for the three months ended March 31, 2025, was $4,241,000, a significant improvement from a negative $29,617,000 in the same period of 2024[36] - Adjusted EBIT for the twelve months ended March 31, 2025, was $65,902,000, reflecting a significant increase from previous periods[42] Cash Flow and Liquidity - Net cash provided by operating activities was $3.9 million, with free cash flow from the base business at $15.4 million[5] - Liquidity at the end of the first quarter was $208 million, improving to $220 million by April 28, 2025[19] - Net cash provided by operating activities for the three months ended March 31, 2025, was $3,935,000, compared to $5,635,000 in the previous quarter[31] - Cash and cash equivalents increased to $41,000,000 from $36,987,000 in the previous quarter[30] Capital Expenditures and Assets - Capital expenditures totaled $18 million, including $11.2 million for the Arkansas bromine facility[5] - Total current assets rose to $291,054,000 as of March 31, 2025, up from $269,628,000 at the end of the previous quarter[30] - Consolidated total assets increased to $614,085,000 as of March 31, 2025, up from $491,325,000 a year earlier[42] Debt and Leverage - The company reported a net leverage ratio of 1.5X as of March 31, 2025[20] - Net debt as of March 31, 2025, was $139,095,000, a decrease from $142,709,000 as of December 31, 2024[38] - The net leverage ratio as of March 31, 2025, was 1.5, indicating the company's ability to manage its debt relative to its adjusted EBITDA[40] Future Projections - The company expects first half 2025 Adjusted EBITDA to be between $57 million and $65 million, up from previous guidance of $55 million to $65 million[6] - Projected revenues for the first half of 2025 are estimated to be between $315,000,000 and $345,000,000, compared to $322,907,000 for the first half of 2024[44] - Adjusted EBITDA for the projected first half of 2025 is expected to range from $57,000,000 to $65,000,000[44] - Adjusted net income before taxes and discontinued operations for the first half of 2025 is projected to be between $24,000,000 and $35,000,000[44] - Interest expense for the first half of 2024 was $12,137,000, with a projected decrease to between $9,000,000 and $10,000,000 for the first half of 2025[44] Operational Strategy - The company plans to continue focusing on operational efficiency and cost management to enhance profitability in future quarters[32] - The company is exploring potential joint ventures for lithium and bromine extraction, with uncertainties regarding successful negotiations and economic viability[46] Regulatory and Market Conditions - The Arkansas Oil and Gas Commission approved the expansion of the Evergreen Unit for bromine and potential lithium extraction[17] - Forward-looking statements indicate potential risks related to economic conditions and regulatory changes that may impact future performance[45] - The company is positioned to benefit from the growth of Eos Energy Enterprises' battery production, enhancing electrolyte sales[16]