TETRA Technologies(US:TTI)2025-10-28 21:03Financial Performance - Consolidated revenue for the first nine months of 2025 was $484.3 million, a 4.2% increase compared to $464.6 million in the same period of 2024[88][104] - Consolidated gross profit for the first nine months of 2025 was $127.5 million, up 17.3% from $108.7 million in the prior year[104][105] - Consolidated net income attributable to TETRA stockholders for the nine months ended September 30, 2025, was $19.5 million, a 250.8% increase from $5.6 million in the same period of 2024[104] - Operating income for the first nine months of 2025 was $52.9 million, reflecting a 26.3% increase compared to $41.9 million in the prior year[104] - Consolidated income from continuing operations before taxes increased by 52.8% to $32.6 million for the nine months ended September 30, 2025, compared to $21.4 million in the prior year[104] Division Performance - Completion Fluids & Products Division revenues increased due to strong performance in the deepwater Gulf of America, particularly from the three-well CS Neptune project[89] - Consolidated revenues for the Completion Fluids & Products Division increased by $50.3 million, or 20.7%, to $292.7 million for the nine months ended September 30, 2025, compared to $242.4 million in 2024[109] - Gross profit for the Completion Fluids & Products Division rose by $27.1 million, or 32.1%, to $111.6 million, driven by stronger volumes and higher-margin product sales[109] - Revenues for the Water & Flowback Services Division decreased by $30.7 million, or 13.8%, to $191.5 million, attributed to lower drilling activity in the U.S. and reduced service revenues[111] - Operating income for the Water & Flowback Services Division turned to a loss of $83, a decrease of $10.2 million, or 100.8%, compared to a profit of $10.1 million in the prior year[111] Cash Flow and Expenditures - Consolidated cash flows from operating activities increased to $68.6 million for the nine months ended September 30, 2025, compared to $30.9 million in 2024[115] - Total cash capital expenditures for the first nine months of 2025 were $53.2 million, with $37.2 million allocated to the Arkansas brine resource development[117] - The company reported liquidity of $208.1 million at the end of the third quarter, consisting of unrestricted cash and available credit[114] Future Projects and Expectations - The company expects the bromine processing plant in Arkansas to be operational by the end of 2027, with first production anticipated in 2028[91] - The TETRA Oasis Total Desalination Solution ("TDS") is being developed for re-use and mineral extraction applications, with engineering design for the first commercial plant already completed[92] Risks and Uncertainties - The Company anticipates future events and financial performance based on reasonable assumptions, but these forward-looking statements are subject to numerous risks and uncertainties[136] - The Company is exposed to currency exchange rate risks related to revenues, expenses, and operating receivables in foreign currencies, but had no foreign currency exchange contracts outstanding as of September 30, 2025[141] - The Company faces competition from existing and new competitors, which may impact its market position and financial performance[138] - The Company is subject to risks related to acquisitions and its growth strategy, including emerging growth initiatives[136] - The Company acknowledges the potential impact of global health concerns, geopolitical tensions, and regulatory changes on its operations and financial results[136] - The Company cautions investors regarding the economic viability of its mineral resources and the uncertainties related to their development[137] Financial Agreements - The Company has a Term Credit Agreement with a scheduled maturity on January 1, 2030, bearing an interest rate of 10.01% on a principal amount of $190,000,000[140] - As of September 30, 2025, the Company had no borrowings outstanding under its ABL Credit Agreement or Swedish Credit Facility[139] - The Company has not entered into any interest rate swap contracts or other derivatives to hedge against interest rate fluctuations[139] Taxation - The effective tax rate decreased to 40.2% from 46.7% in the prior year, primarily due to an out-of-period adjustment[108]