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TETRA TECHNOLOGIES, INC. ANNOUNCES FOURTH QUARTER AND TOTAL YEAR 2024 RESULTS AND PROVIDES FIRST-HALF 2025 GUIDANCE
TTITETRA Technologies(TTI) Prnewswire·2025-02-25 22:00

Core Insights - TETRA Technologies, Inc. reported fourth quarter and total year 2024 results, highlighting a mixed performance with strong offshore activity but weaker U.S. onshore activity [1][2] - The company achieved an adjusted EBITDA margin of 17.0%, an improvement from previous quarters, despite a decrease in revenue [2][5] - TETRA's strategic focus on produced water led to record high treatment and recycling volumes, alongside the successful commercial launch of the TETRA Oasis Total Desalination Solution [2][8] Financial Performance - Fourth quarter 2024 revenue was 135million,adecreaseof5135 million, a decrease of 5% from the third quarter [5][16] - Net income from continuing operations was 102 million, significantly higher than 2.8millioninthepreviousquarter,largelyduetonon−recurringtaxcredits[5][10]−AdjustedEBITDAforthefourthquarterwas2.8 million in the previous quarter, largely due to non-recurring tax credits [5][10] - Adjusted EBITDA for the fourth quarter was 22.8 million, down 3% from the third quarter, with margins impacted by lower production volumes [6][9] Cash Flow and Investments - Cash flow from operating activities was 5.6million,adeclinefrom5.6 million, a decline from 19.9 million in the third quarter [7][10] - The company reported an adjusted free cash flow use of 9.3millioninthefourthquarter,comparedtoapositive9.3 million in the fourth quarter, compared to a positive 6.3 million in the third quarter [7][10] - TETRA monetized its equity investment in Kodiak Gas Services, generating approximately 19millionincashproceeds[2][6]StrategicInitiatives−TETRAinvested19 million in cash proceeds [2][6] Strategic Initiatives - TETRA invested 22 million in strategic initiatives in Arkansas, focusing on engineering and reservoir studies for a bromine project [10][11] - The company anticipates a strong first half of 2025, with expected net income before taxes between 19millionand19 million and 34 million [3][12] - TETRA is prioritizing projects that can impact near-term results, including TETRA CS Neptune fluids and water desalination technologies [12][11] Tax and Deferred Assets - A favorable adjustment of 97.5milliontodeferredtaxassetswasrecognized,reflectingTETRA′sprofitablepositionandexpectationsofstrongerfutureprofits[4][15]−ThecompanyestimatesthatitsU.S.federaltaxlosscarryforwardcanoffsetapproximately97.5 million to deferred tax assets was recognized, reflecting TETRA's profitable position and expectations of stronger future profits [4][15] - The company estimates that its U.S. federal tax loss carryforward can offset approximately 345 million of taxable pretax income in 2025 and beyond [4][15] Yearly Overview - Total year revenue for 2024 was 599million,adecreaseof599 million, a decrease of 27 million from 2023, with international operations contributing to the decline [16][17] - Income from continuing operations improved to 113.6millionin2024,comparedto113.6 million in 2024, compared to 25.5 million in 2023 [16][17] - Adjusted EBITDA for the full year was 99million,downfrom99 million, down from 107 million in 2023, with margins decreasing slightly [16][17]