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Dec 31, 2024
TETRA Q4 2024 Earnings Report
TETRA Technologies, Inc. reported a GAAP income of $102 million and diluted earnings per share of $0.77 for the fourth quarter of 2024, driven by a significant non-cash deferred tax asset adjustment. Adjusted income from continuing operations improved sequentially, with Adjusted EBITDA reaching $22.8 million.
Key Takeaways
TETRA Technologies, Inc. announced its fourth quarter and total year 2024 results, highlighting a GAAP income of $102 million, significantly boosted by a $97.5 million non-cash favorable valuation allowance adjustment to deferred tax assets. Adjusted income from continuing operations was $3.9 million, a 16% sequential improvement, with Adjusted EBITDA at $22.8 million. Revenue for the quarter was $134.5 million, a 5% sequential decrease. The company also reported strong offshore activity and record high produced water treatment volumes.
Fourth quarter GAAP income from continuing operations was $102 million, including a $97.5 million non-cash favorable valuation allowance adjustment to deferred tax assets.
Adjusted income from continuing operations improved 16% sequentially to $3.9 million, with Adjusted diluted net income per share at $0.03.
Fourth quarter Adjusted EBITDA was $22.8 million, with margins improving to 17.0% from 16.6% in the third quarter.
The company monetized its entire equity investment in Kodiak Gas Services Inc. in January 2025, generating approximately $19 million in cash proceeds.
Revenue by Segment
Forward Guidance
For the first half of 2025, TETRA anticipates net income before taxes to be between $19 million and $34 million, and Adjusted EBITDA to be between $55 million and $65 million, potentially reaching a ten-year record high. The company expects high single-digit to low double-digit revenue growth for the full year 2025 and over $50 million in free cash flow from its base business.
Positive Outlook
- Expected net income before taxes in H1 2025 to be between $19 million and $34 million.
- Anticipated Adjusted EBITDA in H1 2025 to be between $55 million and $65 million, potentially near or above a ten-year record high.
- Expected high single-digit to low double-digit revenue growth for the full year 2025.
- Anticipated generation of over $50 million of free cash flow from base business in 2025.
- Strong and growing base business with a robust backlog of deep-water projects.
Challenges Ahead
- U.S. onshore activity was weaker than normal at year-end.
- Revenue decreased 5% sequentially in Q4 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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