Executive Summary

Record Q1 performance driven by Completion Fluids & Products (CF&P): Adjusted EBITDA rose to $32.3M (20.5% margin) on $157.1M revenue; GAAP EPS $0.03 and adjusted EPS $0.11 . Versus consensus, adjusted EPS beat ($0.11 vs $0.06*) while revenue was slightly below ($157.1M vs $159.7M*) (S&P Global).
Guidance mixed for 1H25: Raised the low end of Adjusted EBITDA to $57–$65M from $55–$65M (raise), but lowered revenue to $315–$345M from $325–$355M and cut GAAP pre-tax income outlook to $10.5–$23.2M (from $19–$34M); introduced adjusted pre-tax income $24–$35M .
CF&P margins inflected to 35.7% (from 27.3% in Q4) on Neptune and deepwater strength plus European industrial chemicals seasonality; Water & Flowback (W&F) resilient with 13.0% margins despite volume softness and cost actions .
Near-term catalysts: Q2 seasonal calcium chloride peak, completion of Brazil deepwater first well, Neptune well completions, 100% utilization of automated SandStorm/Auto-Drillout fleets, and Arkansas Evergreen Unit expansion approvals; management sees minimal tariff impact but flags U.S. onshore uncertainty if oil slips .

What Went Well and What Went Wrong

What Went Well

Record first-quarter Adjusted EBITDA and improved consolidated margins to 20.5% on strong CF&P execution; “record first-quarter Adjusted EBITDA of $32.3 million” (CEO) .
CF&P margin expansion to 35.7% (from 27.3%) driven by Neptune HPHT fluid wins and deepwater activity; management: “completed the first of the three scheduled TETRA CS Neptune wells” .
Strategic progress: 24 deepwater projects worked (vs 15 YoY), near-100% utilization for automated SandStorm/Auto-Drillout, and Arkansas Evergreen Unit expansion enabling longer-term bromine/lithium options .
Quote (CEO): “We expect to see the full benefit of our European industrial chemicals seasonal peak… and the completion of the three well TETRA CS Neptune project” .

What Went Wrong

Revenue modestly below Street ($157.1M vs $159.7M*) as U.S. onshore W&F volumes remained soft (-2% q/q; -13% y/y) despite margin resilience .
Guidance trims: revenue and GAAP pre-tax income ranges were lowered for 1H25, reflecting macro/onshore uncertainty, even as Adjusted EBITDA low end rose .
Non-recurring items: $9.5M non-cash FX loss from dissolving a Canadian entity and ~$1.9M of legal/advisor/severance in W&F; GAAP EPS remains below adjusted EPS .

Financial Results

Consolidated results vs prior periods and consensus

Metric	Q1 2024	Q4 2024	Q1 2025	Q1 2025 Consensus (S&P Global)*
Revenue ($M)	$151.0	$134.5	$157.1	$159.7*
Adjusted EBITDA ($M)	$22.8	$22.8	$32.3	$26.2 (EBITDA)*
EBITDA Margin % (Adj)	15.1%	17.0%	20.5%	—
GAAP Diluted EPS ($)	$0.01	$0.77	$0.03	—
Adjusted EPS ($)	$0.05	$0.03	$0.11	$0.06 (Primary EPS)*

Notes: Consensus values marked with an asterisk (*) are from S&P Global and may reflect differing EBITDA definitions versus company “Adjusted EBITDA”. Values retrieved from S&P Global.

Segment performance (Q1 2025 vs Q4 2024 vs Q1 2024)

Segment	Metric	Q1 2024	Q4 2024	Q1 2025
Completion Fluids & Products	Revenue ($M)	$77.3	$68.9	$93.0
	Adjusted EBITDA ($M)	$21.8	$18.8	$33.2
	Adj EBITDA Margin %	28.1%	27.3%	35.7%
Water & Flowback Services	Revenue ($M)	$73.7	$65.6	$64.1
	Adjusted EBITDA ($M)	$7.1	$8.9	$8.3
	Adj EBITDA Margin %	9.6%	13.6%	13.0%

KPIs and balance sheet

KPI	Q4 2024	Q1 2025
Deepwater projects executed (count)	—	24 (vs 15 YoY)
Cash from Ops ($M)	$5.6	$3.9
Total Capex ($M)	$14.9 (purchases of PP&E)	$18.0
Total Adjusted Free Cash Flow ($M)	($9.3)	$4.2
Base Business Adjusted FCF ($M)	($9.5)	$15.4
Liquidity ($M)	$182.2	$208 at Q1-end; $220 as of 4/28
Net Debt ($M)	$142.7	$139.1
Net Leverage Ratio (x)	1.77x	1.5x

Non-GAAP: See company schedules for definitions and reconciliations .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($M)	1H 2025	$55–$65	$57–$65	Raised low end
Revenue ($M)	1H 2025	$325–$355	$315–$345	Lowered
Net income before taxes & disc. ops ($M)	1H 2025	$19–$34	$10.5–$23.2	Lowered
Adjusted net income before taxes & disc. ops ($M)	1H 2025	n/a	$24–$35	Introduced

Management rationale: strong CF&P outlook (Neptune, Brazil, European chemicals) and W&F caution on U.S. activity/oil price; minimal expected tariff impact .

Earnings Call Themes & Trends

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
Deepwater/Neptune	Brazil multi-well award; Neptune pipeline building	“Most visibility in years” for 1H25 with Neptune + Brazil	1st Neptune well completed; 2nd completed in April; 24 deepwater projects in Q1	Strengthening execution and visibility
W&F automation	Near max utilization for automated SandStorm; plan to upgrade more units	Mid-teens margins targeted despite slower U.S. onshore	~100% utilization of automated fleets; sustained 13% margin; exit lower-margin lines	Efficiency and mix improving
Desalination (Oasis TDS)	Multiple NDAs; pilots in Permian/Mid-Con/Appalachia	Commercial launch announced in Dec.; successful WET testing	EOG pilot; increased regulatory/customer engagement; pilots accelerating	Commercial traction improving
Eos electrolyte	Capacity added; expect step-up with automation	Anticipate ramp in 1H25	Expect sequential growth in shipments; sourcing aligned for 2 GWh line	Ramp underway
Arkansas bromine project	DFS economics; considering staged capex; bridge supply	Self-funding focus; working capital build for 1H25 monetization	AOGC approved Evergreen expansion; plan production wells; staged approach, funding via base FCF	De-risking and phasing
Tariffs / Macro	—	—	Minimal tariff impact; oil pullback = U.S. onshore uncertainty	Manageable tariffs; macro watch

Management Commentary

Strategy: “We are very pleased with our record first-quarter Adjusted EBITDA… led by strong performance from Completion Fluids and Products” .
Outlook: “We expect to see the full benefit of our European industrial chemicals seasonal peak… the first well from our multi-year deepwater Brazil project and the completion of the three well TETRA CS Neptune project” .
W&F priorities: “Our patented automated TETRA SandStorm and Auto-Drillout units are nearly 100% utilized… enhancing margins throughout the year” .
Desalination progress: “Commercial pilot with EOG… growing momentum across the customer base and regulatory support” .
Funding discipline: “Base business will generate in excess of $50 million free cash flow… moving methodically in advancing our bromine plant” .

Q&A Highlights

Oasis commercialization/regulatory path: Customers are moving faster toward commercial pilots; increasing legislative and regulatory support in TX and NM for beneficial reuse .
Arkansas timing and cost share: First production well to be drilled and placed on standby until plant ready; upstream costs shared with partner .
1H guidance interpretation: Range reflects deepwater project timing; clarification that the $30M range applies to 1H, not Q2 alone .
Deepwater resilience: Long-cycle dynamics; no change to 2025 projects currently slated; watch oil price for later-year slippage risk .
Capital allocation: Open to partnership/project financing to avoid dilution and over-leverage on bromine; staging remains preferred .

Estimates Context

Q1 2025 vs S&P Global consensus: Adjusted/normalized EPS $0.11 vs $0.06* (beat); Revenue $157.1M vs $159.7M* (slight miss). EBITDA consensus $26.2M* vs company-reported Adjusted EBITDA $32.3M (note differing definitions) . Values retrieved from S&P Global.
Drivers of EPS beat: CF&P mix and margins (Neptune + deepwater + Europe seasonality), cost controls and automation offsetting W&F volume softness .
Estimate revisions likely: Street may lift margin assumptions for CF&P through Q2 on confirmed seasonal/Neptune tailwinds, while trimming full-1H revenue/GAAP pre-tax to align with lowered ranges .

Key Takeaways for Investors

CF&P is the earnings engine near-term; 35.7% segment margin and record Q1 adjusted EBITDA point to strong Q2 as Europe chemicals peak and Neptune/Brazil contribute .
W&F is holding mid-teen margins via automation and mix (treatment/recycling), with near-100% utilization of automated fleets; revenue sensitivity remains to U.S. onshore activity .
Guidance recalibration: Expect stronger profitability (raised Adjusted EBITDA low end) but slightly lower 1H revenue/GAAP pre-tax; model accordingly .
Strategic optionality advancing: Arkansas Evergreen expansion approved (bromine/lithium/magnesium/manganese); staged capex approach reduces financing risk; potential bridge bromine supply supports Eos and deepwater demand .
Desalination commercialization gaining momentum (EOG pilot, regulatory engagement); incremental optionality beyond oil & gas can broaden investor base .
Balance sheet/liquidity supportive: $208M liquidity at Q1-end ($220M by 4/28), net leverage 1.5x; management targeting >$50M base FCF in 2025 to self-fund strategic initiatives .
Trading setup: Near-term catalysts (Q2 seasonal peak, Neptune completions, Brazil start) vs macro/onshore uncertainty; watch execution on Eos electrolyte ramp and additional Neptune awards for multiple expansion .

Footnote: Consensus figures marked with an asterisk (*) are from S&P Global. Values retrieved from S&P Global.

TETRA TECHNOLOGIES INC (TTI)·Q1 2025 Earnings Summary