Stifel has revised its price target for Tetra Technologies (TTI, Financial), lowering it to $6 from the previous $6.50, while maintaining a Buy rating. The oil services sector, including TTI, has lagged behind the S&P 500 in 2025, with mostly negative catalysts impacting performance. As the second-quarter earnings season approaches, Stifel anticipates that TTI's stock will remain within a specific range until there is a halt in declining estimates.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Tetra Technologies Inc (TTI, Financial) is $5.50 with a high estimate of $7.00 and a low estimate of $4.00. The average target implies an upside of 65.66% from the current price of $3.32. More detailed estimate data can be found on the Tetra Technologies Inc (TTI) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Tetra Technologies Inc's (TTI, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tetra Technologies Inc (TTI, Financial) in one year is $4.12, suggesting a upside of 24.1% from the current price of $3.32. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tetra Technologies Inc (TTI) Summary page.
TTI Key Business Developments
Release Date: April 30, 2025
- Adjusted EBITDA: Record $32.3 million, with margins of 20.5%.
- Total Revenue: $157 million, up 17% sequentially and 4% year-over-year.
- Completion Fluids and Products Revenue: $93 million, increased 35% sequentially.
- Completion Fluids and Products Adjusted EBITDA: $33.2 million, up 77% sequentially, with margins of 35.7%.
- Water and Flowback Services Revenue: $64 million, decreased 2% sequentially, but up 13% year-over-year.
- Water and Flowback Services Adjusted EBITDA: $8.3 million, increased $1.2 million year-over-year.
- Free Cash Flow: $4.2 million, with $15.4 million from the base business.
- Capital Expenditures: $18 million in Q1, including $11 million for Arkansas bromine plant expansion.
- Liquidity: Approximately $219 million, including $75 million available for the bromine project.
- Net Leverage Ratio: Improved to 1.5 times from 1.8 times at the end of the previous year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tetra Technologies Inc (TTI, Financial) reported a record first quarter adjusted EBITDA of $32.3 million with margins of 20.5%, driven by strong performance in the completion fluids and product segment.
- Total revenue increased by 17% sequentially and 4% year-over-year, indicating solid growth.
- The company successfully completed the first of three scheduled Tetra CS Neptune wells and made significant progress on the second well.
- Tetra Technologies Inc (TTI) saw a 60% increase in offshore deepwater operations, reflecting a steady increase in the deepwater market.
- The company generated strong free cash flow in the first quarter, with a year-over-year improvement of $41 million, including proceeds from the sale of Kodiak shares.
Negative Points
- Revenue for the water and flowback services segment declined by 2% sequentially, despite outperforming the US frac activity decline of approximately 10%.
- Margins on water and flowback services were down slightly from the fourth quarter, indicating some pressure in this segment.
- The current oil price environment creates uncertainty for US land activity, which could impact future performance.
- The deepwater market's lumpiness due to the timing of well completions can lead to variability in business results.
- There is uncertainty regarding the timing of future deepwater projects, which could be affected by prolonged lower oil prices.
