Tetra Technologies Q3 revenue beats estimates on international expansion, strong industrial chemical sales
Overview
U.S. energy services and chemicals firm's Q3 revenue up 10% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Growth driven by international expansion and strong industrial chemical sales
Outlook
Company expects Q4 2026 revenue and Adjusted EBITDA to rise double digits year-on-year
Tetra expects 2027 revenue and Adjusted EBITDA to increase versus 2026
Company sees robust deepwater and international activity, with continued growth in production testing
Result Drivers
INTERNATIONAL EXPANSION - Co said international revenue reached $68.8 mln, accounting for 41% of consolidated revenue and marking the strongest third quarter in 10 years
INDUSTRIAL CHEMICAL SALES - Industrial Chemicals segment posted its highest third-quarter revenue in a decade, up 32% yr/yr, supported by expanding U.S. industrial market and demand for electrolytes for energy storage
PRODUCTION TESTING GAINS - Water & Flowback segment revenue grew 21% yr/yr, driven by production testing operations reaching a ten-year high and market share gains for automated TETRA SandStorm technology in the U.S. and internationally
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $167.95 mln | $156.86 mln (5 Analysts) |
Q3 Adjusted EPS | Beat | $0.06 | $0.04 (4 Analysts) |
Q3 EPS | $0.05 | ||
Q3 Adjusted EBITDA | $25.12 mln | ||
Q3 Gross Profit | $35.10 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy"
Wall Street's median 12-month price target for TETRA Technologies, Inc. is $11.00, about 98.9% above its November 2 closing price of $5.53
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)