TTI

The headline is ugly and misleading. Net income fell 97% to $3.0M, dragging the P/E to a nonsensical 569x — but that collapse is almost entirely a tax artifact, not operating decay. The MD&A shows income tax went from an $84.9M benefit in 2024 to a $22.3M expense in 2025, a ~$107M swing that masks the real story: operating income actually GREW 11% to $55.4M, gross profit rose 11.5% to $156M, and operating cash flow nearly tripled (+174.8%) to $100M. So the business underneath is improving, not deteriorating — the per-share earnings figure is just structurally distorted this year.

The two-segment mix tells the durable picture. Completion Fluids & Products is the engine: +$65.2M of revenue from three high-margin TETRA Neptune deepwater wells in the Gulf of America, a new multi-year Brazil deepwater contract, and steady industrial calcium chloride. That offset a $33.3M decline in Water & Flowback Services from the US onshore slowdown and the sale of Latin American early-production facilities. Net consolidated revenue still grew 5.3% to $631M, and management is diversifying away from weak US onshore via new Argentina contracts. The balance sheet is sturdier than the income statement implies — cash nearly doubled to $72.6M, long-term debt was flat at $181M, current ratio is a healthy ~2.0x ($317M / $156M), and interest expense fell 22.9%.