Tetra Technologies Inc. press release

TETRA TECHNOLOGIES, INC. REPORTS STRONG FIRST-QUARTER 2026 RESULTS MAINTAINS 2026 GUIDANCE

2026-04-29

NYSE - New York Stock Exchange · Bromine · Lithium · Zinc · Salt · Sodium · United States · Corporate Finance

PR Newswire

SPRING, Texas, April 29, 2026/PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) announced financial results for the three months ended March 31, 2026.

First-Quarter 2026 Financial Highlights

Revenues of $156.3 million Income from continuing operations of $8.3 million, inclusive of $0.5 million of unusual charges Adjusted EBITDA of $25.6 million Income per share from continuing operations of $0.06

Brady Murphy, TETRA's President and Chief Executive Officer, stated, "We are pleased to start 2026 with one of the strongest first quarter performances in the company's past ten years. Excluding the benefit of TETRA Neptune in the prior-year period, consolidated first-quarter revenue of $156 million and Adjusted EBITDA of $26 million were ten-year highs for a first quarter, as were both Brazil and Gulf of America. In addition, the Industrial Chemicals and Production Testing subsegments each delivered ten-year-high revenues with strong margin contributions. High-pressure gas plays in Haynesville and South Texas, supporting Gulf Coast LNG, are areas that should experience rapid growth in the coming years."

The Middle East conflict did not materially affect our first-quarter results, as historically less than 5% of our revenue is exposed to this region. However, some completion fluid sales planned for the second quarter will likely be delayed. From a supply chain standpoint, our chemical manufacturing plants are located in the United States and Europe, and our elemental bromine is sourced from Arkansas. Over the longer term, it remains to be seen how developments in the Persian Gulf and the Middle East will impact the global oil and gas markets and our business and financial results, but in general we believe it will provide tailwinds to an already robust offshore and deepwater outlook and boost unconventional investment activity in the U.S. and Argentina.

Last September, we held an Investor Day at the NYSE, where we outlined a clear strategic path for the company. Although much has changed in the world since that event, our view of the company's key growth trajectories across deepwater, specialty chemicals, electrolytes for battery energy storage, and desalination of produced water has strengthened. In addition, recent global events have prompted us to evaluate options to accelerate our Lithium and Magnesium critical minerals development. I am very pleased with the continued strong execution and performance of our base business and the progress we are making toward the strategic and financial targets we set as part of our ONE TETRA 2030 vision.

Maintaining 2026 Guidance

For 2026, our revenue and Adjusted EBITDA margins outlook remains unchanged with potential for upside if deepwater projects get accelerated or elevated oil and gas prices drive activity increases in the U.S. We expect to have a better view of the full year as we go through the second quarter. Total company revenue is expected to increase modestly driven by higher electrolyte sales and the execution of long-term contracts for early production facilities ("EPFs") in Argentina. Adjusted EBITDA margins for Completion Fluids & Products is expected to be in the 25-30% range and Water & Flowback Services in the mid-teens. Overall, we are off to a strong start and remain confident in our ability to deliver solid financial results this year while continuing to advance towards our 2030 targets.

First-Quarter Financial Highlights

| | Three Months Ended | | | | | | | March 31, 2026 | | December 31, 2025 | | March 31, 2025 | | | (in thousands, except per share amounts) | | | | | | Revenue | $ 156,253 | | $ 146,681 | | $ 157,140 | | Income (loss) from continuing operations | $ 8,319 | | $ (15,298) | | $ 4,049 | | Net income (loss) | $ 8,319 | | $ (16,507) | | $ 4,049 | | Adjusted EBITDA(1) | $ 25,609 | | $ 19,204 | | $ 32,010 | | Net income (loss) per share from continuing operations | $ 0.06 | | $ (0.11) | | $ 0.03 | | Adjusted net income per share from continuing operations(2) | $ 0.06 | | $ 0.02 | | $ 0.11 | | Net cash (used in) provided by operating activities | $ (11,856) | | $ 31,726 | | $ 3,935 | | Total Adjusted free cash flow(3) | $ (31,914) | | $ 3,070 | | $ 4,241 |

| | | | (1) | Adjusted EBITDA is a non-GAAP financial measure. See Schedule E for an explanation of how we calculate Adjusted EBITDA and reconciliation to net (loss) income from continuing operations before taxes. | | (2) | Adjusted net income per share from continuing operations is a non-GAAP financial measure. See Schedule D for an explanation of how we calculate Adjusted net income per share from continuing operations and a reconciliation to net (loss) income from continuing operations before taxes. | | (3) | For the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, total Adjusted free cash flow includes $6.6 million, $17.2 million and $11.2 million of net payments, respectively, for the Arkansas bromine and lithium projects, excluding capitalized interest. See Schedule G for an explanation of how we calculate Adjusted free cash flow and a reconciliation to net cash (used in) provided by operating activities. |

Completion Fluids & Products

Revenue of $91.7 million Net income before taxes of $24.3 million Adjusted EBITDA of $25.7 million Adjusted EBITDA margins of 28.0%

Completion Fluids & Products revenue increased 10% sequentially and decreased 1% year over year. Net income before taxes increased 16% sequentially and decreased 21% year over year. Adjusted EBITDA increased 12% sequentially and decreased 23% from the prior year comparable period. The year-on-year decline in revenue and Adjusted EBITDA was primarily a result of the absence of a TETRA Neptune project which did not repeat in the first quarter of this year. As deepwater offshore exploration activity increases, we expect targeted reservoirs to have higher pressures and temperatures, supporting the opportunity pipeline for high-density completion fluids, including TETRA Neptune, which continues to grow.

Water & Flowback Services

Revenue of $64.5 million Net income before taxes of $2.1 million Adjusted EBITDA of $9.1 million Adjusted EBITDA margins of 14.1%

Water & Flowback Services revenue increased 3% sequentially and 1% year over year. Our business has materially outpaced the 24% year-on-year decline in US frac activity and we are in a strong competitive position to incrementally benefit from any activity increase that may result from higher oil and gas prices. Water & Flowback Services net income before taxes increased 241% sequentially and decreased 123% year over year. Adjusted EBITDA increased 20% sequentially and increased 9% year over year driven by cost-reduction initiatives and market penetration of higher-margin automation technology. We expect profitability to improve in the coming quarters driven by project start-ups in Argentina's Vaca Muerta basin.

Balance Sheet and Cash Flow

As of March 31, 2026, cash and cash equivalents was $35.5 million and total debt was $181.8 million. Net debt was $146.3 million and our net leverage ratio (Net Debt/TTM Adjusted EBITDA) was 1.5 times.

During the first quarter of 2026, cash used in operating activities was $11.9 million, total Adjusted free cash flow was a use of $31.9 million and base business Adjusted free cash flow was a use of $23.5 million. Total capital expenditures were $19.0 million, including $6.6 million associated with the Arkansas project and $1.8 million of capitalized interest.

Tracking Progress to ONE TETRA 2030

Electrolytes for Utility Scale Battery Energy Storage Systems ("BESS")

TETRA's electrolyte revenue grew meaningfully in 2025 as the U.S. Energy Information Administration (EIA) reports that a record 15 gigawatts ("GW") of utility-scale battery storage was added to the grid in 2025. The EIA projects that another record 24 GW is planned for 2026, representing a 60% growth rate. As artificial intelligence and cloud computing drive rapid growth in data–center power demand, scalable long–duration energy storage is becoming increasingly critical. TETRA's proprietary PureFlow® zinc–bromide electrolyte is a key input for these systems, supporting safe, non–flammable performance at utility scale.

Data Centers Provide New Produced Water Re-use Opportunity

TETRA's OASIS TDS end-to-end desalination of produced water for beneficial reuse continues to gain momentum, with multiple engineering efforts and customer commercial engagements. Since establishing 24/7 steady-state operations over the past 50 days, our Permian Basin OASIS project has achieved 96% uptime and continues to meet our performance specifications. We believe that behind-the-meter self-power generation, access to affordable natural gas and land, and other factors will drive significant data center growth in West Texas and accelerate the produced water desalination market well ahead of our 2030 targets. Regulatory agencies continue to focus on understanding the technology, setting permitting standards, and encouraging the industry to bring solutions to the produced water disposal challenge. TETRA is honored to participate in the National Petroleum Council Produced Water Committee and to support the recently announced U.S. Environmental Protection Agency (EPA) Reuse Action Plan (WRAP) 2.0.

Arkansas Bromine Facility on Time and on Budget

We expect our bromine demand supporting our deepwater completion fluids and battery storage electrolytes to double by 2030, driving the need for and reliable access to cost effective elemental bromine, a critical feedstock. This has become more evident with the current events in the Middle East as well over 50% of the global bromine supply comes from that region. Our bromine construction project in Southwest Arkansas continues to proceed on time and on budget. Phase 2 of the project is underway with Phase 3 slated for 2027 and first production in 2028. The plant will have an annual capacity of up to 75 million pounds, more than double our existing long-term third–party supply agreement.

Critical Mineral Extraction Provides Growth Beyond 2030

TETRA holds more than 40,000 acres of mineral–rich leases in Southwest Arkansas anchored by large–scale lithium and magnesium resources. With respect to lithium, this includes royalty rights on lithium sales to be generated by Smackover Lithium ("SWA"), a Standard Lithium/Equinor joint venture, on 35,000 acres and 65% ownership of 585,000 tons of lithium carbonate equivalent ("LCE") on approximately 6,900 acres.

Also on our 40,000 acres, we have identified over 2 million tons of measured and indicated magnesium resources. We have finalized the formation of a joint venture with Magrathea Metals to advance domestic magnesium metal production and monetize this asset. The JV will leverage our specialty chemical processing expertise and large–scale magnesium resource base in combination with Magrathea's proprietary electrolytic magnesium production technology, which has been underwritten in part by the U.S. Department of War.

Conference Call

TETRA will host a conference call to discuss these results on April 30, 2026, at 10:30 a.m. ET. Please visit the Events & Presentations section of the TETRA Technologieswebsiteto listen to the call via live webcast. You can also pre-register for the conference call and obtain your dial in number and passcode by clicking here.

Investor Contacts

Matt Sanderson, Executive Vice President and Chief Financial Officer, msanderson@onetetra.com Kurt Hallead, Vice President - Treasurer/Investor Relations, khallead@onetetra.com

Company Overview

TETRA Technologies, Inc. is an energy services and solutions company focused on developing environmentally conscious services and solutions that help make people's lives better. With operations on six continents, the Company's portfolio consists of Energy Services, Industrial Chemicals, and Critical Minerals. In addition to providing products and services to the oil and gas industry and calcium chloride for diverse applications, TETRA is expanding into the low-carbon energy market with chemistry expertise, key mineral acreage, and global infrastructure, helping to meet the demand for sustainable energy in the twenty-first century. Visit the Company's website at www.onetetra.comfor more information or connect with us on LinkedIn.

Financial Statements, Schedules and Non-GAAP Reconciliation Schedules (Unaudited)

Schedule A: Consolidated Income Statement Schedule B: Condensed Consolidated Balance Sheet Schedule C: Consolidated Statements of Cash Flows Schedule D: Non-GAAP Reconciliation of Adjusted Net Income Schedule E: Non-GAAP Reconciliation of Adjusted EBIT and Adjusted EBITDA Schedule F: Unusual Charges and Credits Schedule G: Non-GAAP Reconciliation of Adjusted Free Cash Flow Schedule H: Non-GAAP Reconciliation of Net Debt Schedule I: Non-GAAP Reconciliation to Net Leverage Ratio

Non-GAAP Financial Measures

In addition to financial results determined in accordance with U.S. GAAP, this press release includes the following non-GAAP financial measures for the Company: Adjusted net income, Adjusted net income per share, consolidated and segment Adjusted EBITDA, segment Adjusted EBITDA as a percent of revenue ("Adjusted EBITDA margin"), total Adjusted free cash flow, base business Adjusted free cash flow, net debt, and net leverage ratio. Schedules D through I provide reconciliations of these non-GAAP financial measures to their most directly comparable U.S. GAAP measures. Such non-GAAP measures adjust for unusual credits, which are further explained in this press release. The non-GAAP financial measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with U.S. GAAP, as more fully discussed in the Company's financial statements and filings with the Securities and Exchange Commission.

| Schedule A: Consolidated Income Statement (Unaudited) | | | | | | | | | | | | | | | Three Months Ended | | | | | | | March 31, 2026 | | December 31, 2025 | | March 31, 2025 | | | (in thousands, except per share amounts) | | | | | | Revenues | $ 156,253 | | $ 146,681 | | $ 157,140 | | Cost of product sales and services | 108,852 | | 105,433 | | 104,565 | | Depreciation, amortization and accretion | 9,176 | | 9,268 | | 9,151 | | Impairments and other charges | — | | 3,551 | | 518 | | Gross profit | 38,225 | | 28,429 | | 42,906 | | General and administrative expense | 25,409 | | 25,926 | | 24,134 | | Operating income | 12,816 | | 2,503 | | 18,772 | | Interest expense, net | 3,237 | | 3,961 | | 4,724 | | Other (income) expense, net | (2,011) | | 4,667 | | 8,962 | | Income (loss) from continuing operations before taxes | 11,590 | | (6,125) | | 5,086 | | Income tax expense | 3,271 | | 9,173 | | 1,037 | | Income (loss) from continuing operations | 8,319 | | (15,298) | | 4,049 | | Discontinued operations: | | | | | | | Loss from discontinued operations, net of taxes | — | | (1,209) | | — | | Net income (loss) | 8,319 | | (16,507) | | 4,049 | | Loss attributable to noncontrolling interest | — | | 7 | | — | | Net income (loss) attributable to TETRA stockholders | $ 8,319 | | $ (16,500) | | $ 4,049 | | | | | | | | | Basic per share information: | | | | | | | Income (loss) from continuing operations | $ 0.06 | | $ (0.11) | | $ 0.03 | | Loss from discontinued operations | $ 0.00 | | $ (0.01) | | $ 0.00 | | Net income (loss) attributable to TETRA stockholders | $ 0.06 | | $ (0.12) | | $ 0.03 | | Weighted average shares outstanding | 134,500 | | 133,868 | | 132,350 | | | | | | | | | Diluted per share information: | | | | | | | Income (loss) from continuing operations | $ 0.06 | | $ (0.11) | | $ 0.03 | | Loss from discontinued operations | $ 0.00 | | $ (0.01) | | $ 0.00 | | Net income (loss) attributable to TETRA stockholders | $ 0.06 | | $ (0.12) | | $ 0.03 | | Weighted average shares outstanding | 137,315 | | 133,868 | | 133,757 |

| Schedule B: Condensed Consolidated Balance Sheet (Unaudited) | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | | (in thousands) | | | | | (unaudited) | | | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | $ 35,473 | | $ 72,628 | | Restricted cash | 51 | | 52 | | Trade accounts receivable | 115,769 | | 99,578 | | Inventories | 119,974 | | 115,726 | | Prepaid expenses and other current assets | 25,900 | | 28,694 | | Total current assets | 297,167 | | 316,678 | | Property, plant and equipment, net | 203,223 | | 194,197 | | Deferred tax assets, net | 86,900 | | 87,322 | | Operating lease right-of-use assets | 35,855 | | 36,999 | | Patents, trademarks and other intangible assets, net | 20,595 | | 21,463 | | Investments | 11,494 | | 11,827 | | Other assets | 7,111 | | 7,275 | | Total long-term assets | 365,178 | | 359,083 | | Total assets | $ 662,345 | | $ 675,761 | | | | | | | LIABILITIES AND EQUITY | | | | | Current liabilities: | | | | | Trade accounts payable | $ 52,205 | | $ 54,517 | | Current portion of long-term debt | 5,938 | | 4,750 | | Compensation and employee benefits | 19,671 | | 28,934 | | Operating lease liabilities, current portion | 11,900 | | 11,326 | | Accrued taxes | 11,912 | | 15,001 | | Accrued liabilities and other | 38,123 | | 39,325 | | Current liabilities associated with discontinued operations | 7,360 | | 7,360 | | Total current liabilities | 147,109 | | 161,213 | | Long-term debt, net | 175,880 | | 176,607 | | Operating lease liabilities | 30,635 | | 32,664 | | Asset retirement obligations | 15,669 | | 15,526 | | Deferred income taxes | 2,889 | | 2,498 | | Other liabilities | 4,548 | | 4,766 | | Total long-term liabilities | 229,621 | | 232,061 | | Commitments and contingencies | | | | | TETRA stockholders' equity | 286,883 | | 283,755 | | Noncontrolling interests | (1,268) | | (1,268) | | Total equity | 285,615 | | 282,487 | | Total liabilities and equity | $ 662,345 | | $ 675,761 |

Balances as of December 31, 2025 have been revised to reflect $4.8 million of long-term debt as current, with an offsetting reduction in long-term debt.

| Schedule C: Consolidated Statements of Cash Flows (Unaudited) | | | | | | | | | | | | | | | Three Months Ended | | | | | | | March 31, 2026 | | December 31, 2025 | | March 31, 2025 | | | (in thousands) | | | | | | Operating activities: | | | | | | | Net income (loss) | $ 8,319 | | $ (16,507) | | $ 4,049 | | Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | | | | | | | Depreciation, amortization and accretion | 9,176 | | 9,268 | | 9,151 | | Impairments and other charges | — | | 3,551 | | 518 | | Gain on investments | (662) | | (1,194) | | (257) | | Deferred income tax expense (benefit) | 1,102 | | 4,704 | | (134) | | Equity-based compensation expense | 1,778 | | 1,779 | | 1,860 | | (Recovery of) provision for credit losses | (23) | | 190 | | (85) | | Amortization and expense of financing costs | 570 | | 531 | | 495 | | Gain on sale of assets | (127) | | (152) | | (113) | | Non-cash cumulative foreign currency translation adjustment loss from dissolution of Canadian subsidiary | — | | — | | 9,516 | | Other non-cash (credits) charges | (1) | | (453) | | 6 | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | (17,375) | | 16,625 | | (15,584) | | Inventories | (3,906) | | (10,535) | | (2,663) | | Prepaid expenses and other current assets | 2,789 | | (4,495) | | 6,158 | | Trade accounts payable and accrued expenses | (13,300) | | 21,560 | | (9,277) | | Other | (196) | | 6,854 | | 295 | | Net cash (used in) provided by operating activities | (11,856) | | 31,726 | | 3,935 | | Investing activities: | | | | | | | Purchases of property, plant and equipment, net | (19,019) | | (27,639) | | (17,956) | | Proceeds from sale of investments | — | | — | | 19,011 | | Proceeds from sale of property, plant and equipment | 127 | | 301 | | 182 | | Other investing activities | 164 | | (8) | | 108 | | Net cash (used in) provided by investing activities | (18,728) | | (27,346) | | 1,345 | | Financing activities: | | | | | | | Proceeds from credit agreements and long-term debt | 105 | | 98 | | 96 | | Principal payments on credit agreements and long-term debt | (105) | | (98) | | (96) | | Payments on financing lease obligations | (1,166) | | (1,318) | | (931) | | Proceeds from exercise of stock options | 371 | | 3,864 | | — | | Taxes paid upon vesting of equity-based compensation | (5,928) | | (1,368) | | (1,158) | | Net cash (used in) provided by financing activities | (6,723) | | 1,178 | | (2,089) | | Effect of exchange rate changes on cash | 151 | | (76) | | 651 | | (Decrease) increase in cash and cash equivalents | (37,156) | | 5,482 | | 3,842 | | Cash, cash equivalents and restricted cash at beginning of period | 72,680 | | 67,198 | | 37,208 | | Cash, cash equivalents and restricted cash at end of period | $ 35,524 | | $ 72,680 | | $ 41,050 | | | | | | | | | Supplemental cash flow information: | | | | | | | Interest paid(1) | $ 2,737 | | $ 3,827 | | $ 4,515 | | Income taxes paid | $ 7,337 | | $ 2,212 | | $ 3,360 | | Accrued capital expenditures at end of period | $ 7,020 | | $ 7,849 | | $ 5,292 | | | | | | | | | (1)Interest paid is net of $1.8 million, $1.5 million and $0.8 million of capitalized interest for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. | | | | | |