Tetra Technologies Inc. press release

TETRA TECHNOLOGIES, INC. ANNOUNCES FOURTH-QUARTER AND STRONG FULL-YEAR 2025 RESULTS AND PROVIDES UPDATE ON STRATEGIC INITIATIVES

2026-02-25

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

PR Newswire

SPRING, Texas, Feb. 25, 2026/PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) announced financial results for the three and twelve months ended December 31, 2025.

Fourth-Quarter 2025 Financial Highlights

Revenues of $146.7 million increased 9% from the fourth quarter of 2024 Loss from continuing operations was $15.3 million, inclusive of $18.7 million of unusual charges Loss per share from continuing operations was $0.11 while Adjusted net income per share was $0.02, excluding unusual charges Adjusted EBITDA was $20.4 million Net cash provided by operating activities was $31.7 million - materially above the prior sequential quarter and the fourth quarter of 2024; Adjusted free cash flow was $3.1 million and base business adjusted free cash flow was exceptionally strong at $21.8 million.

Brady Murphy, TETRA's President and Chief Executive Officer, stated, "We are pleased with our fourth-quarter performance and finishing 2025 with one of the strongest financial years in our history across our current segments. Total year 2025 revenue was $631 million, income from continuing operations before taxes was $26.5 million and Adjusted EBITDA was $114 million. Revenue and Adjusted EBITDA were the highest in the last 10 years. Completion Fluids & Products segment led the way with record revenue, Adjusted EBITDA and Adjusted EBITDA margins, supported by a record industrial chemicals performance and a very strong deepwater fluids market position. Additionally, we finished the year with the highest volumes and revenue ever for the recycling and treatment of produced water, including first revenue from desalination for beneficial re-use in the Permian Basin."

"The fourth quarter was highlighted by $31.7 million of cash from operating activities and $21.8 million in base business adjusted free cash flow. This further improved our already strong balance sheet, as evidenced by a net leverage ratio of 1.1 times net debt to Adjusted EBITDA and unrestricted cash on hand of $72.6 million at year-end. Completion Fluids & Products Adjusted EBITDA margins were 28.2%. Water & Flowback Services Adjusted EBITDA margins were 12.9%."

"Additionally, we continued to make significant progress on the goals and milestones we outlined at our ONE TETRA 2030 Investor Day, which has received very positive feedback. We completed phase 1 of our Arkansas bromine project on time and under budget, placing and erecting the 120-foot-tall bromine tower and structure during the fourth quarter of 2025. We also secured access to additional volumes of bromine for 2026 and 2027 to meet incremental demand for completion fluids and electrolytes until our bromine plant is running, which is targeted for the fourth quarter of 2027. We completed the engineering study for a 25,000 bbls/day produced water desalination plant for beneficial reuse; however, our customers pivoted quickly in the fourth quarter by requesting engineering design for much larger-volume projects to support West Texas data center opportunities. We also executed a term sheet outlining the key parameters for a joint venture with Magrathea Metals, Inc. ("Magrathea") to monetize high concentrations of magnesium in our Arkansas brine. Magnesium is classified as a critical mineral by the U.S. government and is used to produce a highly valued metal for the Department of War and other U.S. industries. Deliveries of Eos electrolyte and PureFlow® continued to ramp up, and several capacity expansion projects at our plants, along with the added bromine supply, are expected to ensure we keep pace with their demand. It's been a very exciting year for TETRA, and we are on track to achieve our stated 2030 goals."

During the fourth quarter, Completion Fluids & Products revenues decreased 7% sequentially due to the timing of deepwater projects but increased 22% from the prior-year comparable period. Net income before taxes decreased 17% sequentially but increased 21% from the prior year's comparable period. Adjusted EBITDA decreased 14% sequentially but increased 25% from the prior year's comparable period.

Water & Flowback Services fourth quarter revenues were flat with the third quarter but down 4% year over year, materially less than the decline in U.S. frac activity, which was down 15% sequentially and down 24% from the fourth quarter of 2024 according to U.S. frac spread count data provided by Primary Vision as of December 31, 2025. While drilling and completions activity declined throughout the year, TETRA's Water & Flowback Services revenue remained relatively flat at $63 million to $64 million per quarter during the year, as market share gains offset weaker activity. Water & Flowback Services Adjusted EBITDA margins improved sequentially to 12.9% from 11.9%, driven by cost-reduction initiatives and continued market penetration leveraging our automation and technology.

Fourth-quarter Adjusted EBITDA margins were the highest of the year, despite the difficult U.S. onshore environment, reflecting TETRA's focus on cost reductions and technology. TETRA also secured contracts in Argentina's Vaca Muerta region that are expected to double our revenue in Argentina in 2026 over 2025, allowing us to continue to diversify our revenue base given the weaker U.S. onshore environment.

Fourth-Quarter and Full-Year Financial Highlights

| | Three Months Ended | | Twelve Months Ended | | | | | | | | | December 31, 2025 | | September 30, 2025 | | December 31, 2024 | | December 31, 2025 | | December 31, 2024 | | | (in thousands, except per share amounts) | | | | | | | | | | Revenue | $ 146,681 | | $ 153,239 | | $ 134,504 | | $ 630,932 | | $ 599,111 | | (Loss) income from continuing operations | (15,298) | | 4,151 | | 102,233 | | 4,207 | | 113,620 | | Adjusted EBITDA(1) | 20,398 | | 25,038 | | 22,825 | | 113,582 | | 99,403 | | Diluted net (loss) income per share from continuing operations | (0.11) | | 0.03 | | 0.77 | | 0.03 | | 0.86 | | Adjusted net income(2)per share from continuing operations | 0.02 | | 0.04 | | 0.03 | | 0.26 | | 0.17 | | Net cash provided by operating activities | 31,726 | | 16,366 | | 5,635 | | 100,360 | | 36,520 | | Total Adjusted free cash flow(3) | $ 3,070 | | $ (628) | | $ (9,324) | | $ 33,175 | | $ (24,520) |

| (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 December 31, 2025, September 30, 2025, and December 31, 2024, total Adjusted free cash flow includes $17.2 million of net payments, $6.0 million of net payments and $0.2 million of net reimbursements, respectively, for the Arkansas bromine and lithium projects. For the twelve months ending December 31, 2025 and December 31, 2024, total Adjusted free cash flow includes $45.2 million and $22.4 million of net payments, respectively, for the Arkansas bromine and lithium projects, excluding capitalized interest. See Schedule F for an explanation of how we calculate Adjusted free cash flow and Base business adjusted free cash flow and a reconciliation to net cash provided by operating activities. |

Full-Year 2025 Results

Revenues of $631 million increased by 5% year over year Income from continuing operations was $4.2 million including $31.6 million of unusual charges EPS from continuing operations of $0.03 and Adjusted net income per share of $0.26 (compared to Adjusted net income per share of $0.17 in 2024) Adjusted EBITDA of $113.6 million increased 14% year over year Net cash provided by operating activities was $100 million; Adjusted free cash flow was $33 million and base business adjusted free cash flow was $83 million – materially above our expectations. Investments in Arkansas were $45 million in 2025, excluding capitalized interest. Cash at year-end was $72.6 million, net debt was $109 million and net leverage ratio was 1.1x, at year-end 2025.

"During 2025, our team delivered strong results reaching the highest levels in over ten years despite a very challenging oil price macro environment. For the full year, revenue and Adjusted EBITDA grew 5% and 14%, respectively. We generated $83 million in free cash flow from our base business driven by continued strength in our offshore completion fluids and industrial calcium chloride businesses plus a strong focus on working capital management. Net working capital was reduced from $109 million at year-end 2024 to $88 million at year-end 2025."

Completion Fluids & Products achieved impressive revenue and margin improvements driven by stronger volumes for our suite of high-density deepwater completion fluids products, the completion of three deepwater wells in the Gulf of America using our proprietary TETRA CS Neptune fluid technology, stronger deepwater activity levels in Brazil and continued strong results from industrial calcium chloride.

"Water & Flowback Services successfully managed through a very challenging year, generating 11.9% of Adjusted EBITDA margins and Adjusted EBITDA of $30.4 million. Cost reductions in the United States, continued deployment of automation technology and market share gains in the Vaca Muerta in Argentina have positioned us for a solid year in 2026."

Balance Sheet and Cash Flow

As of December 31, 2025, TETRA had cash and cash equivalents of $72.6 million, long-term debt of $181 million consisting of borrowings outstanding under our Term Credit Agreement, net debt of $108.7 million and a net leverage ratio (Net Debt/TTM Adjusted EBITDA) of 1.1 times. TETRA's unused ABL Credit Agreement matures May 2029, and the Term Credit Agreement matures January 2030.

Cash flow from operating activities during 2025 was $100 million. Total Adjusted free cash flow was $33 million. Base business Adjusted free cash flow was $83 million. Total capital expenditures were $81 million, including $45 million associated with the Arkansas project and $4.5 million of capitalized interest.

2026 Perspectives

"As we look towards 2026, we expect incremental revenue growth driven largely by a material increase in our electrolyte business and from a major contract awarded in Argentina. Because Gulf of America activity in 2025 was heavily weighted toward completion activity and less on drilling activity, 2026 customer activity is forecast to be higher in drilling, including more exploration, with less completion activity. As a result, we do not expect the Gulf of America to reach the same record levels as in 2025. However, this is projected to cycle into stronger 2027 completions activity. Our 2030 targets for this business are still very much on track. U.S. onshore Water & Flowback Services continues to benefit from longer laterals, increased sand and water usage, and more production-related activities, including water treatment and recycling. Outside the U.S., we will see a meaningful revenue increase driven by new early production facilities ("EPF") contracts in Argentina and new Sandstorm awards in the Middle East. We expect the net impact of these to result in overall modest revenue growth in 2026."

"We have secured third-party bromine supply for 2026 and 2027 to bridge our growing bromine demand until our bromine processing plant project is brought online. These third-party supplies will allow us to keep pace with the expected material increase in electrolyte from Eos and a robust deepwater market, but these bromine supplies are secured at an incrementally higher cost relative to our current long-term bromine supply agreement. Although it is possible one or more TETRA CS Neptune jobs could materialize in the second half of 2026, without TETRA CS Neptune projects and assuming somewhat higher costs of bromine, we expect our Completion Fluids & Products Adjusted EBITDA margins to be in the 25%-30% range in 2026, consistent with our average since 2019. The increased cost for additional bromine supply has been anticipated as a bridge until we have our bromine processing plant operational, but it further supports the significantly higher EBITDA we expect for this segment starting in 2028. For Water & Flowback Services, the continued focus on differentiated technology and our profitable international growth are expected to contribute to improved Adjusted EBITDA margins from 12% in 2025 to mid-teens in 2026."

Progress on the Path to One TETRA 2030

"Since our September 2025 Investor Day, trends in future deepwater activity, adoption of our Sandstorm technology, electrolyte demand and the shift toward much larger-scale desalinated produced water projects for data center cooling and behind the meter power demands in West Texas have further strengthened our confidence in achieving our ONE TETRA 2030 objectives to more than double revenue and triple Adjusted EBITDA by 2030. We believe this strategic transformation will enable TETRA to generate more than $100 million in annual Adjusted free cash flow by 2030 and support meaningful return of capital to shareholders."

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

"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. Eos Energy Enterprises' decision to develop U.S. manufacturing capacity of 8 GWh annualized energy storage capacity validates commercial demand for our electrolyte, while government incentives for energy storage in place through 2035 provide visibility into increasing production volumes and the scalability of this business."

TETRA Advances Produced Water Desalination Platform to Address Data Center Water Demand

"The U.S. oil and gas industry is facing an increasingly urgent challenge in managing produced water, particularly in high–activity regions such as the Permian Basin, where more than 6 billion barrels of produced wastewater are injected annually into saltwater disposal wells according to Rystad Energy. Rising downhole formation pressures are constraining traditional disposal capacity and increasing regulatory scrutiny, while the rapid expansion of data centers is driving incremental demand for reliable and sustainable water supplies. Against this backdrop, we are advancing differentiated solutions through the commercial launch of TETRA Oasis TDS, our previously announced collaboration with EOG Resources, Inc. ("EOG"), and the engineering and design of a large–scale produced water treatment and recycling facility."

"Recent developments have helped establish TETRA as an early mover in this high growth market. In January 2026, we secured patent protection for our TETRA Oasis TDS technology and integrated end-to-end solution, further strengthening our proprietary technology position. We are currently engaged in active commercial discussions with multiple customers for a variety of end markets, including over multiple 100,000 barrel–per–day facilities to support growing power generation and data center water–cooling needs."

Arkansas Bromine Facility on Track for Completion By The Fourth Quarter of 2027

"We expect demand for our deepwater completion fluids and battery storage electrolytes to double by 2030, driving the need for reliable access to elemental bromine, a critical feedstock. To meet this accelerating demand while reducing third–party reliance and lowering our cost of bromine supply, we are advancing our bromine processing plant. Since inception, we have invested $46.5 million for the bromine project, excluding capitalized interest, funded from base business free cash flow while simultaneously improving our balance sheet."

In December 2025, we completed Phase 1 of the bromine processing plant project, including site preparation and installation of the bromine tower. We have commenced Phase 2, which includes significant infrastructure and equipment to support the plant, with mechanical completion targeted by the end of 2026. The entire facility is expected to be operational by the end of 2027, with first production in 2028. The plant will have annual capacity of up to 75 million pounds - more than double our existing long-term third–party supply agreement.

Lithium & Magnesium Anchor Critical Mineral Growth Beyond 2030

TETRA holds more than 40,000 acres of mineral–rich leases in Southwest Arkansas anchored by large–scale bromine, lithium and magnesium resources. With respect to lithium, this includes 65% ownership of 585,000 tons of lithium carbonate equivalent ("LCE") on approximately 6,900 acres and a 2.5% royalty from lithium sales expected to be generated by Smackover Lithium ("SWA"), a Standard Lithium/Equinor joint venture, on 35,000 acres of our 40,000 acres. Based on recent public disclosures, SWA is targeting to reach first lithium production in 2028.

"Also on our 40,000 acres, we have identified approximately 2.18 million tons of measured and indicated magnesium resources. The U.S. government has identified magnesium as a national security priority and a critical mineral feedstock for the defense, aerospace, and advanced manufacturing sectors. During the fourth quarter of 2025, we signed a term sheet to potentially form a joint venture with Magrathea to advance domestic magnesium metal production. As envisaged, the proposed joint venture will integrate our specialty chemical processing expertise and large–scale magnesium resource base with Magrathea's proprietary electrolytic magnesium production technology which has been underwritten in part by U.S. Defense Production Act Title III funding."

Unusual Charges and Expenses

Unusual charges and expenses, net of credits were $31.6 million for the year ended December 31, 2025, which are reflected in Schedules E and F, and include the following:

$5.5 million of legal fees related to a former subsidiary, plus restructuring and severance as we downsized certain Water & Flowback Services operations. $5.9 million of accrued expenses expected to be incurred through the expiration of our former corporate headquarters lease following our move to a nearby corporate office, which is expected to reduce annual operating expenses by approximately $2 million per year. $4.2 million of non-cash impairments, including a $3.6 million impairment of the right of use asset for our former corporate office lease and $0.6 million impairments of certain long-lived assets and right of use assets within Water & Flowback Services. $9.5 million non-cash cumulative accounting foreign exchange losses from the previous closure of our Canadian subsidiary. $0.4 million of non-cash stock appreciation right expense for our former CEO. $6.0 million of non-cash unusual tax expense (Schedule E), including $7.2 million tax expense from an election to reclassify our Brazilian subsidiary from a partnership to a corporation for U.S. tax purposes, partially offset by $1.2 million correction to our 2024 tax provision.

Management believes that the exclusion of the special charges and credits from the historical results of operations enables management to evaluate more effectively the Company's operations over the prior periods and to identify operating trends that could be obscured by the excluded items. See Schedules D through H for additional information.

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 H 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.