Tetra Technologies Inc. press release

TETRA TECHNOLOGIES, INC. ANNOUNCES STRONG THIRD QUARTER 2025 RESULTS

2025-10-28

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

PR Newswire

Third Quarter 2025 Financial Highlights

Revenue of $153 millionincreased 8% year over year Net income before taxes of $8.1 millionwas flat year over year Adjusted EBITDA of $25.0 millionincreased 7% year over year Earnings per share were $0.03. Adjusted earnings per share were $0.04 Net cash provided by operating activities was $16.4 million, while base business free cash flow (defined below) was $5.4 million

THE WOODLANDS, Texas, Oct. 28, 2025/PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) announced third quarter 2025 financial results.

Brady Murphy, TETRA President and Chief Executive Officer, stated, "Our employees delivered another strong quarter, contributing to a ten-year high adjusted EBITDA of $93 millionfor the first nine months of 2025. Third quarter results of $25.0 millionof adjusted EBITDA, 16.3% of adjusted EBITDA margins and $5.4 millionin base business free cash flow were achieved despite ongoing weakness in the U.S. onshore oil and gas markets. The team delivered an 8% year-over-year improvement in revenue driven by continued strength in our offshore and industrial calcium chloride businesses.

"Through the first nine months of the year, Completion Fluids & Products' adjusted EBITDA margin reached 34.5%, a 500 basis point improvement compared to the same period in 2024 driven by the successful completion of three TETRA CS Neptune wells in the Gulf of America along with increased demand for high density zinc-based bromine brines, strong contributions from Brazildeepwater projects and robust calcium chloride results in Northern Europe."

"Third quarter Completion Fluids and Products revenues increased 39% compared to the previous year period, with adjusted EBITDA rising by $6.9 million. Water & Flowback Services revenue declined 2% sequentially, despite a 12% drop in frac activity from the second quarter. Adjusted EBITDA margins improved to 11.9% from 9.9% driven by cost reduction initiatives and continued market penetration of automation and new technology."

"We ended the third quarter with $67 millionof cash on hand and a net leverage ratio of 1.2 times trailing twelve month adjusted EBITDA. Our focus on operational execution and fiscal discipline continues to support our Arkansasinvestments and emerging growth initiatives. We remain focused on increasing return on capital and maximizing free cash flow."

"On the emerging growth initiatives, we are encouraged by the progress Eos Energy Enterprises, Inc. ("Eos") continues to make in automating their manufacturing assembly line to support the volumes of electrolyte they will require from us. We have completed the installation of our bulk electrolyte tanker loading system at our West Memphisplant and expect a significant increase in electrolyte volumes in early 2026. Following the commercial launch of our TETRA Oasis TDS water desalination technology, we engaged a third-party engineering firm and started the design for our first commercial 25,000/bbl per day facility. The Front-End Engineering and Design ("FEED") has been completed, and the estimated capital and operating expenses are within our initial projections for the project. This step is facilitating commercial discussions with multiple customers who have signed non-disclosure agreements ("NDAs")."

"Through the first nine months of the year, we have generated $58 millionof base business free cash flow and invested $28 milliontowards the development of our Arkansasbromine processing facility, including prepping the site, laying initial foundation and pilings and positioning to receive the bromine tower in the fourth quarter. We are on schedule and under budget for Phase 1 of the project and remain confident that the plant will be fully operational by year-end 2027."

Full Year Guidance

For the full year 2025, TETRA expects GAAP net income before taxes to be between $19 millionand $27 million(previously $21 millionand $34 million), which includes an expected $8 millionnon-cash charge related to our corporate office lease (see Schedule I below). We expect adjusted EBITDA to be between $107 millionand $112 million(previously $100 millionand $110 million) and revenue to be between $620 millionand $630 million(previously $610 millionand $630 million). The non-cash corporate office lease charge reflects TETRA's planned move to a nearby corporate office in The Woodlandsthat is expected to reduce lease expense by approximately $2 millionper year compared to the existing lease arrangement. These guidance ranges are subject to, among other risks, those associated with timing of completion fluid projects, changes to oil and gas company spending plans and activity levels, and macro impacts from U.S. tariffs.

ThirdQuarter Highlights

| | Three Months Ended | | | | | | | September 30, 2025 | | June 30, 2025 | | September 30, 2024 | | | (in thousands, except per share amounts) | | | | | | Revenue | $ 153,239 | | $ 173,872 | | $ 141,700 | | Income from continuing operations | $ 4,151 | | $ 11,305 | | $ 2,832 | | Net income/(loss) | $ 4,151 | | $ 11,305 | | $ (2,998) | | Adjusted EBITDA | $ 25,038 | | $ 35,879 | | $ 23,501 | | Net income per share from continuing operations | $ 0.03 | | $ 0.08 | | $ 0.02 | | Net income (loss) per share attributable to TETRA stockholders | $ 0.03 | | $ 0.08 | | $ (0.02) | | Adjusted net income per share | $ 0.04 | | $ 0.09 | | $ 0.03 | | Net cash provided by operating activities | $ 16,366 | | $ 48,333 | | $ 19,870 | | Total adjusted free cash flow(1) | $ (628) | | $ 26,492 | | $ 6,331 |

| | | | (1) | For the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, total adjusted free cash flow includes $6.0 million, $10.9 million and $8.7 million, respectively, of investments in the Arkansas bromine and lithium projects. Base business adjusted free cash flow is defined as total adjusted free cash flow prior to TETRA's investments in the Arkansas bromine and lithium projects. See Schedule F. |

Completion Fluids & Products

Revenue of $90 million Net income before taxes of $25.3 million Adjusted EBITDA of $27.6 millionand adjusted EBITDA margins of 30.5%

Completion Fluids & Products revenue decreased 18% sequentially but increased 39% from the prior year comparable period. Net income before taxes decreased 34% sequentially (the second quarter is a seasonal high for our calcium chloride business) but increased 32% from the prior year comparable period. Adjusted EBITDA decreased 31% sequentially but increased 34% from the prior year comparable period. In the current quarter, adjusted EBITDA margins were 30.5%. During the first nine months of 2025, Completion Fluids & Products achieved impressive revenue and margin improvement 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, high activity levels in our deepwater Braziloperations and continued strong results from our industrial calcium chloride business.

The long-term outlook for the Completion Fluids & Products business remains solid driven by strong deepwater completion activity and exceptional performance in our industrial chemicals business. For full year 2025, we expect Completion Fluids revenue to reach a ten-year high. Looking into 2026, we expect to see a material increase in battery electrolyte revenue as Eos ramps up deliveries from its first automated production line.

Water & Flowback Services

Revenue of $63 million Net income before taxes of $0.1 million Adjusted EBITDA of $7.5 millionand adjusted EBITDA margins of 11.9%

Water and Flowback Services revenue decreased 2% from the second quarter and 18% year over year, materially less than the decline in U.S. frac activity (down 12% sequentially and down 27% from the second quarter of 2024 according to U.S. frac spread count data provided by Primary Vision as of September 30, 2025). Adjusted EBITDA increased 18% sequentially on better cost controls but decreased 33% from the prior year comparable period on weaker volumes. Sequentially, adjusted EBITDA margins of 11.9% increased 200 basis points from 9.9%, driven by increased utilization of our patented automated TETRA SandStorm and Auto-Drillout units, efficiency improvements and cost controls.

Despite a soft outlook for the U.S. frac crew count, we expect our onshore testing and flowback business will benefit from two industry trends: longer laterals and increased sand and water usage, plus our continued move into production related activities. Outside of the U.S., we are positioned to benefit from increased unconventional oil and gas activity in Argentinaand the Middle East. As such, we will continue to invest in these high margin, high return product lines.

Phased Development of Arkansas Bromine Project

We expect demand for our deepwater completion fluids and battery storage electrolytes to double by 2030. Elemental bromine is a critical feedstock for these products. To meet this accelerating demand, reduce reliance on third-party suppliers and gain access to a lower cost of supply, we continue to advance our bromine processing plant. Since embarking on this project in 2022, we have invested over $40 millionin the project, which has been funded from our base business free cash flow.

By year-end 2025, we expect to have Phase 1 of the project completed, including site preparation, power infrastructure and installation of the bromine tower. Phase 2 will include major infrastructure and equipment supporting the plant with completion projected by the end of 2026. Overall, the facility is expected to be operational by the end of 2027, with first production in 2028. The plant will have the capacity to process 75 million pounds of bromine per year, more than double that of our current third-party supply agreements.

As noted in the 2024 Definitive Feasibility Study and Economic Analysis ("DFS"), the facility can enable TETRA to generate incremental revenue and adjusted EBITDA of between $200 millionto $250 millionand $90 millionand $115 millionper annum, at full production, respectively. The adjusted EBITDA target contribution is underpinned by lower input costs and additional volumes for the battery electrolyte and deepwater completion markets.

The economics of our bromine processing plant discussed in this release are based on a number of key assumptions, which are further discussed in the DFS which is available on our website. Please read the DFS and the assumptions discussed therein for further information. Such assumptions are based on information known to RESPEC Company, LLC and TETRA as of the date of the DFS, are subject to change and actual results may differ materially from the economics and assumptions presented in the DFS.

One TETRA 2030

At our investor day event on September 25, 2025we unveiled ONE TETRA 2030 - a strategy focused on leveraging our core fluids chemistry expertise into new high-growth end markets, notably delivering battery electrolytes for long-duration energy storage and oil and gas produced water desalination solutions. As envisioned, we are charting a path toward three operating segments: Specialty Chemicals & Minerals, Water Treatment & Desalination and Energy Services. As these businesses evolve, our future reporting will reflect this strategic realignment.

Our goal is to more than double revenue to over $1.2 billionand triple adjusted EBITDA to over $300 millionby 2030. At that point, approximately two-thirds of our business will be derived from Specialty Chemicals & Minerals and Water Treatment & Desalination and one-third from Energy Services. We believe that this transformation will enable TETRA to generate over $100 millionin annual adjusted free cash flow and drive meaningful cash returns to shareholders.

2030 Financial Targets and Segment Goals

| | 2030 Target Range | | | ($ millions) | Low | High | | Total Revenue | $1,200 | $1,300 | | Specialty Chemicals & Minerals | 430 | 460 | | Water Treatment & Desalination | 340 | 360 | | Energy Services | 440 | 460 | | | | | | Consolidated Adjusted EBITDA | $300 | $350 | | Specialty Chemicals & Minerals | 120 | 150 | | Water Treatment & Desalination | 95 | 115 | | Energy Services | 110 | 138 | | | | | | Consolidated Adjusted EBITDA as a percent of Revenue | 25 % | 27 % | | Specialty Chemicals & Minerals | 28 % | 33 % | | Water Treatment & Desalination | 28 % | 32 % | | Energy Services | 25 % | 30 % |

One TETRA 2030 Growth Initiatives

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

As artificial intelligence ("AI") and cloud computing drive increasing energy demand, Eos' zinc-based long-duration storage systems are gaining traction for their safety, scalability, and domestic sourcing. TETRA's proprietary PureFlow® zinc-bromide electrolyte is a critical component of these systems, offering flame-retardant properties and high purity levels. Underpinning this, Eos recently announced it will expand its manufacturing capacity in Pennsylvaniawith plans to reach 8 GWh of annualized energy storage capacity, which validates strong commercial momentum for the use of our electrolyte in long-duration battery energy systems and underpins our confidence in achieving the revenue and EBITDA growth we outlined during our investor day in September. We believe this positions TETRA as a key enabler of AI infrastructure aligning with national priorities around energy security and supply chain independence.

Produced Water Desalination, Recycling and Beneficial Reuse Solutions

The U.S. oil and gas industry is facing an increasingly urgent challenge in managing produced water, particularly in high-activity regions like the Permian Basin, where over 6 billion barrels of wastewater are injected into saltwater disposal wells annually, according to Rystad Energy. This traditional method of deep underground injection is becoming less viable as downhole formation pressures continue to rise, prompting heightened concern from both regulators and industry stakeholders.

With the commercial launch of TETRA Oasis TDS, our previously announced collaboration with EOG, and the engineering and design of the industry's first 25,000 barrel per day produced water treatment and recycling facility, TETRA is well positioned to help solve this problem. Our pilot field is now treating produced water to the standards required by the EPA, the Texas Railroad Commission and our customers' requirements.

Significant progress continues to be achieved with our produced water desalination project. TETRA has received the FEED study validating our capital and operating expense assumptions for the first plant. This milestone enables us to initiate commercial engagement with prospective customers, and we remain confident in signing our first contract in early 2026. Securing this initial agreement would represent a key inflection point and serve as a catalyst towards achieving the Water Treatment and Desalination revenue and earnings targets outlined at our September investor day.

Cash Flow and Liquidity Update

Cash from operating activities generated during the third quarter of 2025 was $16.4 million. Total adjusted free cash flow was a use of cash of $0.6 million. Base business adjusted free cash flow was $5.4 million. Total capital expenditures were $15.7 million, including $6.0 millionassociated with the Arkansasbromine processing facility.

Liquidity at the end of the third quarter was $208 million, inclusive of an unused $75 milliondelayed draw feature under our Term Credit Agreement. Liquidity is defined as unrestricted cash plus availability under our ABL Credit Agreement, Swedish Credit Facility and the delayed draw from our Term Credit Agreement. As of September 30, 2025, TETRA had cash and cash equivalents of $67 million, long-term debt of $181 million consisting of borrowings outstanding under our Term Credit Agreement, net debt of $114 million and a net leverage ratio (Net Debt/TTM Adjusted EBITDA) of 1.2x. TETRA has no near-term maturities as the unused ABL Credit Agreement matures May 13, 2029and the Term Credit Agreement matures January 1, 2030.

Conference Call

TETRA will host a conference call to discuss these results tomorrow, October 29, 2025, at 10:30 a.m. Eastern Time. Participants in the United Statescan listen to the conference call by dialing 1-800-715-9871. Those based in Canadacan dial 1-647-932-3411 and those outside of North Americacan dial 1-646-307-1963. The conference ID is 97548934. The conference call will also be available via webcast. A replay can be accessed by dialing the same numbers and conference ID as above and will be available for thirty days following the conference call.

Investor Contact

For further information, please contact Elijio Serrano, CFO, TETRA Technologies, Inc. at (281) 367-1983 or via email at eserrano@onetetra.comor Kurt Hallead, Treasurer and Vice President of Investor Relations at (281) 367-1983 or via email at 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 EBITDA

Schedule F: Non-GAAP Reconciliation to Adjusted Free Cash Flow

Schedule G: Non-GAAP Reconciliation of Net Debt

Schedule H: Non-GAAP Reconciliation to Net Leverage Ratio

Schedule I: Non-GAAP Reconciliation of Adjusted EBITDA for Projected 2025 and Actual 2024

| Schedule A: Consolidated Income Statement (Unaudited) | | | | | | | | | | | | | | | Three Months Ended | | | | | | | September 30, 2025 | | June 30, 2025 | | September 30, 2024 | | | (in thousands, except per share amounts) | | | | | | Revenues | $ 153,239 | | $ 173,872 | | $ 141,700 | | Cost of product sales and services | 107,378 | | 116,346 | | 98,391 | | Depreciation, amortization and accretion | 9,491 | | 9,189 | | 8,837 | | Impairments and other charges | — | | 93 | | 109 | | Gross profit | 36,370 | | 48,244 | | 34,363 | | General and administrative expense | 25,240 | | 25,259 | | 22,406 | | Operating income | 11,130 | | 22,985 | | 11,957 | | Interest expense, net | 4,448 | | 4,194 | | 5,096 | | Other income, net | (1,423) | | (645) | | (715) | | Income from continuing operations before taxes | 8,105 | | 19,436 | | 7,576 | | Income tax expense | 3,954 | | 8,131 | | 4,744 | | Income from continuing operations | 4,151 | | 11,305 | | 2,832 | | Loss from discontinued operations, net of taxes | — | | — | | (5,830) | | Net income (loss) attributable to TETRA stockholders | $ 4,151 | | $ 11,305 | | $ (2,998) | | | | | | | | | Basic per share information: | | | | | | | Income from continuing operations | $ 0.03 | | $ 0.08 | | $ 0.02 | | Loss from discontinued operations | $ 0.00 | | $ 0.00 | | $ (0.04) | | Net income (loss) attributable to TETRA stockholders | $ 0.03 | | $ 0.08 | | $ (0.02) | | Weighted average shares outstanding | 133,419 | | 133,152 | | 131,579 | | | | | | | | | Diluted per share information: | | | | | | | Income from continuing operations | $ 0.03 | | $ 0.08 | | $ 0.02 | | Loss from discontinued operations | $ 0.00 | | $ 0.00 | | $ (0.04) | | Net income (loss) attributable to TETRA stockholders | $ 0.03 | | $ 0.08 | | $ (0.02) | | Weighted average shares outstanding | 134,837 | | 133,422 | | 132,029 |