Tetra Technologies Inc. press release

TETRA TECHNOLOGIES, INC. REPORTS STRONG SECOND-QUARTER 2026 RESULTS

2026-08-03

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

PR Newswire

SPRING, Texas, Aug. 3, 2026/PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) announced financial results for the three and six months ended June 30, 2026.

Second-Quarter 2026 Financial Highlights

Revenues of $185.7 million Income from continuing operations of $10.2 million, inclusive of $1.1 million of unusual charges Adjusted EBITDA of $31.9 million Net Income per share from continuing operations of $0.07, adjusted net income per share of $0.08 Launched TETRA Neptune Z-Lite, awarded a three-well Gulf of America Deepwater Project Raised $108 million of net proceeds related to the equity offering Board of Directors approved final investment decision ("FID") for the Arkansas Bromine Project

Brady Murphy, TETRA's President and Chief Executive Officer, stated, "We delivered one of our strongest second-quarter and first-half financial performances in the past decade, reflecting the strength of our base business and our ability to grow in deepwater and international markets. Internationally and globally offshore, our revenues for the second-quarter and first six months of the year were a ten-year high, with our first-half 2026 international revenue 24% higher than any first six months over the past decade. Second-quarter consolidated revenue of $186 million increased 19% sequentially and 7% year over year. Income from continuing operations was $10.2 million for the quarter. Adjusted EBITDA for the quarter increased 24% sequentially to $31.9 million. Our performance also benefited from growing demand for the proprietary zinc-bromide electrolyte solution manufactured at our facility, reflecting expanding market interest in long-duration energy storage applications.

During the quarter, we achieved several key milestones supporting our ONE TETRA 2030 objectives. Our Arkansas bromine production facility (the "Arkansas Bromine Project") is central to our strategy. Following Board approval of the final investment decision and receipt of $108 million in net proceeds from our equity offering, we are well positioned to complete the project in the fourth quarter of 2027 and begin start-up in early 2028. The project will support growth in deepwater and electrolyte markets well beyond 2030.

We also expanded our patented TETRA Neptune completion fluid offering with the introduction of TETRA Neptune Z-Lite ("Z-Lite"), a high-value deepwater completion fluid that leverages our TETRA Neptune chemistry to achieve higher densities while significantly reducing zinc content. We were especially pleased to be awarded a Beacon Offshore Energy contract to deploy TETRA Neptune Z-Lite in a three-well, 20,000 psi Gulf of America program. As deepwater offshore exploration and development activities continue to shift toward higher-pressure reservoirs, this is creating additional opportunities for our high-value completion fluids, such as TETRA Neptune.

We continue to advance our patented TETRA Oasis Total Desalination Solution ("TETRA Oasis"), supported by the industry's growing need to reduce produced-water disposal volumes and mitigate potential constraints on future crude oil production. Recent third-party data and customer discussions reinforce the urgency of addressing disposal limitations, which remains the foundation of our target to desalinate 500,000 barrels of produced water per day by 2030. Since our September 2025 Investor Day, market interest has expanded beyond disposal-volume reduction to include data centers targeting West Texas, shifting customer priorities toward the larger water requirements of that market. Recent discussions with hyperscalers lead us to believe that water-cooled data centers can operate at costs approximately 30% below those of conventional air-cooled facilities, a difference that is becoming increasingly important as computing density rises.

At the same time, our water midstream and E&P customers are evaluating how to move from smaller-scale pilot projects to large-scale desalination plants. We are pleased to be part of these discussions, and during the quarter we completed additional engineering work on a 100,000-barrel-per-day plant design. We are encouraged by the economies of scale as we move from a 25,000 bbl/d plant to a 100,000 bbl/d plant, with estimated capex and opex savings of up to 23% and 24%, respectively. The ability of TETRA Oasis to deliver improving project economics as the size and scope of our larger desalination plant design has been a key competitive advantage noted in our numerous commercial engagements with our customers. We also strengthened our intellectual property position, receiving Notices of Allowance that expand the scope of our Oasis patent portfolio to include a broad range of pre-treatment technologies critical to long-term membrane performance.

While permitting activities and customer diligence processes continue at a measured pace, we are making meaningful engineering and commercial progress. The ability and opportunity to convert a waste stream into a valuable resource to enable industrial and agricultural growth is very motivating and incredibly exciting for all of our employees.

Outlook

The business outlook for our deepwater and international activity remains strong, and the U.S. is showing signs of improvement. As announced, we have been awarded the three-well TETRA Neptune Z-lite project in the Gulf of America for Completion Fluids and Products, which we believe will start in 2026. Overall, we expect our base business to perform in line with market expectations, while recognizing that broader global market volatility may remain and that the timing of Neptune pipeline jobs could meaningfully impact our second half 2026 results.

Beyond 2026, we see multiple drivers supporting continued growth, including increased deepwater completion activity as customers work through a drilling-intensive cycle, further expansion of our long-duration energy storage electrolyte business, and the commercialization of our TETRA Oasis. A growing pipeline of Neptune projects, expanding data center and power infrastructure development in West Texas, along with the startup of the Arkansas Bromine facility, position TETRA to accelerate progress toward its ONE TETRA 2030 objectives.

Second-Quarter Financial Highlights

| | Three Months Ended | | | | | | | June 30, 2026 | | March 31, 2026 | | June 30, 2025 | | | (in thousands, except per share amounts) | | | | | | Revenue | $ 185,657 | | $ 156,253 | | $ 173,872 | | Income from continuing operations | $ 10,237 | | $ 8,319 | | $ 11,305 | | Net income (loss) | $ 10,237 | | $ 8,319 | | $ 11,305 | | Adjusted EBITDA(1) | $ 31,866 | | $ 25,609 | | $ 36,178 | | Net income (loss) per share from continuing operations | $ 0.07 | | $ 0.06 | | $ 0.08 | | Adjusted net income per share from continuing operations(2) | $ 0.08 | | $ 0.06 | | $ 0.09 | | Net cash (used in) provided by operating activities | $ 34,387 | | $ (11,856) | | $ 48,333 | | Total Adjusted free cash flow(3) | $ 9,932 | | $ (31,914) | | $ 26,492 |

| | | | (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 June 30, 2026, March 31, 2026 and June 30, 2025, total Adjusted free cash flow includes $10.9 million, $6.6 million and $10.9 million of net payments from our participating interest owner, 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 $113.1 million Net income before taxes of $27.2 million Adjusted EBITDA of $29.9 million Adjusted EBITDA margins of 26.4%

Completion Fluids & Products revenue rose 23% sequentially and 3% year over year, delivering the highest first-half revenue in ten years. Sequential growth was driven by completion fluid spot-sales in the ESSA (Europe Sub-Sahara Africa) region. Chemicals also set a first-half revenue record, driven by seasonal demand in Europe and increased sales of electrolytes. Calcium Chloride revenues set another record in the second quarter and continue to grow at a rate exceeding GDP, driven by sustained demand across diverse end markets and emerging opportunities associated with domestic semiconductor manufacturing.

Water & Flowback Services

Revenue of $72.5 million Net income before taxes of $3.2 million Adjusted EBITDA of $10.8 million Adjusted EBITDA margins of 14.8%

Water & Flowback Services revenue increased 12% sequentially and 13% year over year, with every international region delivering ten-year-high second-quarter revenue except the Middle East. Results were led by record second-quarter Argentina revenue, driven by the ramp-up of early production facility projects in the Vaca Muerta basin. In addition, our patented SandStorm technology is making inroads in new markets. Our business continued to materially outpace the year-over-year decline in U.S. frac activity, leaving us well positioned to capture incremental upside from any recovery.

Balance Sheet and Cash Flow

In June, the Company issued approximately 12.4 million shares of common stock at a price of $9.25, resulting in net proceeds of $108.2 million. As of June 30, 2026, cash and cash equivalents were $154.6 million and total debt was $183.3 million. Net debt was $28.7 million and our net leverage ratio (Net Debt/TTM Debt Covenant Adjusted EBITDA) was 0.4 times.

During the second quarter of 2026, cash provided by operating activities was $34.4 million, total Adjusted free cash flow was $9.9 million and base business Adjusted free cash flow was $22.8 million. Total capital expenditures were $23.3 million, including $10.9 million associated with the Arkansas project and $2.0 million of capitalized interest.

Tracking Progress to ONE TETRA 2030

On May 28, 2026, TETRA's Board of Directors approved the FID for the development of the Company's Arkansas Bromine Project, marking a key milestone in TETRA's growth strategy. Proceeds from our recently completed equity offering will be used to fund a portion of the anticipated completion costs with the balance of such costs to be funded by cash from operations, borrowings under our credit facilities or alternative sources of capital. The facility is expected to be operational by the end of 2027, with first production anticipated in early 2028. This project will support growth in deepwater and electrolyte markets well beyond 2030. Additional updates on our progress relative to our 2030 targets are as follows:

Energy Services

We believe that the deepwater market growth is stronger now than our initial 2030 outlook. Geopolitical turmoil in the Middle East has made offshore oil production the most energy-secure barrel, with production economics below $50/bbl in most regions. According to Wood Mackenzie, investment in deepwater projects is expected to reach $111 billion this year, the highest since 2022. Deepwater rig activity is on the rise, and subsea tree installations, a key leading indicator of our completion fluids business, are expected to increase through the end of the decade. This supports continued confidence in the medium-term outlook for high-value deepwater completion fluids, especially where projects require specialized fluids for complex offshore wells.

As deepwater offshore exploration activity accelerates, we expect high-pressure, high-temperature ("HPHT") reservoirs to drive growing demand for our suite of higher-margin completion fluids, including TETRA Neptune and TETRA Neptune Z-Lite. Our Neptune portfolio expansion with TETRA Neptune Z-lite gives us the opportunity to further increase our deepwater market share, and the bromine plant will enable stronger margins through a vertically integrated supply chain. Against this backdrop, we believe TETRA is well positioned to support increasingly complex deepwater completion programs with differentiated fluids technology and a reliable supply.

In addition, our Flowback business is on track to grow significantly in 2026 and to more than double 2025 revenues in Argentina. Our patented TETRA SandStorm technology is being adopted as a standard across many markets. Overall, we believe we are on track to meet or exceed our 2030 targets for Energy Services.

Specialty Chemicals and Minerals

Calcium Chloride revenues set another record in the second quarter and continue to grow at a rate exceeding GDP. New markets for U.S. semiconductor chip manufacturing are also driving incremental revenue opportunities. Eos continues to ramp its manufacturing capacity and has set a year-end goal of 4 GWh of capacity before the end of 2026. This would represent a step change in electrolyte and PureFlow volumes in 2027 and beyond.

TETRA's 40,000-acre mineral position in Southwest Arkansas provides significant exposure to lithium and magnesium, two critical minerals benefiting from improving market fundamentals and growing U.S. supply-chain priorities. Our portfolio includes lithium royalty rights on approximately 35,000 acres held by Smackover Lithium, a 65% ownership interest in an estimated 585,000 tons of lithium carbonate equivalent ("LCE"), and more than two million tons of measured and indicated magnesium resources. We did not assume any lithium contribution in our 2030 financial targets, however, favorable pricing, geopolitical, and supply-chain dynamics, along with synergies associated with the bromine plant, may create opportunities to accelerate the monetization of our critical minerals platform.

Water Treatment and Desalination

TETRA Oasis continues to gain commercial momentum, supported by growing engagement with hyperscalers, water midstream companies, and E&P operators. As AI-driven data center and power infrastructure development accelerates across West Texas, customers increasingly recognize the economic advantages of water-cooled infrastructure, which can reduce cooling costs by up to 30% compared with conventional air-cooled systems. Combined with tightening produced water disposal constraints and the industry's focus on beneficial reuse, we believe these trends are expanding the market opportunity for large-scale desalination solutions and reinforcing the long-term growth potential of TETRA Oasis.

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 to Adjusted Free Cash Flow and Base Business 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 EBIT and 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 | | | | | | | June 30, 2026 | | March 31,

2026 | | June 30, 2025 | | | (in thousands, except per share amounts) | | | | | | Revenues | $ 185,657 | | $ 156,253 | | $ 173,872 | | | | | | | | | Cost of product sales and services | 130,343 | | 108,852 | | 116,346 | | Depreciation, amortization and accretion | 9,600 | | 9,176 | | 9,189 | | Impairments and other charges | — | | — | | 93 | | Total cost of revenues | 139,943 | | 118,028 | | 125,628 | | Gross profit | 45,714 | | 38,225 | | 48,244 | | General and administrative expense | 25,584 | | 25,409 | | 25,259 | | Operating income | 20,130 | | 12,816 | | 22,985 | | Interest expense, net | 3,267 | | 3,237 | | 4,194 | | Other expense (income), net | 1,009 | | (2,011) | | (645) | | Income from continuing operations before taxes | 15,854 | | 11,590 | | 19,436 | | Income tax expense | 5,617 | | 3,271 | | 8,131 | | Net income attributable to TETRA stockholders | $ 10,237 | | $ 8,319 | | $ 11,305 | | | | | | | | | Basic per share information: | | | | | | | Net income attributable to TETRA stockholders | $ 0.07 | | $ 0.06 | | $ 0.08 | | Weighted average shares outstanding | 138,997 | | 134,500 | | 133,152 | | | | | | | | | Diluted per share information: | | | | | | | Net income attributable to TETRA stockholders | $ 0.07 | | $ 0.06 | | $ 0.08 | | Weighted average shares outstanding | 140,619 | | 137,315 | | 133,422 |

| Schedule B: Condensed Consolidated Balance Sheet (Unaudited) | | | | | | June 30, 2026 | | December 31, 2025 | | | (in thousands) | | | | | (unaudited) | | | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | $ 154,583 | | $ 72,628 | | Restricted cash | 50 | | 52 | | Trade accounts receivable, net | 114,367 | | 99,578 | | Inventories | 117,057 | | 115,726 | | Prepaid expenses and other current assets | 24,917 | | 28,694 | | Total current assets | 410,974 | | 316,678 | | Property, plant and equipment, net | 230,174 | | 194,197 | | Deferred tax assets, net | 86,738 | | 87,322 | | Operating lease right-of-use assets | 34,123 | | 36,999 | | Patents, trademarks and other intangible assets, net | 19,737 | | 21,463 | | Investments | 11,090 | | 11,827 | | Other assets | 7,278 | | 7,275 | | Total long-term assets | 389,140 | | 359,083 | | Total assets | $ 800,114 | | $ 675,761 | | | | | | | LIABILITIES AND EQUITY | | | | | Current liabilities: | | | | | Trade accounts payable | $ 55,002 | | $ 54,517 | | Current portion of long-term debt | 8,125 | | 4,750 | | Compensation and employee benefits | 20,668 | | 28,934 | | Operating lease liabilities, current portion | 11,880 | | 11,326 | | Accrued taxes | 14,629 | | 15,001 | | Accrued liabilities and other | 49,615 | | 39,325 | | Current liabilities associated with discontinued operations | 7,360 | | 7,360 | | Total current liabilities | 167,279 | | 161,213 | | Long-term debt, net | 175,190 | | 176,607 | | Operating lease liabilities | 28,640 | | 32,664 | | Asset retirement obligations | 15,825 | | 15,526 | | Deferred income taxes | 2,677 | | 2,498 | | Other liabilities | 3,976 | | 4,766 | | Total long-term liabilities | 226,308 | | 232,061 | | Commitments and contingencies | | | | | TETRA stockholders' equity | 407,795 | | 283,755 | | Noncontrolling interests | (1,268) | | (1,268) | | Total equity | 406,527 | | 282,487 | | Total liabilities and equity | $ 800,114 | | $ 675,761 |

During the preparation of the financial statements for the period ended March 31, 2026, we identified an immaterial error which understated the current portion of long-term debt and overstated long-term debt by $4.8 million as of December 31, 2025. 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.