TETRA Technologies, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for the three months ended September 30, 2026, was $168.0 million, a 10% increase year-over-year compared to $153.2 million in the prior year period.
• Net income was $6.8 million, inclusive of $2.0 million in unusual charges, compared to $4.2 million in the same period last year.
• Adjusted EBITDA was $25.1 million, the second-highest third-quarter result in the past ten years, compared to $25.0 million in the prior year period.
• Net income per share was $0.05, while adjusted net income per share was $0.06.
• Unusual charges and expenses, net of credits, totaled $3.9 million for the quarter, including $2.2 million in legal fees related to a former subsidiary, $0.7 million in unconsolidated equity investment expense, and $0.9 million in other expenses.
• Discrete tax items of $1.9 million were recorded, primarily related to a reduction in the federal valuation allowance and revised estimates regarding the Brazilian subsidiary.
• Cash and cash equivalents increased to $84.3 million as of September 30, 2026, from $72.6 million at December 31, 2025.
• Short-term investments of $41.7 million were added during the period.
• Total assets reached $809.3 million as of September 30, 2026, up from $675.8 million at the end of 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $31.3 million, compared to $68.6 million in the prior year period.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $119.0 million, driven by $77.6 million in purchases of property, plant, and equipment and $41.7 million in purchases of short-term investments.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $99.6 million, primarily due to $108.2 million in public offering proceeds.

Guidance and Future Outlook:

• For the fourth quarter of 2026, the company expects consolidated revenue and Adjusted EBITDA to be up double digits year-on-year.
• For the full year 2027, the company expects revenue and Adjusted EBITDA to increase relative to 2026 levels.
• The company plans to update its outlook further as customer spending plans are announced in the fourth quarter.
• The Arkansas bromine plant is on schedule and on budget, with mechanical completion expected in less than 12 months.
• Production is scheduled to commence at an annualized rate of 37 million pounds at the beginning of 2028, ramping to a 75-million-pound annual capacity by 2030.
• The company remains on track to achieve its ONE TETRA 2030 strategy goals.

Business Segments and Product Lines:

• Completion Fluids & Products:
  • Achieved its highest third-quarter revenue in ten years.
  • Industrial Chemicals posted its highest third-quarter revenue in a decade, driven by 32% year-over-year growth and accounting for over 50% of the segment's revenue.
  • Growth in Industrial Chemicals is supported by the expanding U.S. industrial market, including semiconductor manufacturing and demand for electrolytes for energy storage.
  • Adjusted EBITDA margin was 22.1%, impacted by product mix, lower deepwater activity in the Gulf of America, and higher diesel and freight costs.
• Water & Flowback Services:
  • Revenue increased 21% year-over-year to $76.1 million.
  • Adjusted EBITDA increased 69% year-over-year to $12.7 million.
  • Adjusted EBITDA margin increased 480 basis points to 16.7%.
  • Argentina revenue more than doubled, driven by the ramp of early production facilities and strong utilization of the automated TETRA SandStorm technology in the Vaca Muerta basin.
  • Production testing grew 9% quarter-over-quarter and 60% year-over-year, driven by international markets and U.S. automated TETRA SandStorm market share gains.
• International Markets:
  • International revenue reached $68.8 million, representing 41% of consolidated revenue, marking the strongest third quarter in 10 years.
  • First automated TETRA SandStorm technology deployments to the Middle East are expected to support continued international growth in production testing.

Market and Competitive Landscape:

• Deepwater and international activity outlooks are described as robust.
• A return to more completion activity in the Gulf of America is anticipated.
• The company notes increasing produced water disposal constraints in the Permian Basin and substantial water requirements from data center development as creating a significantly larger opportunity for its TETRA Oasis solution.
• TETRA Oasis has seven projects in its pipeline, including four tied to data centers or their power requirements.
• The company is engaging with the Texas Commission on Environmental Quality (TCEQ) and the Environmental Protection Agency (EPA) regarding permitting for six beneficial reuse applications.

Risks and Challenges:

• Permitting remains the primary next step toward commercialization of the TETRA Oasis solution.
• The Arkansas bromine project faces risks related to construction delays, cost overruns, changes in scope, and the ability to obtain local government and regulatory approvals.
• Future results are subject to risks including changes in general economic conditions, mineral extraction demand, equipment supply issues, and competition.
• The company notes that mineral resources do not have demonstrated economic value and further exploration may not result in the estimation of a mineral reserve.
• Forward-looking statements regarding the commercialization of new technologies and the extraction of critical minerals are subject to uncertainties regarding economic viability and regulatory changes.

Management Commentary and Tone:

• Brady Murphy, President and Chief Executive Officer, stated that third-quarter revenue represented the highest third-quarter revenue in the past ten years.
• Management described the results as demonstrating "broad-based strength across our portfolio," with multiple businesses achieving significant performance milestones.
• The CEO highlighted the team's exceptional job in managing inflationary pressures while keeping the Arkansas bromine project on schedule and within approved capital spending levels.
• Management expressed encouragement regarding the quality and breadth of customer engagement with the TETRA Oasis solution.
• The tone regarding the fourth quarter and 2027 is described as "strong," with expectations for robust deepwater and international activity.

Other Key Points:

• In early October 2026, the company amended its $190 million Term Credit Agreement, extending the maturity from January 12, 2030, to December 31, 2030.
• The credit agreement amendment reduced the interest rate margin by 75 basis points to SOFR plus 5.00%.
• The amendment deferred approximately $19 million of scheduled principal amortization payments to 2030.
• The company completed a public offering, generating $108.2 million in proceeds net of offering costs of $6.77 million during the nine months ended September 30, 2026.
• The company revised its definitions of Adjusted EBIT and Adjusted EBITDA effective with the March 31, 2026 earnings release to exclude investment (income) losses, with prior periods recast to reflect this change.
• A conference call to discuss results is scheduled for November 3, 2026, at 10:00 a.m. ET.