TETRA Technologies, Inc.

Second-quarter revenue was $185.7 million, up from $156.3 million in Q1 2026 and $173.9 million in Q2 2025. Adjusted EBITDA was $31.9 million, versus $25.6 million in Q1 2026 and $36.2 million in Q2 2025; adjusted EBITDA margin was 17.2%, versus 16.4% in Q1 2026 and 20.8% in Q2 2025. Income from continuing operations was $10.2 million, compared with $8.3 million in Q1 and $11.3 million in Q2 2025. Completion Fluids & Products revenue was $113.1 million, adjusted EBITDA was $29.9 million, and adjusted EBITDA margin was 26.4%. Water & Flowback Services revenue was $72.5 million, adjusted EBITDA was $10.8 million, and adjusted EBITDA margin was 14.8%. Cash generated by operating activities was $34.4 million; total capital expenditures were $23.3 million; base business adjusted free cash flow was $22.8 million; total adjusted free cash flow was $9.9 million. The company ended the quarter with cash and cash equivalents of $154.6 million, total debt of $183.3 million, net debt of $28.7 million, and net leverage of 0.4x. Management said the base business should perform in line with market expectations for the rest of 2026, while recognizing Middle East conflict-related uncertainty and the timing of Neptune jobs could materially affect second-half results. Longer term, the company expects growth from deepwater completion activity, long-duration energy storage electrolytes, and Oasis TDS commercialization. The Arkansas bromine plant is scheduled for completion in Q4 2027 and startup in early 2028, and management said it will materially improve supply and cost economics.

Brady Murphy framed the quarter as one of the strongest second-quarter and first-half periods in the past decade, driven by deepwater market share, international growth, and strategic execution. He emphasized several milestones: the launch of Neptune Z-Lite, the Arkansas bromine FID, and progress on Oasis TDS, including larger project concepts and expanding customer interest. His tone was upbeat but measured, with repeated comments that the business is positioned for TETRA’s 2030 targets while acknowledging Middle East uncertainty and timing variability in Neptune work.

Matt Sanderson focused on the financial build, noting $185.7 million of revenue, $31.9 million of adjusted EBITDA, and $10.2 million of income from continuing operations. He highlighted segment margins of 26.4% in Completion Fluids & Products and 14.8% in Water & Flowback, plus operating cash flow of $34.4 million and base business adjusted free cash flow of $22.8 million. On the balance sheet, he cited $154.6 million of cash, $183.3 million of debt, $28.7 million of net debt, and 0.4x net leverage after the roughly $108 million equity offering used to fund part of the Arkansas bromine project.

Analysts pressed on what management includes in “base business,” and Brady clarified it covers ongoing completion fluids, Water & Flowback, and electrolyte sales, but not Neptune-style jobs today. Questions also focused on deepwater timing, with management saying Gulf of America activity was more drilling than completion this year and that a reversal in the cycle is expected in 2027, with the longer-term deepwater CAGR target of 8% still intact and potentially beatable. On Oasis, management said confidence is rising due to stronger customer engagements, including a hyperscaler meeting, but the main gating issue is permitting through the TCEQ and EPA; on Middle East exposure, management said the timing of normalization is unknown, but deepwater and U.S./Argentina unconventional markets should benefit in the meantime.