TETRA TECHNOLOGIES, INC. REPORTS STRONG SECOND-QUARTER 2026 RESULTS
Rhea-AI Summary
TETRA Technologies (NYSE:TTI) reported second‑quarter 2026 revenue of $185.7 million, up 19% sequentially and 7% year over year. Income from continuing operations was $10.2 million, including $1.1 million of unusual charges, with adjusted EBITDA of $31.9 million, up 24% sequentially. Cash from 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.
Completion Fluids & Products revenue reached $113.1 million with 26.4% adjusted EBITDA margin, while Water & Flowback Services generated $72.5 million of revenue with 14.8% margin. TETRA raised $108.2 million of net equity proceeds (about 12.4 million shares at $9.25), ending the quarter with $154.6 million in cash, $183.3 million of total debt, net debt of $28.7 million, and a net leverage ratio of 0.4x. The Board approved the final investment decision for the Arkansas Bromine Project, which is expected to be operational by late 2027 with first production in early 2028. TETRA also launched its TETRA Neptune Z‑Lite deepwater completion fluid and secured a three‑well Gulf of America project award.
Positive
- Revenue $185.7 million, up 19% sequentially and 7% year over year
- Adjusted EBITDA $31.9 million, up 24% sequentially in Q2 2026
- Completion Fluids & Products revenue $113.1 million, 26.4% adjusted EBITDA margin
- Water & Flowback revenue $72.5 million, up 13% year over year
- Equity raise $108.2 million net, reducing net debt to $28.7 million and leverage to 0.4x
- Arkansas Bromine Project FID approved, targeting operation by end of 2027
Negative
- Adjusted EBITDA $31.9 million, below prior‑year Q2 level of $36.2 million
- Total Adjusted free cash flow $9.9 million, down from $26.5 million in Q2 2025
- Equity issuance of ~12.4 million shares at $9.25 implies shareholder dilution
- Company notes that global market volatility and Neptune job timing could affect 2H 2026 results
News Explained
The completed equity issuance diluted existing ownership; Arkansas project proceeds cover only part of costs, with the remaining funding source not specified.
The June equity offering is completed: TETRA issued approximately
The offering proceeds cover only part of the anticipated completion costs for the Arkansas Bromine Project; the balance is to come from operating cash, credit facilities, or alternative capital rather than one specified remaining funding source.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 13 | earnings scheduling | Neutral | +3.3% | Announced the second-quarter results release date and conference call schedule. |
| Jul 13 | earnings correction | Neutral | +3.3% | Corrected the previously announced earnings schedule and webcast hyperlink. |
| Jun 29 | product launch | Positive | +4.7% | Introduced Neptune Z-Lite and announced selection for a deepwater project. |
| Jun 02 | offering pricing | Negative | -10.6% | Priced an underwritten common-stock offering under an effective shelf registration. |
| Jun 02 | public offering | Negative | -10.6% | Commenced a common-stock offering intended partly to fund the Arkansas project. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
TTI's prior company news showed positive reactions to scheduling and product updates but negative reactions to offerings, with alignment varying by catalyst.
Key Terms
adjusted EBITDA financial
final investment decision technical
net leverage ratio financial
HPHT technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second-Quarter 2026 Financial Highlights
- Revenues of
$185.7 million - Income from continuing operations of
$10.2 million $1.1 million - Adjusted EBITDA of
$31.9 million - Net Income per share from continuing operations of
$0.07 $0.08 - Launched TETRA Neptune Z-Lite, awarded a three-well Gulf of America Deepwater Project
- Raised
$108 million - Board of Directors approved final investment decision ("FID") for the Arkansas Bromine Project
Brady
During the quarter, we achieved several key milestones supporting our ONE TETRA 2030 objectives. Our
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
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
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
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
Second-Quarter Financial Highlights
Three Months Ended | |||||
June 30, | March 31, 2026 | June 30, | |||
(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 | $ 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 |
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
Water & Flowback Services
- Revenue of
$72 - Net income before taxes of
$3.2 million - Adjusted EBITDA of
$10 - Adjusted EBITDA margins of
14.8%
Water & Flowback Services revenue increased
Balance Sheet and Cash Flow
In June, the Company issued approximately 12.4 million shares of common stock at a price of
During the second quarter of 2026, cash provided by operating activities was
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
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
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
TETRA's 40,000-acre mineral position in
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
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, | March 31, 2026 | June 30, | |||
(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, | December 31, | ||
(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
Schedule C: Consolidated Statements of Cash Flows (Unaudited) | |||||
Three Months Ended | |||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
(in thousands) | |||||
Operating activities: | |||||
Net income | $ 10,237 | $ 8,319 | $ 11,305 | ||
Adjustments to reconcile net income to net cash provided by (used in) | |||||
Depreciation, amortization and accretion | 9,600 | 9,176 | 9,189 | ||
Impairments and other charges | — | — | 93 | ||
Loss (gain) on investments | 165 | (662) | 299 | ||
Deferred income tax (benefit) expense | (9) | 1,102 | 3,142 | ||
Equity-based compensation expense | 1,924 | 1,778 | 1,747 | ||
Provision for (recovery of) credit losses | 91 | (23) | (32) | ||
Amortization and expense of financing costs | 607 | 570 | 484 | ||
Gain on sale of assets | (129) | (127) | (23) | ||
Other non-cash credits | (171) | (1) | (230) | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 1,550 | (17,375) | 11,089 | ||
Inventories | 3,092 | (3,906) | 574 | ||
Prepaid expenses and other current assets | 957 | 2,789 | (1,496) | ||
Trade accounts payable and accrued expenses | 6,957 | (13,300) | 11,033 | ||
Other | (484) | (196) | 1,159 | ||
Net cash provided by (used in) operating activities | 34,387 | (11,856) | 48,333 | ||
Investing activities: | |||||
Purchases of property, plant and equipment, net | (23,315) | (19,019) | (19,487) | ||
Proceeds from sale of property, plant and equipment | 132 | 127 | 65 | ||
Other investing activities | (264) | 164 | (198) | ||
Net cash used in investing activities | (23,447) | (18,728) | (19,620) | ||
Financing activities: | |||||
Proceeds from credit agreements and long-term debt | 1,163 | 105 | 98 | ||
Public offerings proceeds, net of offering costs | 108,397 | — | — | ||
Principal payments on credit agreements and long-term debt | (163) | (105) | (98) | ||
Payments on financing lease obligations | (1,272) | (1,166) | (1,139) | ||
Taxes paid upon vesting of equity-based compensation | (510) | (5,928) | (76) | ||
Proceeds/cash settlements from common stock and exercised stock | 861 | 371 | — | ||
Other financing activities | — | — | (1,280) | ||
Net cash provided by (used in) financing activities | 108,476 | (6,723) | (2,495) | ||
Effect of exchange rate changes on cash | (307) | 151 | 1,533 | ||
Increase (decrease) in cash and cash equivalents | 119,109 | (37,156) | 27,751 | ||
Cash, cash equivalents and restricted cash at beginning of period | 35,524 | 72,680 | 41,050 | ||
Cash, cash equivalents and restricted cash at end of period | $ 154,633 | $ 35,524 | $ 68,801 | ||
Supplemental cash flow information: | |||||
Interest paid(1) | $ 2,516 | $ 2,737 | $ 4,287 | ||
Income taxes paid | $ 4,250 | $ 7,337 | $ 2,829 | ||
Accrued capital expenditures at end of period | $ 19,320 | $ 7,020 | $ 4,050 | ||
Offering costs incurred but unpaid as of period end | $ 233 | $ — | $ — | ||
(1) | Interest paid is net of | |||||
Schedule D: Non-GAAP Reconciliation of Adjusted Net Income (Loss) (Unaudited) | |||||
The following table presents the reconciliation of adjusted net income to the most directly comparable | |||||
Three Months Ended | |||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
(in thousands, except per share amounts) | |||||
Income from continuing operations before taxes | $ 15,854 | $ 11,590 | $ 19,436 | ||
Income tax expense | 5,617 | 3,271 | 8,131 | ||
Income from continuing operations | 10,237 | 8,319 | 11,305 | ||
Impairments and other charges | — | — | 93 | ||
Transaction, restructuring and other expenses | 1,056 | 490 | 1,242 | ||
Former CEO stock appreciation right credit | — | — | (22) | ||
Adjusted net income | $ 11,293 | $ 8,809 | $ 12,618 | ||
Diluted per share information | |||||
Net income attributable to TETRA stockholders | $ 0.07 | $ 0.06 | $ 0.08 | ||
Adjusted net income per share | $ 0.08 | $ 0.06 | $ 0.09 | ||
Diluted weighted average shares outstanding | 140,619 | 137,315 | 133,422 | ||
Adjusted net income is defined as the Company's income (loss) before noncontrolling interests and discontinued operations, excluding unusual tax provision, unusual foreign exchange losses and certain special or other charges (or credits), and including noncontrolling interest attributable to continued operations. Adjusted net income is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.
Adjusted net income per share is defined as the Company's diluted net income per share attributable to TETRA stockholders excluding certain special or other charges (or credits). Adjusted net income per share is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.
Schedule E: Non-GAAP Reconciliation of Adjusted EBIT and Adjusted EBITDA (Unaudited) | |||||
Consolidated | |||||
Three Months Ended | |||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
(in thousands, except percents) | |||||
Revenues | $ 185,657 | $ 156,253 | $ 173,872 | ||
Income (loss) from continuing operations before | 15,854 | 11,590 | 19,436 | ||
Impairments and other charges | — | — | 93 | ||
Former CEO stock appreciation right expense (credit) | — | — | (22) | ||
Transaction, restructuring and other expenses | 1,056 | 490 | 1,242 | ||
Interest (income) expense, net | 3,267 | 3,237 | 4,194 | ||
Investment (income) losses | 165 | (662) | 299 | ||
Adjusted EBIT | 20,342 | 14,655 | 25,242 | ||
Depreciation, amortization and accretion | 9,600 | 9,176 | 9,189 | ||
Equity-based compensation expense | 1,924 | 1,778 | 1,747 | ||
Adjusted EBITDA | $ 31,866 | $ 25,609 | $ 36,178 | ||
Adjusted EBITDA as a % of revenue | 17.2 % | 16.4 % | 20.8 % | ||
Completion Fluids & Products | |||||
Three Months Ended | |||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
(in thousands, except percents) | |||||
Revenues | $ 113,110 | $ 91,721 | $ 109,445 | ||
Income (loss) from continuing operations before | 27,186 | 24,299 | 38,133 | ||
Transaction, restructuring and other expenses | 450 | — | 69 | ||
Interest (income) expense, net | (103) | (157) | (302) | ||
Investment (income) losses | 165 | (662) | 299 | ||
Adjusted EBIT | 27,698 | 23,480 | 38,199 | ||
Depreciation, amortization and accretion | 2,205 | 2,231 | 2,214 | ||
Adjusted EBITDA | $ 29,903 | $ 25,711 | $ 40,413 | ||
Adjusted EBITDA as a % of revenue | 26.4 % | 28.0 % | 36.9 % | ||
Water & Flowback Services | |||||
Three Months Ended | |||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
(in thousands, except percents) | |||||
Revenues | $ 72,547 | $ 64,532 | $ 64,427 | ||
Income (loss) from continuing operations before | 3,205 | 2,060 | (1,271) | ||
Impairments and other charges | — | — | 93 | ||
Transaction, restructuring and other expenses | — | 76 | 685 | ||
Interest (income) expense, net | 247 | 89 | 13 | ||
Adjusted EBIT | 3,452 | 2,225 | (480) | ||
Depreciation, amortization and accretion | 7,319 | 6,866 | 6,881 | ||
Adjusted EBITDA | $ 10,771 | $ 9,091 | $ 6,401 | ||
Adjusted EBITDA as a % of revenue | 14.8 % | 14.1 % | 9.9 % | ||
Corporate | |||||
Three Months Ended | |||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
(in thousands, except percents) | |||||
Income (loss) from continuing operations before | (14,537) | (14,769) | (17,426) | ||
Former CEO stock appreciation right expense (credit) | — | — | (22) | ||
Transaction, restructuring and other expenses | 606 | 414 | 488 | ||
Interest (income) expense, net | 3,123 | 3,305 | 4,483 | ||
Adjusted EBIT | (10,808) | (11,050) | (12,477) | ||
Depreciation, amortization and accretion | 76 | 79 | 94 | ||
Equity-based compensation expense | 1,924 | 1,778 | 1,747 | ||
Adjusted EBITDA | $ (8,808) | $ (9,193) | $ (10,636) | ||
Effective with the earnings release for the three months ended March 31, 2026, we revised our definitions of Adjusted EBIT and Adjusted EBITDA to exclude investment (income) losses. Prior period Adjusted EBITDA amounts have been recast to reflect these revised definitions for all periods presented. We changed the definitions of Adjusted EBIT and Adjusted EBITDA because management believes that investment (income) losses are not reflective of the underlying operating performance of our core business. Investment (income) losses consist of realized and unrealized gains and losses on equity and debt securities of other companies, including our investment in Standard Lithium, and investments in common units and preferred units issued by two privately-held companies as well as the option to convert a convertible note issued by a privately-held company into equity interests. Investment (income) losses are recorded in other income (expense), net in our consolidated statements of operations. The magnitude and timing of investment (income) losses are driven by factors external to our core operations that management cannot control and does not consider when evaluating or managing day-to-day business performance. Accordingly, management believes the revised definitions of Adjusted EBIT and Adjusted EBITDA provide more meaningful measures of our operating performance and improve period-over-period comparability. The revisions to the Adjusted EBIT and Adjusted EBITDA definitions apply symmetrically to both investment income and investment losses, and we will apply this definition consistently in future periods.
Adjusted EBIT is now defined as net income (loss) from continuing operations before taxes, interest (income) expense, net, investment (income) losses, impairments and certain non-cash charges, and unusual adjustments.
Adjusted EBITDA is now defined as net income (loss) from continuing operations before taxes, excluding impairments, certain special, unusual or other charges (or credits), including loss on debt extinguishment, interest (income) expense, net, investment (income) losses, depreciation and amortization and certain non-cash items such as equity-based compensation expense. The most directly comparable GAAP financial measure is net income (loss) from continuing operations before taxes. Equity-based compensation expense represents compensation that has been or will be paid in equity and is excluded from Adjusted EBITDA because it is a non-cash item.
Adjusted EBITDA is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations and without regard to financing methods, capital structure or historical cost basis, and to assess the Company's ability to incur and service debt and fund capital expenditures.
Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenues. A reconciliation of Adjusted EBITDA margin to the most directly comparable GAAP measures for future periods is not available without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy activity levels and product mix, which significantly impact revenues. Such items are not currently determinable with reasonable accuracy and may be material to the Company's actual results determined in accordance with GAAP.
Schedule F: Unusual Charges and Credits (Unaudited)
Unusual charges and expenses, net of credits were
Schedule G: Non-GAAP Reconciliation to Total Adjusted Free Cash Flow and | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||
(in thousands) | |||||||||
Net cash (used in) provided by operating | $ 34,387 | $ (11,856) | $ 48,333 | $ 22,531 | $ 52,268 | ||||
Capital expenditures, net of proceeds from | (23,183) | (18,892) | (19,422) | (42,075) | (37,196) | ||||
Payments on financing lease obligations | (1,272) | (1,166) | (1,139) | (2,438) | (2,070) | ||||
Payments on seller financed purchases | — | — | (1,280) | — | (1,280) | ||||
Cash received from sale of investments | — | — | — | — | 19,011 | ||||
Total Adjusted Free Cash Flow | $ 9,932 | $ (31,914) | $ 26,492 | $ (21,982) | $ 30,733 | ||||
Total Adjusted Free Cash Flow | $ 9,932 | $ (31,914) | $ 26,492 | $ (21,982) | $ 30,733 | ||||
Less Investments in | (10,857) | (6,608) | (10,861) | (17,465) | (22,029) | ||||
Capitalized interest | (2,046) | (1,832) | (1,044) | (3,878) | (1,809) | ||||
Base Business Adjusted Free Cash Flow | $ 22,835 | $ (23,474) | $ 38,397 | $ (639) | $ 54,571 | ||||
Total Adjusted free cash flow is defined as cash from operations, less capital expenditures net of asset sales, less payments on financing lease obligations plus cash distributions to the Company from investments and proceeds from sales of investments. Total Adjusted free cash flow does not necessarily imply residual cash flow available for discretionary expenditures. Base business Adjusted free cash flow is defined as total Adjusted free cash flow excluding TETRA's investments in the
A reconciliation of Adjusted free cash flow to the most directly comparable GAAP measures for future periods is not available without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation including, among other things, depreciation expense and interest. Such reconciling items are not currently determinable pending finalization of cost estimates and funding structure, and may be material to the Company's actual results determined in accordance with GAAP.
Schedule H: Non-GAAP Reconciliation of Net Debt (Unaudited) | |||
The following reconciliation of net debt is presented as a supplement to financial results prepared | |||
June 30, | December 31, | ||
(in thousands) | |||
Unrestricted Cash | $ 154,583 | $ 72,628 | |
Term Credit Agreement | 182,315 | 181,357 | |
Argentina Credit Facilities | 1,000 | — | |
Net debt | $ 28,732 | $ 108,729 | |
Net debt is defined as the carrying value of long-term and short-term debt, minus cash (excluding restricted cash).
Schedule I: Non-GAAP Reconciliation to Net Leverage Ratio (Unaudited) | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
June 30, 2026 | March 31, | December 31, | September | June 30, | |||||
(in thousands) | |||||||||
Income (loss) from continuing operations | $ 15,854 | $ 11,590 | $ (6,125) | $ 8,105 | $ 29,424 | ||||
Impairments and other charges | — | — | 3,551 | — | 3,551 | ||||
Former CEO stock appreciation right | — | — | 479 | 98 | 577 | ||||
Transaction, restructuring and other expenses | 1,056 | 490 | 7,485 | 1,188 | 10,219 | ||||
Interest (income) expense, net | 3,267 | 3,237 | 3,961 | 4,448 | 14,913 | ||||
Investment (income) losses | 165 | (662) | (1,194) | (1,096) | (2,787) | ||||
Depreciation, amortization and accretion | 9,600 | 9,176 | 9,268 | 9,491 | 37,535 | ||||
Equity-based compensation expense | 1,924 | 1,778 | 1,779 | 1,708 | 7,189 | ||||
Adjusted EBITDA (Schedule E) | $ 31,866 | $ 25,609 | $ 19,204 | $ 23,942 | $ 100,621 | ||||
(Gain) loss on sale of assets | (129) | (127) | (152) | (66) | (474) | ||||
Other debt covenant adjustments | 282 | 145 | 347 | 177 | 951 | ||||
Debt covenant adjusted EBITDA | $ 32,019 | $ 25,627 | $ 19,399 | $ 24,053 | $ 101,098 | ||||
June 30, 2026 | |||||||||
(in thousands, except ratio) | |||||||||
Term credit agreement | $ 190,000 | ||||||||
1,000 | |||||||||
Finance lease obligations | 2,922 | ||||||||
Letters of credit and guarantees | 3,050 | ||||||||
Total debt and commitments | 196,972 | ||||||||
Unrestricted cash | 154,583 | ||||||||
Debt covenant net debt and commitments | $ 42,389 | ||||||||
Net leverage ratio | 0.4 | ||||||||
Net leverage ratio is defined as debt excluding financing fees and discount on term loan and including finance lease obligations, other capital purchase liabilities, letters of credit and guarantees, less unrestricted cash, divided by trailing twelve months Adjusted EBITDA as defined in our credit facilities. Adjusted EBITDA for credit facilities consists of Adjusted EBITDA described above, less non-cash (gain) loss on sale of investments, (gain) loss on sales of assets and excluding bank fees and certain special or other charges (or credits).
Conference Call
TETRA will host a conference call to discuss these results on August 4, 2026, at 10:30 a.m. ET. Click here to pre-register for the call or listen via webcast.
Investor Contact
Matt
Kurt Hallead, Treasurer and VP of Investor Relations, khallead@onetetra.com
Media Relations
Giselle Piller, Senior Director of Global Marketing & Communications, gpiller@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.com for more information or connect with us on LinkedIn.
Cautionary Statement Regarding Forward Looking Statements
This news release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as "may," "see," "expectation," "expect," "intend," "estimate," "projects," "anticipate," "believe," "assume," "could," "should," "plans," "targets" or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements that the Company intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements regarding our ability to achieve our ONE TETRA 2030 objectives with respect to revenue and Adjusted EBITDA as well as other 2030 goals discussed herein. These statements also include statements concerning economic and operating conditions that are outside of our control, including statements concerning the oil and gas industry; potential revenue associated with our electrolyte products and prospective energy storage projects; adoption of our products and technologies by the market, including our TETRA Oasis and the anticipated demand for such technology; our mineral reserves and measured, indicated and inferred mineral resources of lithium, magnesium, and/or bromine, the potential extraction of lithium, bromine, magnesium and other minerals, including potential extraction of those minerals designated as critical minerals, from our Evergreen Unit and other leased acreage, the economic viability thereof, the demand for such resources, the timing and costs of such activities, and the expected revenues, including any royalties, profits and returns from such activities; the timing and success of our bromine production wells and the construction of our bromine processing facility and related engineering activities and estimated costs, revenues and profitability thereof; projections or forecasts concerning the Company's business activities, including the completion of new projects, future results of operations, revenues, profitability, estimated earnings, earnings per share, estimated Adjusted EBITDA margins and statements regarding the Company's beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. With respect to the Company's disclosures of measured, indicated and inferred mineral resources, including bromine, lithium carbonate equivalent concentrations, magnesium, and other minerals, it is uncertain if all such resources will ever be economically developed. Investors are cautioned that mineral resources do not have demonstrated economic value and further exploration may not result in the estimation of a mineral reserve. Further, there are a number of uncertainties related to processing lithium, which is an inherently difficult process. Therefore, you are cautioned not to assume that all or any part of our resources can be economically or legally commercialized. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to several risks and uncertainties, many of which are beyond the control of the Company. With respect to the Company's disclosures regarding the joint venture for the Evergreen Unit the future relationship between the parties and the sharing of development costs is uncertain. Investors are cautioned that any such statements are not guarantees of future performance or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes in general economic conditions; opportunity risks, such as mineral extraction, demand therefor, or realizing industrial and other benefits expected from bromine processing; our ability to develop a bromine processing facility and risks inherent in the construction of such facility, including delays, cost overruns, changes in scope, and the ability to obtain local government and regulatory approvals; the accuracy of our resources report or the timing of future updates to our resources report, feasibility study and economic assessment regarding our lithium, bromine, magnesium and other mineral acreage; our ability to obtain any necessary additional capital to finance our development plans, including the construction of our bromine processing plant; equipment supply, equipment defects and/or our ability to timely obtain equipment components; our ability to commercialize new technologies and products such as our TETRA Oasis, including the construction and operation of desalination facilities, which are subject risks inherent in the construction and operation of energy infrastructure facilities such as timeline delays and cost overruns and our ability to execute on increase plant scale; competition from existing or new competitors; risks associated with changes in laws and regulations, or the imposition of economic or trade sanctions affecting international commercial transactions, including legislative, regulatory and policy changes, such as unexpected changes in tariffs, trade barriers, price and exchange controls; and other the factors described in the section titled "Risk Factors" contained in the Company's Annual Reports on Form 10-K, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. Investors should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and the Company undertakes no obligation to update or revise any forward-looking statements, except as may be required by law.
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SOURCE TETRA Technologies, Inc.