Tetra Technologies Q2 Earnings Call Highlights

Tetra Technologies Q2 revenue rose 19% sequentially to $185.7 million, while adjusted EBITDA increased 24% to $31.9 million. International and offshore growth, particularly in Argentina, offset delayed Middle East fluid shipments. Tetra’s board authorized final investment in the Arkansas bromine facility, supported partly by approximately $108 million from a recent equity offering. Completion is targeted for late 2027, with startup expected in early 2028. TETRA Neptune Z-Lite secured a three-well, 20,000-psi Gulf of America contract, while the company advanced its Oasis TDS produced-water desalination technology. Management expects deepwater completions and related demand to strengthen into 2027. Tetra Technologies NYSE: TTI reported second-quarter revenue of $185.7 million, up 19% sequentially and 7% from the prior-year period, as strength in international and offshore operations offset delayed Middle East fluid shipments tied to regional conflict. Income from continuing operations was $10.2 million, compared with $8.3 million in the first quarter and $11.3 million a year earlier. Adjusted EBITDA rose 24% sequentially to $31.9 million, while adjusted EBITDA margin improved to 17.2% from 16.4% in the first quarter. The company said the year-over-year decline in adjusted EBITDA from $36.2 million reflected a three-well TETRA Neptune project completed in the second quarter of 2025 that was not expected to recur this year. “Financially, we delivered one of the best second quarters in the first six months of the year in the past decade,” President and CEO Brady Murphy said, citing the company’s deepwater market share and expanding international operations. International and offshore revenue reached 10-year highs in the second quarter and first half of 2026. First-half international revenue was 24% higher than any comparable first-half period over the past decade, according to the company. Argentina was a major contributor, with Tetra on pace to double its 2026 revenue in the country compared with 2025. Growth there has been driven by early production facilities and the company’s SandStorm flowback technology in the Vaca Muerta Basin. Completion Fluids & Products generated $113.1 million in second-quarter revenue, rising 23% sequentially and 3% year over year. Adjusted EBITDA for the segment was $29.9 million, representing a 26.4% margin. The company attributed the growth to bromine-based clear brine fluid spot sales in Europe, seasonal calcium chloride demand for dust binding and increased sales of TETRA PureFlow zinc bromide electrolyte. Tetra said its results were achieved despite delayed shipments to the Middle East and higher third-party bromine costs. Murphy said the company’s other markets and supply position for bromine-based completion fluids had more than offset delayed or lost Middle East sales so far. Water & Flowback Services revenue reached $72.5 million, up 12% from the first quarter and 13% from a year earlier. Segment adjusted EBITDA was $10.8 million and its adjusted EBITDA margin increased to 14.8%, from 9.9% in the second quarter of 2025. Record Argentina revenue supported the segment’s performance. During the quarter, Tetra’s board approved a final investment decision for its Arkansas bromine facility. The company recently completed an equity offering that generated approximately $108 million in net proceeds, which will fund part of the project’s cost. The remaining cost is expected to be funded through operating cash flow.