Second-quarter 2026
Filed Aug 3, 2026TETRA TECHNOLOGIES, INC. REPORTS STRONG SECOND-QUARTER 2026 RESULTS
Revenue increased 19% sequentially and 7% year over year, adjusted EBITDA increased 24% sequentially, both operating segments reported sequential and year-over-year revenue growth, and the Company generated positive operating cash flow and total Adjusted free cash flow.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $185,657 (in thousands) | 19% | 7% |
| Income from continuing operationsGAAP | $10,237 (in thousands) | – | – |
| Net income (loss)GAAP | $10,237 (in thousands) | – | – |
| Adjusted EBITDAnon-GAAP | $31,866 (in thousands) | 24% | – |
| Net income (loss) per share from continuing operationsGAAP | $0.07 | – | – |
| Adjusted net income per share from continuing operationsnon-GAAP | $0.08 | – | – |
| Net cash (used in) provided by operating activitiesGAAP | $34,387 (in thousands) | – | – |
| Total Adjusted free cash flownon-GAAP | $9,932 (in thousands) | – | – |
| Base business Adjusted free cash flownon-GAAP | $22.8 million | – | – |
| Completion Fluids & Products net income before taxesother | $27.2 million | – | – |
| Completion Fluids & Products Adjusted EBITDAnon-GAAP | $29.9 million | – | – |
| Completion Fluids & Products Adjusted EBITDA marginsnon-GAAP | 26.4% | – | – |
| Water & Flowback Services net income before taxesother | $3.2 million | – | – |
| Water & Flowback Services Adjusted EBITDAnon-GAAP | $10.8 million | – | – |
| Water & Flowback Services Adjusted EBITDA marginsnon-GAAP | 14.8% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Completion Fluids & ProductsSequential growth was driven by completion fluid spot-sales in the ESSA (Europe Sub-Sahara Africa) region. Chemicals 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. | $113.1 million | 23% | 3% |
| Water & Flowback ServicesResults were led by record second-quarter Argentina revenue, driven by the ramp-up of early production facility projects in the Vaca Muerta basin. The Company also cited SandStorm technology inroads in new markets. | $72.5 million | 12% | 13% |
Second half 2026 and beyond outlook
- NoteThe Company expects its base business to perform in line with market expectations.
- NoteThe awarded three-well TETRA Neptune Z-Lite project in the Gulf of America is expected to start in 2026.
- NoteThe Company stated that the timing of Neptune pipeline jobs could meaningfully impact its second half 2026 results.
- NoteThe Arkansas Bromine Project is expected to be operational by the end of 2027, with first production anticipated in early 2028.
What drove it
- International and globally offshore revenues for the second quarter and first six months were a ten-year high.
- First-half 2026 international revenue was 24% higher than any first six months over the past decade.
- Growing demand for the proprietary zinc-bromide electrolyte solution supported performance.
- The Company launched TETRA Neptune Z-Lite and was awarded a three-well, 20,000 psi Gulf of America program.
- The Board approved the final investment decision for the Arkansas Bromine Project.
- The Company completed additional engineering work on a 100,000-barrel-per-day TETRA Oasis plant design.
- The Company cited estimated capex and opex savings of up to 23% and 24%, respectively, in moving from a 25,000 bbl/d plant to a 100,000 bbl/d plant.
Concerns
- The Company stated that broader global market volatility may remain.
- The timing of Neptune pipeline jobs could meaningfully impact second half 2026 results.
- Permitting activities and customer diligence processes for TETRA Oasis continue at a measured pace.
- Water & Flowback Services reported every international region delivered ten-year-high second-quarter revenue except the Middle East.
- Income from continuing operations of $10.2 million was inclusive of $1.1 million of unusual charges.
What to watch
- Start timing and execution of the three-well TETRA Neptune Z-Lite project in the Gulf of America during 2026.
- Timing of Neptune pipeline jobs and their effect on second half 2026 results.
- Completion of the Arkansas Bromine Project in the fourth quarter of 2027 and planned start-up in early 2028.
- Commercial conversion, permitting progress and customer diligence for large-scale TETRA Oasis desalination plants.
- Continued growth in deepwater completion activity, long-duration energy storage electrolyte demand, and West Texas data center and power infrastructure development.
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.
- As of June 30, 2026, total debt was $183.3 million.
- Net debt was $28.7 million and the net leverage ratio was 0.4 times.
- During the second quarter of 2026, cash provided by operating activities was $34.4 million.
- During the second quarter of 2026, 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.
- Total Adjusted free cash flow included $10.9 million of net payments from the participating interest owner for the Arkansas bromine and lithium projects, excluding capitalized interest.
Analysis
TETRA reported a strong second quarter, with revenue of $185,657 (in thousands), up 19% sequentially and 7% year over year. Income from continuing operations was $10,237 (in thousands), compared with $8,319 (in thousands) in the prior quarter and $11,305 (in thousands) in the prior-year quarter. Adjusted EBITDA was $31,866 (in thousands), increasing 24% sequentially from $25,609 (in thousands), while adjusted net income per share from continuing operations was $0.08.
Completion Fluids & Products was the principal revenue contributor, reporting $113.1 million of revenue, up 23% sequentially and 3% year over year. The Company attributed the sequential increase to completion fluid spot-sales in ESSA, while chemicals benefited from European seasonal demand and increased electrolyte sales. Water & Flowback Services delivered $72.5 million of revenue, up 12% sequentially and 13% year over year, led by Argentina early production facility activity in the Vaca Muerta basin. Segment adjusted EBITDA margins were 26.4% for Completion Fluids & Products and 14.8% for Water & Flowback Services.
Cash generation turned positive from the first quarter. Net cash provided by operating activities was $34,387 (in thousands), compared with net cash used in operating activities of $(11,856) (in thousands) in the prior quarter. Total Adjusted free cash flow was $9,932 (in thousands), compared with $(31,914) (in thousands) in the prior quarter. The Company reported $23.3 million of total capital expenditures, including $10.9 million associated with the Arkansas project and $2.0 million of capitalized interest.
The balance sheet changed materially through the June equity offering. TETRA issued approximately 12.4 million shares at $9.25 for net proceeds of $108.2 million. At June 30, 2026, cash and cash equivalents were $154.6 million, total debt was $183.3 million, net debt was $28.7 million, and net leverage was 0.4 times. The Company has approved the Arkansas Bromine Project final investment decision and expects the facility to be operational by the end of 2027, with first production anticipated in early 2028.
The outlook remains constructive for deepwater and international activity, with the U.S. showing signs of improvement. Management expects the base business to perform in line with market expectations and expects the awarded three-well TETRA Neptune Z-Lite project to start in 2026. The central variable for the second half is the timing of Neptune pipeline jobs, which management said could meaningfully affect results, alongside broader global market volatility and the measured pace of Oasis permitting and customer diligence.
Management, verbatim
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.
Brady Murphy, President and Chief Executive Officer
Second-quarter consolidated revenue of $186 million increased 19% sequentially and 7% year over year.
Brady Murphy, President and Chief Executive Officer
Adjusted EBITDA for the quarter increased 24% sequentially to $31.9 million.
Brady Murphy, President and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- Non-GAAP gross margin
- GAAP operating income
- Non-GAAP operating income
- Total operating expenses
- Tax rate
- Dividend activity
- Share repurchase activity
- Quantitative revenue guidance
- Quantitative gross-margin guidance
- Quantitative operating-expense guidance
- Quantitative tax-rate guidance
- Prior outlook for comparison
- Full six-month financial statement metrics and reconciliations, which were not included in the provided filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.