TTI

TETRA Technologies delivered a quarter that was well received by the market, with revenue surpassing Wall Street expectations, supported by international and offshore growth. Management credited performance to deepwater market share gains and expanding demand in Argentina, despite some delayed Middle East shipments. CEO Brady Murphy highlighted the launch of Neptune Z-Lite, an advanced deepwater completion fluid, and noted progress on the Arkansas Bromine project as key milestones. Murphy stated, “We accomplished this through the strength of our deepwater market share in our growing international business despite the impact of the Middle East conflict.” Is now the time to buy TTI? Find out in our full research report (it’s free). Revenue: $185.7 million vs analyst estimates of $177 million (6.8% year-on-year growth, 4.9% beat) Adjusted EPS: $0.08 vs analyst estimates of $0.08 (in line) Adjusted EBITDA: $31.87 million vs analyst estimates of $29.5 million (17.2% margin, 8% beat) Operating Margin: 10.8%, down from 13.2% in the same quarter last year Market Capitalization: $1.26 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Stephen Gengaro (Stifel): Sought clarification on what constitutes TETRA’s base business, including whether electrolyte sales are included. CEO Brady Murphy explained base business includes completion fluids, water and flowback, and electrolyte sales but excludes Neptune projects. Robert Brooks (Northland Capital Markets): Asked about the financial impact and market expansion from Neptune Z-Lite. Murphy emphasized Z-Lite’s ability to address restrictive zinc regulations and its potential to significantly expand TETRA’s market opportunity. Brooks (Northland Capital Markets): Inquired about commercial discussions with hyperscale data centers for Oasis TDS. Murphy stated confidence in customer engagement and noted permitting as a key gating issue for commercial projects. Martin Malloy (Johnson Rice): Sought details on Argentina technology deployment. Murphy highlighted early production facilities and SandStorm as the primary technologies supporting growth in the region. Jonathan Tanwanteng (CJS): Asked about lithium and magnesium optionality and timelines. Murphy indicated lithium projects could be accelerated with the bromine plant infrastructure, while magnesium development remains further out pending technology demonstration. In upcoming quarters, the StockStory team will closely watch (1) execution milestones for the Arkansas Bromine project, (2) regulatory progress and commercial agreements for Oasis TDS, and (3) continued momentum in deepwater and international operations, particularly in Argentina and offshore Europe. The pace of lithium and magnesium project development and customer adoption in energy storage will also be important drivers of future performance. TETRA Technologies currently trades at $8.35, up from $7.80 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026, at 10:30 a.m. ET President and CEO - Brady Murphy Chief Financial Officer - Matt Sanderson Treasurer and Investor Relations - Kurt Hallead Operator: Hello, and thank you for standing by. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the TETRA Technologies, Inc. Second Quarter 2026 Earnings Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Kurt Hallead, Treasurer and Investor Relations. Please go ahead. Kurt Hallead: Thank you, Dennis, and good morning, everyone, and thank you for joining TETRA's second quarter earnings call. The speakers on today's call will be Brady Murphy, President and CEO; and Matt Sanderson, Chief Financial Officer. Before we begin, I would like to call your attention to the safe harbor statement in our Form 10-Q. Some of the remarks we make today may be forward-looking and are subject to risks and uncertainties as outlined in our SEC filings, and actual results may differ materially from those expressed or implied. In addition, we may refer to adjusted EBITDA, free cash flow and other non-GAAP financial measures. Please refer to our press release for GAAP reconciliations and note that these reconciliations are not a substitute for GAAP financials. As such, we encourage you to refer to our 10-Q. After Brady and Matt provide their comments, we will open the line for Q&A. I will now turn the call over to Brady. Brady Murphy: Thank you, Kurt, and good morning, everyone. I'm really pleased with our second quarter results across many fronts. Financially, we delivered one of the best second quarters and first 6 months of the year in the past decade. We accomplished this through the strength of our deepwater market share in our growing international business despite the impact of the Middle East conflict. I'll come back to the financials shortly. But we also reached some really strategic milestones in the second quarter that are setting us up very well to achieve our 2030 targets that we laid out at our Investor Day in September of last year. For our Deepwater markets, we expanded our patented TETRA completion fluid offering with the introduction of TETRA Neptune 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 3-well 20,000 psi Gulf of America program. During the quarter, our Board of Directors approved the final investment decision for our Arkansas Bromine project. Proceeds of approximately $108 million from our recently completed equity offering will be used in a portion of the anticipated project cost with the balance of such costs to be funded by cash from operations, borrowings from our credit facilities, alternate sources of capital. This project will provide a pathway to meet our growing Deepwater completion fluids market as well as our increasing electrolyte demand while providing significant benefits for security of supply at a lower cost. The project is on schedule for completion in the fourth quarter of 2027 and start up in early 2028. We advanced our TETRA Oasis TDS Desalination Solution for produced water on several fronts as our customer engagements continue to expand. At the request of our customers to meet data center requirements for larger volumes of water, we made significant progress on the engineering design of our 100,000 barrel per day desalination plant. Very importantly, we also strengthened our intellectual property position, receiving Notices of Allowance that expand the scope of our TETRA Oasis TDS patented portfolio to include a broad range of pre-treatment technologies critical to long-term membrane performance. As you can see, it's been a very busy and very productive second quarter for us. Coming back to our financials. Overall for the company, our second quarter revenue increased 19% sequentially and 7% year-over-year to $185.7 million. Adjusted EBITDA increased 24% sequentially to $31.9 million. Income from continuing operations was $10.2 million. Internationally and globally offshore, our revenues for both the second quarter and the first 6 months of the year reached 10-year highs. First half 2026 international revenue was 24% higher than the first half period over the past decade. Our international business was led by Argentina, where we're on pace to double our growth in '26 over '25 behind the strength of our early production systems and the TETRA SandStorm technology. For offshore, despite the delay of some fluid sales to the Middle East region due to the conflict, our international offshore revenues were 59% above the closest second quarter in the past 10 years. In Completion Fluids & Products revenue increased 23% sequentially and 3% year-over-year, delivering the highest first half revenues again in 10 years. Sequential growth was driven by increased sales activity from our Europe and Caspian region, which more than offset some fluid shipments that were delayed as a result of the Iran conflict. Chemicals also delivered a first half revenue record supported by seasonal demand in Europe and increased electrolyte sales. Demand for TETRA PureFlow zinc bromide electrolyte that we manufacture also continued to accelerate during the quarter, supported by expanding customer manufacturing capacity and increasing customer backlog. We believe the growing requirement for grid resiliency, reliable power infrastructure and long-duration energy storage are expanding the addressable market for zinc bromide battery technology. Adoption is also increasing across defense and critical infrastructure markets. In Water & Flowback Services, revenue increased 12% sequentially and 13% year-over-year, led by record second quarter revenues from Argentina from our early production projects and in the Vaca Muerta Basin. Our Water and Flowback business continued to materially outpace the year-over-year decline in U.S. frac activity, leaving us well positioned to capture incremental upside from any recovery. Looking forward, the business outlook is very positive, and we believe we're on track with our 2030 objectives and financial targets. Our Deepwater and international activity remains strong, and the U.S. is showing signs of improvement. The Middle East conflict continues to introduce some unpredictability and uncertainty but so far, the strength of TETRA's other markets and our security of supply, particularly for bromine-based completion fluids more than offset delays or losses in the Middle East sales. Our patented SandStorm continues to gain market share in the U.S. and is becoming a standard technology for key customers in some international markets. As announced, we expect the first of 3 TETRA Neptune Z-Lite wells to be executed in 2026. With regards to TETRA Neptune, our pipeline of projects is the strongest it has ever been as deepwater offshore exploration and development activities continue to shift to deeper, higher pressure and higher temperature reservoirs. This is creating additional opportunities for TETRA Neptune fluids, which is designed to address higher pressures while also lowering corrosive chemistry in downhole wells and flowback conditions. We're encouraged by Eos' progress with our new automated manufacturing line and their confidence in having their stated capacity of 4 gigawatt hours by year-end heading into 2027. Our calcium chloride business continues to meet new production and revenue records and find new markets to grow at rates that exceed GDP. For the remainder of 2026, we expect our base business to perform in line with market expectations while recognizing that the Middle East conflict introduces a level of market unpredictability and also the timing of planned and potential Neptune jobs in our growing pipeline could make a meaningful impact to our second half 2026 results. Beyond 2026, we see multiple drivers supporting continued growth, including increased Deepwater completion activity, further expansion of our long-duration energy storage electrolyte business and the commercialization of Oasis TDS produced water desal solution. The start-up of our Arkansas plant planned in early '28 will have a material impact on both our supply and cost of bromine to meet our growing demands for both completion fluids and electrolytes. We continue to evaluate our next steps in Arkansas with our broader resource position, providing meaningful additional strategic value. TETRA controls 40,000-acre mineral position in Southwest Arkansas with exposure to lithium and magnesium, 2 critical minerals benefiting from improving market fundamentals and growing U.S. supply chain priorities. Our portfolio includes lithium royalty rights on approximately 35,000 acres held by Smackover Lithium, a 65% ownership interest in an estimated 585,000 tons of lithium carbonate equivalent in our Evergreen Unit and more than 2 million tons of measured and indicated magnesium resources. Given the increasing focus on domestic critical mineral supply chain, energy security and strategic resource development as well as the significant synergies with our bromine investment. We see potential opportunities to accelerate the development and monetization of our lithium and broader critical minerals platform. While our near-term execution priority remains the Arkansas bromine facility, we believe the embedded value of our lithium and magnesium resources represents an important source of optionality and potential long-term shareholder value. With that, I'll turn the call over to Matt to discuss our financial results in more detail. Matthew Sanderson: Thank you, Brady. Good morning, everyone. Second quarter revenue was $185.7 million compared with $156.3 million in the first quarter this year and $173.9 million in the second quarter of 2025. Despite broader market volatility throughout the quarter, as Brady mentioned, both international and global offshore revenues achieved 10-year highs for the second quarter and the first half of the year. Income from continuing operations was $10.2 million compared with $8.3 million in the first quarter and $11.3 million in Q2 of last year. Adjusted EBITDA was $31.9 million, which increased sequentially from $25.6 million in the first quarter and down from $36.2 million in the second quarter of 2025, where we completed a 3-well TETRA Neptune project, which was not expected to repeat this year. Adjusted EBITDA margin was 17.2% of revenue in the second quarter, increasing sequentially from 16.4% in the first quarter and was down from 20.8% in the second quarter of 2025, again, resulting from the completion of a TETRA Neptune project in Q2 of last year. Completion Fluids & Products revenue was $113.1 million. Net income before taxes was $27.2 million and adjusted EBITDA was $29.9 million. Adjusted EBITDA margin was 26.4%, which aligned with our previously guided expectation of historical margins for this segment. Revenue increased 23% sequentially and 3% year-over-year, supported by bromine-based clear brine fluid spot sales in the European region, seasonal calcium chloride demand for dust binding and increased TETRA PureFlow and electrolyte sales that Brady mentioned previously. This strong performance was achieved despite the broader market volatility, delayed fluid shipments into the Middle East and the increased cost of third-party bromine that we mentioned on previous earnings calls. Water & Flowback Services revenue was $72.5 million. Net income before taxes was $3.2 million and adjusted EBITDA was $10.8 million. Adjusted EBITDA margin was 14.8%, which increased from 14.1% in Q1 of this year and was up from 9.9% in Q2 2025, representing a 68% increase year-on-year. As Brady mentioned, revenue increased 12% sequentially and 13% year-over-year, supported by record second quarter Argentina revenue. During the quarter, cash generated by operating activities was $34.4 million. Total capital expenditures were $23.3 million, inclusive of $10.9 million associated with the Arkansas bromine project and $2 million of capitalized interest. Base business adjusted free cash flow was $22.8 million and total adjusted free cash flow was $9.9 million. Turning to the balance sheet. As Brady mentioned, during Q2, our Board of Directors approved the FID of our Arkansas bromine facility, and we successfully completed a follow-on equity offering, which generated approximately $108 million of net proceeds to fund a portion of the costs associated with our bromine plant. I would like to take this opportunity to thank our shareholders for their tremendous support. Following the equity offering, we ended the quarter with cash and cash equivalents of $154.6 million and total debt of $183.3 million. Net debt was $28.7 million, and our net leverage ratio improved to 0.4x. To summarize, our second quarter results demonstrated continued strong execution in our core businesses with consolidated revenue increasing 19% sequentially while continuing to advance multiple growth platforms. I will now turn the call back over to Brady for closing comments. Brady Murphy: Thanks, Matt. As we covered during the call, the second quarter was very productive and successful on many fronts. We're very pleased with the second quarter financial results and the outlook going forward. We're also pleased with our ability to execute on the key strategic milestones that are critical to our One TETRA 2030 strategy. With that, we'll open it up for questions. Operator: [Operator Instructions] And the first question is from the line of Stephen Gengaro with Stifel. Stephen Gengaro: I think two things. One, you mentioned on the call and in the press release that you expect your base business to perform in line with market expectations. When you say base business, what are you including? Are you including electrolyte sales to Eos or anything on the deal side? Like how do I think about that comment? Brady Murphy: Yes, Stephen. So we would consider our base business to be our ongoing completion fluids business, our Water & Flowback. We would include our electrolyte sales as part of that base business. We would not typically include Neptune type jobs in our -- what is traditionally our base business. Now obviously, we'd like to make that part of our base business, and I think it's got the potential in the future to be what we consider our base business, but we wouldn't consider that today. Stephen Gengaro: Okay. All right. That's helpful just to clarify. And then as we think about what you're seeing in the Deepwater markets and the activity levels likely rising, what should we think about the timing for you and I'm not talking about specifically Neptune jobs, but just in total sort of Deepwater fluid sales growth as we look into '27, like what's sort of the lag time we should be baking into expectations? Brady Murphy: Yes. So as we talked about, I think, earlier this year, the Gulf of America was actually a heavy drilling activity and less of a completion cycle. So quite frankly, the Gulf of America this year for us has been down compared to even the prior year. But we think that cycle starts to reverse in 2027 based on what we see. And then the overall growth of the Deepwater market, we think, is -- will continue to rise as we go into 2027. At our Investor Day in September of last year, we had projected an 8% CAGR from where we were at, at that point in time through 2030. I would say potentially, we could even exceed that CAGR depending on how things develop, but that's certainly intact for us today. Stephen Gengaro: Okay. Just maybe one other quick one. When you think about your expansion plans for your raw materials, how much of Eos growth and needs is driving that need to expand your raw materials over multiple years? Brady Murphy: Yes, Stephen, we won't give specific volumes related to Eos or bromine. But as we move into 2027 and assuming they're at their 4 gigawatt hour capacity, it's a material shift for us in '27. And if they get to their 8 gigawatts before 2030, which is what they've stated their objective is well before that, it will take up a meaningful part of our capacity of our new plant. I don't know that we've given specific numbers on that, but it's material volume. Stephen Gengaro: Okay. Because I'm only asking because one of the questions we often get is, would TTI be doing this if they weren't confident in. That's my last question. Brady Murphy: The business case on our bromine plant stands on its own with or without our electrolyte sales, Stephen. That's for sure. Operator: Your next question is from the line of Bobby Brooks with Northland Capital Markets. Robert Brooks: Could you give us a sense for how impactful the Neptune Z-Lite projects can be on financials? And then secondly, could you discuss how and why this expands the opportunities where you are well positioned to win? It seems like this is materially -- it seems like this materially expands it. So just wanted to hear a bit more there? Brady Murphy: Sure. Yes. So the Z-Lite is a very important launch for us. You've seen the financial impact when we have a Neptune job or a project in a given quarter. If you look at a linear scale between a typical Deepwater job and a full-blown Neptune job, Z-Lite is on that scale. You can just think of it maybe as a midpoint marker, if you want to think of it in that way. But probably more importantly, it expands the market opportunity for TETRA. Zinc bromide is probably the leading high-pressure Deepwater market completion fluid in the market. In some markets, zinc is banned. It has some environmental challenges with it. It has some challenges in the Flowback operations of our customers' refining operations, et cetera. So reducing the zinc concentration in that fluid is a material value for our customers, and we think it expands the market pretty significantly for our Neptune chemistry. Robert Brooks: Got it. And then something that really caught my attention was the wording around commercial discussions on Oasis and that you specifically called out hyperscalers being involved there, where previously it was more alluded to as general data centers were likely to be demand drivers. Maybe I'm reading too much into that. But if not, can you just touch on what's happened more recently that made you feel comfortable specifically calling out hyperscaler conversations? Brady Murphy: Yes. So look, our confidence of commercial projects continues to grow with Oasis. The number of customer engagements, the quality of customer engagements, the feedback from customer engagements, their confidence in the technology and the engineering work that we've done. In Q2, we had the first time, most of our -- as you know, our customer base is the midstream folks and the E&P companies who own the water. They are still our customer base. But we did have the opportunity in the second quarter at a hyperscaler's request to meet with us and discuss our TETRA Oasis solution. And we learned a lot from that process as well. It's a very valuable engagement. So yes, our confidence levels continues to grow. We've talked about the engineering work that we've done, the value that we see as we scale from a small scale 20,000 barrels per day plus the economies of scale that come with that. And so there's a pretty big shift from where we were thinking we would be this time of year when we had our Investor Day last year and where we are today with much larger type projects that we're evaluating and being evaluated on. So our confidence is high. Honestly, I think the gating issue that going forward, we all need to be keeping an eye on is the permitting process. The TCEQ is responsible for that. There's actually 6 projects pending permit approval by the TCEQ. They're looking at setting a general standard discharge quality as well as frequency of testing specifications. We know they're very active with it. We're active with them. The EPA is actively involved. So this is gathering momentum. It's going to happen, but that now is potentially a gating item in terms of being able to finalize a project. Robert Brooks: That's very helpful color. And when you say TCEQ is the sixth project pending approval, are those for Oasis or are those for other beneficial reuse systems? Brady Murphy: Well, we won't comment on any of the technology associated with their general permits that are not specific to any technology. They're general just discharge permits for produced water. Robert Brooks: Got it. And you mentioned like your typical -- your historical customers and the new ones kind of coming in the fold between midstream E&Ps and the new ones as the hyperscalers. Just from your current perspective, what are maybe the key differences within each conversation? And you did mention like the permitting could be a hurdle, and that's -- I would think that's probably going to be a hurdle across all 3. But are there specific hurdles you see for each type of customer? Or is it just kind of they're all looking for -- those are all sort of the same between each discussion? Brady Murphy: Yes. I think if I understand your question properly, I think the shift that's happening right now is hyperscalers are trying to get comfortable with water-cooled systems. They have generally used air-cooled systems in a lot of their operations. There are a lot of advantages to water-cooled systems. And in West Texas, as you can imagine, air cooling has even more challenges. And as their data density increases, air cooling in some cases, will not even be an option. So that process is ongoing. You have E&Ps and our midstream customers who were thinking of a very methodical crawl walk run strategy to lay out desalination plants to now being looking at much larger plant facilities to service the data center. So there's a lot of dynamics going on there. We're right in the middle of all this and playing a big part, we feel, in all of this and then you got the permitting issue that I discussed. So there's a lot of dynamics happening. It has to get solved. AI is great, but physics laws still exist and the disposal issue in West Texas is still a growing problem that has to be solved. So... Robert Brooks: Got it. And then just last one for me is on the base business, you mentioned how SandStorm has made inroads in new markets. Just wanted to hear more about what those new markets look like. And if you could touch on what factors internally or externally are helping drive those breaks into new markets. Brady Murphy: Yes. So Sandstorm has been instrumental for our growth in Argentina. As we've mentioned, we're doubling our revenues this year over last year. We're introducing Sandstorm into some of the Middle East unconventional markets, and we feel really good about some of the traction that we're seeing with it in those markets as well. Operator: Your next question is from the line of Martin Malloy with Johnson Rice. Martin Malloy: Just wanted to ask about Argentina, if you could expand a little bit more about the equipment that you're putting down there. Obviously, the SandStorm you just mentioned, production skids, anything else that maybe you wanted to highlight? Brady Murphy: Yes. I mean there's really two technologies that are supporting our growth down there, Marty, is the early production facilities. We're one of the leading providers of early production facilities, EPS in the market today. And then with that, in conjunction with that are our SandStorm, our Flowback technology. So really, that combination of Flowback, early production systems and Sandstorm is what's driving our growth. Martin Malloy: Okay. And then I just wanted to ask my last question on the Deepwater completion market and specifically Gulf of America. The wells that are being talked about in terms of potentially needing one of your solutions, are these wells that were drilled a while ago and the higher pressure, higher temperatures were a hurdle and now that the technology is catching up and the companies are able to complete them? Can you just give us a little bit more color about the opportunity set there? Brady Murphy: Yes, I'll ask Matt to comment on that. Matthew Sanderson: Yes, Marty, as you're aware, recent announcement around Z-Lite, some of the projects that we're participating in, the 20,000 psi project that was referenced, some of that project has already been ongoing. However, as Brady referenced, there's been some public information out there around zinc, how it relates to production facilities, how it can relate to refineries and things like that. And so TETRA really founded on delivering commercial solutions to customer challenges. So Z-Lite fits in that boat, where it's not a completely zinc-free system, but it significantly reduces the concentration of the zinc ion in those high-pressure, high-density completions in a very, I'll call it, economical package commercial solution for the customer. So we're really excited about it for the wells that are already ongoing in that market. Plus also, as Brady mentioned, that the wells that are planned, right, you can see the permitting activity in the Gulf over the next several years. The reservoirs that are being targeted, they're really down in this pressure regime really on the back of some of the companies that have already started to drill into that reservoir and prove that these can be completed. And a company like TETRA, we can bring solutions to help them do that economically, do it safely and be a value add. Operator: Your next question is from the line of Jon Tanwanteng with CJS. Jonathan Tanwanteng: My first one is I was wondering if you could dive a little bit deeper into the optionality around lithium and magnesium. Maybe talk about the potential time line before you have to make -- you want to make a decision there, the amount of investment it would take and then the returns of profitability you might see on the back end? Brady Murphy: Yes. We're really excited about the optionality. As you recall, when we did our Investor Day, we had or laid out our 2030 targets, but we had lithium kind of a target out there, but beyond the year 2030. But as we now move forward with the bromine plant on schedule, on time, on budget, operational in 2028, the upstream piece of that will be in place. The investment we're making in the infrastructure around the bromine plant, adding lithium to that entire plant site looks very attractive, both from a CapEx savings from the -- not duplicating the upstream as well as the infrastructure. But also lithium prices have moved above the $20,000 per metric ton mark compared to where we were last September and the growth projections for lithium, I think, have even strengthened since that time, particularly with what's being perceived as higher oil prices going forward. So yes, we're looking at it. We'll decide at what point in time we want to engage in the engineering studies and publish something perhaps even before this year, the end of this year. But we're definitely excited by the prospects. The magnesium is probably a little bit further out, mainly because our joint venture with Magrathea, we need to establish a demonstration plant first to prove out the technology. That will be a small-scale commercial plant, not really a meaningful volume commercial plant before we engage in a larger commercial plant, which will likely be after 2030 and after lithium. Jonathan Tanwanteng: Great. And then just a question on the quarter. Margins in the Completion Fluids business down sequentially despite the higher revenue. I get the bromine prices has been rising on you from a third-party contract. I was wondering if there's anything else that went into that margin and kind of what we can expect in the quarters that are coming. Brady Murphy: Yes. So the mix can have an impact on our margin profile. We guided between 25% and 30% for our Completion Fluids business. That's still intact for our base business as we move forward. And we'll see when we get into next year. We have one more year that we need to bridge until we get to the completion plant, which will be a material impact for us in terms of our cost of bromine. We have a good portion of our bromine for '27 already under contract but we'll need to look at what that volume looks like as we get closer to the planning cycle for '27. Jonathan Tanwanteng: Got it. And if I could sneak another one in there. Just could you expand on the bromine optionality if perhaps Eos doesn't perform according to its projections? Can you resell that bromine? Or is there a plan to just leave it in the ground? How should we think about how you plan for capacity if Eos or something else doesn't quite meet expectations? Brady Murphy: Yes. With what we're seeing in the Deepwater market growth, even with the Eos, if they do meet their expectations, we're still going to be -- we'll be at 100% capacity of our bromine plant, plus we'll still be buying some from the third-party markets. So if Eos had challenges and did not meet the demand growth that we're planning for, we'll still be very well utilized at the plant for our existing Completion Fluids business, and we have the option to sell elemental bromine into the market, which is a pretty good market right now, particularly given the Middle East security supply issues, which is where most of the bromine -- over 50% of the world's bromine is produced today. Operator: [Operator Instructions] Your next question is from the line of Joshua Jayne with Daniel Energy Partners. Joshua Jayne: I wanted to go back to the hyperscaler commentary just around the difference in cost between water-cooled data centers and the conventional air-cooled facilities. Could you talk about that 30% difference? What that ultimately equates to from a dollar value perspective? And the reason I ask is just because the hyperscalers have sort of come out with very aggressive budgets, and I think people are starting to look a lot differently at the money that they spend. And so I'm just curious, like from a dollar perspective, what that ultimately looks like. Brady Murphy: Well that comment came directly from a hyperscaler to us -- a feedback to us in the discussions after we were discussing our Oasis solution and what I guess they're traditionally paying for their air cooling systems. I can't give you a whole lot more detail than that, but that's just the feedback we received from that particular hyperscaler. Joshua Jayne: Okay. Maybe just Lower 48 spending, how you are seeing things unfold just sort of exiting this year and into 2027. A lot of commodity price volatility and we've seen sort of privates have the uptick in CapEx, a lot of the larger companies sort of just standing pat. Just from your discussions with your Lower 48 customers, could you just give us a little more insight into what you're seeing today and how you're thinking about what they ultimately may spend in '27 or how they're thinking about the world? Brady Murphy: Yes. I think it's a little early for us to project on 2027 spend. I mean we are clearly starting to see some uptick in activity that impacts our business, right, in the second half of 2027 (sic) [ 2026 ] . You got to remember, rigs come first. They got to drill the wells and frac crews come to frac the wells and then we come into play for both supplying water, but also the flowback side of the business, the sand management piece. And so we're a little bit on the tail end of increased activity, but we're starting to see that now in the second half of this year. And everything we're hearing about the second half of this year is slightly up as we go forward in terms of rig and frac activity. But I think it's a little premature for us to speculate on '27 at this point. Joshua Jayne: Okay. And last one for me is just on the Middle East as someone has been operating there. Could you just give any insight into how you're thinking about the world moving forward, discussions with customers? And after everything settles down, do you think that there's any sense that capital will sort of come back to work pretty quickly in that region? Do you think that it's structurally changed and people will be hesitant to spend in the region? Maybe just your insights into some of the discussions you've had with customers would be great. Brady Murphy: Yes. I think, again, nobody really knows how ultimately this Middle East issue will be resolved. So anything we say with that regard would be speculative. But one thing I think we can say with confidence is that the Deepwater market is just continuing to grow more and more attention, support from the markets doesn't have to deal with the Middle East conflict regardless of how it's resolved. The cost of the projects, the per barrel breakeven cost continue to go lower. The efficiencies of the Deepwater rigs, the production profiles of these wells. All of these, I think, are building momentum around the Deepwater side. How the Middle East shakes out is really very difficult for me to predict but I would say the unconventional markets in the U.S. and Argentina and Deepwater will benefit short term, at least until things get sorted out there. Operator: And at this time, there are no further questions. I will turn the call back to Brady for closing remarks. Brady Murphy: Well, thank you very much. We're excited that TETRA is positioned around really 3 long-term growth trends, energy security related to Deepwater development, energy storage and domestic critical minerals and sustainable water solutions for oil and gas, agriculture and now AI infrastructure. We're encouraged by the progress, remain focused on disciplined execution, commercial advancement and creating long-term value for our shareholders. We appreciate your interest in TETRA Technologies and look forward to updating you on our continued progress. Thank you. Operator: This concludes the TETRA Technologies, Inc. Second Quarter 2026 Earnings Conference Call. Thank you for joining. You may now disconnect. Before you buy stock in TETRA Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TETRA Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. TETRA (TTI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Tetra Technologies, Inc.? Here are five stocks we like better. Strong second-quarter performance: 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. Arkansas bromine project approved: Tetra’s board authorized final investment in the facility, supported partly by approximately $108 million from a recent equity offering. Completion is targeted for late 2027, with startup expected in early 2028. New growth opportunities: 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. → No Hangover: Revisiting Microsoft One Week After Earnings “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. Murphy said both international and global 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. → MarketBeat Week in Review – 08/03 - 08/07 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. → Why the Landlord of the AI Boom Could Outlast the Chipmakers 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, credit facilities or alternative capital sources. The project remains scheduled for completion in the fourth quarter of 2027, with startup planned for early 2028. Murphy said the facility is intended to support expanding demand for deepwater completion fluids and zinc bromide electrolyte while improving supply security and reducing bromine costs. At quarter-end, Tetra had $154.6 million in cash and cash equivalents and $183.3 million of total debt, resulting in net debt of $28.7 million. Its net leverage ratio improved to 0.4x. Cash from operating activities was $34.4 million during the quarter, while total capital expenditures were $23.3 million, including $10.9 million for the Arkansas project and $2 million of capitalized interest. Chief Financial Officer Matt Sanderson said base-business adjusted free cash flow was $22.8 million, while total adjusted free cash flow was $9.9 million. Tetra introduced TETRA Neptune Z-Lite, a completion fluid designed for high-pressure deepwater applications that uses the company’s Neptune chemistry while reducing zinc content. The company received a contract from Beacon Offshore Energy to deploy the product in a three-well, 20,000-psi Gulf of America program. Murphy said the first of the three wells is expected to be executed in 2026. Management said Z-Lite could expand Tetra’s market opportunity because zinc bromide is widely used in high-pressure deepwater completions but can present environmental, production-facility and refinery challenges. Sanderson said the new fluid significantly reduces zinc-ion concentration while providing an economical solution for high-density completions. Tetra also reported progress on its Oasis TDS produced-water desalination technology. The company advanced engineering work for a 100,000-barrel-per-day desalination plant following customer requests related to data center water needs. It also received notices of allowance expanding its patent portfolio to cover a range of pretreatment technologies intended to support long-term membrane performance. Murphy said customer discussions have increasingly involved larger potential projects, though permitting remains a key issue. He noted that the Texas Commission on Environmental Quality has six produced-water discharge projects pending permit approval and is considering general discharge-quality and testing standards. For the remainder of 2026, Tetra expects its base business—including ongoing completion fluids, water and flowback operations, and electrolyte sales—to perform in line with market expectations. Management does not include Neptune projects in its current definition of the base business, though the timing of planned and potential Neptune jobs could materially affect second-half results. The company expects deepwater activity to continue growing into 2027, with Murphy saying Gulf of America activity in 2026 has been more heavily weighted toward drilling than completions. Tetra expects that cycle to shift toward completions next year. Beyond its bromine project, Tetra highlighted its Arkansas mineral holdings, including lithium royalty rights on approximately 35,000 acres, a 65% ownership interest in an estimated 585,000 tons of lithium carbonate equivalent in its Evergreen Unit, and more than 2 million tons of measured and indicated magnesium resources. Murphy said the near-term priority remains the bromine facility, while lithium and magnesium represent longer-term optionality. He said magnesium development would likely follow a demonstration plant and would probably occur after 2030. Tetra Technologies, Inc (NYSE: TTI) is a provider of specialized products and services to the upstream oil and gas industry. The company operates through two primary segments: Oilfield Services, which offers hydraulic fracturing and wellsite fluid systems, and Chemical Solutions, which manufactures and delivers a broad range of drilling, completion and production chemicals. Tetra's integrated service model spans the design, blending and on-site delivery of fluids, as well as pumping equipment and related wellsite operations. Within the Oilfield Services segment, Tetra supplies pressure pumping fleets and associated equipment to support onshore hydraulic fracturing and well placement activities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tetra Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. TETRA Technologies (TTI) reported second quarter 2026 results with sales of US$185.66 million and net income of US$10.24 million. Sales were higher than a year earlier, while profit and earnings per share slightly declined. See our latest analysis for TETRA Technologies. The latest earnings update appears to have prompted a mixed reaction in TETRA Technologies' share price, with the stock down 2.54% over the last day and 10.11% over the past month, although the 1 year total shareholder return of 116.67% and 5 year total shareholder return of 150.74% point to strong longer term momentum. If this earnings move has you thinking about where else growth and risk might be shifting in energy and infrastructure, it could be worth checking out 36 power grid technology and infrastructure stocks With TETRA Technologies pulling back after its latest results but still showing strong multi year returns, the real decision is whether you lean into the current weakness or wait for a clearer valuation gap to emerge in the future. The most followed narrative on TETRA Technologies compares a fair value of $12.50 against the last close at $8.45, framing the current share price as a sizable discount based on long term earnings and cash flow expectations. Read the complete narrative. Want to see what sits behind that projected step up in earnings power? The narrative leans on faster revenue expansion, wider margins, and a leaner future earnings multiple to reach its fair value. Result: Fair Value of $12.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the bullish TETRA Technologies narrative still hinges on successful deepwater activity and timely execution of major capex, such as the Arkansas bromine facility. Both of these could disappoint. Find out about the key risks to this TETRA Technologies narrative. The first narrative leans on discounted future earnings and cash flows to argue that TETRA Technologies looks undervalued, with a fair value estimate of $22.50 against a share price of $8.45. A simple sales based lens tells a different story, since TETRA Technologies trades on a P/S of 1.9x versus 1.2x for the US energy services industry and a fair ratio of 1x, which suggests investors are already paying a premium. How comfortable are you with that trade off between upside narrative and current pricing signal? See what the numbers say about this price — find out in our valuation breakdown. With mixed signals around TETRA Technologies, do you feel the balance of risk and reward fits your own approach, or is caution better for now? Take a moment to review the numbers, identify what matters most to you, and then weigh up the 3 key rewards and 1 important warning sign. If you stop at TETRA Technologies, you could miss other opportunities. Use the Simply Wall Street Screener to quickly spot stocks that better match your risk and return preferences. Target potential upside by scanning for companies that combine quality fundamentals with attractive pricing through the 51 high quality undervalued stocks. Prioritise resilience by focusing on businesses with strong finances using the solid balance sheet and fundamentals stocks screener (50 results). Hunt for overlooked opportunities that the market may be ignoring with the screener containing 17 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TTI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Tetra Technologies (TTI) came out with quarterly earnings of $0.08 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this oil and gas services company would post earnings of $0.03 per share when it actually produced earnings of $0.06, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Tetra Technologies, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $185.66 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.89%. This compares to year-ago revenues of $173.87 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Tetra Technologies shares have lost about 17.8% since the beginning of the year versus the S&P 500's gain of 9.4%. While Tetra Technologies has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Tetra Technologies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $164.87 million in revenues for the coming quarter and $0.27 on $662.37 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Archrock Inc. (AROC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This natural gas compression services business is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +18%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Archrock Inc.'s revenues are expected to be $390.4 million, up 1.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tetra Technologies, Inc. (TTI) : Free Stock Analysis Report Archrock, Inc. (AROC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $185.7 million, up 19% sequentially and 7% year-over-year. Adjusted EBITDA: $31.9 million, up 24% sequentially from $25.6 million in Q1. Income from Continuing Operations: $10.2 million, compared with $8.3 million in Q1 and $11.3 million in Q2 2025. Adjusted EBITDA Margin: 17.2% of revenue, up from 16.4% in Q1. Completion Fluids and Products Revenue: $113.1 million, up 23% sequentially and 3% year-over-year. Completion Fluids and Products Adjusted EBITDA: $29.9 million, with a margin of 26.4%. Water and Flowback Services Revenue: $72.5 million, up 12% sequentially and 13% year-over-year. Water and Flowback Services Adjusted EBITDA: $10.8 million, with a margin of 14.8%, up from 14.1% in Q1 and 9.9% in Q2 2025. Cash Generated by Operating Activities: $34.4 million. Total Capital Expenditures: $23.3 million, including $10.9 million for the Arkansas bromine project. Base Business Adjusted Free Cash Flow: $22.8 million. Total Adjusted Free Cash Flow: $9.9 million. Cash and Cash Equivalents: $154.6 million at quarter end. Total Debt: $183.3 million. Net Debt: $28.7 million, with a net leverage ratio of 0.4 times. Warning! GuruFocus has detected 9 Warning Sign with CLDT. Is TTI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Delivered one of the best second quarters and first-half financial results in the past decade, with revenue up 19% sequentially and 7% year-over-year to $185.7 million. International and global offshore revenues hit 10-year highs for both the second quarter and first half of 2026, with international revenue up 24% year-over-year. Launched TETRA Neptune Z-Lite, a high-value deepwater completion fluid that reduces zinc content, and secured a Beacon offshore contract for a 20,000 psi Gulf of America program. Approved final investment decision for the Arkansas bromine project, funded by a $108 million equity offering, which will lower bromine costs and enhance supply security by early 2028. Water and flowback services revenue grew 12% sequentially and 13% year-over-year, with record second-quarter revenue in Argentina, and adjusted EBITDA margin improved to 14.8%. Strengthened intellectual property for Tetra Oasis TDS desalination with new patent allowances, and advanced engineering for a 100,000-barrel-per-day plant, attracting hyperscaler interest. Tetra PureFlow Zinc Bromide electrolyte demand accelerated, supported by EOS's progress toward 4 GWh capacity and growing customer backlog. Net leverage improved to 0.4x, with cash and cash equivalents of $154.6 million and total debt of $183.3 million after the equity offering. Adjusted EBITDA declined year-over-year to $31.9 million from $36.2 million, due to the non-repeat of a three-well Tetra Neptune project in Q2 2025. Middle East conflict caused delays in fluid shipments to the region, introducing unpredictability and uncertainty in the business outlook. Increased cost of third-party bromine negatively impacted margins in the completion fluids segment, with adjusted EBITDA margin down to 26.4% from historical levels. Gulf of America deepwater activity was down year-over-year due to a heavy drilling cycle rather than completions, with recovery expected only in 2027. Permitting for produced water discharge by TCEQ remains a potential gating item for finalizing Oasis desalination projects. The company faces a one-year bridge until the Arkansas bromine plant is operational, requiring continued reliance on higher-cost third-party bromine. US frac activity declined year-over-year, though Tetra's water and flowback business outperformed the market. Q: Could you provide a sense of how impactful the Neptune Z-Lite project can be on financials, and how this expands the opportunities where Tetra is well positioned to win? A: Brady Murphy (President and CEO) explained that Z-Lite is a very important launch, with a financial impact on a linear scale between a typical deepwater job and a full-blown Neptune project, potentially serving as a midpoint marker. More importantly, it expands the market opportunity by significantly reducing zinc concentration in high-pressure deepwater completion fluids, addressing environmental challenges and flowback operational issues, which is a material value for customers and broadens the market for Tetra's Neptune chemistry. Q: When you say the base business will perform in line with market expectations, what are you including? Are you including electrolyte sales to EOS or anything on the detail side? A: Brady Murphy (President and CEO) clarified that the base business includes ongoing completion fluids, water and flowback services, and electrolyte sales. It does not typically include Neptune-type jobs, which are considered separate projects, though they have the potential to become part of the base business in the future. Q: Can you expand on the optionality around lithium and magnesium, including the potential timeline for a decision, the amount of investment required, and the returns or profitability you might see? A: Brady Murphy (President and CEO) stated that with the bromine plant on schedule for 2028, adding lithium to the site looks very attractive due to CapEx savings and infrastructure synergies. Lithium prices have moved above $20,000 per metric ton, and growth projections have strengthened. Engineering studies may be published before the end of the year. Magnesium is further out, requiring a demonstration plant first, with a larger commercial plant likely after 2030. Q: Could you discuss the commercial discussions on OASIS, specifically the involvement of hyperscalers, and what has happened recently to make you comfortable calling out those conversations? A: Brady Murphy (President and CEO) noted that confidence in commercial projects continues to grow, with a shift toward much larger projects. In Q2, a hyperscaler requested a meeting to discuss the Tetra Oasis solution, which was a valuable engagement. The gating issue going forward is the permitting process with TCEQ, which has six projects pending approval. The EPA is actively involved, and the process is gathering momentum, but permitting is now potentially a gating item for finalizing projects. Q: How are you thinking about the timing for deepwater fluid sales growth into 2027, and what is the lag time to bake into expectations? A: Brady Murphy (President and CEO) indicated that the Gulf of America has been in a heavy drilling phase with less completion activity this year, but the cycle is expected to reverse in 2027. The overall deepwater market growth is projected at an 8% CAGR through 2030, which could potentially be exceeded based on current developments. Q: How much of the expansion plans for raw materials is being driven by EOS's growth and needs? A: Brady Murphy (President and CEO) declined to provide specific volumes but stated that if EOS reaches its 4 gigawatt hour capacity in 2027 and 8 gigawatts before 2030, it will take up a meaningful part of the new plant's capacity. The business case for the bromine plant stands on its own with or without electrolyte sales. Q: Can you expand on the equipment being deployed in Argentina, including the sandstorm technology and production skids? A: Brady Murphy (President and CEO) highlighted that two technologies are supporting growth in Argentina: early production facilities (VPS), where Tetra is a leading provider, and sandstorm flowback technology. The combination of flowback, early production systems, and sandstorm is driving growth in the region. Q: What went into the margin decline in the completion fluids business despite higher revenue, and what can be expected in coming quarters? A: Brady Murphy (President and CEO) attributed the margin impact to mix and guided that the 25% to 30% margin range for the base business remains intact. There is one more year to bridge until the completion of the bromine plant, which will have a material impact on bromine costs. A good portion of bromine for 2027 is already under contract. Q: If EOS doesn't perform according to projections, can you resell the bromine or leave it in the ground? How should we think about capacity planning? A: Brady Murphy (President and CEO) stated that even with EOS meeting expectations, the bromine plant will be at 100% capacity, with additional purchases from third-party markets. If EOS faces challenges, the plant will still be well utilized for existing completion fluids business, with the option to sell elemental bromine into the market, which is currently strong given Middle East security supply issues. Q: Can you provide insight into the difference in cost between water-cooled and air-cooled data centers, and what that equates to from a dollar value perspective? A: Brady Murphy (President and CEO) noted that the 30% cost difference comment came directly from a hyperscaler during discussions about the Oasis solution, but he could not provide more detail beyond that feedback. Q: How are you seeing Lower 48 spending unfold exiting this year and into 2027, given commodity price volatility? A: Brady Murphy (President and CEO) stated it is too early to project 2027 spending, but there is an uptick in activity impacting the business in the second half of the year. Tetra is on the tail end of increased activity, benefiting from water supply and flowback services, with expectations for slightly higher rig and frac activity in the second half. Q: After the Middle East conflict settles, do you think capital will come back to work quickly in the region, or has it structurally changed? A: Brady Murphy (President and CEO) said it is difficult to predict how the Middle East issue will be resolved, but the deepwater market is gaining momentum regardless, with lower breakeven costs and improved efficiencies. Unconventional markets in the U.S. and Argentina, along with deepwater, will benefit short-term until the situation is sorted out. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 10-year highs in international and global offshore revenue, driven by robust deepwater market share and expansion in Argentina. Secured Final Investment Decision (FID) for the Arkansas Bromine project, establishing a pathway for security of supply and lower costs for completion fluids and electrolytes. Introduced TETRA Neptune Z-Lite, a patented high-density completion fluid designed to meet environmental requirements by significantly reducing zinc content. Expanded the TETRA Oasis TDS desalination portfolio with new patents and engineering progress on a 100,000 barrel per day plant to meet data center requirements. Overcame Middle East conflict-related fluid shipment delays through strength in other international markets and seasonal demand in Europe. Maintained growth in Water & Flowback Services despite U.S. frac activity declines, supported by record early production project revenues in Argentina's Vaca Muerta Basin. Arkansas Bromine project remains on schedule for completion in Q4 2027 with full startup anticipated in early 2028. Anticipate a reversal in the Gulf of Mexico cycle by 2027 as current drilling activity transitions into a heavy completion phase. Expect electrolyte demand to accelerate as Eos Energy Enterprises scales toward a stated 4 gigawatt hour capacity by year-end 2026. Evaluating potential acceleration of lithium and magnesium resource monetization in Arkansas to capitalize on domestic critical mineral supply chain priorities. Projecting the first of three TETRA Neptune Z-Lite wells to be executed within the 2026 calendar year. Middle East conflict introduces ongoing unpredictability and uncertainty regarding the timing of fluid sales and shipments. Completed a follow-on equity offering generating approximately $108 million in net proceeds to fund the Arkansas bromine facility. Net leverage ratio improved to 0.4x following the equity offering, providing significant balance sheet flexibility for strategic projects. Permitting processes via the TCEQ represent a potential gating item for the commercialization timeline of Oasis TDS produced water solutions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management defines 'base business' as ongoing completion fluids, water and flowback services, and electrolyte sales. High-value Neptune projects are currently excluded from base business definitions due to their non-linear project nature. Management asserted the bromine plant's business case stands independently of electrolyte sales due to deepwater fluid demand. If electrolyte demand lags, the company has the option to sell elemental bromine into a market currently constrained by Middle East supply issues. Direct engagement with hyperscalers revealed a shift toward water-cooled systems as data density makes air-cooling less viable. Management reported receiving feedback from a hyperscaler regarding the comparative costs of their Oasis water cooling solution versus traditional air cooling systems, though they declined to provide specific dollar values or detailed cost savings at this time. Z-Lite expands the addressable market by offering a high-pressure solution for regions where traditional zinc bromide is banned or restricted. The fluid reduces corrosive chemistry in downhole conditions, providing a midpoint commercial option between standard fluids and full Neptune systems.

SPRING, Texas, Aug. 3, 2026 /PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) announced financial results for the three and six months ended June 30, 2026. Second-Quarter 2026 Financial Highlights Revenues of $185.7 million Income from continuing operations of $10.2 million, inclusive of $1.1 million of unusual charges Adjusted EBITDA of $31.9 million Net Income per share from continuing operations of $0.07, adjusted net income per share of $0.08 Launched TETRA Neptune Z-Lite, awarded a three-well Gulf of America Deepwater Project Raised $108 million of net proceeds related to the equity offering Board of Directors approved final investment decision ("FID") for the Arkansas Bromine Project Brady Murphy, TETRA's President and Chief Executive Officer, stated, "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. Internationally and globally offshore, our revenues for the second-quarter and first six months of the year were a ten-year high, with our first-half 2026 international revenue 24% higher than any first six months over the past decade. Second-quarter consolidated revenue of $186 million increased 19% sequentially and 7% year over year. Income from continuing operations was $10.2 million for the quarter. Adjusted EBITDA for the quarter increased 24% sequentially to $31.9 million. Our performance also benefited from growing demand for the proprietary zinc-bromide electrolyte solution manufactured at our facility, reflecting expanding market interest in long-duration energy storage applications. During the quarter, we achieved several key milestones supporting our ONE TETRA 2030 objectives. Our Arkansas bromine production facility (the "Arkansas Bromine Project") is central to our strategy. Following Board approval of the final investment decision and receipt of $108 million in net proceeds from our equity offering, we are well positioned to complete the project in the fourth quarter of 2027 and begin start-up in early 2028. The project will support growth in deepwater and electrolyte markets well beyond 2030. 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 West Texas, shifting customer priorities toward the larger water requirements of that market. Recent discussions with hyperscalers lead us to believe that water-cooled data centers can operate at costs approximately 30% below those of conventional air-cooled facilities, a difference that is becoming increasingly important as computing density rises. 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 23% and 24%, respectively. The ability of TETRA Oasis to deliver improving project economics as the size and scope of our larger desalination plant design has been a key competitive advantage noted in our numerous commercial engagements with our customers. We also strengthened our intellectual property position, receiving Notices of Allowance that expand the scope of our Oasis patent portfolio to include a broad range of pre-treatment technologies critical to long-term membrane performance. 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 U.S. is showing signs of improvement. As announced, we have been awarded the three-well TETRA Neptune Z-lite project in the Gulf of America for Completion Fluids and Products, which we believe will start in 2026. Overall, we expect our base business to perform in line with market expectations, while recognizing that broader global market volatility may remain and that the timing of Neptune pipeline jobs could meaningfully impact our second half 2026 results. 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 West Texas, along with the startup of the Arkansas Bromine facility, position TETRA to accelerate progress toward its ONE TETRA 2030 objectives. Second-Quarter Financial Highlights 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 23% sequentially and 3% year over year, delivering the highest first-half revenue in ten years. Sequential growth was driven by completion fluid spot-sales in the ESSA (Europe Sub-Sahara Africa) region. Chemicals also 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 and continue to grow at a rate exceeding GDP, driven by sustained demand across diverse end markets and emerging opportunities associated with domestic semiconductor manufacturing. Water & Flowback Services Revenue of $72.5 million Net income before taxes of $3.2 million Adjusted EBITDA of $10.8 million Adjusted EBITDA margins of 14.8% Water & Flowback Services revenue increased 12% sequentially and 13% year over year, with every international region delivering ten-year-high second-quarter revenue except the Middle East. Results were led by record second-quarter Argentina revenue, driven by the ramp-up of early production facility projects in the Vaca Muerta basin. In addition, our patented SandStorm technology is making inroads in new markets. Our business continued to materially outpace the year-over-year decline in U.S. frac activity, leaving us well positioned to capture incremental upside from any recovery. 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 and total debt was $183.3 million. Net debt was $28.7 million and our net leverage ratio (Net Debt/TTM Debt Covenant Adjusted EBITDA) was 0.4 times. During the second quarter of 2026, cash provided by 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. Total capital expenditures were $23.3 million, including $10.9 million associated with the Arkansas project and $2.0 million of capitalized interest. 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 Middle East has made offshore oil production the most energy-secure barrel, with production economics below $50/bbl in most regions. According to Wood Mackenzie, investment in deepwater projects is expected to reach $111 billion this year, the highest since 2022. Deepwater rig activity is on the rise, and subsea tree installations, a key leading indicator of our completion fluids business, are expected to increase through the end of the decade. This supports continued confidence in the medium-term outlook for high-value deepwater completion fluids, especially where projects require specialized fluids for complex offshore wells. 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 Argentina. Our patented TETRA SandStorm technology is being adopted as a standard across many markets. Overall, we believe we are on track to meet or exceed our 2030 targets for Energy Services. 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 U.S. semiconductor chip manufacturing are also driving incremental revenue opportunities. Eos continues to ramp its manufacturing capacity and has set a year-end goal of 4 GWh of capacity before the end of 2026. This would represent a step change in electrolyte and PureFlow volumes in 2027 and beyond. TETRA's 40,000-acre mineral position in Southwest Arkansas provides significant exposure to lithium and magnesium, two critical minerals benefiting from improving market fundamentals and growing U.S. supply-chain priorities. Our portfolio includes lithium royalty rights on approximately 35,000 acres held by Smackover Lithium, a 65% ownership interest in an estimated 585,000 tons of lithium carbonate equivalent ("LCE"), and more than two million tons of measured and indicated magnesium resources. We did not assume any lithium contribution in our 2030 financial targets, however, favorable pricing, geopolitical, and supply-chain dynamics, along with synergies associated with the bromine plant, may create opportunities to accelerate the monetization of our critical minerals platform. 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 West Texas, customers increasingly recognize the economic advantages of water-cooled infrastructure, which can reduce cooling costs by up to 30% compared with conventional air-cooled systems. Combined with tightening produced water disposal constraints and the industry's focus on beneficial reuse, we believe these trends are expanding the market opportunity for large-scale desalination solutions and reinforcing the long-term growth potential of TETRA Oasis. Financial Statements, Schedules and Non-GAAP Reconciliation Schedules (Unaudited) Schedule A: Consolidated Income StatementSchedule B: Condensed Consolidated Balance SheetSchedule C: Consolidated Statements of Cash FlowsSchedule D: Non-GAAP Reconciliation of Adjusted Net IncomeSchedule E: Non-GAAP Reconciliation of Adjusted EBIT and Adjusted EBITDASchedule F: Unusual Charges and CreditsSchedule G: Non-GAAP Reconciliation to Adjusted Free Cash Flow and Base Business Adjusted Free Cash FlowSchedule H: Non-GAAP Reconciliation of Net DebtSchedule 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. 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 $4.8 million as of December 31, 2025. Balances as of December 31, 2025 have been revised to reflect $4.8 million of long-term debt as current, with an offsetting reduction in long-term debt. 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. 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 $1.1 million for the quarter ended June 30, 2026, which are reflected in Schedules D, E, and I, and include $0.6 million of legal fees related to a former subsidiary and $0.5 million of other expenses and charges. Management believes that the exclusion of the special charges and credits from the historical results of operations enables management to evaluate more effectively the Company's operations over the prior periods and to identify operating trends that could be obscured by the excluded items. See Schedules D, E and I for additional information. 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 Arkansas project and capitalized interest associated with the Arkansas project. Management uses this supplemental financial measure to assess the Company's ability to retire debt, evaluate the capacity of the Company to further invest and grow, and to measure the performance of the Company as compared to its peer group. 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. Net debt is defined as the carrying value of long-term and short-term debt, minus cash (excluding restricted cash). 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 Sanderson, Chief Financial Officer, [email protected] Hallead, Treasurer and VP of Investor Relations, [email protected] Media Relations Giselle Piller, Senior Director of Global Marketing & Communications, [email protected] 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/tetra-technologies-inc-reports-strong-second-quarter-2026-results-302841679.html