TETRA Technologies (TTI) investor relations material

Executive summary

• Achieved Q1 2026 revenue of $156.3 million and adjusted EBITDA of $26 million, both ten-year highs excluding prior Neptune/TETRA Neptune benefits, with strong industrial chemicals and production testing results.

• Net income attributable to stockholders was $8.3 million, more than doubling from Q1 2025, with EPS from continuing operations at $0.06.

• Industrial chemicals and production testing sub-segments delivered record revenues and strong margins, with operational improvements across all segments.

• Geographic diversification and robust performance in the U.S., Europe, and Latin America are expected to offset Middle East headwinds.

• Strategic focus areas include deepwater, specialty chemicals, battery storage electrolytes, critical minerals, and water desalination, with ongoing expansion into low-carbon energy markets and Arkansas brine resource development.

Financial highlights

• Q1 2026 revenue was $156.3 million, up 7% sequentially and nearly flat year-over-year; adjusted EBITDA was $26 million, up 33% sequentially but down from $32 million year-over-year.

• Net income from continuing operations was $8.3 million, compared to $4.0 million a year ago; operating income was $12.8 million, up from $2.5 million sequentially but down from $18.8 million year-over-year.

• Cash and cash equivalents at quarter-end were $35.5 million, with total liquidity of $102.7 million; net leverage ratio was 1.5x.

• Total CapEx was $19 million, including $8.4 million for the Evergreen Project and $6.6 million for Arkansas mineral resource development.

• Adjusted free cash flow was a use of $31.9 million, with base business adjusted free cash flow at a use of $23.5 million, driven by incentive compensation and seasonal inventory builds.

Outlook and guidance

• Maintains 2026 guidance of single-digit revenue growth over 2025, with completion fluid margins between 25%-30% and water flowback in the mid-teens.

• Expects positive base business free cash flow in 2026, to be reinvested in the Arkansas bromine plant.

• Revenue expected to increase modestly, driven by higher electrolyte sales and long-term contracts in Argentina.

• Management expects continued growth in offshore and deepwater markets, with robust demand in the Gulf of America and Latin America.

• Long-term outlook strengthened by global energy security concerns and increased demand for critical minerals.