TETRA Technologies (TTI) investor relations material

Executive summary

• Q3 revenue was $168.0M, up 10% YoY and the highest third-quarter level in a decade; 9M revenue rose 5.3% to $509.9M.

• International revenue reached $68.8M, or 41% of consolidated revenue.

• Q3 net income was $6.8M versus $4.2M YoY; Adjusted EBITDA was $25.1M, the second-highest Q3 result in ten years.

• Growth plans span deepwater fluids, industrial chemicals, bromine, electrolytes and water treatment, supporting 2030 targets of over $1B revenue and over $300M Adjusted EBITDA.

Financial highlights

• Q3 revenue declined 9.5% QoQ following seasonal strength in Northern European industrial chemicals; gross profit was $35.1M versus $36.4M YoY and operating income was $9.7M versus $11.1M.

• Adjusted net income per diluted share was $0.06 versus $0.04 YoY; reported diluted EPS was $0.05 versus $0.03.

• 9M net income was $25.4M versus $19.5M, while operating income declined 19.3% to $42.7M.

• 9M revenue increased $25.6M YoY, while cost of product sales and services rose 10.3% to $362.2M.

• 9M operating cash flow was $31.3M versus $68.6M YoY, primarily reflecting higher working capital and lower operating income.

Outlook and guidance

• Q4 2026 consolidated revenue and Adjusted EBITDA are expected to rise by double digits YoY; 2027 revenue and Adjusted EBITDA are expected to increase versus 2026.

• 2027 growth drivers include deepwater completions, international Production Testing, SandStorm adoption, electrolyte demand and industrial chemicals; outlook does not rely on a recovery in U.S. land activity.

• Completion Fluids revenue and EBITDA are expected to increase in 2027; 2026 CFP segment margin guidance is expected at the lower end of 25%–30%.

• International markets are expected to grow in 2027; Argentina Production Testing is expected to grow at a double-digit rate, with further potential in the Middle East and U.S.

• Arkansas Bromine Phase 2 mechanical completion is targeted by end-2026, with the facility operational by end-2027 and first production anticipated in early 2028.