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.
International and completion-fluids growth
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.
Argentina was a major contributor, with Tetra on pace to double its 2026 revenue in the country compared with 2025. Growth there has been driven by early production facilities and the company’s SandStorm flowback technology in the Vaca Muerta Basin.
Completion Fluids & Products generated $113.1 million in second-quarter revenue, rising 23% sequentially and 3% year over year. Adjusted EBITDA for the segment was $29.9 million, representing a 26.4% margin. The company attributed the growth to bromine-based clear brine fluid spot sales in Europe, seasonal calcium chloride demand for dust binding and increased sales of TETRA PureFlow zinc bromide electrolyte.
Tetra said its results were achieved despite delayed shipments to the Middle East and higher third-party bromine costs. Murphy said the company’s other markets and supply position for bromine-based completion fluids had more than offset delayed or lost Middle East sales so far.
Water & Flowback Services revenue reached $72.5 million, up 12% from the first quarter and 13% from a year earlier. Segment adjusted EBITDA was $10.8 million and its adjusted EBITDA margin increased to 14.8%, from 9.9% in the second quarter of 2025. Record Argentina revenue supported the segment’s performance.
Arkansas bromine investment moves forward
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.
New deepwater offering and water-treatment progress
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.
Outlook and resource optionality
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.
About Tetra Technologies (NYSE:TTI)
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.
