Accessibility StatementSkip Navigation THE WOODLANDS, Texas, Sept. 8, 2025 /PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) will be participating at the 27 Annual H.C. Wainwright Global Investment Conference being held September 8- 10, 2025 in New York City. Elijio Serrano, TETRA's Chief Financial Officer, will be hosting one-on-one meetings with institutional investors on September 9 and 10 and will be presenting on Wednesday, September 10 at 12:00pm ET. Register here to acces ...

Financial Data and Key Metrics Changes - The company achieved a record adjusted EBITDA of $35.9 million for Q2 2025, with adjusted EBITDA margins of 20.6% and base business free cash flow of $37.4 million, all exceeding expectations [4][5] - Year-over-year, total revenue increased by 1%, while adjusted EBITDA rose by $5.2 million or 17% [5][6] - The adjusted EBITDA for 2025 is projected to be $68.1 million, which is $3.1 million above the upper range of guidance provided in Q1 2025 [5] Business Line Data and Key Metrics Changes - Completion Fluids and Products adjusted EBITDA margins increased by 100 basis points to 36.7% from 35.7%, supported by the CS Neptune jobs [6] - Industrial chemicals grew by 5.5% year-over-year, continuing to outpace both U.S. and global GDP growth [6][7] - Water and Flowback services revenue remained flat compared to Q1 but decreased by 10% year-over-year, outperforming U.S. frac activity which declined by 14% quarter-over-quarter and 26% year-over-year [7][8] Market Data and Key Metrics Changes - The U.S. rig count has been in decline for sixteen months, contributing to overall market uncertainty [5][6] - Despite declining U.S. land activity, produced water volumes are expected to increase, with TETRA recording its first revenue from Permian Basin produced water desalination [10][12] - The company is seeing strong forecast projections for energy storage electrolyte needs, with expected growth in utility-scale energy storage capacity [13][15] Company Strategy and Development Direction - TETRA is focused on strategic growth initiatives, including the Arkansas bromine processing facility, which is expected to produce significant incremental revenues and adjusted EBITDA at full capacity [16] - The company is pursuing a license model for desalination projects to minimize capital expenditures and avoid diluting shareholder value [25][26] - TETRA aims to maintain a leverage ratio below two times EBITDA while investing in growth opportunities [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for completion fluids and products, driven by strong market positions in key areas [7][21] - The company anticipates a healthy pipeline of Neptune projects and expects a record year for deepwater activity in 2025, despite a projected decline in second-half activity compared to the first half [21][22] - Management highlighted the importance of automation technology and produced water treatment in offsetting declines in U.S. land completions [20][82] Other Important Information - TETRA's Investor Day is scheduled for September 25, 2025, where the company will provide insights into operational performance and financial prospects [3][28] - The company has increased its cash balance by $32 million, improving its net leverage ratio to 1.2 times trailing twelve months EBITDA [25][26] Q&A Session Summary Question: Inquiry about desalination project economics and legislative initiatives - Management discussed the increasing costs of disposal well operations and the decreasing costs of desalination solutions, highlighting supportive regulatory changes such as Texas House Bill 49 [34][35][36] Question: Offshore completion market and customer conversations - Management noted strong trends in deepwater activity and higher pressure wells, which align with TETRA's strengths in completion fluids [40] Question: Guidance for the second half of the year - Management expects activity levels to be consistent between Q3 and Q4, with a record year overall despite a decline in deepwater activity [43] Question: Factors driving revenue guidance - Management emphasized the strong overall deepwater activity and the importance of upcoming projects in 2026, while EOS volumes are expected to ramp up significantly [51][52] Question: Securing bromine supply for Arkansas project - Management confirmed ongoing discussions with multiple bromine suppliers to ensure supply meets demand for the Arkansas facility [65][66] Question: Progress on desalination and commercial plants - Management indicated a shift towards small commercial plants rather than additional pilot operations, reflecting growing confidence from customers [67][68]

分组1 - Tetra Technologies reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and an increase from $0.07 per share a year ago [1] - The company posted revenues of $173.87 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.47% and up from $171.93 million year-over-year [2] - Tetra Technologies has surpassed consensus revenue estimates two times over the last four quarters [2] 分组2 - The stock has gained about 5% since the beginning of the year, underperforming the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $138.7 million, and $0.17 on revenues of $597.3 million for the current fiscal year [7] 分组3 - The Zacks Industry Rank indicates that the Oil and Gas - Field Services sector is in the bottom 6% of over 250 Zacks industries, which may negatively impact stock performance [8] - Tetra Technologies currently holds a Zacks Rank 4 (Sell), suggesting expected underperformance in the near future [6]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents TETRA Technologies, Inc.'s unaudited consolidated financial statements, including statements of operations, comprehensive income, balance sheets, equity, and cash flows, along with detailed notes explaining accounting policies, revenue, inventories, investments, debt, commitments, fair value measurements, net income per share, industry segments, and subsequent events [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Presents revenues, expenses, and net income for specified periods Three Months Ended June 30, 2025 vs. 2024 | Metric | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | :--------- | | Total Revenues | $173,872 | $171,935 | $1,937 | 1.1% | | Gross Profit | $48,244 | $43,253 | $4,991 | 11.5% | | Net Income Attributable to TETRA Stockholders | $11,305 | $7,643 | $3,662 | 47.9% | | Basic Net Income Per Common Share | $0.08 | $0.06 | $0.02 | 33.3% | | Diluted Net Income Per Common Share | $0.08 | $0.06 | $0.02 | 33.3% | Six Months Ended June 30, 2025 vs. 2024 | Metric | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------------- | :------------------ | :------------------ | :--------- | :--------- | | Total Revenues | $331,012 | $322,907 | $8,105 | 2.5% | | Gross Profit | $91,150 | $74,355 | $16,795 | 22.6% | | Net Income Attributable to TETRA Stockholders | $15,354 | $8,558 | $6,796 | 79.4% | | Basic Net Income Per Common Share | $0.12 | $0.07 | $0.05 | 71.4% | | Diluted Net Income Per Common Share | $0.12 | $0.06 | $0.06 | 100.0% | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Details net income and other comprehensive income components Three Months Ended June 30, 2025 vs. 2024 | Metric | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :------------------------------------------------ | :------------------ | :------------------ | :--------- | :--------- | | Net Income | $11,305 | $7,640 | $3,665 | 48.0% | | Foreign currency translation adjustment | $5,313 | $(1,959) | $7,272 | NM | | Unrealized gain (loss) on investment | $(416) | $(5) | $(411) | NM | | Comprehensive income attributable to TETRA stockholders | $16,202 | $5,679 | $10,523 | 185.3% | Six Months Ended June 30, 2025 vs. 2024 | Metric | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :------------------------------------------------ | :------------------ | :------------------ | :--------- | :--------- | | Net Income | $15,354 | $8,555 | $6,799 | 79.5% | | Foreign currency translation adjustment | $9,189 | $(3,593) | $12,782 | NM | | Reclassification of non-cash cumulative foreign currency translation adjustment loss from dissolution of Canadian subsidiary | $9,516 | $0 | $9,516 | NM | | Unrealized gain (loss) on investment | $(135) | $232 | $(367) | NM | | Comprehensive income attributable to TETRA stockholders | $33,924 | $5,197 | $28,727 | 552.8% | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Provides a snapshot of assets, liabilities, and equity at specific dates As of June 30, 2025 vs. December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Total Assets | $645,576 | $605,195 | $40,381 | 6.7% | | Total Current Assets | $311,633 | $269,628 | $42,005 | 15.6% | | Cash and Cash Equivalents | $68,749 | $36,987 | $31,762 | 85.9% | | Net Property, Plant and Equipment | $162,385 | $142,160 | $20,225 | 14.2% | | Total Liabilities | $355,958 | $351,888 | $4,070 | 1.2% | | Total Equity | $289,618 | $253,307 | $36,311 | 14.3% | [Consolidated Statements of Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Equity) Outlines changes in stockholders' equity, including net income - Total TETRA Stockholders' Equity increased from **$253,307 thousand** at December 31, 2024, to **$289,618 thousand** at June 30, 2025[17](index=17&type=chunk) - Comprehensive income attributable to TETRA stockholders for the six months ended June 30, 2025, was **$33,924 thousand**, a significant increase from **$5,197 thousand** in the prior year[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities Six Months Ended June 30, 2025 vs. 2024 | Metric | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :------------------------------------ | :------------------ | :------------------ | :--------- | :--------- | | Net Cash Provided by Operating Activities | $52,268 | $11,015 | $41,253 | 374.5% | | Net Cash Used in Investing Activities | $(18,275) | $(31,041) | $12,766 | (41.1)% | | Net Cash Provided by (Used in) Financing Activities | $(4,584) | $10,978 | $(15,562) | NM | | Increase (Decrease) in Cash and Cash Equivalents | $31,593 | $(9,733) | $41,326 | NM | | Cash, Cash Equivalents and Restricted Cash at End of Period | $68,801 | $42,752 | $26,049 | 60.9% | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [NOTE 1 – ORGANIZATION, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%2C%20BASIS%20OF%20PRESENTATION%2C%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Describes segments, low-carbon energy expansion, and key accounting adjustments - TETRA Technologies, Inc. operates through two reporting segments: Completion Fluids & Products Division and Water & Flowback Services Division[24](index=24&type=chunk) - The company is expanding into the low-carbon energy market, leveraging its chemistry expertise, key mineral acreage (Smackover Formation in Southwest Arkansas for bromine and lithium), and global infrastructure[24](index=24&type=chunk)[35](index=35&type=chunk) - An out-of-period adjustment in Q1 2025 increased income tax benefit by **$1.2 million** and net income per share by **$0.01**, deemed immaterial to prior or current annual financial statements[32](index=32&type=chunk) - A **$9.5 million** cumulative foreign currency translation adjustment loss was reclassified from accumulated other comprehensive loss due to the dissolution of a Canadian subsidiary during the six months ended June 30, 2025[36](index=36&type=chunk) [NOTE 2 – REVENUE](index=11&type=section&id=NOTE%202%20%E2%80%93%20REVENUE) Details revenue recognition policies and disaggregates revenue by segment and geography - Contract asset balances decreased from **$30.4 million** at December 31, 2024, to **$22.3 million** at June 30, 2025[42](index=42&type=chunk) - Unearned income balances increased from **$0.4 million** at December 31, 2024, to **$0.7 million** at June 30, 2025[43](index=43&type=chunk) Revenue by Segment and Geography (Six Months Ended June 30, 2025 vs. 2024) | Segment/Geography | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | :--------- | | Completion Fluids & Products | $202,462 | $177,301 | $25,161 | 14.2% | | Water & Flowback Services | $128,550 | $145,606 | $(17,056) | (11.7)% | | United States Total | $228,273 | $208,472 | $19,801 | 9.5% | | International Total | $102,739 | $114,435 | $(11,696) | (10.2)% | [NOTE 3 – INVENTORIES](index=12&type=section&id=NOTE%203%20%E2%80%93%20INVENTORIES) Provides information on the composition and changes in inventory balances - Total inventories increased from **$101.7 million** at December 31, 2024, to **$108.5 million** at June 30, 2025[46](index=46&type=chunk) - Finished goods inventories were **$91.1 million** at June 30, 2025, including newly manufactured and recycled clear brine fluids[46](index=46&type=chunk) - Raw materials increased from **$1.6 million** at December 31, 2024, to **$5.4 million** at June 30, 2025[46](index=46&type=chunk) [NOTE 4 – INVESTMENTS](index=12&type=section&id=NOTE%204%20%E2%80%93%20INVESTMENTS) Outlines investment holdings, including sales and strategic lithium interests - Total investments decreased from **$28.2 million** at December 31, 2024, to **$9.0 million** at June 30, 2025[47](index=47&type=chunk) - The company sold its Kodiak Gas Services, Inc. shares in January 2025 for **$19.0 million**, realizing a net gain of **$0.6 million**[47](index=47&type=chunk) - TETRA holds investments in Standard Lithium, with rights to explore and an option to acquire lithium production rights in Arkansas leases, entitling TETRA to a **2.5% royalty** on gross revenues from lithium produced[48](index=48&type=chunk)[133](index=133&type=chunk) [NOTE 5 – LONG-TERM DEBT AND OTHER BORROWINGS](index=13&type=section&id=NOTE%205%20%E2%80%93%20LONG-TERM%20DEBT%20AND%20OTHER%20BORROWINGS) Details debt structure, interest rates, and covenant compliance - Total long-term debt was **$180.5 million** as of June 30, 2025, primarily from the Term Credit Agreement[51](index=51&type=chunk) - The Term Credit Agreement matures on January 1, 2030, with an interest rate of SOFR plus **5.75%** (**10.17%** as of June 30, 2025), and includes a **$75 million** delayed-draw term loan for the Arkansas bromine processing project[52](index=52&type=chunk) - As of June 30, 2025, the company had **$55.4 million** available under its ABL Credit Agreement and was in compliance with all credit agreement covenants[57](index=57&type=chunk)[62](index=62&type=chunk) [NOTE 6 – COMMITMENTS AND CONTINGENCIES](index=15&type=section&id=NOTE%206%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) Describes contractual obligations, legal proceedings, and potential liabilities - Product purchase obligations totaled approximately **$44.5 million** as of June 30, 2025, extending through 2028, with an additional **$22.3 million** committed for long-lead power infrastructure for the Arkansas bromine plant[65](index=65&type=chunk) - The company faces significant contingencies related to decommissioning liabilities from its former Offshore segment, including a lawsuit against Orinoco and the Clarkes to enforce bonding agreements, with a new trial granted[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - A potential liability ranging from **$5.8 million** to **$19.4 million** is estimated for certain Gulf of America decommissioning work, with **$5.8 million** accrued in 2024, and Arena Energy, LLC has filed a complaint seeking indemnification[69](index=69&type=chunk)[71](index=71&type=chunk) [NOTE 7 – FAIR VALUE MEASUREMENTS](index=17&type=section&id=NOTE%207%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) Explains valuation methodologies for financial instruments by hierarchy levels - Investments in Standard Lithium are classified as **Level 1** fair value measurements (**$1.6 million** at June 30, 2025) based on quoted market prices[75](index=75&type=chunk) - Other investments (**$7.4 million** at June 30, 2025) in privately-held companies (convertible notes, common units, preferred units) are classified as **Level 3**, valued using internal valuations and third-party specialists[73](index=73&type=chunk)[75](index=75&type=chunk) - For the six months ended June 30, 2025, changes in fair value included a **$223 thousand** unrealized gain on equity securities, an **$(883) thousand** unrealized loss on embedded options, and a **$(135) thousand** unrealized loss on convertible notes (excluding embedded options)[75](index=75&type=chunk) [NOTE 8 – NET INCOME PER SHARE](index=20&type=section&id=NOTE%208%20%E2%80%93%20NET%20INCOME%20PER%20SHARE) Presents the calculation of basic and diluted net income per common share Weighted Average Shares Outstanding (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :----------------------------------- | :------------------------------- | :----------------------------- | | Weighted average basic shares outstanding | 133,152 | 132,753 | | Weighted average diluted shares outstanding | 133,422 | 133,371 | [NOTE 9 – INDUSTRY SEGMENTS](index=21&type=section&id=NOTE%209%20%E2%80%93%20INDUSTRY%20SEGMENTS) Provides financial performance data disaggregated by operating segments Segment Revenue (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | :--------- | | Completion Fluids & Products | $202,462 | $177,301 | $25,161 | 14.2% | | Water & Flowback Services | $128,550 | $145,606 | $(17,056) | (11.7)% | Segment Net Income (Loss) Before Taxes (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | :--------- | | Completion Fluids & Products | $68,809 | $46,445 | $22,364 | 48.2% | | Water & Flowback Services | $(10,158) | $3,877 | $(14,035) | (362.0)% | Segment Capital Expenditures (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | :--------- | | Completion Fluids & Products | $27,514 | $17,902 | $9,612 | 53.7% | | Water & Flowback Services | $9,848 | $12,952 | $(3,104) | (24.0)% | [NOTE 10 – SUBSEQUENT EVENTS](index=22&type=section&id=NOTE%2010%20%E2%80%93%20SUBSEQUENT%20EVENTS) Discloses significant events occurring after the balance sheet date - The company is evaluating the impact of the recently signed 'One Big Beautiful Bill Act' (OBBBA) on its effective tax rate or cash flows[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on TETRA's financial condition and operational results, covering business overview, detailed analysis of quarterly and year-to-date performance by segment, non-GAAP financial measures, liquidity, capital resources, and critical accounting policies. It highlights revenue growth driven by the Completion Fluids & Products Division, strategic initiatives in low-carbon energy, and efforts to manage costs and liquidity [Business Overview](index=23&type=section&id=Business%20Overview) TETRA is an energy services and solutions company expanding into the low-carbon energy market, leveraging its chemistry expertise, bromine and lithium assets, and global infrastructure - TETRA is an energy services and solutions company expanding into the low-carbon energy market, leveraging its chemistry expertise, bromine and lithium assets, and global infrastructure[86](index=86&type=chunk) - Consolidated revenue for the first six months of 2025 increased due to strong performance in the Completion Fluids & Products Division, offsetting weaker United States onshore activity in the Water & Flowback Services Division[87](index=87&type=chunk) - Strategic initiatives include ongoing negotiations for bromine bridging supply agreements to defer Arkansas investments, advancing the first phase of the Arkansas bromine plant by year-end, and prioritizing TETRA CS Neptune fluids, TETRA PureFlow+ electrolyte, and TETRA Oasis Total Desalination Solution (TDS)[90](index=90&type=chunk)[91](index=91&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) [Three months ended June 30, 2025 compared with three months ended March 31, 2025.](index=24&type=section&id=Three%20months%20ended%20June%2030%2C%202025%20compared%20with%20three%20months%20ended%20March%2031%2C%202025.) [Consolidated Comparisons](index=24&type=section&id=Consolidated%20Comparisons_QoQ) Compares overall financial performance for Q2 2025 against Q1 2025 Consolidated Performance (Q2 2025 vs. Q1 2025) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | $ Change | % Change | | :-------------------------------- | :----------------------------- | :---------------------------- | :------- | :------- | | Revenues | $173,872 | $157,140 | $16,732 | 10.6% | | Gross profit | $48,244 | $42,906 | $5,338 | 12.4% | | Net income attributable to TETRA stockholders | $11,305 | $4,049 | $7,256 | 179.2% | - Consolidated other (income) expense, net, changed significantly due to the recognition of a **$9.5 million** cumulative currency translation adjustment loss in Q1 2025 and increased foreign exchange gains in Brazil[95](index=95&type=chunk) - Consolidated provision for income tax increased to **$8.1 million** from **$1.0 million** in the prior quarter, primarily due to higher income before taxes and a **$1.2 million** out-of-period tax benefit recognized in Q1 2025[96](index=96&type=chunk) [Completion Fluids & Products Division](index=25&type=section&id=Completion%20Fluids%20%26%20Products%20Division_QoQ) Analyzes Q2 2025 performance, highlighting revenue and profit drivers Completion Fluids & Products Division Performance (Q2 2025 vs. Q1 2025) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | $ Change | % Change | | :-------------------------------- | :----------------------------- | :---------------------------- | :------- | :------- | | Revenues | $109,445 | $93,018 | $16,427 | 17.7% | | Gross profit | $44,637 | $36,526 | $8,111 | 22.2% | | Gross profit as a percentage of revenue | 40.8% | 39.3% | 1.5 pp | 3.8% | | Net income before taxes | $38,133 | $30,677 | $7,456 | 24.3% | - Revenue growth was driven by the successful completion of CS Neptune wells in the Gulf of America, seasonally strong calcium chloride business in Northern Europe, higher completion fluids sales in South America, and increased TETRA PureFlow+ electrolyte sales in the U.S[97](index=97&type=chunk) - Profit margins improved due to changes in product mix, particularly higher-margin CS Neptune fluid sales[98](index=98&type=chunk) [Water & Flowback Services Division](index=25&type=section&id=Water%20%26%20Flowback%20Services%20Division_QoQ) Reviews Q2 2025 performance, noting revenue and profit changes Water & Flowback Services Division Performance (Q2 2025 vs. Q1 2025) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | $ Change | % Change | | :-------------------------------- | :----------------------------- | :---------------------------- | :------- | :------- | | Revenues | $64,427 | $64,122 | $305 | 0.5% | | Gross profit | $3,701 | $6,474 | $(2,773) | (42.8)% | | Gross profit as a percentage of revenue | 5.7% | 10.1% | (4.4 pp) | (43.6)% | | Net loss before taxes | $(1,271) | $(8,888) | $7,617 | 85.7% | - Gross profit declined due to a weaker market environment and costs associated with closing underperforming service lines in the United States[101](index=101&type=chunk) - The decrease in net loss before taxes was primarily due to the Q1 2025 cumulative currency translation adjustment loss and a **$0.9 million** decrease in general and administrative expense from cost reduction efforts[102](index=102&type=chunk) [Corporate Overhead](index=26&type=section&id=Corporate%20Overhead_QoQ) Examines changes in corporate overhead and net loss before taxes for Q2 2025 Corporate Overhead Performance (Q2 2025 vs. Q1 2025) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | $ Change | % Change | | :-------------------------------- | :----------------------------- | :---------------------------- | :------- | :------- | | General and administrative expense | $13,544 | $11,716 | $1,828 | 15.6% | | Net loss before taxes | $(17,426) | $(16,703) | $723 | 4.3% | - Net loss before taxes increased primarily due to a **$1.8 million** increase in general and administrative expenses and a **$0.6 million** increase in unrealized losses on investments, partially offset by a **$0.9 million** increase in foreign exchange gains[103](index=103&type=chunk) [Six months ended June 30, 2025 compared with six months ended June 30, 2024.](index=26&type=section&id=Six%20months%20ended%20June%2030%2C%202025%20compared%20with%20six%20months%20ended%20June%2030%2C%202024.) [Consolidated Comparisons](index=26&type=section&id=Consolidated%20Comparisons_YoY) Compares overall financial performance for YTD June 30, 2025, against 2024 Consolidated Performance (YTD June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :-------------------------------- | :------------------ | :------------------ | :------- | :------- | | Revenues | $331,012 | $322,907 | $8,105 | 2.5% | | Gross profit | $91,150 | $74,355 | $16,795 | 22.6% | | Net income before taxes | $24,522 | $13,774 | $10,748 | 78.0% | | Net income attributable to TETRA stockholders | $15,354 | $8,558 | $6,796 | 79.4% | - Loss on debt extinguishment decreased by **$5.5 million** (**100%**) due to non-cash unamortized finance costs expensed in January 2024[107](index=107&type=chunk) - Other (income) expense, net, changed significantly due to a **$5.7 million** increase in foreign exchange loss (including the Canadian subsidiary dissolution) and a **$2.9 million** decrease in net unrealized gains on investments[108](index=108&type=chunk) [Divisional Comparisons](index=27&type=section&id=Divisional%20Comparisons_YoY) [Completion Fluids & Products Division](index=27&type=section&id=Completion%20Fluids%20%26%20Products%20Division_YoY) Analyzes YTD 2025 performance, detailing revenue and profit growth Completion Fluids & Products Division Performance (YTD June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :-------------------------------- | :------------------ | :------------------ | :------- | :------- | | Revenues | $202,462 | $177,301 | $25,161 | 14.2% | | Gross profit | $81,162 | $60,062 | $21,100 | 35.1% | | Net income before taxes | $68,809 | $46,445 | $22,364 | 48.2% | - Revenue growth was primarily driven by three CS Neptune wells in the Gulf of America, higher Northern Europe industrial chemical sales, and North America ultra-pure zinc bromide electrolyte sales[110](index=110&type=chunk) - Profit margins improved due to changes in product mix, including higher-margin CS Neptune fluid sales[111](index=111&type=chunk) [Water & Flowback Services Division](index=28&type=section&id=Water%20%26%20Flowback%20Services%20Division_YoY) Reviews YTD 2025 performance, noting revenue and profit declines Water & Flowback Services Division Performance (YTD June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :-------------------------------- | :------------------ | :------------------ | :------- | :------- | | Revenues | $128,550 | $145,606 | $(17,056) | (11.7)% | | Gross profit | $10,176 | $14,458 | $(4,282) | (29.6)% | | Net income (loss) before taxes | $(10,158) | $3,877 | $(14,035) | (362.0)% | - Revenue decreased due to lower United States drilling and completion activity and reduced service revenues following the sale of early production facilities in Latin America in 2024[113](index=113&type=chunk) - The shift to a net loss before taxes was primarily due to the **$9.5 million** cumulative currency translation adjustment loss from the dissolution of a Canadian subsidiary and a **$1.6 million** increase in general and administrative expense[115](index=115&type=chunk) [Corporate Overhead](index=28&type=section&id=Corporate%20Overhead_YoY) Examines changes in corporate overhead and net loss before taxes for YTD 2025 Corporate Overhead Performance (YTD June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :-------------------------------- | :------------------ | :------------------ | :------- | :------- | | Net loss before taxes | $(34,129) | $(36,548) | $(2,419) | (6.6)% | | Loss on debt extinguishment | $0 | $5,535 | $(5,535) | (100.0)% | | Interest expense, net | $9,329 | $12,397 | $(3,068) | (24.7)% | | General and administrative expense | $25,260 | $21,790 | $3,470 | 15.9% | - The decrease in net loss before taxes was primarily due to the absence of a **$5.5 million** loss from early debt extinguishment in 2024 and a **$3.1 million** decrease in interest expense, net, partially offset by a **$3.5 million** increase in general and administrative expenses[116](index=116&type=chunk) [Non-GAAP Financial Measures](index=29&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA is defined as net income (loss) before taxes, excluding impairments, special charges, loss on debt extinguishment, interest, depreciation and amortization, equity-based compensation, and certain foreign currency translation adjustments - Adjusted EBITDA is defined as net income (loss) before taxes, excluding impairments, special charges, loss on debt extinguishment, interest, depreciation and amortization, equity-based compensation, and certain foreign currency translation adjustments[118](index=118&type=chunk) Adjusted EBITDA (Three Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :---------------- | :------------------ | :------------------ | :--------- | :--------- | | Total Adjusted EBITDA | $35,879 | $30,234 | $5,645 | 18.7% | | Adjusted EBITDA as % of revenue | 20.6% | 17.6% | 3.0 pp | 17.0% | Adjusted EBITDA (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change ($) | Change (%) | | :---------------- | :------------------ | :------------------ | :--------- | :--------- | | Total Adjusted EBITDA | $68,146 | $59,001 | $9,145 | 15.5% | | Adjusted EBITDA as % of revenue | 20.6% | 18.3% | 2.3 pp | 12.6% | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity was $204.5 million at June 30, 2025, comprising unrestricted cash and available credit under the Term Credit Agreement and other credit facilities - Liquidity was **$204.5 million** at June 30, 2025, comprising unrestricted cash and available credit under the Term Credit Agreement and other credit facilities[123](index=123&type=chunk) - Net cash provided by operating activities increased significantly to **$52.3 million** for the six months ended June 30, 2025, from **$11.0 million** in the prior year, driven by higher gross profit and working capital changes[124](index=124&type=chunk)[125](index=125&type=chunk) - Total cash capital expenditures were **$37.4 million** for the first six months of 2025, including **$22.0 million** for the advancement of Arkansas brine resource development[126](index=126&type=chunk) - The company received **$19.0 million** in proceeds from the sale of Kodiak shares and filed a universal shelf Registration Statement on Form S-3, effective May 2025, allowing for the sale of up to **$400 million** in debt or equity securities[127](index=127&type=chunk)[134](index=134&type=chunk) - TETRA is entitled to a **2.5% royalty** on gross revenues from lithium produced by Standard Lithium from TETRA's option acreage in Arkansas, and retains rights to bromine and other minerals[133](index=133&type=chunk) [Critical Accounting Policies and Estimates](index=32&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There have been no material changes or developments in the evaluation of the accounting estimates and underlying assumptions or methodologies pertaining to the company's Critical Accounting Policies and Estimates disclosed in its 2024 Annual Report - There have been no material changes or developments in the evaluation of the accounting estimates and underlying assumptions or methodologies pertaining to the company's Critical Accounting Policies and Estimates disclosed in its 2024 Annual Report[137](index=137&type=chunk) [Commitments and Contingencies](index=33&type=section&id=Commitments%20and%20Contingencies_MD%26A) For detailed information on litigation, long-term debt, leases, and product and asset purchase obligations, refer to Note 6 - 'Commitments and Contingencies' in the Notes to Consolidated Financial Statements - For detailed information on litigation, long-term debt, leases, and product and asset purchase obligations, refer to Note 6 - 'Commitments and Contingencies' in the Notes to Consolidated Financial Statements[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) [Cautionary Statement for Purposes of Forward-Looking Statements](index=33&type=section&id=Cautionary%20Statement%20for%20Purposes%20of%20Forward-Looking%20Statements) The report contains forward-looking statements identifiable by words such as 'anticipates,' 'believes,' 'expects,' and 'plans,' which reflect current views but are subject to numerous risks and uncertainties - The report contains forward-looking statements identifiable by words such as 'anticipates,' 'believes,' 'expects,' and 'plans,' which reflect current views but are subject to numerous risks and uncertainties[142](index=142&type=chunk)[143](index=143&type=chunk) - Key risks include economic and operating conditions, capital availability, inflation, geopolitical events (e.g., Russia-Ukraine, Israel-Iran conflicts, Strait of Hormuz), regulatory changes, cyberattacks, and uncertainties related to mineral extraction (lithium, bromine) and facility construction[143](index=143&type=chunk)[144](index=144&type=chunk) - Investors are cautioned that mineral resources do not have demonstrated economic value, and there are uncertainties regarding the successful and economic commercialization of lithium and bromine from the Evergreen Brine Unit[144](index=144&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details TETRA's exposure to market risks, specifically interest rate risk on its borrowings and foreign currency exchange rate risk from international operations, and outlines the company's approach to managing these risks [Interest Rate Risk](index=35&type=section&id=Interest%20Rate%20Risk) Details the company's exposure to interest rate fluctuations on its debt and hedging strategies - The Term Credit Agreement bears interest at SOFR plus **5.75%** (**10.17%** as of June 30, 2025) on a principal amount of **$190.0 million**[147](index=147&type=chunk)[148](index=148&type=chunk) - The company is not a party to interest rate swap contracts or other derivative instruments to hedge its exposure to interest rate fluctuations[147](index=147&type=chunk) [Exchange Rate Risk](index=35&type=section&id=Exchange%20Rate%20Risk) Describes the company's exposure to foreign currency exchange rate fluctuations - TETRA has currency exchange rate risk exposure related to revenues, expenses, operating receivables, and payables denominated in foreign currencies[149](index=149&type=chunk) - The company may use short-term foreign-currency forward derivative contracts as economic hedges, but these are not formally designated for hedge accounting; no such contracts were outstanding as of June 30, 2025[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Chief Executive Officer and Chief Financial Officer, concluded that TETRA's disclosure controls and procedures were effective as of June 30, 2025, and reported no material changes to internal controls over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[150](index=150&type=chunk) - There were no changes in internal controls over financial reporting that materially affected, or are reasonably likely to materially affect, internal controls during the quarter ended June 30, 2025[151](index=151&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the company's 2024 Annual Report and Note 6 of the current report for detailed information regarding legal proceedings - For information regarding litigation, refer to 'Item 3. Legal Proceedings' in the 2024 Annual Report and Note 6 - 'Commitments and Contingencies' in the Notes to Consolidated Financial Statements[154](index=154&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section reiterates that TETRA's operations are subject to previously disclosed risk factors, with an added emphasis on how current geopolitical events and macroeconomic conditions could adversely affect the business, including demand for services, commodity prices, and supply chains - TETRA's operations continue to be subject to the risk factors previously disclosed in the 'Risk Factors' sections of its 2024 Annual Report[155](index=155&type=chunk) - Current geopolitical events (e.g., military conflicts in Russia-Ukraine, Israel-Iran, and impact on the Strait of Hormuz) and macroeconomic conditions could adversely affect the business, financial condition, and results of operations due to oil and natural gas price volatility, supply chain disruptions, and capital market constraints[156](index=156&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds during the reporting period - None[157](index=157&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section reports that there were no defaults upon senior securities during the reporting period - None[158](index=158&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that there are no mine safety disclosures to report - None[159](index=159&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section states that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025 - No director or officer of TETRA adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended June 30, 2025[160](index=160&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, equity incentive plans, certifications, and XBRL taxonomy documents, providing transparency into supporting legal and financial information - Exhibits include organizational documents (Certificate of Designation, Amended and Restated Certificate of Incorporation, Second Amended and Restated Bylaws), equity incentive plans, and related award agreements[161](index=161&type=chunk) - Certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed or furnished with the report[161](index=161&type=chunk) - XBRL Taxonomy Extension documents (Schema, Calculation, Definition, Label, Presentation Linkbase Documents) are attached as Exhibit 101[161](index=161&type=chunk)[162](index=162&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) This section contains the required signatures of the company's principal executive and financial officers, certifying the accuracy and completeness of the Quarterly Report on Form 10-Q - The report is signed by Brady M. Murphy, President and Chief Executive Officer, and Elijio V. Serrano, Senior Vice President and Chief Financial Officer, on July 29, 2025[166](index=166&type=chunk)

[Executive Summary & Q2 2025 Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Financial%20Highlights) TETRA Technologies, Inc. reported strong Q2 2025 financial results, achieving record Adjusted EBITDA for the first six months, and provided robust full-year 2025 guidance [Overall Performance](index=1&type=section&id=Overall%20Performance) TETRA Technologies, Inc. reported strong second quarter 2025 financial results, exceeding expectations with significant sequential improvements in revenue, net income, and Adjusted EBITDA Q2 2025 Financial Performance Highlights | Metric | Q2 2025 | | :-------------------------------- | :---------- | | Revenue | $174 million | | Net income before taxes | $19.4 million | | Adjusted EBITDA | $35.9 million | | GAAP earnings per share | $0.08 | | Adjusted earnings per share | $0.09 | | Net cash provided by operating activities | $48.3 million | | Free cash flow from base business | $37.4 million | | Capital expenditures | $19 million | - **Adjusted EBITDA** for the first six months of 2025 was **$68.1 million**, a historical record for current reporting segments and **$3.1 million** above the upper range of Q1 2025 guidance[4](index=4&type=chunk) - Performance was achieved despite a sixteen-month decline in the U.S. rig count and lower oil prices, driven by the successful completion of three CS Neptune Gulf of America wells and a strong Northern Europe industrial chemicals season[4](index=4&type=chunk) [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) TETRA Technologies, Inc. provided its full-year 2025 financial guidance, projecting continued strong performance across key metrics, while acknowledging potential market risks Full Year 2025 Financial Guidance | Metric | Projected Range (Low) | Projected Range (High) | | :------------------------ | :-------------------- | :--------------------- | | GAAP net income before taxes | $21 million | $34 million | | Adjusted EBITDA | $100 million | $110 million | | Revenue | $610 million | $630 million | - Guidance ranges are subject to risks including schedule delays for completion fluid projects, hurricane disruptions, changes to oil and gas company spending plans, lower U.S. land-based drilling and frac activity, and macro impacts from U.S. tariffs[7](index=7&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) The Completion Fluids & Products segment showed strong growth, while Water & Flowback Services maintained flat revenue despite market declines, focusing on efficiency improvements [Completion Fluids & Products](index=3&type=section&id=Completion%20Fluids%20%26%20Products) The Completion Fluids & Products segment demonstrated strong sequential and year-over-year growth in revenue, net income before taxes, and Adjusted EBITDA, driven by deepwater completion fluids and industrial calcium chloride business Q2 2025 Segment Performance | Metric | Q2 2025 | Sequential Change | Year-over-Year Change | | :---------------------- | :---------- | :---------------- | :-------------------- | | Revenue | $109 million | +18% | +9% | | Net income before taxes | $38.1 million | +24% | +43% | | Adjusted EBITDA | $40.1 million | +21% | +39% | | Adjusted EBITDA margins | 36.7% | +100 bps | | - Growth was driven by stronger volumes for deepwater completion fluids, proprietary TETRA CS Neptune fluid used in Gulf of America wells, and continued strong results from the industrial calcium chloride business[9](index=9&type=chunk) - The long-term outlook remains solid, with full year 2025 segment revenue projected to be a ten-year high, and a material increase in battery electrolyte revenue expected from 2026 as Eos ramps up deliveries[10](index=10&type=chunk) [Water & Flowback Services](index=3&type=section&id=Water%20%26%20Flowback%20Services) The Water & Flowback Services segment maintained flat revenue sequentially despite a significant decline in U.S. frac activity, showcasing resilience Q2 2025 Segment Performance | Metric | Q2 2025 | Sequential Change | | :---------------------- | :---------- | :---------------- | | Revenue | $64 million | Slightly increased (flat) | | Net loss before taxes | $1.3 million | | | Adjusted EBITDA | $6.4 million | | | Adjusted EBITDA margins | 9.9% | Down from 13% (Q1 2025) | - Revenue was flat compared to the first quarter, outperforming a **14% sequential decline** in U.S. frac activity[4](index=4&type=chunk)[11](index=11&type=chunk) - Adjusted EBITDA margins would have been flat excluding approximately **$2 million** of costs not expected to repeat in the third quarter[4](index=4&type=chunk)[11](index=11&type=chunk) - Focus on cost reductions, automation, technology (TETRA SandStorm and Auto-Drillout units), and a favorable customer mix is expected to enhance margins and reduce volatility[4](index=4&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Strategic Initiatives](index=3&type=section&id=Strategic%20Initiatives) TETRA is advancing its Arkansas bromine project to secure supply and profitability, while expanding into energy storage and produced water recycling through emerging growth initiatives [Arkansas Evergreen Bromine Project](index=3&type=section&id=Arkansas%20Evergreen%20Bromine%20Project) TETRA is advancing its Arkansas bromine processing facility project to secure long-term bromine supply, reduce raw material costs, and enhance profitability, driven by growing demand for deepwater completion fluids and battery storage electrolyte - The project aims to meet accelerating demand for deepwater completion fluids and battery storage electrolyte, reduce reliance on third-party suppliers, and gain access to lower-cost bromine supply[13](index=13&type=chunk)[15](index=15&type=chunk) - Since 2024, **$44 million** has been invested in Arkansas, funded by base business free cash flow. The plant is expected to be online by the end of 2027, with the first phase (site preparation, power infrastructure, bromine tower installation) completed by year-end 2025[6](index=6&type=chunk)[16](index=16&type=chunk) Projected Financial Impact (at full production, based on 2024 DFS) | Metric | Projected Range (Low) | Projected Range (High) | | :------------------------ | :-------------------- | :--------------------- | | Incremental Revenue | $200 million | $250 million | | Incremental Adjusted EBITDA | $90 million | $115 million | [Emerging Growth Initiatives](index=4&type=section&id=Emerging%20Growth%20Initiatives) TETRA is leveraging its fluid chemistry expertise to expand into two high-growth emerging markets: energy storage and produced water recycling, which are expected to significantly reshape the company's business profile - Consistent execution in the base business has generated significant recurring cash flow, enabling expansion into energy storage and produced water recycling[19](index=19&type=chunk) [Electrolytes for Utility Scale Battery Energy Storage Systems (BESS)](index=4&type=section&id=Electrolytes%20for%20Utility%20Scale%20Battery%20Energy%20Storage%20Systems%20(BESS)) TETRA is positioned as a key supplier of ultra-pure zinc-bromide electrolyte for the rapidly expanding utility-scale battery energy storage market, particularly through its partnership with Eos Energy Enterprises - U.S. EIA projects battery energy storage power capacity to exceed **45GW in 2025** (**76% increase** from 2024) and grow **25% annually** over the next decade[20](index=20&type=chunk) - TETRA is the contracted supplier of Eos' electrolyte products, offering TETRA PureFlow patented ultra-pure zinc-bromide electrolyte, known for exceptional purity, inherent flame-retardant properties, and U.S.-sourced content[21](index=21&type=chunk) - Installation of a bulk electrolyte tanker loading system at the West Memphis plant has been completed to support higher volumes for Eos' planned ramp-up[6](index=6&type=chunk) [Produced Water Desalination](index=5&type=section&id=Produced%20Water%20Desalination) TETRA is addressing the critical issue of produced water management in the U.S. oil and gas sector with its TETRA TDS Oasis desalination technology, supported by recent regulatory changes and a collaboration with EOG - The U.S. oil and gas sector faces a massive water management issue, with over **6 billion barrels** of produced water discharged annually in the Permian Basin alone, making traditional disposal unsustainable[22](index=22&type=chunk) - Recent regulatory changes include the EPA reconsidering wastewater regulations (March 2025) and Texas allowing treatment and sale of produced water for reuse (June 2025)[23](index=23&type=chunk) - The commercial launch of TETRA TDS Oasis and collaboration with EOG aim to provide a solution for desalinating and reusing produced water for agricultural, industrial, and other beneficial purposes[6](index=6&type=chunk)[24](index=24&type=chunk) [Financial Position & Cash Flow](index=5&type=section&id=Financial%20Position%20%26%20Cash%20Flow) TETRA's financial position is strong with increased cash, robust operating cash flow, healthy liquidity, a low net leverage ratio, and a high RONCE, alongside non-recurring credits [Balance Sheet Overview](index=5&type=section&id=Balance%20Sheet%20Overview) TETRA's balance sheet at June 30, 2025, shows an increase in cash and total assets compared to December 31, 2024, reflecting ongoing operations and strategic investments Condensed Consolidated Balance Sheet (Selected Items, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $68,749 | $36,987 | | Total current assets | $311,633 | $269,628 | | Property, plant and equipment, net | $162,385 | $142,160 | | Total assets | $645,576 | $605,195 | | Total current liabilities | $126,337 | $123,349 | | Long-term debt, net | $180,504 | $179,696 | | Total equity | $289,618 | $253,307 | [Cash Flow Analysis](index=5&type=section&id=Cash%20Flow%20Analysis) The company generated strong cash flow from operating activities in Q2 2025, significantly increasing from the previous quarter. Base business adjusted free cash flow also remained robust, supporting strategic investments Cash Flow Summary (in thousands) | Metric | Q2 2025 | Q1 2025 | | :-------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | $48,333 | $3,935 | | Total adjusted free cash flow | $26,492 | $4,241 | | Base business adjusted free cash flow | $37,353 | $15,409 | | Capital expenditures, net of proceeds from asset sales | $(19,422) | $(17,774) | - Capital expenditures in Q2 2025 included **$10.9 million** related to TETRA's Arkansas project[5](index=5&type=chunk)[25](index=25&type=chunk) [Liquidity and Debt](index=5&type=section&id=Liquidity%20and%20Debt) TETRA maintained a healthy liquidity position and a low net leverage ratio at the end of Q2 2025, with no near-term debt maturities, indicating strong financial flexibility Liquidity & Debt Metrics | Metric | June 30, 2025 | July 28, 2025 | | :-------------------------- | :------------ | :------------ | | Cash and cash equivalents | $69 million | | | Long-term debt | $181 million | | | Net debt | $112 million | | | Net leverage ratio (Net Debt/TTM Adjusted EBITDA) | 1.2x | | | Liquidity | $204 million | $218 million | - TETRA has no near-term debt maturities, with the ABL Credit Agreement maturing in 2029 and the Term Credit Agreement in 2030[27](index=27&type=chunk) [Return on Net Capital Employed (RONCE)](index=5&type=section&id=Return%20on%20Net%20Capital%20Employed%20(RONCE)) TETRA reported a strong Return on Net Capital Employed (RONCE) of 17.9% at the end of the second quarter 2025, significantly exceeding its cost of capital - Return on net capital employed (RONCE) was **17.9%** at the end of the second quarter of 2025[6](index=6&type=chunk)[28](index=28&type=chunk) [Non-recurring Charges and Expenses](index=5&type=section&id=Non-recurring%20Charges%20and%20Expenses) The company recorded net non-recurring credits of $1.3 million in Q2 2025, primarily related to legal and advisor fees, severance, and restructuring charges from downsizing certain Water & Flowback Services operations - Non-recurring credits, net of charges and expenses, totaled **$1.3 million** in Q2 2025[29](index=29&type=chunk) - These included **$1.9 million** of legal and advisor fees plus severance and restructuring charges as certain Water & Flowback Services operations were downsized[29](index=29&type=chunk) [Additional Information](index=6&type=section&id=Additional%20Information) This section provides details on non-GAAP financial measures, a company overview, upcoming investor events, and a cautionary statement regarding forward-looking information [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This press release includes several non-GAAP financial measures, such as Adjusted net income per share, Adjusted EBITDA, and various adjusted cash flow and debt metrics, which management uses to assess performance and trends more effectively by excluding certain special charges or credits - Non-GAAP financial measures used include Adjusted net income per share, Adjusted EBITDA, Adjusted EBITDA Margin, adjusted net income, total adjusted free cash flow, base business adjusted free cash flow, net debt, net leverage ratio, and return on net capital employed[35](index=35&type=chunk)[42](index=42&type=chunk) - Management believes these measures enable a more effective evaluation of operations, identification of operating trends, and assessment of financial performance without regard to charges or credits considered outside of normal operations[31](index=31&type=chunk)[44](index=44&type=chunk)[48](index=48&type=chunk) [Company Overview](index=6&type=section&id=Company%20Overview) TETRA Technologies, Inc. is a global energy services and solutions company focused on environmentally conscious offerings. Its portfolio spans Energy Services, Industrial Chemicals, and Critical Minerals, with a strategic expansion into the low-carbon energy market - TETRA Technologies, Inc. is an energy services and solutions company focused on developing environmentally conscious services and solutions[36](index=36&type=chunk) - The company operates on six continents and its portfolio consists of Energy Services, Industrial Chemicals, and Critical Minerals[36](index=36&type=chunk) - TETRA is expanding into the low-carbon energy market, leveraging its chemistry expertise, key mineral acreage, and global infrastructure to meet demand for sustainable energy[36](index=36&type=chunk) [Conference Call & Investor Day](index=6&type=section&id=Conference%20Call%20%26%20Investor%20Day) TETRA Technologies, Inc. announced details for its upcoming conference call to discuss Q2 2025 results and an Investor Day event in September 2025 at the NYSE - A conference call to discuss Q2 2025 results will be held on July 30, 2025, at 10:30 a.m. Eastern Time[32](index=32&type=chunk) - An Investor Day will be hosted on Thursday, September 25, 2025, at The New York Stock Exchange, offering insights into operational performance, innovative technologies, emerging growth initiatives, and financial prospects[33](index=33&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=17&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) The report includes forward-looking statements that convey uncertainty about future events and outcomes, based on certain assumptions and analyses - Forward-looking statements concern economic and operating conditions, potential revenue from electrolyte products and energy storage projects, mineral resources, extraction, timing and costs of activities, and financial projections[57](index=57&type=chunk) - Risks and uncertainties include changes in general economic conditions, opportunity risks (e.g., mineral extraction, bromine processing), ability to develop facilities, accuracy of resource reports, capital financing, equipment supply, competition, and changes in laws and regulations[58](index=58&type=chunk) - Investors should not place undue reliance on forward-looking statements, and the Company undertakes no obligation to update or revise them, except as required by law[58](index=58&type=chunk) [Financial Schedules (Unaudited)](index=7&type=section&id=Financial%20Schedules%20(Unaudited)) This section presents unaudited financial schedules including the consolidated income statement, balance sheet, cash flows, and detailed non-GAAP reconciliations [Consolidated Income Statement](index=7&type=section&id=Consolidated%20Income%20Statement) This schedule provides the unaudited consolidated income statement for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, detailing revenues, costs, and net income Consolidated Income Statement (Selected Items, in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Revenues | $173,872 | $157,140 | $171,935 | | Gross profit | $48,244 | $42,906 | $43,253 | | Income before taxes | $19,436 | $5,086 | $12,479 | | Net income | $11,305 | $4,049 | $7,640 | | Net income attributable to TETRA stockholders per share (Basic) | $0.08 | $0.03 | $0.06 | [Condensed Consolidated Balance Sheet](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) This schedule presents the unaudited condensed consolidated balance sheet as of June 30, 2025, and December 31, 2024, outlining the company's assets, liabilities, and equity Condensed Consolidated Balance Sheet (Selected Items, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $68,749 | $36,987 | | Total current assets | $311,633 | $269,628 | | Property, plant and equipment, net | $162,385 | $142,160 | | Total assets | $645,576 | $605,195 | | Total current liabilities | $126,337 | $123,349 | | Long-term debt, net | $180,504 | $179,696 | | Total equity | $289,618 | $253,307 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This schedule provides the unaudited consolidated statements of cash flows for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, detailing cash flows from operating, investing, and financing activities Consolidated Statements of Cash Flows (Selected Items, in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Net cash provided by operating activities | $48,333 | $3,935 | $24,831 | | Net cash provided by (used in) investing activities | $(19,620) | $1,345 | $(15,293) | | Net cash used in financing activities | $(2,495) | $(2,089) | $(2,370) | | Increase in cash and cash equivalents | $27,751 | $3,842 | $6,813 | | Cash, cash equivalents and restricted cash at end of period | $68,801 | $41,050 | $42,752 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of various non-GAAP financial measures to their most directly comparable GAAP measures, as used by management to assess financial performance and trends [Adjusted Net Income Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20Reconciliation) Reconciliation of Adjusted net income to GAAP net income before taxes and discontinued operations, highlighting specific adjustments for non-recurring items Adjusted Net Income Reconciliation (in thousands, except per share amounts) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Net income before taxes and discontinued operations | $19,436 | $5,086 | $12,479 | | Net income attributable to TETRA stockholders | $11,305 | $4,049 | $7,643 | | Adjustments (e.g., impairments, restructuring, FX) | $1,313 | $11,446 | $996 | | Adjusted net income | $12,618 | $14,336 | $8,639 | | Adjusted net income per share | $0.09 | $0.11 | $0.07 | [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) Reconciliation of Adjusted EBITDA to net income (loss) before taxes and discontinued operations, presented for both consolidated results and by segment (Completion Fluids & Products, Water & Flowback Services) Consolidated Adjusted EBITDA Reconciliation (in thousands, except percents) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Net income (loss) before taxes | $19,436 | $5,086 | $12,479 | | Interest (income) expense, net | $4,194 | $4,724 | $6,185 | | Depreciation, amortization and accretion | $9,189 | $9,151 | $8,774 | | Equity-based compensation expense | $1,747 | $1,860 | $1,800 | | Other adjustments | $1,313 | $11,446 | $996 | | Adjusted EBITDA | $35,879 | $32,267 | $30,234 | | Adjusted EBITDA as a % of revenue | 20.6% | 20.5% | 17.6% | Segment Adjusted EBITDA (Q2 2025, in thousands) | Segment | Revenues | Adjusted EBITDA | Adjusted EBITDA as a % of revenue | | :-------------------------- | :--------- | :-------------- | :-------------------------------- | | Completion Fluids & Products | $109,445 | $40,114 | 36.7% | | Water & Flowback Services | $64,427 | $6,401 | 9.9% | [Adjusted Free Cash Flow Reconciliation](index=13&type=section&id=Adjusted%20Free%20Cash%20Flow%20Reconciliation) Reconciliation of Total Adjusted Free Cash Flow and Base Business Adjusted Free Cash Flow, detailing adjustments from net cash provided by operating activities Adjusted Free Cash Flow Reconciliation (in thousands) | Metric | Q2 2025 | Q1 2025 | 6 Months 2025 | | :-------------------------------- | :-------- | :-------- | :------------ | | Net cash provided by operating activities | $48,333 | $3,935 | $52,268 | | Capital expenditures, net of proceeds | $(19,422) | $(17,774) | $(37,196) | | Payments on financing lease obligations | $(1,139) | $(931) | $(2,070) | | Payments on seller financed purchases | $(1,280) | — | $(1,280) | | Cash received from sale of investments | — | $19,011 | $19,011 | | **Total Adjusted Free Cash Flow** | **$26,492** | **$4,241** | **$30,733** | | Less Investments in Arkansas | $(10,861) | $(11,168) | $(22,029) | | **Base Business Adjusted Free Cash Flow** | **$37,353** | **$15,409** | **$52,762** | [Net Debt Reconciliation](index=14&type=section&id=Net%20Debt%20Reconciliation) Reconciliation of Net Debt, defined as the sum of long-term and short-term debt less unrestricted cash Net Debt Reconciliation (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Unrestricted Cash | $68,749 | $36,987 | | Term Credit Agreement | $180,504 | $179,696 | | **Net debt** | **$111,755** | **$142,709** | [Net Leverage Ratio Reconciliation](index=15&type=section&id=Net%20Leverage%20Ratio%20Reconciliation) Reconciliation of the Net Leverage Ratio, calculated as debt covenant net debt and commitments divided by trailing twelve months adjusted EBITDA for credit facilities - The Net Leverage Ratio was **1.2x** as of June 30, 2025[53](index=53&type=chunk) - Debt covenant adjusted EBITDA for the trailing twelve months ended June 30, 2025, was **$109,293 thousand**[53](index=53&type=chunk) - Debt covenant net debt and commitments as of June 30, 2025, was **$129,067 thousand**[53](index=53&type=chunk) [Return on Net Capital Employed (RONCE) Reconciliation](index=16&type=section&id=Return%20on%20Net%20Capital%20Employed%20(RONCE)%20Reconciliation) Reconciliation of Return on Net Capital Employed (RONCE), calculated as Adjusted EBIT divided by average net capital employed - Return on net capital employed for the twelve months ended March 31, 2025, was **17.9%**[55](index=55&type=chunk) - Adjusted EBIT for the twelve months ended June 30, 2025, was **$71,185 thousand**[55](index=55&type=chunk) - Net capital employed as of June 30, 2025, was **$456,988 thousand**[55](index=55&type=chunk) [Projected FY 2025 Adjusted EBITDA Reconciliation](index=17&type=section&id=Projected%20FY%202025%20Adjusted%20EBITDA%20Reconciliation) Reconciliation of projected Adjusted EBITDA for the full fiscal year 2025, alongside actual figures for 2024 Projected FY 2025 Adjusted EBITDA Reconciliation (in thousands) | Metric | FY 2024 (Actual) | FY 2025 (Projected Low) | FY 2025 (Projected High) | | :-------------------------------- | :--------------- | :---------------------- | :----------------------- | | Revenues | $599,111 | $610,000 | $630,000 | | Net income before taxes and discontinued operations | $28,742 | $21,000 | $34,000 | | Interest expense, net | $22,465 | $18,000 | $17,000 | | Depreciation, amortization and accretion | $35,721 | $39,000 | $37,000 | | Equity-based compensation expense | $6,572 | $7,000 | $7,000 | | Other adjustments | $5,903 | $15,000 | $15,000 | | **Adjusted EBITDA** | **$99,403** | **$100,000** | **$110,000** |

Financial Performance - TETRA Technologies reported a second quarter 2025 revenue of $173.9 million, an 11% sequential increase from $157.1 million in the first quarter of 2025 [4][5] - Adjusted EBITDA for the second quarter was $35.9 million, up from $32.3 million in the previous quarter, reflecting a margin of 20.6% [2][5] - Net income before taxes for the second quarter was $19.4 million, a significant increase of $14.4 million sequentially [5][4] Segment Performance - Completion Fluids & Products segment revenue increased by 18% sequentially and 9% year-over-year, with adjusted EBITDA margins rising to 36.7% [6][7] - Water & Flowback Services revenue remained flat despite a 14% decline in U.S. frac activity, with adjusted EBITDA margins decreasing to 10% [8][9] Cash Flow and Balance Sheet - The company generated $48.3 million in net cash from operating activities during the second quarter, with total adjusted free cash flow of $26.5 million [20][5] - As of June 30, 2025, TETRA had cash and cash equivalents of $69 million and a net leverage ratio of 1.2 times adjusted EBITDA [22][21] Growth Initiatives - TETRA is advancing its Arkansas bromine processing facility project, having invested $44 million since 2024, with expectations to generate incremental revenue of $200 million to $250 million at full production [11][10] - The company is also focusing on emerging growth markets, including energy storage and produced water recycling, with significant potential for reshaping its business profile [13][19] Full Year Guidance - For the full year 2025, TETRA expects GAAP net income before taxes to be between $21 million and $34 million, with adjusted EBITDA projected between $100 million and $110 million [3]

Core Viewpoint - TETRA Technologies, Inc. is set to release its second quarter 2025 results on July 29, 2025, followed by a conference call to discuss the results on July 30, 2025 [1] Group 1: Upcoming Events - The second quarter 2025 results will be announced after market close on July 29, 2025, with a conference call scheduled for July 30, 2025, at 10:30 a.m. Eastern Time [1] - TETRA will host an Investor Day on September 25, 2025, at the New York Stock Exchange, where the executive team will outline strategic objectives and growth initiatives for the next five years [3] Group 2: Communication and Accessibility - Investors can listen to the conference call by calling a toll-free number or via live audio webcast, with a replay available for one week after the call [2] - Presentation materials for the Investor Day will be available on TETRA's Investor Relations website, and advance registration is required for attendance [3] Group 3: Company Overview - TETRA Technologies, Inc. operates globally across six continents, focusing on energy services, industrial chemicals, and critical minerals [4] - The company is expanding into the low-carbon energy market, leveraging its chemistry expertise and global infrastructure to meet sustainable energy demands [4]

Core Insights - Thiogenesis Therapeutics has received scientific advice from the European Medicines Agency (EMA) supporting its submission for an Investigational Medicinal Product Dossier (IMPD) for a Phase 2a clinical trial in pediatric patients with metabolic dysfunction-associated steatohepatitis (MASH) [1][2] - The trial will evaluate the safety, tolerability, pharmacokinetics, and pharmacodynamic effects of TTI-0102 in children aged 10 to 17 with biopsy-confirmed MASH [2] - Thiogenesis has also been granted a European Union patent for its asymmetric disulfide prodrugs of cysteamine, which secures its competitive position in mitochondrial and metabolic disease indications until 2038 [3] Company Overview - Thiogenesis Therapeutics is a clinical-stage biopharmaceutical company based in San Diego, California, focusing on developing thiol-based therapies for mitochondrial diseases and pediatric metabolic conditions [8] - The company is publicly traded on the TSX Venture Exchange and OTCQX, with its lead product candidate, TTI-0102, currently in clinical trials for various serious pediatric conditions [8] Product Details - TTI-0102 is a third-generation disulfide prodrug of cysteamine, designed to address challenges associated with earlier thiol-based drugs, including short half-life and adverse side effects [5][6] - The prodrug aims to enhance the bioavailability of cysteamine, which is crucial for producing antioxidants and restoring mitochondrial function [6][7] Industry Context - Pediatric MASH is a severe form of fatty liver disease affecting approximately 7-14% of children and adolescents in the EU, translating to 5-10 million patients [4] - The condition is characterized by liver inflammation and damage due to fat accumulation, with oxidative stress playing a significant role in its progression [4]

Company Overview - Thiogenesis Therapeutics, Corp. is a clinical-stage biopharmaceutical company focused on developing sulfur-based therapeutics for rare pediatric and inherited mitochondrial disorders [2][10] - The company is publicly traded on the TSX Venture Exchange and OTCQX [10] Clinical Programs - The company is advancing two lead Phase 2 clinical programs for its novel thiol drug, TTI-0102 [3] - A European multicenter trial for Mitochondrial Encephalomyopathy, Lactic Acidosis, and Stroke-like Episodes (MELAS), initiated on May 14, 2025 [3] - A U.S.-based trial for the Leigh Syndrome Spectrum (LSS), following FDA clearance of the Investigational New Drug (IND) application on June 11, 2025 [3] Drug Candidate - TTI-0102 is a next-generation thiol-based prodrug designed to enhance intracellular levels of glutathione and taurine, which are critical for mitigating oxidative stress in mitochondrial disorders [3][8] - The drug is engineered to address challenges faced by first-generation thiol-based drugs, including short half-life and adverse side effects [8] Mitochondrial Disorders - MELAS is characterized by symptoms such as seizures, muscle weakness, and can lead to loss of motor skills and intellectual disability, affecting approximately 4.1 in 100,000 of the population [7] - LSS is diagnosed in about 1 in 40,000 births and presents symptoms like impaired feeding, loss of motor skills, and seizures, with no current cure available [6] Conference Participation - The company’s CEO, Dr. Patrice Rioux, will participate in a clinical panel discussion at the United Mitochondrial Disease Foundation's 2025 Mitochondrial Medicine Conference, which gathers over 700 scientists and industry stakeholders [2][3]

Core Points - Thiogenesis Therapeutics has activated a second clinical site in France for its Phase 2 clinical trial of TTI-0102, targeting MELAS patients [1][2] - The trial is enrolling 12 patients, with 8 receiving TTI-0102 and 4 receiving a placebo, and is set to conduct a three-month interim analysis in September 2025 [3][4] - Key clinical endpoints include the 12-Minute Walk Test, Fatigue Severity Scale, and WHOQOL-BREF Quality of Life assessment [4] Company Overview - Thiogenesis Therapeutics is a clinical-stage biopharmaceutical company based in San Diego, focusing on sulfur-based therapeutics for pediatric and inherited mitochondrial diseases [9] - The lead product candidate, TTI-0102, is designed to improve upon first-generation thiol-based drugs by addressing issues like short half-life and side effects [6][7] - The company is publicly traded on the TSX Venture Exchange and OTCQX, and is also planning trials for other conditions such as Leigh syndrome and Rett syndrome [9] Disease Background - MELAS is an inherited mitochondrial disorder, often caused by a mutation in the MT-TL1 gene, with symptoms including seizures, muscle weakness, and fatigue [5] - It is estimated that approximately 4.1 out of 100,000 people worldwide are affected by MELAS [5] - The disease typically presents before the age of 20 and is considered an orphan disease despite its prevalence [5] Product Information - TTI-0102 is an asymmetric disulfide prodrug that acts as a precursor to cysteamine, a thiol compound involved in key biochemical reactions [6][7] - Prodrugs like TTI-0102 can enhance the bioavailability of active ingredients and reduce side effects, facilitating regulatory approval processes [8]