Core Insights - TETRA Technologies, Inc. is implementing a "ONE TETRA 2030" strategy aimed at doubling revenue and tripling adjusted EBITDA by 2030, while generating over $100 million in annual adjusted free cash flow by 2028 and beyond [1][4][6] Financial Targets - Revenue is projected to be between $1.2 billion and $1.3 billion by 2030, compared to $607 million for the trailing twelve months ending Q2 2025, indicating a 15% compounded annual growth rate (CAGR) [5] - Adjusted EBITDA is expected to range from $300 million to $350 million, with adjusted EBITDA margins between 25% and 28%, up from 18.9% in Q2 2025 [5] - Earnings per share (EPS) is targeted between $1.20 and $1.30, with annualized adjusted free cash flow exceeding $100 million from 2028 onwards [5] Business Segment Projections - Specialty Chemicals & Minerals aims for 2030 revenue between $430 million and $460 million, with a five-year CAGR exceeding 25% and adjusted EBITDA margins around 30% [5] - Water Treatment & Desalination is targeting 2030 revenue between $340 million and $360 million, with a five-year CAGR over 55% and adjusted EBITDA margins also in the 30% range [5] - Energy Services is projected to achieve 2030 revenue between $440 million and $460 million, with EBITDA margins in the mid-20% range [5] Strategic Initiatives - TETRA plans to report three business segments by 2027 to enhance visibility of financial performance and allow benchmarking against industry peers [3][6] - The company intends to build 10 water desalination plants by 2030, processing over 500,000 barrels of produced water per day [5] - Management aims to shift capital allocation strategy from growth investments to returning capital to shareholders through debt reduction and dividends or share repurchases by 2028 [6]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

TETRA Technologies Investor Day Summary Company Overview - **Company**: TETRA Technologies (NYSE: TTI) - **Event**: 2025 Investor Day held on September 25, 2025 - **Focus**: Transformation strategy named "OneTETRA 2030" aimed at enhancing operational excellence and financial strength to deliver long-term value [2][4][22] Key Industry Insights - **Current Revenue Breakdown**: - 71% from traditional oilfield services - 23% from industrial chemicals (primarily calcium chloride) - 6% from water treatment and recycling for frac reuse [6][8] - **Future Revenue Goals**: - Projected growth from over $600 million to approximately $1.25 billion by 2030 - Revenue distribution expected to be 36% from energy services, 36% from specialty chemicals and minerals, and 28% from water treatment and desalination [8][20] Financial Performance - **Historical Growth**: - Revenue increased by 56% - EBITDA increased by 129% - Cash flow from operations increased by 544% since 2021 [14][15] - **Share Price Appreciation**: Nearly 440% since the announcement of the new strategy in January 2021 [13] Strategic Transformation - **Divestiture**: The divestiture of the general partnership in CSI Compresco in early 2021 marked the beginning of the transformation [5][10] - **Core Competencies**: Focus on fluid chemistry, particularly in electrolytes for energy storage, desalination of produced water, and critical minerals from brine leases [11][19] - **Investment Focus**: Directing free cash flow towards key investment enablers, including R&D and vertical integration of bromine supply [9][10] New Business Segments - **Future Reporting Segments**: - Energy Services - Specialty Chemicals and Minerals - Water Treatment and Desalination [16][18] - **Specialty Chemicals and Minerals**: Expected to grow to over $400 million in revenue with EBITDA margins consistent with current segments [20] Market Positioning - **Deep Water Market**: - Strong pipeline of opportunities in deep water completion fluids, particularly with the introduction of 20K rigs [48][59] - TETRA is positioned to benefit from the increasing demand for high-density fluids in technically challenging environments [56][60] - **International Presence**: Active in key markets including the Gulf of America, Brazil, and the North Sea, with a focus on expanding operations in the Middle East and Argentina [11][42][45] Innovation and Technology - **Automation**: Introduction of automated solutions for drill-out operations and sand management, leading to higher margins and reduced operational risks [31][34] - **Neptune Fluids**: Development of a family of fluids that are non-corrosive and environmentally friendly, generating over $150 million in revenue since launch [63] Future Outlook - **Growth Projections**: - Energy services expected to grow at a steady 5% to 8% CAGR through the end of the decade [20] - Water treatment and desalination targeting 500,000 barrels a day of produced water desalination by 2030 [20] - **Market Dynamics**: Despite current declines in U.S. drilling activity, TETRA is positioned to capture market share through innovation and efficiency improvements [37][39] Conclusion - TETRA Technologies is on a transformative journey aimed at leveraging its core competencies in fluid chemistry to capture significant growth opportunities in the energy services, specialty chemicals, and water treatment sectors, with a strong focus on innovation and operational excellence [22][23]

TETRA INVESTOR DAY ONE TETRA 2030 September 25, 2025 ©2025 TETRA Technologies, Inc. All rights reserved. WELCOME ONE TETRA 2030 Kurt Hallead VP, Investor Relations & Treasurer 2 DISCLAIMER Forward-Looking Statements This presentation 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 express ...

Core Insights - TETRA Technologies, Inc. will host an Investor Day on September 25, 2025, at the New York Stock Exchange, focusing on operational performance, innovative technologies, growth initiatives, and financial prospects [1] Company Overview - TETRA Technologies, Inc. is an energy services and solutions company with a focus on environmentally conscious services across six continents, including Energy Services, Industrial Chemicals, and Critical Minerals [3] - The company is expanding into the low-carbon energy market, leveraging its chemistry expertise and global infrastructure to meet the demand for sustainable energy [3]

TETRA Technologies Inc. FY Conference Summary Company Overview - TETRA Technologies Inc. (NYSE: TTI) has been in business for over 40 years with a market cap slightly over $600 million and an enterprise value of slightly over $700 million [3][2] - The company operates primarily in two core segments: water and flowback services, and oil and gas deepwater completion fluids [3][4] Core Business Performance - TETRA's margin performance has improved steadily over the years, even during the COVID-19 pandemic when many in the oil field services sector struggled [4][7] - The completion fluids segment has achieved EBITDA margins of 34%, while the water and flowback business maintains margins in the low teens [7][9] - Total revenue for the last year was around $600 million, with EBITDA of approximately $100 million and free cash flow of around $50 million [10] Growth Initiatives - TETRA is focusing on expanding into adjacent markets leveraging its chemistry know-how from its core businesses [10] - The company has a long-term supply agreement for elemental bromine, which is being used in battery storage technology in collaboration with EOS Enterprises [11][12] - EOS expects to achieve 8 gigawatts of battery storage production, which could represent revenue to TETRA of up to $250 million [12][15] Water Treatment and Desalination - TETRA is developing technology to treat and desalinate water for various uses, including crop irrigation and surface discharge [13][20] - The company has identified a market of approximately 6 billion barrels of water being disposed of, presenting a significant opportunity for water treatment solutions [19] - TETRA's business model includes charging operators a fee for water treatment, which ranges from $1.50 to $2 per barrel [21][22] Mineral Extraction Opportunities - TETRA owns mineral rights to 40,000 acres in the Smackover formation, which is rich in lithium and bromine [22][24] - The company is positioned to extract critical minerals such as iodine, magnesium, and lithium from brine, creating new revenue streams [22][24] Financial Performance and Outlook - Despite a slowdown in the oil and gas sector, TETRA reported record revenue in the first half of the year, with EBITDA margins for its fluid segment between 36-37% [25][26] - The company has improved its balance sheet, reducing debt and maintaining a net leverage ratio of 1.2 times, with $68 million in cash available for investment [26] - TETRA is guiding for revenue and EBITDA to be above 2024 levels, indicating confidence in its growth initiatives [29][30] Strategic Board Enhancements - TETRA has added board members with expertise in chemical, specialty materials, and clean technology to support its transition into new markets [28] Upcoming Investor Day - An Investor Day is scheduled for September 25 at the New York Stock Exchange, where TETRA will outline its growth targets and financial projections for the future [30][31]

Company Overview - TETRA Technologies, Inc. is an energy services and solutions company focused on environmentally conscious services and solutions that enhance quality of life [2] - The company operates on six continents and has a portfolio that includes Energy Services, Industrial Chemicals, and Critical Minerals [2] - TETRA is expanding into the low-carbon energy market, leveraging its chemistry expertise, key mineral acreage, and global infrastructure to meet the demand for sustainable energy [2] Upcoming Events - TETRA will participate in the 27th Annual H.C. Wainwright Global Investment Conference from September 8-10, 2025, in New York City [1] - Elijio Serrano, TETRA's Chief Financial Officer, will host one-on-one meetings with institutional investors on September 9 and 10, and will present on September 10 at 12:00 PM ET [2]

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)