Tetra Revenue Climbs as Cash Flow Turns Positive
Operating cash flow swung to $34.4 million from an $11.9 million outflow.
Tetra Technologies Inc. (TTI), an energy-services company, reported second-quarter revenue of $185.7 million, up 19% sequentially and 7% from a year earlier.
The quarter marked a rebound from the start of the year, though profitability remained below year-earlier levels. Adjusted EBITDA rose 24% sequentially to $31.9 million but fell 12% year over year, while the adjusted EBITDA margin improved to 17.2% from 16.4% in the first quarter and narrowed from 20.8% a year earlier.
Income from continuing operations increased 23% from the prior quarter to $10.2 million and declined 9% from a year earlier. Diluted earnings were $0.07 a share, compared with $0.06 sequentially and $0.08 a year earlier.
Completion Fluids & Products revenue rose 23% sequentially and 3% year over year to $113.1 million, helped by spot sales in Europe and Sub-Sahara Africa. The segment’s adjusted EBITDA increased sequentially to $29.9 million, though its margin contracted to 26.4% from 28.0% in the first quarter and 36.9% a year earlier.
Water & Flowback Services provided the stronger margin trajectory. Revenue increased 12% sequentially and 13% year over year to $72.5 million as early-production-facility projects ramped in Argentina’s Vaca Muerta basin, producing record second-quarter revenue in the country. Adjusted EBITDA rose to $10.8 million, and the segment’s margin expanded to 14.8% from 14.1% sequentially and 9.9% a year earlier.
Tetra kept its base-business outlook in line with market expectations, and the timing of Neptune pipeline jobs could materially affect second-half results. The company now expects Argentina flowback revenue to more than double its 2025 level during 2026, alongside continued growth in electrolyte demand.
The company completed a common-stock offering that produced $108.2 million of net proceeds to help finance its Arkansas bromine project. Cash rose to $154.6 million at June 30, net debt declined to $28.7 million and net leverage reached 0.4 times, primarily following the offering.
Tetra made a final investment decision on the Arkansas project, targeting completion by the fourth quarter of 2027 and initial production in early 2028. Capital spending rose to $23.3 million during the quarter, including $10.9 million for the project and $2.0 million of capitalized interest.