TETRA Technologies (TTI) 28th Annual Needham Growth Conference Virtual summary

Financial performance and business transformation

• Revenue run rate is about $600 million with over $100 million EBITDA, and margins have steadily increased, reaching 33% after deepwater projects.

• Strategic divestitures have focused the business on water and flowback services, industrial chemicals, and offshore completion fluids.

• Calcium chloride business generates $160 million revenue with 30% EBITDA margins, independent of oil and gas cycles.

• Maintained positive cash flow and EBITDA through industry downturns, supported by diversified operations.

• Solid balance sheet with 1.2x leverage, $50–$60 million cash, and no near-term debt maturities.

Expansion into new markets and technology

• Significant progress in entering battery storage and water desalination, leveraging bromine-based fluids for energy storage with Eos Energy Enterprises.

• Sales to Eos grew from $3 million in 2024 to $20 million in 2025, with expectations of $50–$60 million in 2026.

• Developing membrane technology for water desalination, targeting data center cooling and crop irrigation.

• Construction of a new bromine extraction plant in Arkansas to meet rising demand, expected online by end of 2027.

• Long-term supply agreements and mineral rights secure raw material needs for growth.

Market positioning and competitive landscape

• Competes with major industry players but leverages vertical integration and proprietary chemistry for a 30% market share in completion fluids.

• Calcium chloride is a global leader in Europe and second in the US, with broad industrial applications.

• Specialty chemicals and water treatment are expected to become a larger share of revenue, reducing reliance on oil and gas.

• By 2030, targets $1.25 billion revenue, $325 million EBITDA, and $140 million free cash flow.

• Share price has risen from $3–$4 to over $10, driven by milestone achievements.