TETRA Technologies (TTI) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenue of $156.3 million and adjusted EBITDA of $25.6 million, both ten-year highs excluding last year's Neptune project benefit.

• Net income attributable to stockholders was $8.3 million, more than doubling from Q1 2025, with EPS from continuing operations at $0.06.

• Industrial chemicals and production testing sub-segments delivered ten-year-high revenues with strong margins.

• Strategic focus areas include deepwater, specialty chemicals, battery storage electrolytes, critical minerals, and water desalination.

• Geographic diversification and robust performance in the U.S., Europe, and Latin America are expected to offset Middle East headwinds.

Financial highlights

• Q1 2026 revenue was $156.3 million and adjusted EBITDA was $25.6 million, both ten-year highs excluding Neptune project.

• Completion Fluids & Products revenue was $91.7 million and adjusted EBITDA $25.7 million, up 10% sequentially but down 1% year-over-year.

• Water & Flowback Services revenue was $64.5 million, up 3% sequentially and 1% year-over-year, with adjusted EBITDA of $9.1 million.

• Net leverage ratio at quarter-end was 1.5x, with $35.5 million in cash and $181.8 million in total debt.

• Operating income was $12.8 million, up from $2.5 million sequentially, but down from $18.8 million year-over-year.

Outlook and guidance

• Maintains 2026 guidance of single-digit revenue growth over 2025, with completion fluid margins between 25%-30% and water flowback in the mid-teens.

• Expects positive base business free cash flow in 2026, to be reinvested in the Arkansas bromine plant.

• Revenue expected to increase modestly, driven by higher electrolyte sales and long-term contracts in Argentina.

• Anticipates further clarity on offshore and non-Middle East customer activity as the year progresses.

• Long-term outlook strengthened by global energy security concerns and increased demand for critical minerals.