Earnings release
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NEWS RELEASE TETRA TECHNOLOGIES, INC. REPORTS STRONG SECOND-QUARTER 2026 RESULTS 2026-08-03 SPRING, Texas, Aug. 3, 2026 /PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) announced nancial results for the three and six months ended June 30, 2026. Second-Quarter 2026 Financial Highlights Revenues of $185.7 millionIncome from continuing operations of $10.2 million, inclusive of $1.1 million of unusual chargesAdjusted EBITDA of $31.9 millionNet Income per share from continuing operations of $0.07, adjusted net income per share of $0.08Launched TETRA Neptune Z-Lite, awarded a three-well Gulf of America Deepwater ProjectRaised $108 million of net proceeds related to the equity o eringBoard of Directors approved nal investment decision ("FID") for the Arkansas Bromine Project Brady Murphy, TETRA's President and Chief Executive O cer, stated, "We delivered one of our strongest second-quarterand rst-half nancial performances in the past decade, re ecting the strength of our base business and our ability togrow in deepwater and international markets. Internationally and globally o shore, our revenues for the second-quarterand rst six months of the year were a ten-year high, with our rst-half 2026 international revenue 24% higher than any rst six months over the past decade. Second-quarter consolidated revenue of $186 million increased 19% sequentiallyand 7% year over year. Income from continuing operations was $10.2 million for the quarter. Adjusted EBITDA for thequarter increased 24% sequentially to $31.9 million. Our performance also bene ted from growing demand for theproprietary zinc-bromide electrolyte solution manufactured at our facility, re ecting expanding market interest in long-duration energy storage applications. During the quarter, we achieved several key milestones supporting our ONE TETRA 2030 objectives. Our Arkansas bromineproduction facility (the "Arkansas Bromine Project") is central to our strategy. Following Board approval of the nalinvestment decision and receipt of $108 million in net proceeds from our equity o ering, we are well positioned tocomplete the project in the fourth quarter of 2027 and begin start-up in early 2028. The project will support growthin deepwater and electrolyte markets well beyond 2030. We also expanded our patented TETRA Neptune completion uid o ering with the introduction of TETRA Neptune Z-Lite("Z-Lite"), a high-value deepwater completion uid that leverages our TETRA Neptune chemistry to achieve higher densitieswhile signi cantly reducing zinc content. We were especially pleased to be awarded a Beacon O shore Energy contract todeploy TETRA Neptune Z-Lite in a three-well, 20,000 psi Gulf of America program. As deepwater o shore exploration anddevelopment activities continue to shift toward higher-pressure reservoirs, this is creating additional opportunities for ourhigh-value completion uids, such as TETRA Neptune. We continue to advance our patented TETRA Oasis Total Desalination Solution ("TETRA Oasis"), supported by the industry'sgrowing need to reduce produced-water disposal volumes and mitigate potential constraints on future crude oilproduction. Recent third-party data and customer discussions reinforce the urgency of addressing disposal limitations, 1
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which remains the foundation of our target to desalinate 500,000 barrels of produced water per day by 2030. Since ourSeptember 2025 Investor Day, market interest has expanded beyond disposal-volume reduction to include data centerstargeting West Texas, shifting customer priorities toward the larger water requirements of that market. Recent discussionswith hyperscalers lead us to believe that water-cooled data centers can operate at costs approximately 30% below those ofconventional air-cooled facilities, a di erence that is becoming increasingly important as computing density rises. At the same time, our water midstream and E&P customers are evaluating how to move from smaller-scale pilot projectsto large-scale desalination plants. We are pleased to be part of these discussions, and during the quarter we completedadditional engineering work on a 100,000-barrel-per-day plant design. We are encouraged by the economies of scale as wemove from a 25,000 bbl/d plant to a 100,000 bbl/d plant, with estimated capex and opex savings of up to 23% and 24%,respectively. The ability of TETRA Oasis to deliver improving project economics as the size and scope of our largerdesalination plant design has been a key competitive advantage noted in our numerous commercial engagements withour customers. We also strengthened our intellectual property position, receiving Notices of Allowance that expand thescope of our Oasis patent portfolio to include a broad range of pre-treatment technologies critical to long-term membraneperformance. While permitting activities and customer diligence processes continue at a measured pace, we are making meaningfulengineering and commercial progress. The ability and opportunity to convert a waste stream into a valuable resource toenable industrial and agricultural growth is very motivating and incredibly exciting for all of our employees. Outlook The business outlook for our deepwater and international activity remains strong, and the U.S. is showing signs ofimprovement. As announced, we have been awarded the three-well TETRA Neptune Z-lite project in the Gulf of America forCompletion Fluids and Products, which we believe will start in 2026. Overall, we expect our base business to perform inline with market expectations, while recognizing that broader global market volatility may remain and that the timing ofNeptune pipeline jobs could meaningfully impact our second half 2026 results. Beyond 2026, we see multiple drivers supporting continued growth, including increased deepwater completion activity ascustomers work through a drilling-intensive cycle, further expansion of our long-duration energy storage electrolytebusiness, and the commercialization of our TETRA Oasis. A growing pipeline of Neptune projects, expanding data centerand power infrastructure development in West Texas, along with the startup of the Arkansas Bromine facility, positionTETRA to accelerate progress toward its ONE TETRA 2030 objectives. Second-Quarter Financial Highlights Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 (in thousands, except per share amounts) Revenue $ 185,657 $ 156,253 $ 173,872 Income from continuing operations $ 10,237 $ 8,319 $ 11,305 Net income (loss) $ 10,237 $ 8,319 $ 11,305 Adjusted EBITDA(1) $ 31,866 $ 25,609 $ 36,178 Net income (loss) per share from continuing operations $ 0.07 $ 0.06 $ 0.08Adjusted net income per share from continuing operations(2) $ 0.08 $ 0.06 $ 0.09 Net cash (used in) provided by operating activities $ 34,387 $ (11,856) $ 48,333 Total Adjusted free cash flow(3) $ 9,932 $ (31,914) $ 26,492 (1) Adjusted EBITDA is a non-GAAP financial measure. See Schedule E for an explanation of how we calculate Adjusted EBITDA and reconciliation to net (loss)income from continuing operations before taxes.(2) Adjusted net income per share from continuing operations is a non-GAAP financial measure. See Schedule D for an explanation of how we calculate Adjusted netincome per share from continuing operations and a reconciliation to net (loss) income from continuing operations before taxes.(3) For the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, total Adjusted free cash flow includes $10.9 million, $6.6 million and $10.9 millionof net payments from our participating interest owner, respectively, for the Arkansas bromine and lithium projects, excluding capitalized interest. See Schedule Gfor an explanation of how we calculate Adjusted free cash flow and a reconciliation to net cash (used in) provided by operating activities. Completion Fluids & Products 2
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Revenue of $113.1 millionNet income before taxes of $27.2 millionAdjusted EBITDA of $29.9 millionAdjusted EBITDA margins of 26.4% Completion Fluids & Products revenue rose 23% sequentially and 3% year over year, delivering the highest rst-halfrevenue in ten years. Sequential growth was driven by completion uid spot-sales in the ESSA (Europe Sub-Sahara Africa)region. Chemicals also set a rst-half revenue record, driven by seasonal demand in Europe and increased sales ofelectrolytes. Calcium Chloride revenues set another record in the second quarter and continue to grow at a rate exceedingGDP, driven by sustained demand across diverse end markets and emerging opportunities associated with domesticsemiconductor manufacturing. Water & Flowback Services Revenue of $72.5 millionNet income before taxes of $3.2 millionAdjusted EBITDA of $10.8 millionAdjusted EBITDA margins of 14.8% Water & Flowback Services revenue increased 12% sequentially and 13% year over year, with every international regiondelivering ten-year-high second-quarter revenue except the Middle East. Results were led by record second-quarterArgentina revenue, driven by the ramp-up of early production facility projects in the Vaca Muerta basin. In addition, ourpatented SandStorm technology is making inroads in new markets. Our business continued to materially outpace the year-over-year decline in U.S. frac activity, leaving us well positioned to capture incremental upside from any recovery. Balance Sheet and Cash Flow In June, the Company issued approximately 12.4 million shares of common stock at a price of $9.25, resulting in netproceeds of $108.2 million. As of June 30, 2026, cash and cash equivalents were $154.6 million and total debt was $183.3million. Net debt was $28.7 million and our net leverage ratio (Net Debt/TTM Debt Covenant Adjusted EBITDA) was 0.4times. During the second quarter of 2026, cash provided by operating activities was $34.4 million, total Adjusted free cash owwas $9.9 million and base business Adjusted free cash ow was $22.8 million. Total capital expenditures were $23.3million, including $10.9 million associated with the Arkansas project and $2.0 million of capitalized interest. Tracking Progress to ONE TETRA 2030 On May 28, 2026, TETRA's Board of Directors approved the FID for the development of the Company's Arkansas BromineProject, marking a key milestone in TETRA's growth strategy. Proceeds from our recently completed equity o ering will beused to fund a portion of the anticipated completion costs with the balance of such costs to be funded by cash fromoperations, borrowings under our credit facilities or alternative sources of capital. The facility is expected to be operationalby the end of 2027, with rst production anticipated in early 2028. This project will support growth in deepwater andelectrolyte markets well beyond 2030. Additional updates on our progress relative to our 2030 targets are as follows: Energy Services We believe that the deepwater market growth is stronger now than our initial 2030 outlook. Geopolitical turmoil in theMiddle East has made o shore oil production the most energy-secure barrel, with production economics below $50/bbl inmost regions. According to Wood Mackenzie, investment in deepwater projects is expected to reach $111 billion this year,the highest since 2022. Deepwater rig activity is on the rise, and subsea tree installations, a key leading indicator of ourcompletion uids business, are expected to increase through the end of the decade. This supports continued con dence inthe medium-term outlook for high-value deepwater completion uids, especially where projects require specialized uidsfor complex o shore wells. As deepwater o shore exploration activity accelerates, we expect high-pressure, high-temperature ("HPHT") reservoirs todrive growing demand for our suite of higher-margin completion uids, including TETRA Neptune and TETRA Neptune Z-Lite. Our Neptune portfolio expansion with TETRA Neptune Z-lite gives us the opportunity to further increase ourdeepwater market share, and the bromine plant will enable stronger margins through a vertically integrated supply chain.Against this backdrop, we believe TETRA is well positioned to support increasingly complex deepwater completion 3
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programs with di erentiated uids technology and a reliable supply. In addition, our Flowback business is on track to grow signi cantly in 2026 and to more than double 2025 revenues inArgentina. Our patented TETRA SandStorm technology is being adopted as a standard across many markets. Overall, webelieve we are on track to meet or exceed our 2030 targets for Energy Services. Specialty Chemicals and Minerals Calcium Chloride revenues set another record in the second quarter and continue to grow at a rate exceeding GDP. Newmarkets for U.S. semiconductor chip manufacturing are also driving incremental revenue opportunities. Eos continues toramp its manufacturing capacity and has set a year-end goal of 4 GWh of capacity before the end of 2026. This wouldrepresent a step change in electrolyte and PureFlow volumes in 2027 and beyond. TETRA's 40,000-acre mineral position in Southwest Arkansas provides signi cant exposure to lithium and magnesium, twocritical minerals bene ting from improving market fundamentals and growing U.S. supply-chain priorities. Our portfolioincludes lithium royalty rights on approximately 35,000 acres held by Smackover Lithium, a 65% ownership interest in anestimated 585,000 tons of lithium carbonate equivalent ("LCE"), and more than two million tons of measured and indicatedmagnesium resources. We did not assume any lithium contribution in our 2030 nancial targets, however, favorablepricing, geopolitical, and supply-chain dynamics, along with synergies associated with the bromine plant, may createopportunities to accelerate the monetization of our critical minerals platform. Water Treatment and Desalination TETRA Oasis continues to gain commercial momentum, supported by growing engagement with hyperscalers, watermidstream companies, and E&P operators. As AI-driven data center and power infrastructure development acceleratesacross West Texas, customers increasingly recognize the economic advantages of water-cooled infrastructure, which canreduce cooling costs by up to 30% compared with conventional air-cooled systems. Combined with tightening producedwater disposal constraints and the industry's focus on bene cial reuse, we believe these trends are expanding the marketopportunity for large-scale desalination solutions and reinforcing the long-term growth potential of TETRA Oasis. Financial Statements, Schedules and Non-GAAP Reconciliation Schedules (Unaudited) Schedule A: Consolidated Income Statement Schedule B: Condensed Consolidated Balance Sheet Schedule C: Consolidated Statements of Cash Flows Schedule D: Non-GAAP Reconciliation of Adjusted Net Income Schedule E: Non-GAAP Reconciliation of Adjusted EBIT and Adjusted EBITDA Schedule F: Unusual Charges and Credits Schedule G: Non-GAAP Reconciliation to Adjusted Free Cash Flow and Base Business Adjusted Free Cash Flow Schedule H: Non-GAAP Reconciliation of Net Debt Schedule I: Non-GAAP Reconciliation to Net Leverage Ratio Non-GAAP Financial Measures In addition to nancial results determined in accordance with U.S. GAAP, this press release includes the following non-GAAP nancial measures for the Company: Adjusted net income, Adjusted net income per share, consolidated andsegment Adjusted EBIT and Adjusted EBITDA, segment Adjusted EBITDA as a percent of revenue ("Adjusted EBITDAmargin"), total Adjusted free cash ow, base business Adjusted free cash ow, net debt, and net leverage ratio. SchedulesD through I provide reconciliations of these non-GAAP nancial measures to their most directly comparable U.S. GAAPmeasures. Such non-GAAP measures adjust for unusual credits, which are further explained in this press release. The non-GAAP nancial measures should be considered in addition to, not as a substitute for, nancial measures prepared inaccordance with U.S. GAAP, as more fully discussed in the Company's nancial statements and lings with the Securitiesand Exchange Commission. Schedule A: Consolidated Income Statement (Unaudited) Three Months Ended June 30, 2026 March 31,2026 June 30, 2025 (in thousands, except per share amounts) 4
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Revenues $ 185,657 $ 156,253 $ 173,872 Cost of product sales and services 130,343 108,852 116,346 Depreciation, amortization and accretion 9,600 9,176 9,189 Impairments and other charges — — 93 Total cost of revenues 139,943 118,028 125,628 Gross profit 45,714 38,225 48,244 General and administrative expense 25,584 25,409 25,259 Operating income 20,130 12,816 22,985 Interest expense, net 3,267 3,237 4,194 Other expense (income), net 1,009 (2,011) (645) Income from continuing operations before taxes 15,854 11,590 19,436 Income tax expense 5,617 3,271 8,131 Net income attributable to TETRA stockholders $ 10,237 $ 8,319 $ 11,305 Basic per share information: Net income attributable to TETRA stockholders $ 0.07 $ 0.06 $ 0.08 Weighted average shares outstanding 138,997 134,500 133,152 Diluted per share information: Net income attributable to TETRA stockholders $ 0.07 $ 0.06 $ 0.08 Weighted average shares outstanding 140,619 137,315 133,422 Schedule B: Condensed Consolidated Balance Sheet (Unaudited) June 30, 2026 December 31, 2025 (in thousands) (unaudited) ASSETS Current assets: Cash and cash equivalents $ 154,583 $ 72,628 Restricted cash 50 52 Trade accounts receivable, net 114,367 99,578 Inventories 117,057 115,726 Prepaid expenses and other current assets 24,917 28,694 Total current assets 410,974 316,678 Property, plant and equipment, net 230,174 194,197 Deferred tax assets, net 86,738 87,322 Operating lease right-of-use assets 34,123 36,999 Patents, trademarks and other intangible assets, net 19,737 21,463 Investments 11,090 11,827 Other assets 7,278 7,275 Total long-term assets 389,140 359,083 Total assets $ 800,114 $ 675,761 LIABILITIES AND EQUITY Current liabilities: Trade accounts payable $ 55,002 $ 54,517 Current portion of long-term debt 8,125 4,750 Compensation and employee benefits 20,668 28,934 Operating lease liabilities, current portion 11,880 11,326 Accrued taxes 14,629 15,001 Accrued liabilities and other 49,615 39,325 Current liabilities associated with discontinued operations 7,360 7,360 Total current liabilities 167,279 161,213 Long-term debt, net 175,190 176,607 Operating lease liabilities 28,640 32,664 Asset retirement obligations 15,825 15,526 Deferred income taxes 2,677 2,498 Other liabilities 3,976 4,766 Total long-term liabilities 226,308 232,061 Commitments and contingencies TETRA stockholders' equity 407,795 283,755 Noncontrolling interests (1,268) (1,268) Total equity 406,527 282,487 Total liabilities and equity $ 800,114 $ 675,761 5
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During the preparation of the nancial statements for the period ended March 31, 2026, we identi ed an immaterial errorwhich understated the current portion of long-term debt and overstated long-term debt by $4.8 million as of December31, 2025. Balances as of December 31, 2025 have been revised to re ect $4.8 million of long-term debt as current, with ano setting reduction in long-term debt. Schedule C: Consolidated Statements of Cash Flows (Unaudited) Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 (in thousands) Operating activities: Net income $ 10,237 $ 8,319 $ 11,305Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation, amortization and accretion 9,600 9,176 9,189 Impairments and other charges — — 93 Loss (gain) on investments 165 (662) 299 Deferred income tax (benefit) expense (9) 1,102 3,142 Equity-based compensation expense 1,924 1,778 1,747 Provision for (recovery of) credit losses 91 (23) (32) Amortization and expense of financing costs 607 570 484 Gain on sale of assets (129) (127) (23) Other non-cash credits (171) (1) (230) Changes in operating assets and liabilities: Accounts receivable 1,550 (17,375) 11,089 Inventories 3,092 (3,906) 574 Prepaid expenses and other current assets 957 2,789 (1,496) Trade accounts payable and accrued expenses 6,957 (13,300) 11,033 Other (484) (196) 1,159 Net cash provided by (used in) operating activities 34,387 (11,856) 48,333 Investing activities: Purchases of property, plant and equipment, net (23,315) (19,019) (19,487) Proceeds from sale of property, plant and equipment 132 127 65 Other investing activities (264) 164 (198) Net cash used in investing activities (23,447) (18,728) (19,620) Financing activities: Proceeds from credit agreements and long-term debt 1,163 105 98 Public offerings proceeds, net of offering costs 108,397 — — Principal payments on credit agreements and long-term debt (163) (105) (98) Payments on financing lease obligations (1,272) (1,166) (1,139) Taxes paid upon vesting of equity-based compensation (510) (5,928) (76)Proceeds/cash settlements from common stock and exercised stock options 861 371 — Other financing activities — — (1,280) Net cash provided by (used in) financing activities 108,476 (6,723) (2,495) Effect of exchange rate changes on cash (307) 151 1,533 Increase (decrease) in cash and cash equivalents 119,109 (37,156) 27,751 Cash, cash equivalents and restricted cash at beginning of period 35,524 72,680 41,050 Cash, cash equivalents and restricted cash at end of period $ 154,633 $ 35,524 $ 68,801 Supplemental cash flow information: Interest paid(1) $ 2,516 $ 2,737 $ 4,287 Income taxes paid $ 4,250 $ 7,337 $ 2,829 Accrued capital expenditures at end of period $ 19,320 $ 7,020 $ 4,050 Offering costs incurred but unpaid as of period end $ 233 $ — $ — (1) Interest paid is net of $2.0 million, $1.8 million and $1.0 million of capitalized interest for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Schedule D: Non-GAAP Reconciliation of Adjusted Net Income (Loss) (Unaudited)The following table presents the reconciliation of adjusted net income to the most directly comparable 6
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GAAP measure, income from continuing operations before taxes for the periods indicated: Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 (in thousands, except per share amounts) Income from continuing operations before taxes $ 15,854 $ 11,590 $ 19,436 Income tax expense 5,617 3,271 8,131 Income from continuing operations 10,237 8,319 11,305 Impairments and other charges — — 93 Transaction, restructuring and other expenses 1,056 490 1,242 Former CEO stock appreciation right credit — — (22) Adjusted net income $ 11,293 $ 8,809 $ 12,618 Diluted per share information Net income attributable to TETRA stockholders $ 0.07 $ 0.06 $ 0.08 Adjusted net income per share $ 0.08 $ 0.06 $ 0.09 Diluted weighted average shares outstanding 140,619 137,315 133,422 Adjusted net income is de ned as the Company's income (loss) before noncontrolling interests and discontinuedoperations, excluding unusual tax provision, unusual foreign exchange losses and certain special or other charges (orcredits), and including noncontrolling interest attributable to continued operations. Adjusted net income is used bymanagement as a supplemental nancial measure to assess nancial performance, without regard to charges or creditsthat are considered by management to be outside of its normal operations. Adjusted net income per share is de ned as the Company's diluted net income per share attributable to TETRAstockholders excluding certain special or other charges (or credits). Adjusted net income per share is used by managementas a supplemental nancial measure to assess nancial performance, without regard to charges or credits that areconsidered by management to be outside of its normal operations. Schedule E: Non-GAAP Reconciliation of Adjusted EBIT and Adjusted EBITDA (Unaudited)Consolidated Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 (in thousands, except percents) Revenues $ 185,657 $ 156,253 $ 173,872Income (loss) from continuing operations before taxes 15,854 11,590 19,436 Impairments and other charges — — 93 Former CEO stock appreciation right expense (credit) — — (22) Transaction, restructuring and other expenses 1,056 490 1,242 Interest (income) expense, net 3,267 3,237 4,194 Investment (income) losses 165 (662) 299 Adjusted EBIT 20,342 14,655 25,242 Depreciation, amortization and accretion 9,600 9,176 9,189 Equity-based compensation expense 1,924 1,778 1,747 Adjusted EBITDA $ 31,866 $ 25,609 $ 36,178 Adjusted EBITDA as a % of revenue 17.2 % 16.4 % 20.8 % Completion Fluids & Products Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 (in thousands, except percents) Revenues $ 113,110 $ 91,721 $ 109,445Income (loss) from continuing operations before taxes 27,186 24,299 38,133 Transaction, restructuring and other expenses 450 — 69 Interest (income) expense, net (103) (157) (302) Investment (income) losses 165 (662) 299 Adjusted EBIT 27,698 23,480 38,199 7
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Depreciation, amortization and accretion 2,205 2,231 2,214 Adjusted EBITDA $ 29,903 $ 25,711 $ 40,413 Adjusted EBITDA as a % of revenue 26.4 % 28.0 % 36.9 % Water & Flowback Services Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 (in thousands, except percents) Revenues $ 72,547 $ 64,532 $ 64,427Income (loss) from continuing operations before taxes 3,205 2,060 (1,271) Impairments and other charges — — 93 Transaction, restructuring and other expenses — 76 685 Interest (income) expense, net 247 89 13 Adjusted EBIT 3,452 2,225 (480) Depreciation, amortization and accretion 7,319 6,866 6,881 Adjusted EBITDA $ 10,771 $ 9,091 $ 6,401 Adjusted EBITDA as a % of revenue 14.8 % 14.1 % 9.9 % Corporate Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 (in thousands, except percents)Income (loss) from continuing operations before taxes (14,537) (14,769) (17,426) Former CEO stock appreciation right expense (credit) — — (22) Transaction, restructuring and other expenses 606 414 488 Interest (income) expense, net 3,123 3,305 4,483 Adjusted EBIT (10,808) (11,050) (12,477) Depreciation, amortization and accretion 76 79 94 Equity-based compensation expense 1,924 1,778 1,747 Adjusted EBITDA $ (8,808) $ (9,193) $ (10,636) E ective with the earnings release for the three months ended March 31, 2026, we revised our de nitions of Adjusted EBITand Adjusted EBITDA to exclude investment (income) losses. Prior period Adjusted EBITDA amounts have been recast tore ect these revised de nitions for all periods presented. We changed the de nitions of Adjusted EBIT and AdjustedEBITDA because management believes that investment (income) losses are not re ective of the underlying operatingperformance of our core business. Investment (income) losses consist of realized and unrealized gains and losses onequity and debt securities of other companies, including our investment in Standard Lithium, and investments in commonunits and preferred units issued by two privately-held companies as well as the option to convert a convertible note issuedby a privately-held company into equity interests. Investment (income) losses are recorded in other income (expense), netin our consolidated statements of operations. The magnitude and timing of investment (income) losses are driven byfactors external to our core operations that management cannot control and does not consider when evaluating ormanaging day-to-day business performance. Accordingly, management believes the revised de nitions of Adjusted EBITand Adjusted EBITDA provide more meaningful measures of our operating performance and improve period-over-periodcomparability. The revisions to the Adjusted EBIT and Adjusted EBITDA de nitions apply symmetrically to both investmentincome and investment losses, and we will apply this de nition consistently in future periods. Adjusted EBIT is now de ned as net income (loss) from continuing operations before taxes, interest (income) expense, net,investment (income) losses, impairments and certain non-cash charges, and unusual adjustments. Adjusted EBITDA is now de ned as net income (loss) from continuing operations before taxes, excluding impairments,certain special, unusual or other charges (or credits), including loss on debt extinguishment, interest (income) expense, 8
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net, investment (income) losses, depreciation and amortization and certain non-cash items such as equity-basedcompensation expense. The most directly comparable GAAP nancial measure is net income (loss) from continuingoperations before taxes. Equity-based compensation expense represents compensation that has been or will be paid inequity and is excluded from Adjusted EBITDA because it is a non-cash item. Adjusted EBITDA is used by management as a supplemental nancial measure to assess nancial performance, withoutregard to charges or credits that are considered by management to be outside of its normal operations and withoutregard to nancing methods, capital structure or historical cost basis, and to assess the Company's ability to incur andservice debt and fund capital expenditures. Adjusted EBITDA margin is de ned as Adjusted EBITDA divided by revenues. A reconciliation of Adjusted EBITDA margin tothe most directly comparable GAAP measures for future periods is not available without unreasonable e orts due to theinherent di culty in forecasting and quantifying with reasonable accuracy activity levels and product mix, whichsigni cantly impact revenues. Such items are not currently determinable with reasonable accuracy and may be material tothe Company's actual results determined in accordance with GAAP. Schedule F: Unusual Charges and Credits (Unaudited) Unusual charges and expenses, net of credits were $1.1 million for the quarter ended June 30, 2026, which are re ected inSchedules D, E, and I, and include $0.6 million of legal fees related to a former subsidiary and $0.5 million of otherexpenses and charges. Management believes that the exclusion of the special charges and credits from the historicalresults of operations enables management to evaluate more e ectively the Company's operations over the prior periodsand to identify operating trends that could be obscured by the excluded items. See Schedules D, E and I for additionalinformation. Schedule G: Non-GAAP Reconciliation to Total Adjusted Free Cash Flow and Base Business Adjusted Free Cash Flow (Unaudited) Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (in thousands) Net cash (used in) provided by operating activities $ 34,387 $ (11,856) $ 48,333 $ 22,531 $ 52,268Capital expenditures, net of proceeds from asset sales (23,183) (18,892) (19,422) (42,075) (37,196) Payments on financing lease obligations (1,272) (1,166) (1,139) (2,438) (2,070) Payments on seller financed purchases — — (1,280) — (1,280) Cash received from sale of investments — — — — 19,011 Total Adjusted Free Cash Flow $ 9,932 $ (31,914) $ 26,492 $ (21,982) $ 30,733 Total Adjusted Free Cash Flow $ 9,932 $ (31,914) $ 26,492 $ (21,982) $ 30,733 Less Investments in Arkansas (10,857) (6,608) (10,861) (17,465) (22,029) Capitalized interest (2,046) (1,832) (1,044) (3,878) (1,809) Base Business Adjusted Free Cash Flow $ 22,835 $ (23,474) $ 38,397 $ (639) $ 54,571 Total Adjusted free cash ow is de ned as cash from operations, less capital expenditures net of asset sales, lesspayments on nancing lease obligations plus cash distributions to the Company from investments and proceeds fromsales of investments. Total Adjusted free cash ow does not necessarily imply residual cash ow available for discretionaryexpenditures. Base business Adjusted free cash ow is de ned as total Adjusted free cash ow excluding TETRA'sinvestments in the Arkansas project and capitalized interest associated with the Arkansas project. Management uses thissupplemental nancial measure to assess the Company's ability to retire debt, evaluate the capacity of the Company tofurther invest and grow, and to measure the performance of the Company as compared to its peer group. A reconciliation of Adjusted free cash ow to the most directly comparable GAAP measures for future periods is notavailable without unreasonable e orts due to the inherent di culty in forecasting and quantifying with reasonableaccuracy signi cant items required for the reconciliation including, among other things, depreciation expense and interest.Such reconciling items are not currently determinable pending nalization of cost estimates and funding structure, andmay be material to the Company's actual results determined in accordance with GAAP. Schedule H: Non-GAAP Reconciliation of Net Debt (Unaudited) 9
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The following reconciliation of net debt is presented as a supplement to financial results prepared in accordance with GAAP. June 30, 2026 December 31, 2025 (in thousands) Unrestricted Cash $ 154,583 $ 72,628 Term Credit Agreement 182,315 181,357 Argentina Credit Facilities 1,000 — Net debt $ 28,732 $ 108,729 Net debt is de ned as the carrying value of long-term and short-term debt, minus cash (excluding restricted cash). Schedule I: Non-GAAP Reconciliation to Net Leverage Ratio (Unaudited) Three Months Ended Twelve Months Ended June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2026 (in thousands)Income (loss) from continuing operations before taxes $ 15,854 $ 11,590 $ (6,125) $ 8,105 $ 29,424 Impairments and other charges — — 3,551 — 3,551Former CEO stock appreciation right expense (credit) — — 479 98 577 Transaction, restructuring and other expenses 1,056 490 7,485 1,188 10,219 Interest (income) expense, net 3,267 3,237 3,961 4,448 14,913 Investment (income) losses 165 (662) (1,194) (1,096) (2,787) Depreciation, amortization and accretion 9,600 9,176 9,268 9,491 37,535 Equity-based compensation expense 1,924 1,778 1,779 1,708 7,189 Adjusted EBITDA (Schedule E) $ 31,866 $ 25,609 $ 19,204 $ 23,942 $ 100,621 (Gain) loss on sale of assets (129) (127) (152) (66) (474) Other debt covenant adjustments 282 145 347 177 951 Debt covenant adjusted EBITDA $ 32,019 $ 25,627 $ 19,399 $ 24,053 $ 101,098 June 30, 2026 (in thousands, except ratio) Term credit agreement $ 190,000 Argentina credit facilities 1,000 Finance lease obligations 2,922 Letters of credit and guarantees 3,050 Total debt and commitments 196,972 Unrestricted cash 154,583 Debt covenant net debt and commitments $ 42,389 Net leverage ratio 0.4 Net leverage ratio is de ned as debt excluding nancing fees and discount on term loan and including nance leaseobligations, other capital purchase liabilities, letters of credit and guarantees, less unrestricted cash, divided by trailingtwelve months Adjusted EBITDA as de ned in our credit facilities. Adjusted EBITDA for credit facilities consists of AdjustedEBITDA described above, less non-cash (gain) loss on sale of investments, (gain) loss on sales of assets and excluding bankfees and certain special or other charges (or credits). Conference Call TETRA will host a conference call to discuss these results on August 4, 2026, at 10:30 a.m. ET. Click here to pre-register forthe call or listen via webcast. Investor Contact Matt Sanderson, Chief Financial O cer, msanderson@onetetra.com Kurt Hallead, Treasurer and VP of Investor Relations, khallead@onetetra.com Media Relations Giselle Piller, Senior Director of Global Marketing & Communications, gpiller@onetetra.com 10
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Company Overview TETRA Technologies, Inc. is an energy services and solutions company focused on developing environmentally consciousservices and solutions that help make people's lives better. With operations on six continents, the Company's portfolioconsists of Energy Services, Industrial Chemicals, and Critical Minerals. In addition to providing products and services tothe oil and gas industry and calcium chloride for diverse applications, TETRA is expanding into the low-carbon energymarket with chemistry expertise, key mineral acreage, and global infrastructure, helping to meet the demand forsustainable energy in the twenty- rst century. Visit the Company's website at www.onetetra.com for more information orconnect with us on LinkedIn. Cautionary Statement Regarding Forward Looking Statements This news release includes certain statements that are deemed to be forward-looking statements. Generally, the use ofwords such as "may," "see," "expectation," "expect," "intend," "estimate," "projects," "anticipate," "believe," "assume,""could," "should," "plans," "targets" or similar expressions that convey the uncertainty of future events, activities,expectations or outcomes identify forward-looking statements that the Company intends to be included within the safeharbor protections provided by the federal securities laws. These forward-looking statements include statementsregarding our ability to achieve our ONE TETRA 2030 objectives with respect to revenue and Adjusted EBITDA as well asother 2030 goals discussed herein. These statements also include statements concerning economic and operatingconditions that are outside of our control, including statements concerning the oil and gas industry; potential revenueassociated with our electrolyte products and prospective energy storage projects; adoption of our products andtechnologies by the market, including our TETRA Oasis and the anticipated demand for such technology; our mineralreserves and measured, indicated and inferred mineral resources of lithium, magnesium, and/or bromine, the potentialextraction of lithium, bromine, magnesium and other minerals, including potential extraction of those minerals designatedas critical minerals, from our Evergreen Unit and other leased acreage, the economic viability thereof, the demand for suchresources, the timing and costs of such activities, and the expected revenues, including any royalties, pro ts and returnsfrom such activities; the timing and success of our bromine production wells and the construction of our bromineprocessing facility and related engineering activities and estimated costs, revenues and pro tability thereof; projections orforecasts concerning the Company's business activities, including the completion of new projects, future results ofoperations, revenues, pro tability, estimated earnings, earnings per share, estimated Adjusted EBITDA margins andstatements regarding the Company's beliefs, expectations, plans, goals, future events and performance, and otherstatements that are not purely historical. With respect to the Company's disclosures of measured, indicated and inferredmineral resources, including bromine, lithium carbonate equivalent concentrations, magnesium, and other minerals, it isuncertain if all such resources will ever be economically developed. Investors are cautioned that mineral resources do nothave demonstrated economic value and further exploration may not result in the estimation of a mineral reserve. Further,there are a number of uncertainties related to processing lithium, which is an inherently di cult process. Therefore, youare cautioned not to assume that all or any part of our resources can be economically or legally commercialized. Theseforward-looking statements are based on certain assumptions and analyses made by the Company in light of itsexperience and its perception of historical trends, current conditions, expected future developments and other factors itbelieves are appropriate in the circumstances. Such statements are subject to several risks and uncertainties, many ofwhich are beyond the control of the Company. With respect to the Company's disclosures regarding the joint venture forthe Evergreen Unit the future relationship between the parties and the sharing of development costs is uncertain.Investors are cautioned that any such statements are not guarantees of future performance or results and that actualresults or developments may di er materially from those projected in the forward-looking statements. Factors which maycause actual results to di er materially from current expectations include, but are not limited to: changes in generaleconomic conditions; opportunity risks, such as mineral extraction, demand therefor, or realizing industrial and otherbene ts expected from bromine processing; our ability to develop a bromine processing facility and risks inherent in theconstruction of such facility, including delays, cost overruns, changes in scope, and the ability to obtain local governmentand regulatory approvals; the accuracy of our resources report or the timing of future updates to our resources report,feasibility study and economic assessment regarding our lithium, bromine, magnesium and other mineral acreage; ourability to obtain any necessary additional capital to nance our development plans, including the construction of ourbromine processing plant; equipment supply, equipment defects and/or our ability to timely obtain equipmentcomponents; our ability to commercialize new technologies and products such as our TETRA Oasis, including theconstruction and operation of desalination facilities, which are subject risks inherent in the construction and operation ofenergy infrastructure facilities such as timeline delays and cost overruns and our ability to execute on increase plant scale;competition from existing or new competitors; risks associated with changes in laws and regulations, or the imposition ofeconomic or trade sanctions a ecting international commercial transactions, including legislative, regulatory and policychanges, such as unexpected changes in tari s, trade barriers, price and exchange controls; and other the factorsdescribed in the section titled "Risk Factors" contained in the Company's Annual Reports on Form 10-K, as well as otherrisks identi ed from time to time in its reports on Form 10-Q and Form 8-K led with the Securities and ExchangeCommission. Investors should not place undue reliance on forward-looking statements. Each forward-looking statement 11
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speaks only as of the date of the particular statement, and the Company undertakes no obligation to update or revise anyforward-looking statements, except as may be required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/tetra-technologies-inc-reports-strong-second-quarter-2026-results-302841679.html SOURCE TETRA Technologies, Inc. 12