Financial Performance Overview

TETRA Technologies, Inc. (TETRA) is an energy services and solutions company with operations across six continents. The company is focused on developing environmentally conscious services and solutions, while also expanding into the low-carbon energy market. TETRA operates in two main segments: Completion Fluids & Products Division and Water & Flowback Services Division.

For the first nine months of 2025, TETRA reported consolidated revenue of $484.3 million, an increase of 4.2% compared to the same period in 2024. This was driven by strong results from the Completion Fluids & Products Division, which offset weaker performance in the Water & Flowback Services Division. Consolidated gross profit increased 17.3% to $127.5 million, and operating income grew 26.3% to $52.9 million.

Divisional Performance

The Completion Fluids & Products Division saw revenues increase 20.7% year-over-year to $292.7 million, with gross profit and operating income rising 32.1% and 40.6%, respectively. This was primarily due to stronger volumes from deepwater completion fluids products, the completion of three CS Neptune wells in the Gulf of America, and solid results from the industrial chemical sales in Northern Europe and TETRA PureFlow ultra-pure zinc bromide electrolyte sales in North America.

In contrast, the Water & Flowback Services Division experienced a 13.8% decline in revenues to $191.5 million, with gross profit and operating income decreasing 34.2% and 100.8%, respectively. This was driven by lower U.S. drilling and completion activity, as well as the sale of early production facilities in Latin America in 2024. The division also incurred higher general and administrative expenses related to compensation and costs to close underperforming service lines in the U.S.

Strengths and Weaknesses

One of TETRA’s key strengths is its diversified product and service offerings, which span the oil and gas industry as well as the growing low-carbon energy market. The company’s expertise in completion fluids, water treatment, and mineral extraction positions it well to capitalize on industry trends and emerging opportunities.

The Completion Fluids & Products Division has demonstrated its ability to deliver strong financial performance, leveraging its deepwater fluids, industrial chemicals, and battery storage electrolyte products. This division’s profitability has been resilient, even as the Water & Flowback Services Division has faced headwinds from the decline in U.S. onshore activity.

However, TETRA’s reliance on the oil and gas industry, particularly the U.S. onshore market, is a weakness. The company’s Water & Flowback Services Division has been impacted by the overall decline in activity, highlighting its vulnerability to market conditions. Additionally, the company’s international operations, while providing diversification, can expose it to currency fluctuations and other country-specific risks.

Outlook and Future Initiatives

TETRA remains focused on pursuing strategic initiatives that leverage its core competencies and position the company for long-term growth. The company is prioritizing projects that can immediately impact near-term results, such as the TETRA CS Neptune fluids, TETRA PureFlow+ electrolyte, and the TETRA Oasis Total Desalination Solution (TDS) for produced water treatment and reuse.

To meet the growing demand for its deepwater completion fluids and battery storage electrolyte, TETRA is advancing its bromine processing plant in Arkansas. The company is on track to complete site preparation, install power infrastructure, and finish the bromine tower by the end of 2025, with the facility expected to be operational by the end of 2027 and first production in 2028. This will help reduce reliance on third-party suppliers and provide a lower-cost supply of key materials.

TETRA is also leveraging its significant bromine, lithium, magnesium, and manganese assets in Arkansas, as well as its global infrastructure and chemistry expertise, to expand into the low-carbon energy market. In September 2025, the company published an updated definitive feasibility study and technical resources report, which advanced the classification of these critical mineral resources and identified their potential for commercial development.

While TETRA continues to review its capital expenditure plans, the company remains committed to investing in growth initiatives that can enhance shareholder value. The company’s ability to fund these projects will depend on its liquidity position, which stood at $208.1 million as of September 30, 2025, including $75 million in available credit.

Conclusion

TETRA’s financial performance in the first nine months of 2025 demonstrates the company’s ability to navigate a challenging market environment. The Completion Fluids & Products Division has been a consistent performer, offsetting the weaker results in the Water & Flowback Services Division.

Looking ahead, TETRA’s focus on strategic initiatives in the low-carbon energy market, such as the development of its bromine and lithium resources, as well as its continued investment in core products and services, position the company for potential long-term growth. However, the company’s reliance on the oil and gas industry, particularly the U.S. onshore market, remains a risk that will require careful management.

Overall, TETRA’s diversified business model, technical expertise, and strategic vision provide a solid foundation for the company to navigate the evolving energy landscape and create value for its shareholders.