10-Q · April 29, 2026
Tetra Technologies (TTI) reported Q1 2026 revenues of $156.3 million, reflecting a slight 0.6% decrease year-over-year but a 6.5% sequential increase from Q4 2025. Net income for the quarter was $8.3 million, a…
Earnings analysis · 10-Q
TTI earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
TETRA delivered a strong sequential Q2, with revenue rising 18.8% to $185.657 million, operating income increasing 57.1% to $20.130 million, and EPS improving to $0.08 from $0.06 in Q1. Both operating segments improved,…
Read full summary
TETRA delivered a strong sequential Q2, with revenue rising 18.8% to $185.657 million, operating income increasing 57.1% to $20.130 million, and EPS improving to $0.08 from $0.06 in Q1. Both operating segments improved, led by Completion Fluids, while Water & Flowback posted substantial incremental profitability. The offset is a weaker first-half gross-profit profile, sharply lower operating cash flow, and $42.3 million of capital spending centered on the Arkansas Bromine Project, which requires further execution and financing.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.08
What stood out
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Revenue accelerated 18.8% sequentially
Q2 revenue rose $29.404 million, or 18.8% sequentially, to $185.657 million. Diluted EPS increased from $0.06 in Q1 2026 to $0.08, while matching $0.08 in Q2 2025.
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Operating leverage lifted profitability
Operating income increased 57.1% sequentially to $20.130 million from $12.816 million. Operating margin expanded to 10.8% from 8.2%, while gross margin was broadly stable at 24.6% versus 24.5%.
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Completion Fluids led quarterly growth
Completion Fluids & Products revenue grew 23.3% sequentially to $113.110 million, driven by Northern Europe specialty-chemical volumes and ongoing deepwater Brazil projects; operating income increased $5.163 million to $27.553 million.
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Water segment profitability improved sharply
Water & Flowback Services revenue increased 12.4% to $72.547 million and operating income rose 157.9% to $4.018 million. New Latin American early-production facilities, automation adoption, and cost reductions were cited as drivers.
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First-half earnings grew despite modest sales
First-half net income attributable to shareholders increased 20.9% to $18.556 million despite revenue growth of only 3.3% to $341.910 million, aided by a $2.414 million reduction in net interest expense and a $9.319 million improvement in other income/expense.
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Liquidity strengthened through equity raise
Liquidity was $221.1 million at June 30, 2026. The company also received $108.2 million of net proceeds from issuing 12,432,432 common shares in June to support general corporate purposes, including the Arkansas project.
What to watch
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Arkansas project carries execution and funding risk
The new Arkansas Bromine Project risk factor highlights possible cost overruns, delays, and funding shortfalls. The company spent $17.5 million on Arkansas development in the first half, needs additional financing for remaining project spending, and targets first production in early 2028.
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Year-to-date mix pressure reduced margins
First-half gross profit declined $7.211 million, or 7.9%, to $83.939 million despite a $10.898 million revenue increase. Completion Fluids & Products gross profit fell $15.295 million (18.8%) as product mix lacked prior-year TETRA Neptune fluid sales.
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Capex exceeded operating cash generation
Operating cash flow fell to $22.531 million in the first six months from $52.268 million a year earlier, while cash capital expenditures reached $42.3 million. This implies capital spending was about 188% of operating cash generation during the period.
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Project financing may create further dilution
The June offering added 12,432,432 shares for $115.0 million of gross proceeds. Management states that any additional equity issuance needed to fund capital requirements would cause further dilution.
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Material debt and floating-rate exposure
Debt included $190.0 million under the Term Credit Agreement at a 9.49% rate as of June 30. A hypothetical 10% increase in SOFR would raise annual cash interest expense by approximately $0.7 million.
Management's outlook
No revenue or EPS guidance was provided in the 10-Q. Management targets mechanical completion of the Arkansas Bromine Project by the end of 2026, full facility operations by the end of 2027, and first production in early 2028.
Earlier filings 4
10-K · February 25, 2026
TETRA Technologies (TTI) reports a modest year-over-year revenue increase with full-year 2025 revenue of $631.0 million (quarterly: $157M, $174M, $153M, $147M) and GAAP diluted EPS of $0.01 for 2025 (sum of quarterly…
10-Q · July 29, 2025
TETRA reported Q2 revenue of $173,872,000, up $1,937,000 from the prior-year quarter, with gross profit improving to $48,244,000 and gross margin expanding to ~27.8%. Operating margin strengthened to ~13.2% and diluted…
10-Q · April 29, 2025
TETRA reported first-quarter 2025 revenue of $157,140,000, up from $150,972,000 in Q1 2024, with gross profit of $42,906,000 and diluted EPS of $0.03. Operating cash flow turned positive at $3,935,000, but capital…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.