TETRA Technologies, Inc. Q4 FY2025 earnings call

• Acknowledged exceptional efforts of leadership team and employees in 2025 despite challenges in the oil and gas industry. - Highlighted record financial achievements of Tetra in 2025, including Gulf of America completion fluids team ranked top supplier for 5 consecutive years, West Memphis manufacturing team's record production, and global calcium chloride business setting records. - Progress on strategic milestones: new bromine plant in Arkansas with major milestone in December 2025, advancing design for phases two and three, and expecting economics improvement; progress towards JV terms with Magrathea for magnesium metal production; re - engaging with direct lithium extraction technology companies; positive results of EOG commercial plant desalination operation in Permian Basin and patent for Oasis TDS end - to - end desalination solution; shift in focus for desalination due to data center growth in West Texas. - Outlook for 2026: incremental revenue growth driven by electrolyte business and major contract awards in Argentina; Gulf of America activity forecasted to be different in 2026 compared to 2025; US water onshore business expected to have modest growth; secured third - party bromine supply for 2026 - 2027; completion fluids and products adjusted EBITDA margins expected in 25% - 30% range; water and flow back services adjusted EBITDA margins expected to improve from 12% in 2025 to mid - teens in 2026.

Completion fluids and products: 2025 revenue was $83.7 million, up 22% year - over - year, with adjusted EBITDA margins at 28.2%; Gulf of America completion fluids team saw revenue increase over 50% in 2025, driven by deepwater projects, and completion fluids and products EBITDA margins improved 420 basis points from 28.9% in 2024 to 33% in 2025. West Memphis manufacturing team had a record production year, producing 40% more bromine end products than the long - term supply agreement allows. Global calcium chloride business set revenue and adjusted EBITDA records, with market - leading position in Europe and strong second place in U.S. market, and tech - grade product lines for chip manufacturing grew by 144% in 2025. Water and flow back services: 4Q25 revenue was $63 million, flat compared to 3Q25; adjusted EBITDA margins improved 100 basis points in 2025 due to aggressive cost reductions and focus on new technology and automation.

• Expect incremental revenue growth in 2026 largely from electrolyte business and major contract awards in Argentina, with Argentina expected to double revenue in 2026 compared to 2025. - Gulf of America activity in 2026 forecasted to be higher in drilling with less completion activity, not expected to reach 2025 record levels but projected to cycle in stronger 2027 completions activity. - US water onshore business expected to have modest growth. - Secured third - party bromine supply for 2026 - 2027 as bridge until bromine processing plant is online. - Completion fluids and products adjusted EBITDA margins expected in 25% - 30% range in 2026. - Water and flow back services adjusted EBITDA margins expected to improve from 12% in 2025 to mid - teens in 2026.

Q: About fluid side deep water market in 26 vs 25 and evolution to 2027.

A: 2025 was great, 2026 still strong but seeing cycle into more drilling phase and less completion phase, cycle to reverse in 2027, overall deep water market positive next 3 - 4 years.

Q: Margin progression on fluid side, guidance parameters and pricing.

A: Pricing power strong in completion fluids due to innovation leadership and vertical integration; securing third - party bromine at higher prices puts pressure on margins, but expected to be in 25% - 30% range in 2026 consistent with past seven years.

Q: Bromine long - term Lanxess agreement percentage.

A: Approximately 75% of historical needs met under long - term agreement, open market purchases increasing as business grows.

Q: Desalination plants timing of commercial contracts and revenue.

A: Hopeful for one data center desalination project to materialize in first half 2026, first revenue of large facility expected in 2027.

Q: Bromine project timing acceleration.

A: Bromine facility schedule driven, still on schedule for 4Q 2027 but may have opportunity to pull in a bit.

Q: BSAL stuff, scaling desalination plants.

A: Economies of scale in larger plants vs four separate 25K plants; engineering for 100K + plants can be accelerated as fundamentals in place.

Q: Water and flow back services U.S. performance in flat onshore activity.

A: Sandstorm technology uptake continues, de - emphasizing water transfer business, flow back side expected to increase share and drive margins up.

Q: Bromine third - party supply, impact on customers.

A: Securing third - party supply above long - term contract due to demand for completion fluids and electrolyte production; no issue with long - term contract but it winds down by end of 2029.

Q: Bromine plant capacity excess supply plan.

A: Most likely go to market for incremental bromine supply above 75 million initially.

Q: Bromine short - term supply for completion and battery business.

A: Contractually secured what's needed for 2026, will do same for 2027, in good shape for supply.

Q: Margin guidance for water side 2026.

A: Reflecting pricing pressures in Permian Basin and aggressive cost actions, expected to remain healthy.

Q: First quarter EBITDA guidance.

A: Not giving guidance for quarters, only noting second quarter spike in northern Europe calcium chloride business otherwise.