Key Highlights

  • Revenue rose 9.6% to USD 168.0 million, with services Revenue up 20% to USD 81.7 million.
  • Net income attributable to stockholders rose to USD 6.8 million, or USD 0.05 per share, from USD 4.2 million.
  • Gross profit slipped to USD 35.1 million from USD 36.4 million, and Operating Income was USD 9.7 million.
  • Interest expense, net, fell to USD 2.4 million from USD 4.4 million, and Liquidity stood at USD 208.3 million.

Quarter in Numbers

TETRA Technologies, Inc. (NYSE:TTI), an energy services and solutions company, reported third-quarter 2026 revenues of USD 168.0 million versus USD 153.2 million. Product sales were USD 86.2 million versus USD 85.2 million, and services revenue was USD 81.7 million versus USD 68.1 million. Cost of product sales rose to USD 61.8 million from USD 53.8 million and cost of services to USD 61.2 million from USD 53.6 million, while depreciation, amortization and accretion was USD 9.8 million. Total cost of revenues was USD 132.9 million versus USD 116.9 million.

Gross profit therefore slipped to USD 35.1 million from USD 36.4 million, which by our calculation is a Margin of 20.9% versus 23.7%. General and administrative expense was USD 25.4 million versus USD 25.2 million, and operating income was USD 9.7 million versus USD 11.1 million.

Interest expense, net, fell to USD 2.4 million from USD 4.4 million, and other expense was USD 0.9 million versus other income of USD 1.4 million. Income before taxes was USD 6.4 million versus USD 8.1 million. The company recorded an income tax benefit of USD 0.4 million versus an expense of USD 4.0 million, so Net Income attributable to stockholders rose to USD 6.8 million from USD 4.2 million, or USD 0.05 per diluted share versus USD 0.03, on 149.4 million diluted shares versus 134.8 million.

The lower tax charge accounts for the entire rise in net income, since pre-tax income fell by about USD 1.7 million, by our calculation.

Sequential Segment View

Consolidated revenue decreased 9.5% from the second quarter because of lower sales volumes in the Completion Fluids and Products segment, whose revenue fell 18.8% to USD 91.9 million from USD 113.1 million after traditionally strong seasonal European industrial chemicals volumes in the second quarter. Segment Gross Profit fell 30.0% to USD 24.7 million and segment operating income fell 35.7% to USD 17.7 million.

Water and Flowback Services revenues rose slightly from the second quarter, helped by additional early production facilities operating in Latin America and higher flowback activity as utilization of the TETRA Sandstorm and Auto-Drillout technologies improved across the United States. The company noted some cost pressure in shipping, but said the Middle East conflict did not materially affect the second or third quarter because historically less than 5% of its revenue is exposed to that region.

Nine Months and Liquidity

For the nine months, revenues were USD 509.9 million versus USD 484.3 million, with services revenue up to USD 236.7 million from USD 208.2 million and product sales down to USD 273.1 million from USD 276.1 million. Gross profit was USD 119.0 million versus USD 127.5 million, operating income was USD 42.7 million versus USD 52.9 million, and net income attributable to stockholders was USD 25.4 million versus USD 19.5 million, or USD 0.18 per share versus USD 0.15. Liquidity at the end of the third quarter was USD 208.3 million, including cash and USD 41.7 million of short-term investments.

Mix and Margin Indicators

Income tax expense decreased USD 6.0 million from the prior quarter on lower Earnings and a lower effective tax rate. Items to track include the mix shift toward services, seasonality in calcium chloride volumes, margin recovery in completion fluids, interest costs after Debt reduction and the term Credit agreement requirement of minimum liquidity of USD 50.0 million.