TETRA (TTI) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 26, 2026
AI-Generated Deep Dive Summary
TETRA Technologies (TTI) delivered a strong Q4 2025 earnings call, highlighting record-breaking performance across its core businesses and strategic initiatives. The company reported significant growth in Completion Fluids & Products revenue, reaching $83.7 million—a 22% year-over-year increase—and an impressive adjusted EBITDA margin of 28.2%. Similarly, Water & Flowback Services revenue came in at $63.0 million, remaining stable despite the typical U.S. slowdown, with strong activity in Argentina offsetting weaker domestic performance. These results contributed to a robust full-year financial picture, including base business free cash flow of $83 million and consolidated free cash flow of $33 million—both exceeding internal targets.
TETRA’s operational excellence was further underscored by the completion of Phase 1 of its Arkansas bromine project, which not only achieved record production but also exceeded feasibility study expectations. The West Memphis plant produced 40% more than its annual supply agreement volume, solidifying TETRA's position as a leading supplier in the Gulf of Mexico. Additionally, the company secured new contracts in Argentina, projected to double revenue in 2026 compared to 2025, demonstrating its ability to capitalize on international opportunities despite global market challenges.
The company’s financial health improved significantly, with net debt dropping to $109 million from $143 million and a reduced net leverage ratio of 1.1x compared to 1.8x at the end of 2024. This improvement was supported by strong cash flow generation, effective working capital management, and strategic investments in key projects. Notably, TETRA achieved a nearly 20% reduction in working capital, despite a $12 million year-over-year increase in quarterly revenue, while days sales outstanding improved to 62 days from 71 days.
Looking ahead, TETRA is poised for sustained growth, with its patent
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Originally published on The Motley Fool on 2/26/2026