Oilfield and offshore services provider Tetra Technologies announced strong financial results for the third quarter ended September 30, 2025.
Revenue increased eight per cent year-over-year to $153 million, while net income before taxes remained flat at $8.1 million. Adjusted EBITDA rose seven per cent year-over-year to $25 million. Net cash provided by operating activities was $16.4 million, and base business free cash flow was $5.4 million.
Brady Murphy, Tetra President and CEO, highlighted the company's performance, achieving a ten-year high adjusted EBITDA of $93 million for the first nine months despite weakness in US onshore markets. He attributed the Q3 results to strength in offshore and industrial calcium chloride businesses.
The completion fluids and products segment saw a 39 per cent year-over-year revenue increase and a $6.9 million rise in adjusted EBITDA. Its nine-month adjusted EBITDA margin reached 34.5 per cent, a 500 basis point improvement, driven by CS Neptune fluid completions, strong demand for zinc-based bromine brines, and robust activity in Brazil and Northern Europe.
The water and flowback services segment revenue declined only two per cent sequentially despite a twelve per cent drop in US frac activity, with adjusted EBITDA margins improving to 11.9 per cent due to cost initiatives and technology penetration.
Tetra ended the quarter with $67 million in cash and a net leverage ratio of 1.2x. The company invested $28 million in its Arkansas bromine processing facility during the first nine months, remaining on schedule and under budget for Phase 1 completion by year-end 2027.
For the full year 2025, Tetra updated its guidance. GAAP net income before taxes is now expected between $19 million and $27 million, down slightly due to a planned non-cash office lease charge), while adjusted EBITDA guidance was raised to $107 million to $112 million (from $100-$110 million). Revenue guidance remains at $620 million to $630 million.
The company reiterated its strategy, aiming to more than double revenue and triple adjusted EBITDA by 2030.
