테트라 테크놀로지스(TTI) 2026년 3분기 실적 콘퍼런스 콜: 매출 10년 만에 3분기 최고치 달성

핵심 요약

• 테트라 테크놀로지스(TETRA Technologies)는 2026년 3분기 매출액이 전년 동기 대비 약 10% 증가한 1억 6,800만 달러를 기록하며 10년 만에 가장 높은 3분기 매출을 달성했다고 발표했다.
• 계속영업이익은 680만 달러(주당 0.05달러)로 증가했다. 조정 주당순이익(EPS)은 전년 동기 0.04달러에서 0.06달러로 늘었다.
• 조정 EBITDA는 2,510만 달러로 전년 동기와 비슷한 수준을 유지했으며, 지난 10년 중 두 번째로 높은 3분기 실적을 기록했다.
• 수처리 및 플로우백 서비스(Water & Flowback Services) 부문 매출은 7,610만 달러로 21% 증가했으며, 조정 EBITDA는 1,270만 달러로 69% 급증하고 마진율은 480bp 확대된 16.7%를 기록했다.
• 경영진은 2026년 4분기 매출과 조정 EBITDA가 전년 동기 대비 두 자릿수 증가할 것으로 전망했다. 또한 미국 육상 시굴 활동의 회복에 의존하지 않고도 2027년 매출과 EBITDA가 상승할 것으로 예상하고 있다.
• 아칸소 브롬 프로젝트는 예정된 일정과 예산 내에서 순조롭게 진행되고 있다. 초기 생산 목표 시점은 2028년 1분기 초이며, 연간 생산량은 초기 3,700만 파운드에서 2030년까지 7,500만 파운드로 늘릴 계획이다.

주요 재무 데이터

사업 및 영업 실적

시공 유체 및 제품 부문은 멕시코만 심해 완정 활동 감소에도 불구하고 10년 만에 가장 높은 3분기 매출을 기록했다. 산업용 화학제품 매출은 전년 동기 대비 32% 증가하여 처음으로 사업부 매출의 절반 이상을 차지했다. 폐수 처리에 사용되는 염화 칼슘 수요에 힘입어 반도체 제조 관련 매출은 48% 증가했다.

사업부 수익성은 멕시코만 활동 믹스 변화 및 계약상 의무화된 중동 지역 최종 인도 건에 대한 운송비 상승의 영향을 받았다. 경영진은 이러한 수익성 압박 요인을 시점 및 제품 믹스 차원의 일시적 영향으로 규정했다.

수처리 및 플로우백 서비스 부문은 해외 확장과 테트라 특허 기술인 샌드스톰 적용 확대의 수혜를 입었다. 생산 테스트 매출은 전분기 대비 9%, 전년 동기 대비 60% 증가했다. 해외 매출 비중은 2025년 전체 15%에서 해당 사업부 매출의 33%까지 확대되었다.

아르헨티나는 바카 무에르타 지역의 초기 생산 시설 가동 및 샌드스톰 활용도 증가에 힘입어 해외 성장을 이끌었다. 경영진은 중동에서의 추가적인 생산 테스트 기회와 에코 샌드스톰을 통한 지속적인 미국 시장 점유율 확대를 기대하고 있다. 회사는 에코 샌드스톰의 현장 적용으로 모래 배출 주기가 92% 감소했으며, 애팔래치아 지역의 주요 시굴업체와 진행한 프로그램에서는 메탄 배출량을 95% 줄였다고 밝혔다.

심해 사업은 테트라의 성장 계획에서 핵심적인 위치를 차지하고 있다. 경영진은 미국 멕시코만, 노르웨이, 서아프리카, 지중해 시장에 힘입어 2027년 시공 유체 매출과 EBITDA가 증가할 것으로 예상하고 있다. 3개 넵튠 Z-라이트 유전 중 첫 번째 시굴은 2026년 4분기로 예정되어 있었다.

아칸소 브롬 시설은 기계적 완공 예상 시점까지 12개월 남아 있다. 모든 기계 장비의 엔지니어링이 완료되었으며, 납품이 완료되었거나 확정 구매 주문이 체결된 상태다. 경영진은 장비 비용이 최종 투자 결정 당시 추정치보다 낮게 유지되고 있으며, 상세 엔지니어링은 2027년 1분기에 완료될 것으로 예상된다고 언급했다.

테트라는 2030년까지 시공 유체 및 퓨어플로우 전해질 소요량이 계획된 7,500만 파운드의 브롬 생산 능력을 초과할 것으로 예상하고 있다. 회사는 주요 용도의 수요 증가가 예상보다 더딜 경우 원소 브롬을 판매하거나 다른 브롬 시장에 공급할 수 있는 옵션도 확보하고 있다.

테트라 오아시스는 현재 파이프라인에 7개 프로젝트를 보유하고 있다. 4개는 데이터 센터 및 구내 전력 요구사항과 연계되어 있으며, 3개는 동반수 처리량 절감에 중점을 두고 있다. 6건의 유익한 재사용 허가 신청서가 텍사스 환경품질위원회(TCEQ)의 심사를 기다리고 있으나, 허가 신청 주체는 테트라가 아닌 고객사들이다.

경영진 가이드언스

• 경영진은 2026년 4분기 연결 매출과 조정 EBITDA가 2025년 4분기 대비 두 자릿수 증가할 것으로 전망했다.
• 2026년 전체 시공 유체 및 제품 조정 EBITDA 마진율은 가이드언스 제시 범위인 25%~30%의 하단 수준에 형성될 것으로 예상된다.
• 경영진은 심해 활동, 해외 생산 테스트, 샌드스톰 적용 확대, 전해질 수요, 산업용 화학제품에 힘입어 2027년 매출과 EBITDA가 모두 증가할 것으로 기대하고 있다.
• 2027년 기본 사업 전망에는 미국 육상 활동의 개선이 반영되지 않았으며, 경영진은 향후 시장이 회복될 경우 추가적인 상승 요인으로 작용할 것이라고 언급했다.
• 회사는 '원 테트라 2030' 전략에 따라 매출 10억 달러 이상, 조정 EBITDA 3억 달러 이상을 목표로 지속적인 노력을 기울이고 있다.
• 경영진은 아칸소 프로젝트 완공을 바탕으로 2028년부터 잉여현금흐름 창출이 의미 있게 증가할 것으로 예상하고 있다.

리스크 및 주시 사항

• 테트라 오아시스의 상업화 시점은 고객사, 텍사스 환경품질위원회(TCEQ), 미국 환경보호청(EPA)이 주도하는 규제 승인 절차에 달려 있다. 경영진은 허가 승인이 언제 시작될지 예측할 수 없다고 밝혔다.
• 테트라는 장기 계약 물량을 초과하는 브롬을 외부에서 지속적으로 매입하고 있다. 이러한 매입은 스팟(현물) 가격에 더 밀접하게 연동되어 있어 자체 생산이 시작되는 2027년까지 비용 압박 요인으로 작용할 수 있다.
• 시공 유체 마진율은 심해 프로젝트 일정, 지역별 매출 믹스, 국제 운송비에 민감하게 반응한다.
• 데이터 센터 수처리 프로젝트는 규모가 크지만 여전히 진화하는 단계에 있어 단기 매출 및 EBITDA 프로필을 수치화하기 어렵다.
• 경영진은 2030년까지의 심해 전망이 강화되었음에도 불구하고 석유 및 가스 활동이 산업 주기에 노출되어 있음을 인정했다.

애널리스트 Q&A 주요 내용

• 넵튠 Z-라이트 수익성: 경영진은 Z-라이트의 매출 및 마진 프로필이 일반 브롬화 칼슘/브롬화 아연 유전과 넵튠 유전의 중간 수준이라고 설명했다. 파이프라인 기회에는 멕시코만, 노르웨이 및 기타 해외 심해 시장이 포함된다.
• 심해 사업 전망: 테트라의 인베스터 데이 프레임워크에서는 심해 참여 사업이 2030년까지 연평균 약 8% 성장할 것으로 가정했다. 경영진은 고온·고압 유전에서 더 많은 유체 용량과 특수 화학 기술이 필요함에 따라 이후 사업 전망이 더욱 강화되었다고 밝혔다.
• 오아시스 상업 모델: 데이터 센터 프로젝트는 초기에 '워터 허브'를 통해 염수를 처리한 후 동반수 처리 방식으로 전환할 수 있다. 기타 프로젝트들은 동반수 폐기량을 직접 감축하는 데 집중할 것으로 예상된다.
• 브롬 증설: 생산 능력이 7,500만 파운드에 도달한 이후 추가 성장은 완전히 새로운 공장을 짓는 대신 두 번째 브롬 탑을 설치하는 방식이 될 수 있다. 경영진에 따르면 아칸소주 웨스트멤피스의 기존 전환 생산 능력으로 7,500만 파운드를 초과하는 물량을 처리할 수 있다.
• 에너지 저장: 테트라는 주요 고객사인 이오스의 공개 생산 증설 발표 내용에 맞춰 전해질 수요가 형성되고 있다고 밝혔다. 경영진은 아칸소 리튬 사업 기회를 가속화하는 방안도 검토 중이나 명확한 일정은 제시하지 않았다.
• 재무제표 유연성: 10월 약정 변경을 통해 1억 9,000만 달러 규모의 기간대출 만기를 2030년 12월 31일까지 연장했고, 가산금리를 75bp 인하하여 SOFR + 5%로 낮췄으며, 약 1,900만 달러의 원금 상환을 2030년으로 유예했다.

실적 발표 녹취록 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Hello, everyone. Thank you for joining us, and welcome to the TETRA Technologies, Inc. Third Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Kurt Hallead, Treasurer and IR. Kurt, please go ahead.

Kurt Hallead

Thank you, Christine. Good morning, everyone, and thank you for joining TETRA's Third Quarter 2026 Earnings Call. Today's speakers will be Brady Murphy, President and CEO; and Matt Sanderson, CFO; and during the call, we will be referring to certain non-GAAP financial measures. Please see our press release for reconciliations to the most directly comparable GAAP measures. I would also like to direct your attention to the safe harbor statement in our press release and Form 10-Q -- some remarks today may be forward-looking subject to the risks and uncertainties described in our SEC filings. Actual results may differ materially from those expressed or implied. After Brady and Matt's comments, we will open the line for Q&A. I will now turn the call over to Brady.

Brady Murphy

Thanks, Kurt, and good morning, everyone. Our third quarter was highlighted by some really exceptional performances across a broad range of our company's geographies and product lines, including excellent execution of our bromine construction project in Arkansas, which I'll discuss later. Third quarter revenue of $168 million was up 10% year-over-year and was our highest third quarter revenue in the past 10 years. International revenue reached $68.8 million or 41% of consolidated revenue, also our strongest third quarter in a decade. Adjusted EBITDA of $25.1 million was our second highest third quarter over the past 10 years. This strong performance was achieved despite lower deepwater activity in 1 of our strongest markets, our completion fluids in the Gulf of America. As customers were cycling through a drilling heavy lower well completion quarter.

Our record level revenue was highlighted by continued growth in international markets, accelerated growth in our Industrial Chemicals segment and continued strength in global deepwater markets. Industrial Chemicals generated its strongest third quarter revenue in a decade with 32% year-over-year growth and accounted for more than 50% of the Completion Fluids & Products third quarter revenue. This growth was supported by an expanding U.S. industrial market, including semiconductor manufacturing, which was up 48% year-over-year for us and by electrolytes for energy storage. Although gas and diesel price inflation has affected our international fluid shipment delivery cost. It does provide a cost advantage in markets with proximity to our chemical plants, both in the U.S. and in our market-leading position in Europe.

Within Water & Flowback, production testing also achieved a 10-year high in third quarter revenue and adjusted EBITDA. Duxon testing grew 9% quarter-over-quarter, driven largely by AutoStand term market share gains in the U.S. and grew 60% year-over-year, driven by growth across all of our international regions. This strong performance supported water and flowback revenue growth of 21% year-over-year and an adjusted EBITDA margin increase of 480 basis points to 16.7%. In aggregate, our international business accounted for 41% of total company revenue, led by Argentina, as our early production facilities ramped up and our patented TETRA SandStorm technology achieved strong utilization in the Vaca Marda.

We expect continued growth across all our international markets in 2027. We continue to extend our technology lead in production testing with the introduction of echo Sandstorm, a nonintrusive technology that provides real-time sand measurements during flowback. In field operations, Echo Sandstorm has reduced sand dumping cycles by 92%, lowering personnel costs and equipment wear. Another key benefit is reduced customer methane emissions a joint program with a major Appalachia operator demonstrated that Echo Sandstorm achieved a 95% reduction in methane emissions. These innovations continue to expand our addressable market and support our higher margin, high returns share gains.

As we look ahead to Q4, we anticipate another strong quarter with revenue and adjusted EBITDA projected to be up double digits compared with Q4 2025. We are scheduled to execute our first of 3 Neptune Z-Lite wells during the quarter as we continue to see a growing decline of Neptune projects. Over the past several days, the largest oilfield service companies have described an outlook that aligns very well with TETRA's portfolio. The common message is that 2027 growth and beyond will be led by offshore markets with increased technical expertise needed to address HP, HT and complex deepwater reservoirs. That matters for TETRA because it is where our base business is positioned and consistent with the view that we communicated at our One TETRA 2030 Investor Day in September of last year.

Our high-value completion fluids franchise has built for technically demanding Deepwater wells. Based on conversations with our customers, we expect Completion Fluids revenue and EBITDA to increase in 2027, driven by the U.S., Gulf, Norway, West Africa and the Mediterranean. Now I'd like to turn to our strategic initiatives, supporting our One TETRA 2030 strategy and goals. A key driver of our long-term growth and margin expansion for deepwater fluids and industrial chemicals is our Arkansas Bromine plant, which continues to advance on schedule and on budget. We're now 12 months away from the plant being mechanically complete and for commissioning and start-up operations to be well underway with our first production in early Q1 2028. This is a major project by any standard. And our team and contractors have done an exceptional job managing every phase. Thus far, we have logged over 60,000 man hours with 0 safety incidents and completed over 2,200 wells covering more than 5,000 feet with 0 defects or rework.

All mechanical equipment has been engineered and is either delivered or under confirmed purchase orders for delivery. In total, the equipment is below our FID approved total installed cost estimate. Our team has done an exceptional job managing inflationary pressures while keeping the project on its original schedule and within approved capital spending limits. Detailed engineering is in the final stages and is expected to be completed in the first quarter of 2027. The next phase of well development is scheduled to begin in mid-November. We remain on track to begin Bromine production at an annualized rate of 37 million pounds at the start of 2028 and ramp up to the facility 75 million-pound capacity by 2030.

The Arkansas Bromine project serves as a bridge between our base business and our growth platforms. That provides us a lower cost, secure bromine supply for our deepwater fluids and our PureFlow zinc bromide electrolyte. 2 businesses where we expect demand to grow well beyond 2030. As we move closer to plant start-up operations, I'd like to discuss how we view the global bromine market and our participation. The global bromine market is estimated at about $2.1 billion annually and is expected to exceed $3 billion by 2033, driven by a diverse range of growing markets, including electronics, oilfield completions, water treatment, energy storage and other specialty applications.

Chinese bromine prices have surged Chinese bromine prices surged in 2021 and again this year, and they remain roughly twice their late 2024 levels underscoring the need for reliable tier supply. Our evergreen bromine asset addresses that need with a newly developed high-quality resource. For TETRA, our primary channel target will continue to be our industry-leading completion fluids business. For context, in full year 2026, our completion fluids will consume significantly more than the 37 million pounds of planned first year production. As a result, in 2028, we will supplement our bromine plant production with our long-term supply agreement, which extends through 2029. With Pureflow electrolyte demand continuing to accelerate -- by 2030, the combined requirements of our completion fluids and electrolyte businesses are expected to exceed our planned 75 million-pound plant capacity.

It's important to note that if these markets grow below our full plant capacity, we have the opportunity to participate in other attractive bromine segments, which, as mentioned, is expected to grow over 50% by 2033. On TETRA Oasis, the quality and breadth of our customer engagement continues to encourage us. Rising constraints on produced water disposal in the Permian Basin, combined with large water requirements from data center development, have created an opportunity significantly larger than we initially envisioned. We now have 7 projects in our pipeline, 4 of which are tied to data centers and behind-the-meter power requirements. The remaining 3 projects focus on reducing produced water disposal. While the data center application has shifted the timing of our commercial -- first commercial plans from what we had originally anticipated, it has meaningfully expanded the opportunity. I'd like to emphasize that, although we're excited about the data center opportunities, the industry's primary challenge in the coming years remains reducing poor space, which is causing overpressurized disposal wells.

I'd like to acknowledge the company B3 Insight for its extensive work mapping subsurface over pressurization and modeling potential outcomes. According to its August 2026 report, all 10 core oil-producing counties in the Permian Basin, which account for 93% of the basin's production show pressures well above the normal pressured gradient. Loving County, for example, the highest disposal county at 3.1 million barrels per day shows pressures 21% above the normal pressure gradient. This is obviously not sustainable. Permitting remains the primary next step towards commercialization with 6 beneficial reuse applications pending before the TCEQ. Although our customers are the permits, we continue to engage with the TCEQ and the EPA providing detailed responses to their questions and results from our pilot operations, including successful outcomes for every requested water quality test.

As the regulatory agencies become more familiar with the technology and the water quality results, we're optimistic that approved permits are forthcoming. Filling in early October, we amended our term loan agreement, which gives us additional flexibility to fund Arkansas and our other growth initiatives. Matt will cover the details. With that, I'll turn it over to Matt.

Matthew Sanderson

Thank you, Brady, and good morning, everyone. As Brady mentioned, our third quarter revenue of $168 million was a 10-year high for the quarter, and was up approximately 10% year-on-year. Income from continuing operations was $6.8 million or $0.05 per share compared with $4.2 million or $0.03 per share a year ago. Net income includes $2 million of unusual charges. Adjusted net income per share was $0.06 compared with $0.04 a year ago. Adjusted EBITDA for the quarter was $25.1 million, which was flat with the third quarter of 2025 and as Brady mentioned, was our second highest Q3 in the past 10 years. Completion Fluids and fixed revenue was $91.9 million, up 2% year-over-year and the highest third quarter in 10 years. This strong performance was achieved despite lower deepwater activity in the Gulf of America, 1 of our strongest markets as customers were cycling through a drilling heavy lower oil completion quarter. .

Gulf of America completion activity is expected to increase later this year and carry well into 2027. Our Industrial Chemicals revenue continues to grow at an accelerated pace up 32% year-over-year, and for the first time, represented more than half of the segment revenue. As Brady mentioned, part of this growth was driven by a 48% year-over-year increase in semiconductor manufacturing sales or calcium chloride is used to treat wastewater. Adjusted EBITDA was $20.3 million or 22.1% margin. Lower deepwater activity in the Gulf of America and significant shipping cost increases on the last of our contractually obligated Middle East deliveries were the primary factors impacting margins. We view these as timing and mix factors and expect CFP segment margins for the year at the lower end of the 25% to 30% guidance range.

Water & Flowback services revenue was $76.1 million, up 21% year-over-year. Growth was led by international markets and increased adoption of our patented Sandstorm technology. Production testing grew 9% sequentially and 60% year-over-year driven largely by auto sand store market share gains in the U.S. and growth across international regions. International revenue accounted for 33% of the segment total, up from 15% for all of 2025. Adjusted EBITDA was $12.7 million, up 69% year-over-year, with margins of 16.7% and an increase of 480 basis points. This segment is a strong example of how technology and international expansion are creating growth opportunities beyond the U.S. and broadening our earnings base.

Corporate expense was $7.9 million for the quarter compared with $10 million a year ago. These savings are due in part to the move to our new corporate office in November of last year. Net interest expense was $2.4 million, net of capitalized interest and interest income on our short-term investments. For the first 9 months of the year, cash provided by operating activities was $31.3 million and capital expenditures were $77.6 million, reflecting the step-up in Arkansas construction spending. 2027 represents the final major investment year for our bromine project. With the completion of the project, we expect the benefits of our vertically integrated bromine supply to drive a meaningful step-up in free cash flow generation begin in 2028.

We ended the quarter with $84 million of cash and equivalents and $42 million of short-term investments. Total debt was $184 million, net debt was $58 million. Liquidity was $208 million, and our net leverage ratio was 0.7x. As Brady mentioned, in early October, we amended our $190 million term credit agreement. The agreement extends maturity from January 12, 2030 to December 31, 2030, it reduces the interest rate margins by 75 basis points, down to SOFR plus 5% and defers approximately $19 million of principal amortization payments out to 2030.

Given our base business cash flow, the June equity offering, the amended term loan and our existing ABL facility, we have the financial flexibility to fund the Arkansas Bromine project while supporting our growth initiatives. I'll now turn the call back to Brady for his final remarks.

Brady Murphy

Thanks, Matt. So summarizing our strategy rests on 2 layers. The first is a strong technology-led oil and gas business with growing international and deepwater exposure that is visible earnings-generating foundation. The second is the company-specific growth from bromine, electrolytes, water and critical minerals. For Q4 '26, we expect consolidated revenue and adjusted EBITDA to be up double digits year-on-year. As we look to '27, we expect revenue and EBITDA to increase relative to '26 again driven by deepwater lesions international production testing, sandstorm adoption, electrolyte demand and industrial chemicals.

Our 2027 base business outlook does not depend on the U.S. land activity improving. Any improvement there would be upside. Let me close with an update on our One TETRA 2030 strategy. At our Investor Day last September, we laid out targets of over $1 billion of revenue and over $300 million of adjusted EBITDA. Since then, we have grown our base business, approved and funded the Arkansas Bromine project, keeping it on schedule and on budget, built on Oasis pipeline and strengthened our capital structure. Every quarter, the base business gets stronger, and we continue to check the box with key milestones for achieving our One TETRA 2030 targets. With that, operator, please open the line for questions.

Operator

[Operator Instructions] Your first question comes from the line of Martin Malloy with Johnson Rice.

질의응답

Martin Malloy

Congratulations on the strong quarter. .

Brady Murphy

Thanks, Marty. .

Martin Malloy

My first question, just on the desalinization project side. Could you maybe help us a little bit with what we should be looking for in terms of time line on the permitting side. It seems like you all have been working with the regulatory authorities in Texas for a considerable mid period of time on your technology and -- maybe just kind of give us an update there on where you are and time line -- expected time line for permits being received?

Brady Murphy

Yes, Marty, it's very difficult for us to project when the permitting process will really start flowing approvals. That's not our -- within our control, obviously. It's also where the technical expertise that the EPA and the TCEQ and somewhat commercial piece of their questions that we help them with -- but at the end of the day, just to remind our audience that our customers are the permits, the operators, the midstream companies. They are the ones who have to obtain the permits. We're providing a technology and a service to them to treat this water for desalination purposes. So we're heavily engaged on the technology side, obviously, heavily engaged on the commercial side. But it's really the operators and our customers and the midstream companies dealing with the TCEQ for the final approval process, which we don't control.

Although the messaging that we're getting is encouraging that they know this is important. They know that this is an issue that there's a tremendous opportunity to take advantage of this produced water for beneficial reuse. So although we're encouraged, we don't control it. So it's difficult for us to predict exactly when it will happen.

Martin Malloy

Okay. And then my follow-up question, I just wanted to ask about the deepwater completion market. I think you mentioned in your prepared remarks, growing pipeline for the Z-Lite product. And maybe could you expound a little bit more on that, maybe the geographies that you're seeing the demand in?

Brady Murphy

Yes. So as you know, Z-Lite uses Neptune chemistry. It is -- it is a different Neptune product than our initial release of Neptune. But since it uses Neptune chemistry, we classify it as a Neptune product. And so when we look at the whole opportunity set for Neptune. Clearly, the Gulf of America is a key market for us for both Neptune and Z-Lite Norway is a very encouraging market for us for Z-Lite in Norway. And really, as you look across the globe in terms of the deepwater international markets there are candidates for Neptune across the board.

Now some of those are going to be on different time lines. Some might be multiyear projects. Some may get pulled in sooner rather than later. It is clearly a growing opportunity set for us, Marty, as we think about our completion fluids business and an important pipeline of projects for us.

Operator

Your next question comes from the line of Patrick Ouellette with Stifel .

Patrick Ouellette

It's Pat on for Stephen Duero. So just to start, could you talk about the impact of the third-party bromine purchases and maybe how we should think about the margin impact in '27? And then maybe on the flip side, the positive impact once your internal production comes online? .

Brady Murphy

Yes. So Clearly, we are buying third-party bromine today because our demand is well above the baseline long-term supply agreement that we have. We have secured bromine that we need for 2026. We are in process of securing the volumes that we need for 2027 and of course, as you know, purchasing above our long-term supply, which is more aligned with spot prices, those costs do increase for us as we supply more and more third-party -- but again, that really is the business case that supports our bromine project, Patrick, which will really allow us to supply long-term supply of low-cost bromine -- but we are navigating the third-party purchases through '26, which you've seen in our results and through 2027.

And as we've projected, we still expect increased revenue and EBITDA for our fluids business in '27.

Patrick Ouellette

Okay. And then maybe piggyback a little bit off of Marty, you talked about the pipeline of the Oasis projects with permitting for the next step. Could you just maybe talk about potential structure of a decel contract? And then what do you think the key milestones needed to sign the first deal? .

Brady Murphy

Well, I think the key milestones are the permitting process has to start happening. I think from our perspective, we're deeply engaged with these 7 different projects from both a technical design the water treatment specs that are required, the commercial discussions, all of those discussions are happening at different points in time for each of these 7 projects. Again, the data centers are going to be somewhat different in our view from the traditional just reducing volume of disposal. And I think we've talked about this before, the data centers are looking -- our customers are looking at a data center solution we call a water hub. And that water hub may start out with treating brackish water and then over time, replacing that brackish water treatment with produced water. .

And so that model for the data centers is evolving, but we think there's some good traction behind that model that makes a lot of sense. And of course, for TETRA, we benefit both ways by treating the brackish water as well as the produced water over time. And it does derisk some of the large-scale volumes of water that these data centers require they're quite different than how we see the other projects evolving, which I think will be -- will typically be smaller scale, not really dealing with brackish water at all but treating produced water for reducing disposal volumes.

Operator

Your next question comes from the line of Bobby Brooks with Northland Capital Markets. .

Unknown Analyst

First, -- just a little bit better. I wanted to get a little clarity on the standing of the pipeline. So those 6 beneficial reuse applications of the TC all 6 of those Irminapplicants are within your 7 project pipeline? And then maybe remind us, are those permits to measure with a certain technology to be used? Or is it technology agnostic?

Brady Murphy

Yes. I don't know. We said before that we are not identifying the specific 7 projects that we have, whether they are part of the TCEQ 6 or not. But the TCEQ 6 is public information. You can go on their website and see the permits, but we're not we're not disclosing whether we're part of those initiatives or not because those -- we have NDAs with our customers on those. And so that's really not something we're going to be able to disclose, Bobby. .

Unknown Analyst

Not shipping gears, the U.K. approved drilling in the Jack do field in the North Sea a couple of weeks ago or last month. I know it's a gas field, but it appears to have pretty similar pressure temperature dynamics as ultra deep wells in the Gulf of Mexico. That would lead me to believe this could be a Neptune or Neptune light opportunity. Or am I off base in my understanding? Just want to hear more thoughts there. .

Matthew Sanderson

Yes, Bobby, this is Matt. Good question. So -- we're obviously encouraged by some of those permitting activities that are now starting back up on the U.K. side of the North Sea. I think you're aware, we have quite a strong market position in the U.K. And then also, as Brady referenced ever-growing opportunities in the Norway market as well. So -- in the past, I think we've mentioned that we have deployed Neptune chemistry beyond the Gulf. In fact, I think we may have mentioned that we've deployed it in the North Sea in the past. So as activities start to potentially ramp back up on the U.K. side. I think we're very well positioned to participate in those activities.

Unknown Analyst

That's terrific to hear. And then -- just last 1 for me is, obviously, our net business has been a really nice driver of growth this year. And as we close out 2026, could you just speak to maybe what the business -- like what your visibility on growth is for 2027 maybe it's not a doubling, but is there still an expectation for really strong growth out of there? Or maybe that kind of flattened a bit. But you mentioned how that first Sandstorm is deployed in the Middle East and then the growth factor kind of shifts in Middle East becomes a really nice growth market for you guys. Just want to hear more about how you're thinking there. .

Brady Murphy

Yes, I think that's a good way to look at it. I think there's a couple of growth trajectories for us for our PT business next year. One is our eco sand storm is really getting a lot of attention that we think will help us get significant market share even in the U.S. We still have a lot of share to gain in the U.S. market. Argentina, we are expecting more growth. Obviously, we won't be doubling our growth again in '27, but we do anticipate double-digit growth in Argentina in 2027. And then the other big potential for us is growing Middle East unconventional business. That market has also seen what we're offering with our auto Sandstorm and now even the echo coupled with that, and we think that will be a pretty significant draw from a market perspective for us in growth in '27. .

Matthew Sanderson

The other thing I'll add there, Bobby, because you brought up Argentina, is you can reference this well, obviously, it's an unconventional development. You can see industry bodies like the produced water society, which are quite active here in places like the Permian Basin for reasons we talked about. They're now active in Argentina. So that market is going to continue to evolve. So technical solutions such as Oasis are going to be very well positioned in places like Argentina as that market evolves and as that industry down there deals with weather. And as you know, we're already in that market today with a very strong reputation. That's a great add on.

Operator

Your next question comes on the line of John Tanwanteng with CJS Securities.

Jonathan Tanwanteng

I was wondering if you could give us a little bit more color on the Oasis pipeline of 7 projects you have -- do the elections that are happening today make a difference in the probability and the timing of those being approved, number one? And then number two, could you just size up the total capacity or revenue amount? Do you expect those projects to have assuming all of them are approved?

Brady Murphy

Yes. I don't think the elections -- my personal opinion will have much of an impact on the short-term permitting status. The TCEQ operates somewhat independently along with the EPA to move these projects forward. So we're not -- I'm not anticipating any change 1 way or the other depending on the election. .

As far as the projects go, we've stated previously, Jon, that these data center opportunities, 4 of the 7. These are very large volume type projects. But because the projects are going to start with brackish and move to produce water. It's a little bit difficult to predict exactly what the revenue profiles will look like until all those parameters are nailed down but there are very large volumes of water to be treated. Different from the other 3 that are just purely produced water treatment, which are probably pretty similar to the financials that we discussed when we presented our Investor Day but anyway, it's a mix. It's hard to project at this point until we get the permitting moving and the contracts in place, we won't be giving any specific revenue and EBITDA targets in the short term until that happens.

Jonathan Tanwanteng

Okay. Understood. I was also wondering if you could give us a little bit more detail on the semiconductor business. How much is it today in terms of either dollars or a percent of total sales or segment sales? And how sustainable is that 40% plus growth rate as you go forward? .

Brady Murphy

Yes. This is a really exciting opportunity for us. Florin is used in etching of semiconductor manufacturing, but it has to -- flooring is obviously a hazardous material and it has to be treated for hazard purposes -- hazard waste purposes. Our technology, our chemicals that we're using is part of that solution. So it's still a relatively small part of our business, less than -- certainly less than 5% of our overall chemicals business in North America. But obviously, the growth trajectory that we see looks quite sustainable as more of the semiconductor plants get set up.

We are working on some additional chemistry to make our offering quite unique in the marketplace. And so yes, very optimistic about how we view that market going forward.

Jonathan Tanwanteng

Got it. And if I could sneak 1 more in there. Could you update us on the battery electrolyte space and what you see as the outlook there, especially as some of these maybe not specifically grid, but some of these higher multiple data center plays, higher growth data center-related place has had concerns regarding financing and credit?

Brady Murphy

Yes. Could you repeat that one, Jon, didn't come across totally. .

Jonathan Tanwanteng

Yes. Just an update on the battery electrolyte business given order concerns on credit risk and financing in the high-growth energy data center space?

Brady Murphy

Yes. So our -- our major customer today on the energy storage side is EOS, and we don't want to get out ahead of them in terms of anything they might say about how they view the market. But clearly, what they've said publicly is they're ramping up their production to get their second 2-gigawatt manufactured capacity line up before the end of the first quarter and how we see that business growing is pretty aligned with the public statements that they have made in that regard. I think they'll be able to give you probably more color in terms of how they see their end markets when -- if you get a chance to catch their earnings call.

I do want to mention on the lithium side because we've mentioned it before that, that continues to be a very interesting opportunity for us. I think when we did our Investor Day for 2030, we had put that out beyond the year 2030. And we've mentioned before that because of the investments that we're making in Arkansas, the synergies that we will get through having the infrastructure of the wells, a lot of the common and shared facilities at that site in Evergreen. The lithium project looks extremely attractive to us. So we are looking at potential ways to accelerate that. But we're not prepared to give any definitive time lines on that, but that is 1 where we see an opportunity for TETRA to participate again in the energy storage side of the marketplace.

Operator

Your next question comes from the line of [ Stephen Sevillia] with Berenberg Capital Markets.

Unknown Analyst

Brady, Matt and Kurt. Congrats on a solid quarter.

Brady Murphy

Thanks, Stephen. .

Unknown Analyst

I wanted to ask a question related to bromine. And I guess, just getting a better understanding of end markets and that chemicals. In terms of thinking about the future, I realize you're not going to be first production until 2028. And currently, your uses in completion fluids and battery electrolytes. What are your other options in converting bromine into other products or other end markets? And I ask that in the sense of getting investors to think longer term when you look at 2 large bromine suppliers like Albamar and ICL, those guys are afforded some pretty decent margins between the high 20s to 30% range. So if you could talk a little bit about maybe some plans on some end markets or other product uses for bromine, I'd love to hear it. .

Brady Murphy

Yes. So as you're probably aware, Stephen, when we participate in the oilfield side of bromine demand as well as the energy storage side, but the biggest market for bromine is in fire retardants by far. And because our planned growth for our bromine requirements for completion fluids and energy storage will take us to our capacity of the plant we're not, at this point, developing any additional applications, but it is something that we can do. And we can also sell elemental bromine into the market if we desire to do so. As I mentioned, Chinese prices have more than doubled recently as it relates to bromine prices. So that's another opportunity for us to serve -- or get the plant utilization if we need to, where it needs to be is selling into the elemental bromine market.

And we're looking at other potential end markets. But right now, it's not a priority for us because of the demand profiles that we currently see.

Matthew Sanderson

Yes, Stephen, I'll just add to that as well. I'll point out that I've been at the company now for 10 years. We've been pretty open that we have a base contract around bromine. We go to the market. We purchased third-party bromine up to a point. We've been asked by our customers to participate in some of the traditional deepwater offshore markets. And quite frankly, we haven't been able to in the past simply because we haven't had that supply capacity, at least at a price where we can be competitive. By having our own vertically integrated supply, some of the volumes now we're going to have access to. Our cost of goods and the differentiation that TETRA brings into those, I'll call the more traditional markets that we haven't been able to participate in the past, but we've been asked to. We're very excited about that. .

One I will point to is things like frac fluids for offshore. They use bromine derivatives in those fluid chemistries. Those are markets we haven't been able to participate in the past. There's geographical markets we've been asked to participate in for the differentiations we have. But quite frankly, we haven't had the material. So we're very excited about having a vertically integrated supply chain to participate in these markets where we do bring differentiation where our customers are asking us to come. But as Brady mentioned, overwhelmingly, the bromine market itself is sizable, and we're not even talking about participating in what today represents more than half of the bromine market.

Unknown Analyst

And just a follow-up. I think you guys have mentioned this in the past. Tower 1, we'll start off at 37 million tons, if I remember correctly, with a capacity of up to $75 million, but it sounds like this market, if it stays as strong as it will or could there's always optionality to build another tower, I would assume. And I'm obviously looking right out to the future so...

Brady Murphy

Yes. And I think that's an important point because the investment that we're making right now in Evergreen obviously includes a lot of the surrounding infrastructure, a lot of the wells and pipelines. As you're well aware, Standard Lithium, their plans are to bring their lithium plant up -- I believe it last communicated with sometime in 2029, 2030. We get all of the brine from their lithium plant, which obviously is -- contains bromine. So all of that infrastructure will be built out. So we don't have to replicate that additional cost we'll be able to get the bromine from that brine. And our investment really would be limited to an additional bromine power without a lot of the additional surrounding infrastructure that we've had to build out now.

So the future after the 75 million-pound tower looks quite bright as well.

Matthew Sanderson

Yes. The follow-up to that as well, Stephen, is today, we have our existing conversion facility where we take elemental bromine, and we converted into these high-value derivatives. It's up in West met as Arkansas that has existing capacity is permitted for and can handle well over the 75 million pounds. So as you said, as the market evolves, we believe our asset of resource, the numbers we publish can support production well beyond that. And really, it would require a second tower, not a second plant. And then our existing conversion facility in West Memphis has capacity to handle that of course, then we get further benefit around the planned absorption put more material through there. .

Unknown Analyst

That's great. Just -- last comment, and I'll jump off. Sorry, I'm going to miss you guys at the U.K. Fairhome Conference on December 2, but it looks like it's going to be a great turnout. So enjoy. I wish I could have squirreled my way that I won't. And back to you guys.

Brady Murphy

We'll miss you there, Stephen. .

Operator

Your next question comes from the line of [ Colby Caso ] with Daniel Energy Partners.

Unknown Analyst

Could you speak to the outlook for deepwater completions, rig market is tightening and subsea orders remain strong. So all indicators -- so all indications that we will see a multiyear strength coming in completions. How are you positioning for this? And maybe could you go into how you expect the business to trend over the next couple of years with this backdrop?

Brady Murphy

Yes. So clearly, we -- I think you probably have heard from the larger oil service companies talk about the strength of the deepwater market, the subsea companies talk about their backlogs and projected growth. So all of those stories align with how we view the market and what we're hearing from the market. When we did our Investor Day last September, we had laid out how we saw the market and our participation in that growing through 2030, it was about an 8% compound annual growth rate. I think if anything, since we did our Investor Day last September, our outlook has strengthened as it relates to how we see the deepwater market.

And the other thing I would add to that, it's not just about the number of wells that are drilled, it's the types of wells that are drilled with higher pressures, higher temperatures, getting into the higher-density chemistry that where TETRA really excels. So potentially a compounding impact for us on the deepwater market, but certainly very consistent with how we're hearing rest of the energy industry and our customers speak to that market, Colby.

Unknown Analyst

So staying kind of on that same note, with deepwater developments moving towards the higher pressure and higher measure reservoirs and Neptune Z-Lite securing its initial bulk project our operations requirements for completion fluids changing? And is the greater technical complexity making product performance and reliability, more important contract awards? Or does pricing still remain the dominant consideration? .

Matthew Sanderson

Yes. Good follow-up question, Colby. And you touched on Z-Lite as we announced, we're going to be deploying that here in the fourth quarter, we expect on a 20,000 project in the Gulf of America. So that's just a further example that these wells are getting deeper. They're getting hotter. As Brady said, not only compound, it's a little bit of a hattrick right? There's more activity. These are deeper, they require more fluid. The type of fluid is a little more bespoke. So really, that's where again, TETRA differentiates the purity of the fluids that we manufacture. That matters when you get into high-temperature environments, it affects corrosion. So we certainly have an advantage there.

And then these different bespoke solutions where, again, this is the fairway that TETRA focuses on in terms of our chemistry of research. This is where we really excel. So I'd reference you to some of those third-party market analysts such as Kimberlite which referenced some of the technical prowess that [indiscernible] brings the service quality. And really, when customers are getting into those kind of projects, ultimately, that's what they're looking for. right? They want the service. They need the technology, they need the security of supply, and they need a trusted partner. And TETRA has a 50-year history of demonstrating that really we're the premier provider in that space.

Unknown Analyst

I look forward to seeing you at our conference in December in New York. I'll turn it back.

Operator

Your last question comes from the line of Stephen Gengaro with Stifel .

Stephen Gengaro

Two or 3 for me. The first, when we think about the Z-lite product, we think about sort of the margin profile for Fluids in 2027. Can you just talk a little bit about how we should think about the impact Z-Lite has on '27? And is this a product that is kind of -- you've talked about how it fits into the portfolio, but kind of does it replace? Does it supplement? How do we think about the impact it has on the top line as well? .

Brady Murphy

Yes, Stephen, I think we've articulated previously, when you think about Z-Lite when you've seen results when we have our Neptune wells in the Gulf of America, what that generates for us in terms of revenue and EBITDA. And you compare that to, say, a standard calcium bromide or zinc bromide fluid in the Gulf. Z-Lite is kind of in that midpoint. -- both from an overall revenue perspective between the standard well and a Neptune well as well as from a margin profile. So that's as much color as I think we would we probably want to give at this point.

But clearly, we've got 1 well in the fourth quarter. We've got 2 additional wells through the Beacon award that are planned in the first half of 2026 and additional opportunities that Matt talked about earlier that are starting to shape up in various markets. So Until we actually have -- like we announced the Beacon until we actually have the contract and we know when those wells were planned. We won't be communicating those. But the pipeline is certainly healthy. .

Stephen Gengaro

Okay. Great. And my other question, it's a bigger picture question. But when we think about sort of the 2030 aspirations and you mentioned, I think, some of the things that were going really well. How would you sort of think about the biggest risks to get there and the smaller -- and I guess I'm specifically thinking about bromine decel and electrolyte. Would you be willing to give a view on most versus least likely or which ones keep you up with the most at night? .

Brady Murphy

Yes. Well, certainly, the things that we can control would go to the top of the list. I think what we've shown is the things that we can control, we can execute on extremely well as we're doing with our base business our Arkansas project, et cetera. But I fully expect this to be resolved, the permitting, I guess, rises to the top for desal. But as mentioned, I fully expect that will be resolved certainly before we get to 2030 by all means. But that's 1 that we don't control the timing on.

We've already talked about that, but we're optimistic that, that will get resolved. It almost has to get resolved given the circumstances that we're facing. The bromine market for us -- again, we feel very strong about where as we've mentioned, our demand profiles for oil field and energy storage take us well beyond the plant capacity. But if those we've seen cycles before. If those demands do not materialize, we're very well positioned to supply bromine into other markets, as we've talked about. So that 1 we feel good about that 1 we can control even if we see some changes in the 2 end markets that we're currently targeting.

But I guess those would be the things Stephen, the oil and gas industry has seen cycles many times, although we're projecting a very healthy international deepwater market through 2030, there's always a cycle that could come through. But those are the top of list of things that we can't control, but we have the ability to navigate through them very well.

Operator

There are no further questions at this time. I will now turn the call back to Brady Murphy for closing remarks. .

Brady Murphy

Thank you very much for participating with us. And -- we feel very good about where the company is positioned, how we're progressing against our 2030 strategy, and we will update you as in the coming quarters. Thank you very much. .

Operator

This concludes today's call. Thank you for attending. You may now disconnect.