Select Water Solutions Q2 Earnings Call Highlights

Select Water Solutions Q2 Earnings Call Highlights

Select Water Solutions delivered a strong second quarter: Revenue rose 8% sequentially to $396 million, adjusted EBITDA increased 19% to $93 million—above guidance—and net income more than doubled to $23 million.

Water Infrastructure led growth, with record $102 million revenue, 1.5 million barrels per day handled and a seven-year Northern Delaware Basin agreement backed by a 128 million-barrel minimum-volume commitment. The company expects segment revenue to grow another 5% to 10% in the third quarter.

Select raised 2026 net capital spending guidance to $250 million–$290 million as infrastructure contracts, acquisitions and new opportunities expand its pipeline. Management also highlighted potential growth in data-center water services and mineral extraction, with mineral-related revenue expected to begin in 2027.

Select Water Solutions NYSE: WTTR reported higher revenue, earnings and adjusted EBITDA for the second quarter of 2026, supported by record results in its Water Infrastructure and Chemical Technologies segments and stronger-than-expected performance in Water Services. Chief Executive Officer John Schmitz said consolidated revenue rose 8% from the first quarter, adjusted EBITDA increased 19%, and net income more than doubled sequentially.

The company reported second-quarter revenue of $396 million, net income of $23 million and adjusted EBITDA of $93 million, exceeding its prior adjusted EBITDA guidance range of $77 million to $80 million.

“The second quarter of 2026 was a very strong quarter for Select,” Schmitz said, citing record revenue and gross profit in both Water Infrastructure and Chemical Technologies.

Water Infrastructure posts record revenue

Water Infrastructure generated record quarterly revenue of $102 million, up 5% sequentially and 26% from the second quarter of 2025. Gross profit before depreciation and amortization increased 9% from the first quarter and 27% year over year, while gross margin before D&A reached 58%. Chief Financial Officer Chris George said produced-water volumes handled increased to 1.5 million barrels per day. Higher produced-water volumes, improved skim-oil capture and higher pricing supported the segment’s results. The company expects Water Infrastructure revenue to grow another 5% to 10% in the third quarter, with gross margins before D&A between 56% and 58%. Management said the performance through the first half positions the segment to reach the high end of its 25% to 30% full-year growth target.

During the quarter, Select added several minimum-volume commitments, acreage dedications and interruptible tie-in agreements. It also signed a seven-year agreement with a large public operator in the Northern Delaware Basin that includes a 128 million-barrel minimum-volume commitment. Under that agreement, the operator conveyed 14 underutilized saltwater disposal wells in Eddy and Lea counties, New Mexico, to Select. The company also acquired two other Delaware Basin disposal wells during the quarter, bringing the total number of new active disposal wells added in the region to 16.

Select expects the project tied to the large minimum-volume commitment to cost approximately $25 million to $30 million and become operational within 12 months. Chief Commercial Officer Michael Skarke said the project will extend Select’s network toward Texas and was structured to meet the customer’s requested capacity while also supporting broader basin opportunities. Management said conveyed disposal assets can make the broader network more reliable and enable higher utilization of its “Recycle First” system by provi...