#United States #Gainesville #Select Water Solutions #Pilot Water Solutions #Peak Rentals

Select Water Solutions Reports Impressive Q3 2026 Financial Results

Select Water Solutions, Inc. recently announced its financial performance for the third quarter of 2026, showcasing remarkable growth and operational expansions. The company generated a consolidated revenue of $412 million, representing a significant 28% increase year-over-year compared to the third quarter of 2025. This uptick in revenue was largely propelled by a record revenue of $110 million in their Water Infrastructure segment, marking a 40% growth from the same quarter last year.

Chairman and CEO John Schmitz highlighted, "The third quarter of 2026 was a remarkably strong period for Select, showcasing our commitment to growth and innovation across all operating segments. We achieved a net income of $23 million, which is a substantial rise of $21 million year-over-year due to the strides we have made in managing our resources effectively."

The solid financial results reflect the company’s strategic focus on enhancing its capabilities within the water sector. During this period, Select also achieved an Adjusted EBITDA of $93 million, which is a 57% increase from the previous year. This indicates strong operational efficiency and robust demand for its water and chemical services, essential for sustaining the energy industry.

Moreover, Select Water Solutions continued to advance its strategic objectives by completing a recapitalization and sale of a majority interest in Peak Rentals, further solidifying its financial positioning. Additionally, following the end of the quarter, Select finalized the acquisition of Pilot Water Solutions, which is expected to broaden their operational footprint across the Delaware Basin—a strategic region for water midstream services.

In terms of operational scale, the company reported handling over 1.7 million barrels per day of produced water, which showcases a 30% increase compared to Q3 2025. Such volume growth is anticipated to provide sustained financial contributions in the upcoming quarters, particularly within the Water Infrastructure segment. Looking ahead, Select estimates additional incremental revenue growth for Q4, bolstered by the recent acquisition of Pilot Water.

The Water Services segment generated revenues surpassing $212 million, exceeding expectations and demonstrating the company's ability to adapt and thrive amidst fluctuating market conditions. This segment also surpassed previous quarterly expectations, highlighting Select’s agility in the current economic landscape.

Despite the divestment of Peak Rentals, the company retained a 45% interest which will ensure they have beneficial exposure to future growth within that business segment. The anticipated growth in Adjusted EBITDA for the fourth quarter is projected between $95 and $100 million, reflecting the ongoing operational enhancements following the integration of Pilot Water.

On the financial front, Select maintained a robust liquidity position, recently closing a $900 million senior notes offering to support the Pilot Water acquisition and the repayment of existing debts. This is accompanied by a newly established potential liquidity of $500 million from a revolving credit facility, significantly enhancing their financial flexibility.

Schmitz noted, "The successful execution of our growth strategy is indicative of our commitment to creating value for our shareholders. By focusing on sustainable practices and expanding our operational capabilities, we are well-positioned for continued success in the water management sector." The company’s sound financial health paired with their aggressive acquisition strategy highlights Select Water Solutions as a formidable player in the water solutions industry, particularly as it navigates through evolving dynamics in the energy sector and beyond.

In summary, the third quarter of 2026 marked a significant milestone for Select Water Solutions, proving their ability to deliver strong financial performance while executing critical growth strategies to bolster their position in the market. As they integrate their recent acquisitions and enhance their service capabilities, their future growth trajectory appears promising, ensuring they remain a leader in sustainable water management solutions.