Select Water Solutions Reports Strong Growth in Q2 2026 Financial Results

Select Water Solutions Reports Strong Q2 2026 Results

Select Water Solutions, Inc. (NYSE: WTTR), a prominent provider of sustainable water and chemical solutions, announced compelling financial results for the second quarter of 2026, which concluded on June 30. The company achieved consolidated revenues of approximately $396 million, reflecting a sequential increase of $30 million or 8% compared to the prior quarter. This solid performance has drawn attention from industry analysts and investors alike, marking a significant pivot towards growth and strategic alignment.

Financial Highlights

The financial report highlighted a net income growth of $13 million from the previous quarter, culminating in $22.6 million. Furthermore, the company's Adjusted EBITDA saw an enhancement of $15 million sequentially, reaching $92.7 million. These metrics underscore Select's operational efficiency and robust market positioning.

A standout segment was the Water Infrastructure, which saw record revenues of approximately $102 million—an increase of $5 million or 5% from Q1 2026, and a notable $21 million jump (26%) year-over-year. Similarly, the Chemical Technologies division posted revenues of $96 million, marking a staggering 23% increase from the first quarter of 2026.

Strategic Developments and Contracts

Select Water Solutions further established its footprint by executing a definitive agreement with a notable public operator, involving the conveyance of 14 saltwater disposal wells (SWDs) and a major pipeline project within the Northern Delaware Basin. This agreement, underpinned by a commitment for a minimum volume of 128 million barrels over seven years, positions Select for further expansion and revenue generation.

John Schmitz, the President and CEO of Select, expressed his satisfaction with the company's performance, stating, "The second quarter was strong across all three segments, and we see promising growth ahead. Our Water Infrastructure segment is increasing water handling volumes daily, alongside rising oil prices, contributing to record revenue figures."

The company reported that around 1.5 million barrels of produced water were recycled or disposed of on a daily basis during Q2, indicating positive operational metrics that align with their sustainability goals. Moreover, strategic reshaping and optimization efforts are expected to yield robust year-over-year growth into 2027.

Segment Insights

1. Water Infrastructure: This segment produced $102 million in revenue, with gross margins before depreciation and amortization (DA) reaching 58%. This segment is projected to grow between 5%-10% in Q3 2026, fueled by increasing demand and improved operational efficiencies.

2. Chemical Technologies: With a revenue of $96 million, this segment significantly outperformed expectations, showcasing a 30% increase in gross profits. Schmitz stated, "In-basin manufacturing and rapid product development have positioned us strongly against escalating raw material costs."

3. Water Services: This division achieved $198 million in revenue with a gross margin growth of approximately 9% relative to Q1 2026. The steady performance reflects advantageous macro trends supporting water logistics and delivery.

Cash Flow and Future Expectations

Operating cash flow for Q2 reached a notable $86.7 million, and capital expenditures are projected between $250–290 million in 2026, emphasizing Select's commitment to investment in infrastructure and growth opportunities. The company's strategy to enhance long-term contracts and solid cash flow streams remains central to its growth trajectory.

Looking forward, Select anticipates another strong performance with estimated Adjusted EBITDA projected between $90-$94 million for Q3 2026. Schmitz affirmed, "We remain focused on delivering long-term value to customers, employees, and stakeholders through prudent investments and strategic growth opportunities."

Conclusion

Select Water Solutions is uniquely positioned for continued success within the sustainable water solutions market, leveraging its innovative approaches and strategic partnerships. As the water and chemical services industries evolve, Select's adaptability and commitment to excellence stand out, ensuring sustained growth and profitability.