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Select Water Solutions Announces First Quarter 2026 Financial, Operational and Strategic Updates

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Select Water Solutions (NYSE: WTTR) reported Q1 2026 revenue of $366.0M, up $19.4M (6%) sequentially, net income of $9.4M, and Adjusted EBITDA of $77.6M. Water Infrastructure revenue hit a record $96.7M (up 19.2% QoQ). Company closed $28.6M of Northern Delaware Basin acquisitions and raised full-year Water Infrastructure growth guidance to 25–30%.

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Positive

  • Revenue +6% sequential ($366.0M)
  • Record Water Infrastructure revenue $96.7M (+19.2% QoQ)
  • Adjusted EBITDA $77.6M, up $13.4M sequentially
  • Closed $28.6M of Delaware Basin acquisitions (adds 30,000 bpd disposal)
  • Raised Water Infrastructure full-year growth guidance to 25–30%

Negative

  • First-quarter cash flow from operations only $10.2M (working capital increase $61.7M)
  • Free cash flow in Q1 was negative $(67.1)M
  • Net capital expenditures expected to rise to $200–250M for 2026

Key Figures

Q1 2026 revenue: $366.0M Q1 2026 net income: $9.4M Q1 2026 Adjusted EBITDA: $77.6M +5 more
8 metrics
Q1 2026 revenue $366.0M Consolidated revenue for the quarter ended March 31, 2026
Q1 2026 net income $9.4M Compared to a net loss of $2.1M in Q4 2025
Q1 2026 Adjusted EBITDA $77.6M Up from $64.2M in Q4 2025 and $64.0M in Q1 2025
Water Infrastructure revenue $96.7M Record Q1 2026 segment revenue, up from $81.2M in Q4 2025
Q1 2026 gross margin 17.8% Improved from 13.1% in Q4 2025 and 14.9% in Q1 2025
Cash flow from operations $10.2M Q1 2026 operating cash flow, impacted by $61.7M working capital build
Net capital expenditures $77.3M Q1 2026 net capex, with $78.4M spend offset by $1.1M proceeds
Equity offering proceeds $191.7M Net inflows from underwritten public offering of Class A shares in Q1 2026

Market Reality Check

Price: $17.25 Vol: Volume of 1,305,889 share...
low vol
$17.25 Last Close
Volume Volume of 1,305,889 shares is below the 20-day average of 2,000,912, suggesting a relatively subdued reaction so far. low
Technical Price at $16.61 is trading above the 200-day MA of $11.60 and sits 2.52% below the 52-week high of $17.04.

Peers on Argus

WTTR gained 1.16% with mixed peer action: EFXT, RES, VTOL and MRC were positive ...

WTTR gained 1.16% with mixed peer action: EFXT, RES, VTOL and MRC were positive (MRC up 10.59%), while INVX declined 8.00%. No peers appeared in the momentum scanner, pointing to a more company-specific move.

Previous Earnings Reports

5 past events · Latest: Feb 17 (Positive)
Same Type Pattern 5 events
Date Event Sentiment Move Catalyst
Feb 17 Q4/FY 2025 earnings Positive +8.7% Reported 2025 revenue, net income and Adjusted EBITDA ahead of prior guidance ranges.
Nov 04 Q3 2025 earnings Positive -1.7% Q3 2025 results with higher revenue and EBITDA plus new Permian contracts and capex raise.
Aug 05 Q2 2025 earnings Positive -5.6% Strong Q2 2025 cash flow and EBITDA growth with Bakken asset swap and new contracts.
May 06 Q1 2025 earnings Positive -11.4% Q1 2025 revenue and EBITDA growth plus major Northern Delaware infrastructure expansion.
Feb 18 Q4/FY 2024 earnings Positive -5.4% Q4 and 2024 results with strong Water Infrastructure growth and higher 2025 guidance.
Pattern Detected

Earnings releases have generally been operationally positive but often saw negative next-day moves, with only one of the last five earnings events showing a positive price alignment.

Recent Company History

Over the last five earnings cycles, Select Water Solutions has repeatedly highlighted growth in its Water Infrastructure segment, expanding long-term acreage dedications and minimum volume commitments. Prior releases pointed to rising Adjusted EBITDA and sizable annual net capital expenditure plans in the $170–275 million range. Despite these constructive updates, four of five earnings events saw negative next-day price reactions. Today’s Q1 2026 report continues the theme of infrastructure-led growth and higher Adjusted EBITDA while the stock traded near its 52-week high before this release.

Historical Comparison

-3.1% avg move · Past earnings headlines led to an average move of -3.08%. Against that backdrop, WTTR’s pre‑news lev...
earnings
-3.1%
Average Historical Move earnings

Past earnings headlines led to an average move of -3.08%. Against that backdrop, WTTR’s pre‑news level near $16.61 and a modest 1.16% gain looked more constructive than typical reactions.

Earnings updates consistently emphasize expanding Water Infrastructure networks, recurring long‑term contracts, and sizeable net capex plans aimed at driving higher Adjusted EBITDA and margins over time.

Regulatory & Risk Context

Active S-3 Shelf
Shelf Active
Active S-3 Shelf Registration 2026-02-19

An effective S-3ASR shelf filed on February 19, 2026 allows WTTR to issue Class A common stock, preferred stock, depositary shares and warrants from time to time for general corporate purposes, with specific terms to be set in future prospectus supplements.

Market Pulse Summary

This announcement highlights Q1 2026 revenue of $366.0 million, improved gross margin of 17.8%, and ...
Analysis

This announcement highlights Q1 2026 revenue of $366.0 million, improved gross margin of 17.8%, and Adjusted EBITDA of $77.6 million, alongside record Water Infrastructure revenue. Management details sizeable net capex of $77.3 million, recent acquisitions totaling $28.6 million, and liquidity supported by equity offering proceeds of $191.7 million. Historically, earnings updates have sometimes met with choppy trading, so investors may track future quarters for cash generation, infrastructure ramp-up, and execution on long-term contracts.

Key Terms

adjusted EBITDA, gross margin, minimum volume commitments, MVCs, +4 more
8 terms
adjusted EBITDA financial
"and drove an $11.5 million increase in net income and adjusted EBITDA growth of $13.5 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
gross margin financial
"we delivered strong consolidated revenue growth, coupled with an increase in our gross margins"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
minimum volume commitments financial
"we added three new minimum volume commitments ("MVCs"), two additional acreage dedications"
Minimum volume commitments are contractual promises that one party will buy, sell or trade at least a set amount of a product, security or service over a defined period. For investors, these commitments matter because they create predictable baseline revenue or guaranteed demand — like a subscription minimum — but also can create liability or distort trading and liquidity if parties must meet the quota even when market conditions change.
MVCs financial
"we added three new minimum volume commitments ("MVCs"), two additional acreage dedications"
Motor vehicle collisions (MVCs) are crashes or accidents involving cars, trucks, motorcycles or other road vehicles. Investors care because the frequency and severity of these incidents affect insurance claims, repair and legal costs, regulatory scrutiny and consumer confidence—much like a company’s accident report that can raise its operating expenses, liability risk and the market’s view of its safety and reliability.
right-of-first-refusal financial
"two new right-of-first-refusal ("ROFR") dedications, and eight new interruptible agreements"
A right of first refusal is a contractual option that gives a holder the chance to buy an asset or investment on the same terms as a third-party offer before the seller can accept that outside buyer. For investors it matters because it can limit who ultimately acquires shares or assets, slow or block transactions, and affect price and liquidity—think of it like being first in line with the opportunity to match any offer before anyone else gets the ticket.
ROFR financial
"two new right-of-first-refusal ("ROFR") dedications, and eight new interruptible agreements"
A right of first refusal (ROFR) is a contractual right that gives an existing party the chance to match any third-party offer before the seller can accept it. Think of it like a tenant being offered the chance to buy a house first; for investors, a ROFR can limit who can buy shares or assets, slow or block sales, and reduce potential liquidity or bidding competition, which can affect valuation and exit opportunities.
free cash flow financial
"Free cash flow in the first quarter of 2026 and the fourth quarter of 2025 was ($67.1) million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
sustainability-linked credit facility financial
"debt repayments under the sustainability-linked credit facility, as well as $8.8 million of quarterly dividends"
A sustainability-linked credit facility is a loan arranged so the borrower’s interest rate or other loan terms improve if the company meets agreed environmental, social or governance targets, and worsen if it misses them. Like a mortgage that lowers your rate when you reach energy-efficiency goals, it financially rewards measurable sustainability progress and matters to investors because it can lower borrowing costs, signal management’s priorities and affect future cash flow and credit risk.

AI-generated analysis. Not financial advice.

Generated first quarter 2026 consolidated revenue of $366 million, an increase of $19 million or 6%, as compared to the fourth quarter of 2025

Increased net income by $11 million and improved adjusted EBITDA by $13 million sequentially during the first quarter of 2026 relative to the fourth quarter of 2025

Generated record quarterly Water Infrastructure revenue of $97 million during the first quarter of 2026, an increase of $16 million or 19%, as compared to the fourth quarter of 2025

Announces multiple new long-term contracted Water Infrastructure projects in the Permian, Bakken, MidCon and Northeast regions

Announces $28.6 million of acquisitions, closed during early May 2026, adding surface acreage and minerals, disposal capacity, water rights, and storage infrastructure in the Northern Delaware Basin

GAINESVILLE, Texas, May 5, 2026 /PRNewswire/ -- Select Water Solutions, Inc. (NYSE: WTTR) ("Select" or the "Company"), a leading provider of sustainable water and chemical solutions, today announced its financial and operating results for the quarter ended March 31, 2026.

John Schmitz, Chairman of the Board, President and CEO, stated, "The first quarter represented a strong start to the year for Select. During the first quarter of 2026, we delivered strong consolidated revenue growth, coupled with an increase in our gross margins, and drove an $11.5 million increase in net income and adjusted EBITDA growth of $13.5 million when compared to the fourth quarter of 2025. In addition to this operational performance, during the first quarter, we enhanced our balance sheet and financial flexibility and are well positioned to support our continued investment in infrastructure growth.

"In our Water Infrastructure segment, we increased both our recycling and disposal volumes during the first quarter of 2026, with approximately 1.4 million barrels of produced water recycled or disposed per day, resulting in record quarterly segment revenue of $96.7 million. We continue to leverage our system to get the maximum value out of our invested capital through increased commercialization and contracted service offering expansion. Since year-end, we have executed several new contracts across multiple basins that leverage our existing networks to provide incremental committed volumes, tie-in opportunities, or increased produced water flows and utilization through our system. For example, during the first quarter of 2026, we were able to leverage our market leading disposal position in the Northeast to sign a new long-term disposal dedication agreement while concurrently becoming the preferred last-mile logistics water transfer provider for this same customer. In total, since the beginning of the year we added three new minimum volume commitments ("MVCs"), two additional acreage dedications, two new right-of-first-refusal ("ROFR") dedications, and eight new interruptible agreements to our networks across the Permian, Northeast, Bakken and MidCon regions. Subsequent to quarter end, we also closed on multiple acquisitions in the Northern Delaware Basin, adding approximately 4,000 acres of surface and minerals, 30,000 barrels per day of disposal capacity, 1,800-acre feet of annual water rights and 500,000 barrels of storage across Texas and New Mexico. We expect these acquisitions to integrate efficiently and bolster the operational and economic potential of our Northern Delaware network. We will continue to pursue opportunities to tactically add to our footprint in the region.

"Supported by the strong outperformance during the first quarter, our Water Infrastructure segment is well on track to exceed the high end of our previously guided range of 20 – 25% year-over-year growth. While we expect a relatively steady second quarter for the segment, with additional projects coming online over the course of the second and third quarters, we expect continued growth throughout the second half of 2026, leading us to increase our full-year guidance to 25 – 30% year-over-year growth for the segment. With additional infrastructure contracts in hand and near-term network integration capital requirements associated with our recent acquisitions, we now expect net capital expenditures in 2026 to increase to $200$250 million.

"Our Chemical Technologies segment performed as expected in the first quarter and we expect strong double-digit percentage sequential revenue growth during the second quarter. With continued demand for new product development in both our core friction reducer product lines as well as our specialty surfactant product offerings, we believe we are well positioned for future growth opportunities.

"Our Water Services segment meaningfully outperformed our expectations during the first quarter, with revenue growth of more than 7%, and this segment remains well positioned to capitalize on any activity uplift in the market associated with the current commodity price environment. Altogether we expect continued strong performance, and on a consolidated basis, we anticipate Adjusted EBITDA in the second quarter at an estimated $77$80 million.

"In summary, I am pleased with our financial performance in the first quarter of 2026, and I am very excited as the ongoing evolution of our strategy continues to materialize.  We look forward to building on these recent successes to continue serving our valued customers, employees, and stakeholders," concluded Schmitz.

First Quarter 2026 Consolidated Financial Information

Revenue for the first quarter of 2026 was $366.0 million as compared to $346.6 million in the fourth quarter of 2025 and $374.4 million in the first quarter of 2025. Net income for the first quarter of 2026 was $9.4 million as compared to a net loss of $2.1 million in the fourth quarter of 2025 and net income of $9.6 million in the first quarter of 2025.

For the first quarter of 2026, gross profit was $65.3 million, as compared to $45.3 million in the fourth quarter of 2025 and $55.8 million in the first quarter of 2025. Total gross margin was 17.8% in the first quarter of 2026 as compared to 13.1% in the fourth quarter of 2025 and 14.9% in the first quarter of 2025. Gross profit before D&A was $111.0 million for the first quarter of 2026 as compared to $96.5 million for the fourth quarter of 2025 and $94.4 million for the first quarter of 2025. Gross margin before D&A for the first quarter of 2026 was 30.3% as compared to 27.9% for the fourth quarter of 2025 and 25.2% for the first quarter of 2025.

SG&A during the first quarter of 2026 was $40.6 million as compared to $43.3 million during the fourth quarter of 2025 and $37.4 million during the first quarter of 2025.

Adjusted EBITDA was $77.6 million in the first quarter of 2026 as compared to $64.2 million in the fourth quarter of 2025 and $64.0 million in the first quarter of 2025. Adjusted EBITDA during the first quarter of 2026 was adjusted for $6.0 million of non-cash compensation expense, $5.7 million of impairments and abandonments, $0.3 million of non-recurring transaction costs, $0.3 million of non-cash losses in equity investments, and $0.6 million in other adjustments. Please refer to the end of this release for reconciliations of gross profit before D&A (non-GAAP measure) to gross profit and of Adjusted EBITDA (non-GAAP measure) to net income.

Business Segment Information

The Water Infrastructure segment generated revenues of $96.7 million in the first quarter of 2026 as compared to $81.2 million in the fourth quarter of 2025 and $72.4 million in the first quarter of 2025. Gross margin before D&A for Water Infrastructure was 56.2% in the first quarter of 2026 as compared to 54.1% in the fourth quarter of 2025 and 53.7% in the first quarter of 2025.  Water Infrastructure revenues increased 19.2% sequentially relative to the fourth quarter of 2025, driven by increases in both our recycling and disposal volumes, primarily attributable to increases from our integrated New Mexico infrastructure system. Looking ahead, the Company anticipates Water Infrastructure revenues and margins to remain relatively steady in the second quarter of 2026 as compared to the first quarter of 2026.

The Water Services segment generated revenues of $191.2 million in the first quarter of 2026 as compared to $178.3 million in the fourth quarter of 2025 and $225.6 million in the first quarter of 2025.  Gross margin before D&A for Water Services was 21.8% in the first quarter of 2026 as compared to 19.6% in the fourth quarter of 2025 and 19.5% in the first quarter of 2025. The Water Services segment revenues increased 7.2% sequentially, driven by improved activity levels, strong gains in our water transfer business and increased water sales. For the second quarter of 2026, the Company expects revenues to modestly decrease low single-digit percentages, as certain spot market water sales are not expected to recur. However, the current commodity price outlook provides incremental upside activity and pricing opportunities. The Company expects gross margins before D&A to hold relatively steady in the 20%22% range during the second quarter of 2026.

The Chemical Technologies segment generated revenues of $78.0 million in the first quarter of 2026 as compared to $87.0 million in the fourth quarter of 2025 and $76.3 million in the first quarter of 2025.  Gross margin before D&A for Chemical Technologies was 19.1% in the first quarter of 2026 as compared to 20.3% in the fourth quarter of 2025 and 15.2% in the first quarter of 2025. For the second quarter of 2026, the Company anticipates revenue to increase 10%15% and gross margin before D&A to improve into the 20%21% range, as the business continues to see increased traction with its core friction reducer and specialty surfactant product offerings.

Cash Flow and Capital Expenditures

Cash flow provided by operations for the first quarter of 2026 was $10.2 million as compared to $65.5 million in the fourth quarter of 2025 and ($5.1) million used in operations in the first quarter of 2025. Cash flow provided by operations during the first quarter of 2026 was impacted by a $61.7 million increase in net working capital, including $54.5 million of increased accounts receivable balances.

Net capital expenditures for the first quarter of 2026 were $77.3 million, comprised of $78.4 million of capital expenditures partially offset by $1.1 million of cash proceeds from asset sales. Free cash flow in the first quarter of 2026 and the fourth quarter of 2025 was ($67.1) million and ($4.6) million, respectively.

Cash flows from financing activities during the first quarter of 2026 included $105.2 million of net inflows, primarily reflecting $191.7 million of net proceeds from the underwritten public offering of Class A shares in the quarter. These proceeds were partially offset by $70.0 million of debt repayments under the sustainability-linked credit facility, as well as $8.8 million of quarterly dividends and distributions paid, and $7.6 million of share repurchases related to the vesting and/or exercise of equity awards.

Balance Sheet and Capital Structure

Total cash and cash equivalents were $56.0 million as of March 31, 2026, as compared to $18.1 million and $27.9 million as of December 31, 2025 and March 31, 2025, respectively. As of March 31, 2026, the Company had $250.0 million of borrowings outstanding under the term loan component of its sustainability-linked credit facility, with no amounts drawn on the revolving credit facility, compared to $250.0 million of outstanding borrowings under the term loan and $70.0 million drawn on the revolving credit facility as of December 31, 2025 and $250.0 million of outstanding borrowings under the term loan and no amounts drawn on the revolving credit facility as of March 31, 2025, respectively.

As of March 31, 2026, the borrowing base under the Company's sustainability-linked credit facility was $271.3 million, compared to $235.1 million and $252.2 million as of December 31, 2025 and March 31, 2025, respectively. Available borrowing capacity under the sustainability-linked credit facility was approximately $251.7 million as of March 31, 2026, after giving effect to outstanding borrowings and letters of credit totaling $19.6 million. As of March 31, 2025, available borrowing capacity under the credit facility was approximately $232.3 million, after accounting for outstanding borrowings and letters of credit totaling $19.9 million.

Total liquidity was $307.7 million as of March 31, 2026, as compared to $163.6 million as of December 31, 2025 and $260.2 million as of March 31, 2025. The Company had 110,145,655 weighted average shares of Class A common stock and 16,221,101 weighted average shares of Class B common stock outstanding during the first quarter of 2026. The Company had 121,847,518 Class A shares and 16,221,101 Class B shares issued and outstanding as of March 31, 2026.

Water Infrastructure Commercial Development and Acquisition Updates

Since the start of the first quarter of 2026, Select has executed multiple new long-term contracts for additional full life-cycle produced water gathering, recycling and distribution infrastructure projects in the Permian, Bakken, MidCon, and Northeast regions. Additionally, Select has made multiple infrastructure acquisitions totaling $28.6 million, adding key surface acreage and additional disposal facilities, water rights, and storage infrastructure in the Northern Delaware Basin to support ongoing infrastructure projects and future development opportunities. The combined capital expenditures associated with these new projects and acquisitions is expected to be $32 million - $35 million, with each project anticipated to be online by the year-end 2026. In total, Select signed multiple additional commercialization contracts, including three MVC agreements, two acreage dedications, two ROFR dedications, and eight interruptible tie-in agreements.

Northern Delaware Basin Water Supply and Takeaway Agreement

In the first quarter of 2026, Select signed a 12-year agreement for the construction of pipeline infrastructure for an operator in the Northern Delaware Basin, extending Select's existing Lea County, New Mexico gathering infrastructure.  To support the agreement, Select plans to construct approximately nine miles of pipeline to connect the operator's development areas to Select's existing Northern Delaware assets. This agreement was enabled by leveraging Select's existing infrastructure footprint and is supported by approximately 2,700 acres of dedication for the gathering of produced water and the delivery of treated produced water. The project is expected to be online by year-end 2026.

Northeast Produced Water Disposal and Services Agreement

In the first quarter of 2026, Select signed a multi-year agreement with an operator in the Northeast region that provides Select with a ROFR award for a minimum of 50% of the operator's produced water for disposal in Select's existing Northeast disposal infrastructure. Additionally, this agreement enables Select to provide last-mile-logistics water transfer services across the operator's entire Northeast acreage position, encompassing more than 200,000 acres.

Delaware Disposal Acquisition

Subsequent to the end of the first quarter of 2026, Select acquired disposal facilities, water rights and storage infrastructure in the Delaware Basin, adding 30,000 barrels per day of additional disposal capacity and 500,000 barrels of storage capacity, to help support our growing infrastructure development activities in the Permian Basin.

Delaware Basin Ranch Acquisition

Subsequent to the end of the first quarter of 2026, Select acquired the Black River Ranch ("BRR") in Eddy County, New Mexico. Approximately 70% of the acquisition was funded with an agricultural loan, with the remaining balance funded from cash on hand. BRR encompasses 3,753 acres of fee land and 710 acres of federal lease land. Additionally, the BRR includes 1,800-acre feet of annual water rights. The BRR surface will provide additional development opportunities for Select's Northern Delaware network buildout while also providing the Company with direct revenues associated with the water rights, irrigated agricultural cropland, and other surface-related fees and mineral interests.

First Quarter Earnings Conference Call

In conjunction with today's release, Select has scheduled a conference call on Wednesday, May 6, 2026, at 11:00 a.m. Eastern time / 10:00 a.m. Central time.  Please dial 201-389-0872 and ask for the Select Water Solutions call at least 10 minutes prior to the start time of the call, or listen to the call live over the Internet by logging on to the website at the address https://investors.selectwater.com/events-presentations/current.  A telephonic replay of the conference call will be available through May 20, 2026, and may be accessed by calling 201-612-7415 using passcode 13757760#.  A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days. 

About Select Water Solutions, Inc.

Select is a leading provider of sustainable water and chemical solutions to the energy industry. These solutions are supported by the Company's critical water infrastructure assets, chemical manufacturing and water treatment and recycling capabilities. As a leader in sustainable water and chemical solutions, Select places the utmost importance on safe, environmentally responsible management of water throughout the lifecycle of a well. Additionally, Select believes that responsibly managing water resources throughout its operations to help conserve and protect the environment is paramount to the Company's continued success.  For more information, please visit Select's website, https://www.selectwater.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this communication other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast" "intend," "may," "plan," "potential," "preliminary," "project," "see," "should," "will," and other similar expressions. Examples of forward-looking statements include, but are not limited to, the expectations of plans, business strategies, objectives and growth, projected financial results and future financial and operational performance, expected capital expenditures, our share repurchase program and future dividends. Although we believe that the expectations reflected, and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include the risks that the benefits contemplated from our recent acquisitions may not be realized, the ability of Select to successfully integrate the acquired businesses' operations, including employees, and realize anticipated synergies and cost savings and the potential impact of the consummation of the acquisitions on relationships, including with employees, suppliers, customers, competitors and creditors. Factors that could materially impact such forward-looking statements include, but are not limited to: global economic distress, including that resulting from the sustained Russia-Ukraine war and related economic sanctions, instability and continued hostilities in the Middle East, including military conflict involving Iran, instability in Venezuela, economic uncertainty as a result of changing trade policies, disruptions in global oil and gas markets; inflation and high interest rates, each of which may decrease demand for oil and natural gas or contribute to volatility in the prices for oil and natural gas, which may decrease demand for our services; the ability to source certain raw materials and other critical components or manufactured products globally on a timely basis from economically advantaged sources, including any delays and/or supply chain disruptions due to increased hostilities in the Middle East; actions taken by the members of the Organization of the Petroleum Exporting Countries ("OPEC") and Russia (together with OPEC and other allied producing countries, "OPEC+") with respect to oil production levels and announcements of potential changes in such levels, including the ability of the OPEC+ countries to agree on and comply with announced supply limitations, which may be exacerbated by military conflict in the Middle East involving Iran and the resumption of sales of previously sanctioned oil from Venezuela and Russia; the impact of central bank policy actions, such as sustained, elevated  interest rates in response to, among other things, high rates of inflation, and disruptions in the bank and capital markets; the degree to which consolidation among our customers may affect spending on U.S. drilling and completions activity, including the recent consolidation in the Permian Basin; impacts related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs; the impact of changes in diplomatic and trade relations, and the results of countermeasures and any tariff migration initiatives; changes in safety, health, environmental and other governmental policy and regulation; the enactment or promulgation of new laws or regulations or changes or modifications in existing laws, regulations, rules or governmental policies with respect to taxation; the level of capital spending and access to capital markets by oil and gas companies in response to changes in commodity price or reduced demand; the potential deterioration of our customers' financial condition, including defaults resulting from actual or potential insolvencies; trends and volatility in oil and gas prices, and our ability to manage through such volatility; the impact of current and future laws, rulings, governmental regulations and policies, including those related to accessing water, disposing of wastewater, transferring produced water, interstate freshwater and produced water transfer, chemicals, carbon pricing, pipeline construction, emissions, hydraulic fracturing, leasing, permitting or drilling on federal lands and various other environmental matters; regional impacts to our business, including our key infrastructure assets within the Permian Basin, the Bakken, and the Haynesville regions; capacity constraints on regional oil, natural gas and water gathering, processing and pipeline systems that result in a slowdown or delay in drilling and completion activity, and thus a decrease in the demand for our services in our core markets; the impact of regulatory and related policy actions by federal, state and/or local governments, such as the Inflation Reduction Act of 2022, which may negatively impact the future production of oil and gas in the U.S., thereby reducing demand for our services; our ability to hire and retain key management and employees, including skilled labor; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms, or at all; our health, safety and environmental performance; the impact of competition on our operations; the degree to which our exploration and production customers may elect to operate their water-management services in-house rather than source these services from companies like us; our level of indebtedness and our ability to comply with covenants contained in our sustainability-linked credit facility or future debt instruments; delays or restrictions in obtaining permits by us or our customers; constraints in supply or availability of equipment used in our business; the impact of advances or changes in well-completion technologies or practices that result in reduced demand for our services, either on a volumetric or time basis; changes in global political or economic conditions, generally, and in the markets we serve, including the rate of inflation and potential economic recession; acts of terrorism, war or political or civil unrest in the U.S. or elsewhere, such as the Russia-Ukraine war, the instability and continued hostilities in the Middle East, including military conflict involving Iran and any potential conflict with Venezuela; information technology failures or cyberattacks; accidents, weather, natural disasters or other events affecting our business; and the other factors discussed or referenced in the "Risk Factors" section of our most recent Annual Report on Form 10-K and those set forth from time to time in our other filings with the SEC. Investors should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

 

SELECT WATER SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except share and per share data)




Three months ended,



Mar 31, 2026


Dec 31, 2025


Mar 31, 2025

Revenue










Water Infrastructure


$

96,736


$

81,188


$

72,391

Water Services



191,231



178,340



225,648

Chemical Technologies



77,991



86,974



76,345

Total revenue



365,958



346,502



374,384

Costs of revenue










Water Infrastructure



42,352



37,272



33,493

Water Services



149,454



143,400



181,718

Chemical Technologies



63,130



69,319



64,728

Depreciation, amortization and accretion



45,742



51,190



38,675

Total costs of revenue



300,678



301,181



318,614

Gross profit



65,280



45,321



55,770

Operating expenses










Selling, general and administrative



40,551



43,275



37,432

Depreciation, amortization and accretion



1,121



1,168



925

Impairments and abandonments



5,708



1,317



1,148

Lease abandonment costs



(68)



(51)



724

Total operating expenses



47,312



45,709



40,229

Income from operations



17,968



(388)



15,541

Other income (expense)










Gain (loss) on sales of property and equipment and divestitures, net



405



(130)



1,365

Interest expense, net



(5,907)



(6,697)



(4,876)

Tax receivable agreements expense





(4,995)



Other



(311)



715



329

Income (loss) before income tax (expense) benefit and equity in (losses) earnings of
unconsolidated entities



12,155



(11,495)



12,359

Income tax (expense) benefit



(2,433)



9,457



(2,894)

Equity in (losses) earnings of unconsolidated entities



(290)



(20)



95

Net income (loss)



9,432



(2,058)



9,560

Less: net (income) loss attributable to noncontrolling interests



(826)



1,712



(1,321)

Net income (loss) attributable to Select Water Solutions, Inc.


$

8,606


$

(346)


$

8,239











Weighted average shares outstanding










Class A—Basic



110,145,655



102,585,084



100,790,931

Class B—Basic



16,221,101



16,221,101



16,221,101











Net income (loss) per share attributable to common stockholders:










Class A—Basic


$

0.08


$

(0.00)


$

0.08

Class B—Basic


$


$


$











Weighted average shares outstanding










Class A—Diluted



112,530,858



102,585,084



103,313,924

Class B—Diluted



16,221,101



16,221,101



16,221,101











Net income (loss) per share attributable to common stockholders:










Class A—Diluted


$

0.08


$

(0.00)


$

0.08

Class B—Diluted


$


$


$

 

SELECT WATER SOLUTIONS, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share data)




March 31, 2026


December 31, 2025


March 31, 2025


Assets











Current assets











Cash and cash equivalents


$

55,970


$

18,084


$

27,892


Accounts receivable trade, net of allowance for credit losses



317,748



263,965



338,129


Accounts receivable, related parties



22



63



194


Inventories



37,313



34,278



40,795


Prepaid expenses and other current assets



33,357



37,996



50,840


Total current assets



444,410



354,386



457,850


Property and equipment



1,672,966



1,629,406



1,471,791


Accumulated depreciation



(736,935)



(717,223)



(704,300)


Total property and equipment, net



936,031



912,183



767,491


Right-of-use assets, net



32,195



28,708



33,511


Goodwill



48,485



48,485



18,215


Other intangible assets, net



101,999



106,204



119,337


Deferred tax assets, net



48,337



48,881



43,851


Investments in unconsolidated entities



77,709



78,234



83,501


Other long-term assets



17,709



18,531



21,455


Total assets


$

1,706,875


$

1,595,612


$

1,545,211


Liabilities and Equity











Current liabilities











Accounts payable


$

55,065


$

49,682


$

44,996


Accrued accounts payable



36,846



46,275



111,144


Accounts payable and accrued expenses, related parties



3,583



3,634



5,904


Accrued salaries and benefits



15,772



17,702



15,345


Accrued insurance



18,722



22,272



21,698


Sales tax payable



3,142



2,435



2,139


Current portion of tax receivable agreements liabilities







17


Accrued expenses and other current liabilities



36,573



37,549



32,338


Current operating lease liabilities



14,343



14,247



15,814


Current portion of long-term debt



46,875



31,250




Current portion of finance lease obligations



655



650



490


Total current liabilities



231,576



225,696



249,885


Long-term tax receivable agreements liabilities



43,421



43,421



38,409


Long-term operating lease liabilities



23,724



21,533



27,952


Long-term debt, net of deferred debt issuance costs



199,645



285,043



245,888


Other long-term liabilities



88,876



92,852



66,128


Total liabilities



587,242



668,545



628,262


Commitments and contingencies











Class A common stock, $0.01 par value



1,218



1,049



1,039


Class B common stock, $0.01 par value



162



162



162


Additional paid-in capital



1,166,419



989,329



989,785


Accumulated deficit



(176,318)



(184,924)



(197,908)


Total stockholders' equity



991,481



805,616



793,078


Noncontrolling interests



128,152



121,451



123,871


Total equity



1,119,633



927,067



916,949


Total liabilities and equity


$

1,706,875


$

1,595,612


$

1,545,211














 

SELECT WATER SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)




Three months ended



March 31, 2026


December 31, 2025


March 31, 2025

Cash flows from operating activities










Net income (loss)


$

9,432


$

(2,058)


$

9,560

Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities










Depreciation, amortization and accretion



46,863



52,358



39,600

Deferred tax expense (benefit)



2,394



(8,782)



2,486

Tax receivable agreements expense





4,995



(Gain) loss on disposal of property and equipment and divestitures



(405)



130



(1,365)

Equity in losses (earnings) of unconsolidated entities



290



20



(95)

Credit loss expense (recovery)



737



(135)



514

Amortization and write off of debt issuance costs



413



413



998

Inventory adjustments



98



23



(40)

Equity-based compensation



5,825



5,798



3,481

Impairments and abandonments



5,708



1,317



1,148

Other operating items, net



598



669



487

       Changes in operating assets and liabilities










Accounts receivable



(54,479)



13,098



(57,117)

Prepaid expenses and other assets



2,100



13,576



(8,666)

Accounts payable and accrued liabilities



(9,332)



(15,970)



3,948

Net cash provided by (used in) operating activities



10,242



65,452



(5,061)

Cash flows from investing activities










      Purchase of property and equipment



(78,377)



(71,499)



(48,427)

Purchase of equity-method investments







(72,059)

Acquisitions, net of cash received



(210)



(1,251)



(13,980)

Proceeds received from sales of property and equipment



1,056



1,494



1,944

       Net cash used in investing activities



(77,531)



(71,256)



(132,522)

Cash flows from financing activities










Borrowings from revolving line of credit



43,500



26,500



40,000

      Payments on revolving line of credit



(113,500)



(11,500)



(125,000)

      Borrowings from long-term debt







250,000

      Payments of finance lease obligations



(158)



(159)



(89)

Payments of debt issuance costs







(7,352)

Net proceeds from underwritten offering



191,705





Dividends and distributions paid



(8,752)



(8,405)



(8,567)

Payments under tax receivable agreement







(77)

Contributions from noncontrolling interests







2,875

Repurchase of common stock



(7,618)



(377)



(6,291)

       Net cash provided by financing activities



105,177



6,059



145,499

Effect of exchange rate changes on cash



(2)



1



(2)

Net increase in cash and cash equivalents



37,886



256



7,914

Cash and cash equivalents, beginning of period



18,084



17,828



19,978

Cash and cash equivalents, end of period


$

55,970


$

18,084


$

27,892



















 

Comparison of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, gross profit before depreciation, amortization and accretion ("D&A"), gross margin before D&A and free cash flow are not financial measures presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). We define EBITDA as net income (loss), plus interest expense, income taxes and depreciation, amortization and accretion. We define Adjusted EBITDA as EBITDA, plus any impairment and abandonment charges or asset write-offs pursuant to GAAP, plus non-cash losses on the sale of assets or subsidiaries, non-cash compensation expense, and non-recurring or unusual expenses or charges, including severance expenses, transaction costs, or facilities-related exit and disposal-related expenditures, plus/(minus) foreign currency losses/(gains), plus/(minus) losses/(gains) on unconsolidated entities plus tax receivable agreements expense and less remeasurement gain on business combination. We define gross profit before D&A as revenue less cost of revenue, excluding cost of sales D&A expense. We define gross margin before D&A as gross profit before D&A divided by revenue. We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment, plus proceeds received from sale of property and equipment. EBITDA, Adjusted EBITDA, gross profit before D&A, gross margin before D&A and free cash flow are supplemental non-GAAP financial measures that we believe provide useful information to external users of our financial statements, such as industry analysts, investors, lenders and rating agencies because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation,  amortization and accretion) and non-recurring items outside the control of our management team. We present EBITDA, Adjusted EBITDA, gross profit before D&A, gross margin before D&A and free cash flow because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP.

Net income (loss) is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. Gross profit and gross margin are the GAAP measures most directly comparable to gross profit before D&A and gross margin before D&A, respectively. Net cash provided by (used in) operating activities is the GAAP measure most directly comparable to free cash flow. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measure. Each of these non-GAAP financial measures has important limitations as an analytical tool due to exclusion of some but not all items that affect the most directly comparable GAAP financial measures. You should not consider EBITDA, Adjusted EBITDA, gross profit before D&A, gross margin before D&A or free cash flow in isolation or as substitutes for an analysis of our results as reported under GAAP. Because EBITDA, Adjusted EBITDA, gross profit before D&A, gross margin before D&A and free cash flow may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

For forward-looking non-GAAP measures, the Company is unable to provide a reconciliation of the forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measure as the information necessary for a quantitative reconciliation, including potential acquisition-related transaction costs as well as the purchase price accounting allocation of the recent acquisitions and the resulting impacts to depreciation, amortization and accretion expense, among other items is not available to the Company without unreasonable efforts due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy at this time.

The following table presents a reconciliation of free cash flow to net cash provided by (used in) operating activities, which is the most directly comparable GAAP measure for the periods presented:













Three months ended



March 31, 2026


December 31, 2025


March 31, 2025



(unaudited) (in thousands)

Net cash provided by (used in) operating activities


$

10,242


$

65,452


$

(5,061)

Purchase of property and equipment



(78,377)



(71,499)



(48,427)

Proceeds received from sale of property and equipment



1,056



1,494



1,944

Free cash flow


$

(67,079)


$

(4,553)


$

(51,544)













The following table presents a reconciliation of EBITDA and Adjusted EBITDA to our net income (loss), which is the most directly comparable GAAP measure for the periods presented:















Three months ended,




March 31, 2026


December 31, 2025


March 31, 2025




(unaudited) (in thousands)

Net income (loss)



$

9,432


$

(2,058)


$

9,560

Interest expense, net




5,907



6,697



4,876

Income tax expense (benefit)




2,433



(9,457)



2,894

Depreciation, amortization and accretion




46,863



52,358



39,600

EBITDA




64,635



47,540



56,930

Tax receivable agreements expense






4,995



Impairments and abandonments




5,708



1,317



1,148

Non-cash loss on sale of assets or subsidiaries




42



87



173

Non-cash compensation expenses




6,020



5,798



3,481

Transaction costs




327



3,779



1,183

Lease abandonment costs




(68)



(51)



724

Other non-recurring charges




670



672



487

Equity in losses (earnings) of unconsolidated entities




290



20



(95)

Adjusted EBITDA



$

77,624


$

64,157


$

64,031

The following table presents a reconciliation of gross profit before D&A to total gross profit, which is the most directly comparable GAAP measure, and a calculation of gross margin before D&A for the periods presented:













Three months ended,



March 31, 2026


December 31, 2025


March 31, 2025



(unaudited) (in thousands)

Gross profit by segment










Water Infrastructure


$

26,338


$

10,970


$

19,101

Water Services



25,865



18,369



26,765

Chemical technologies



13,077



15,982



9,904

As reported gross profit



65,280



45,321



55,770











Plus D&A










Water Infrastructure



28,046



32,946



19,797

Water Services



15,912



16,571



17,165

Chemical technologies



1,784



1,673



1,713

Total D&A



45,742



51,190



38,675











Gross profit before D&A


$

111,022


$

96,511


$

94,445











Gross profit before D&A by segment










Water Infrastructure



54,384



43,916



38,898

Water Services



41,777



34,940



43,930

Chemical technologies



14,861



17,655



11,617

Total gross profit before D&A


$

111,022


$

96,511


$

94,445











Gross margin before D&A by segment










Water Infrastructure



56.2 %



54.1 %



53.7 %

Water Services



21.8 %



19.6 %



19.5 %

Chemical technologies



19.1 %



20.3 %



15.2 %

Total gross margin before D&A



30.3 %



27.9 %



25.2 %

 

Contacts:   

Select Water Solutions, Inc. 


Garrett Williams – VP, Corporate Finance & Investor Relations


(713) 296-1010


IR@selectwater.com




Dennard Lascar Investor Relations


Ken Dennard / Natalie Hairston


(713) 529-6600


WTTR@dennardlascar.com

Cision View original content:https://www.prnewswire.com/news-releases/select-water-solutions-announces-first-quarter-2026-financial-operational-and-strategic-updates-302763231.html

SOURCE Select Water Solutions, Inc.

FAQ

What were Select Water Solutions Q1 2026 revenue and net income (WTTR)?

Select reported $366.0 million in Q1 2026 revenue and net income of $9.4 million. According to the company, revenue rose sequentially by $19.4 million versus Q4 2025.

How did WTTR's Water Infrastructure segment perform in Q1 2026?

Water Infrastructure generated a record $96.7 million in Q1 2026 revenue, up 19.2% sequentially. According to the company, growth was driven by higher recycling and disposal volumes and new basin contracts.

What acquisitions did Select complete in early May 2026 and their impact (WTTR)?

Select closed $28.6 million of acquisitions adding ~30,000 bpd disposal capacity, 500,000 barrels storage, and surface/mineral acreage. According to the company, these assets bolster Northern Delaware operations and integration is expected efficiently.

What is WTTR's updated guidance for Water Infrastructure growth in 2026?

The company increased full-year Water Infrastructure growth guidance to 25–30% year-over-year. According to the company, additional contracts and network integration will support the higher guidance.

What were Select's cash flow and capital expenditure highlights in Q1 2026 (WTTR)?

Cash flow from operations was $10.2 million in Q1 2026, and free cash flow was $(67.1) million. According to the company, net capex for Q1 was $77.3 million and 2026 net capex is expected to rise to $200–$250 million.

How did Adjusted EBITDA and liquidity position look for WTTR in Q1 2026?

Adjusted EBITDA was $77.6 million in Q1 2026. Total liquidity was approximately $307.7 million as of March 31, 2026. According to the company, liquidity improved after an equity offering and debt repayments.