Select Water Solutions (WTTR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $396 million, up 8.7% year-over-year and 8% sequentially, driven by strong growth in Chemical Technologies and Water Infrastructure, while Water Services was impacted by divestitures.

• Net income rose to $23 million, more than doubling sequentially and up 93% year-over-year; adjusted EBITDA grew 19% sequentially and 28% year-over-year to $93 million.

• Water Infrastructure and Chemical Technologies segments achieved record revenue and gross profit, with Water Services outperforming expectations.

• Strategic focus included major long-term contracts, a seven-year 128-million-barrel MVC agreement, and acquisitions such as Black River Ranch and multiple SWDs.

• Diversification initiatives advanced with new mineral extraction partnerships in iodine and lithium.

Financial highlights

• Q2 2026 consolidated revenue: $396 million (+8.7% YoY); net income: $23 million (+93% YoY); adjusted EBITDA: $93 million (+28% YoY); gross profit: $76.8 million (+33.1% YoY); gross margin: 19.4%.

• Water Infrastructure revenue: $102 million (+26% YoY), gross margin before D&A: 58%.

• Chemical Technologies revenue: $96 million (+42% YoY), gross margin before D&A: 20%.

• Water Services revenue: $198.2 million, down 8.1% YoY due to divestitures, but up 4% sequentially; gross margin before D&A: 23%.

• Operating cash flow for Q2: $87 million; free cash flow improved to $17 million; net CapEx for Q2: $69.7 million.

Outlook and guidance

• Water Infrastructure segment expected to achieve upper end of 25%-30% full-year growth guidance; Q3 revenue growth forecasted at 5%-10% with 56%-58% gross margins.

• Chemical Technologies Q3 revenue projected at $85-$90 million, with margins of 20%-21%.

• Consolidated adjusted EBITDA guidance for Q3 is $90-$94 million; net capital expenditures for 2026 raised to $250-$290 million.

• Double-digit Water Infrastructure growth anticipated for 2027, with further upside from new projects and bolt-on acquisitions.

• Management expects stable industry activity and continued demand for integrated water management.