Select Water Solutions (WTTR) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered record consolidated revenue of $396 million, up 8.7% year-over-year and 8% sequentially, with net income rising to $22.6 million, more than doubling sequentially and up 93% year-over-year, driven by strong growth in Water Infrastructure and Chemical Technologies.

• Adjusted EBITDA reached $92.7 million, up 19% sequentially and 28% year-over-year, with gross profit up 33.1% to $76.8 million and gross margin improving to 19.4%.

• Water Infrastructure and Chemical Technologies segments posted record revenues and margin gains, supported by increased produced water volumes, improved skim oil recovery, and higher demand for surfactants and specialty products.

• Strategic focus remains on expanding Water Infrastructure through long-term contracts, infrastructure investments, and diversification into iodine and lithium extraction.

• Water Services segment outperformed expectations, with strong logistics and delivery business performance.

Financial highlights

• Q2 2026 consolidated revenue: $396 million (+8.7% YoY); net income: $22.6 million (+93.3% YoY); adjusted EBITDA: $92.7 million (+28% YoY); gross profit: $76.8 million (+33.1% YoY); gross margin: 19.4%.

• Six-month revenue: $761.8 million (+3.1% YoY); net income: $32.0 million (+50.7% YoY); gross profit: $142.1 million (+25.2% YoY).

• Free cash flow was $17.0 million in Q2, a turnaround from negative $67.1 million in Q1; operating cash flow for six months was $97.0 million.

• Net capital expenditures for Q2 were $69.7 million, including $42 million for acquisitions; $112 million deployed in CapEx and acquisitions in Q2.

• Total liquidity at quarter-end was $277.8 million, with cash and equivalents of $33.4 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 gross margins in the 56%-58% range.

• Chemical Technologies Q3 revenue expected at $85-$90 million, with margins in the 20%-21% range.

• Consolidated adjusted EBITDA guidance for Q3 is $90-$94 million.

• Net capital expenditures for 2026 raised to $250-$290 million to support infrastructure growth.

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