Select Water Solutions (WTTR) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 27.9% YoY to $412.2M; gross profit increased 86.9% to $81.4M, net income reached $22.9M, and Adjusted EBITDA set a quarterly record at $93.5M.

• Nine-month Adjusted EBITDA was $263.8M, exceeding the prior full-year record before any pro forma contribution from Pilot Water.

Financial highlights

• Q3 operating income was $26.9M versus an operating loss of $1.8M; net income attributable to common stockholders was $20.6M, or $0.16 per share.

• Q3 EBITDA was $86.3M versus $53.6M; Adjusted EBITDA was $93.5M versus $59.5M YoY and $92.7M QoQ.

• Gross margin was 19.7% versus 13.5% YoY; gross margin before D&A was 31.4% versus 27.0%.

• Operating cash flow was $84.4M, net CapEx was $88.1M and free cash flow was negative $3.6M.

• Nine-month revenue increased 10.7% YoY to $1.174B; gross profit rose 42.3% to $223.5M and net income rose 133.5% to $54.9M.

Outlook and guidance

• Q4 consolidated Adjusted EBITDA guidance is $95M–$100M; SG&A is expected at 11%–12% of revenue.

• Q4 Water Infrastructure revenue is forecast at $150M–$160M, with 52%–56% gross margins before D&A; revenue growth guidance is 35%–45%.

• Q4 Water Services revenue is expected at $150M–$160M with 21%–24% margins before D&A; Chemical Technologies revenue is forecast at $75M–$80M with 17%–18% margins.

• Pilot Water is expected to generate 2026 revenue of $250M–$270M and Adjusted EBITDA of $100M–$110M; its 2027 Adjusted EBITDA outlook is $120M–$130M.

• 2026 net CapEx is forecast at $300M–$310M; maintenance capital is expected to rise to $80M–$90M going forward, with 2027 capital initially expected to be similar to 2026.