Select Water Solutions (WTTR) Q4 2025 earnings summary

Executive summary

• Achieved record operational and financial performance in 2025, with $1.4 billion revenue, $21 million net income, and $260 million Adjusted EBITDA, driven by margin improvement and market share gains in chemical technology and water infrastructure.

• Advanced diversification into municipal and industrial markets, and technology initiatives in beneficial reuse and mineral extraction.

• Surpassed one billion barrels of cumulative produced water recycled, marking a major operational milestone.

• Secured multiple new long-term Water Infrastructure projects with 15 million barrels of minimum volume commitments and 180,000 acres of new dedications.

• Strategic focus on the Northern Delaware Basin, leveraging unique infrastructure for cost advantage and customer value.

Financial highlights

• Generated $1.4 billion in consolidated revenue and a record $260 million in Adjusted EBITDA for 2025.

• Q4 2025 Adjusted EBITDA was $64.2 million, exceeding guidance, with sequential revenue and gross profit gains across all segments.

• Full year 2025 gross profit was $202.4 million, with a gross margin of 14.4%; Q4 gross profit was $45.3 million, margin 13.1%.

• Cash flow from operations for 2025 was $214.7 million; net capital expenditures were $279.3 million.

• Total liquidity at year-end was $163.6 million, with $18.1 million in cash and $320 million in total borrowings.

Outlook and guidance

• Expecting 20%-25% year-over-year growth in Water Infrastructure revenue and gross profit in 2026, with margins similar to Q4 2025.

• Anticipate consolidated Adjusted EBITDA of $65-$68 million in Q1 2026, with continued growth through the year.

• Water Services and Chemical Technology segments expected to maintain steady revenue in 2026, with margin improvements.

• SG&A targeted to decrease 5%-10% year-over-year, aiming for below 11% of revenue.

• Net CapEx guidance for 2026 is $175-$225 million, with $50-$60 million for maintenance and a heavier weighting in the first half.