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, alongside significant margin improvement and market share gains in chemical technology and water infrastructure.

• Advanced diversification into municipal, industrial, and mineral extraction markets, including strategic partnerships for lithium 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.

• Ongoing build-out in Northern Delaware Basin, with new assets and contracts supporting 20%-25% segment growth outlook for 2026.

Financial highlights

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

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

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

• Water Infrastructure segment Q4 gross profit before D&A rose 5% sequentially, with margins improving to 54%.

• Chemical Technology segment saw 19% annual revenue growth and 45% gross profit growth before D&A; Q4 revenue hit $87 million, up 14% sequentially.

Outlook and guidance

• Anticipates 20%-25% year-over-year growth in Water Infrastructure revenue and gross profit in 2026, maintaining strong margins.

• Q1 2026 guidance: Water Infrastructure revenue and gross profit before D&A to grow 7%-10% sequentially; consolidated Adjusted EBITDA expected at $65-$68 million.

• Chemical Technology segment expected to maintain 2025 revenue levels in 2026, with gross margins before D&A steady at 19%-20%.

• Water Services revenue expected to remain steady in 2026, with gross margins before D&A of 19%-21%.

• SG&A targeted to fall below 11% of revenue in 2026, with a 5%-10% year-over-year reduction.