Q4 2025 Select Water Solutions Inc Earnings Call Transcript
Key Points
- Select Water Solutions Inc (WTTR) achieved record-setting operational and financial performance in 2025, with significant improvements in consolidated margins and market share gains in the chemical technology segment.
- The company successfully grew recycled produced water volumes by 18% in 2025, reaching a milestone of 1 billion barrels recycled since 2021, contributing to an 800% revenue growth in the water infrastructure segment over five years.
- Select Water Solutions Inc (WTTR) made strategic investments in long-term diversification efforts, including municipal and industrial spaces, and advanced technology efforts in beneficial reuse and mineral extraction.
- The company executed multiple new contracts in 2025, adding nearly 1 million new dedicated acreage with an average contract term of 11 years, supporting future infrastructure growth.
- The chemical technology segment achieved 19% year-over-year revenue growth and 45% growth in gross profit before depreciation and amortization (DNA) in 2025, driven by demand for advanced chemical technologies.
- The macroeconomic environment in 2025 was challenging, with oil prices expected to remain steady in the $55 to $65 range, potentially impacting future growth opportunities.
- Project timing slippage in the water infrastructure segment occurred due to delays in securing right-of-way, affecting the timeline for infrastructure buildout.
- The water services segment is expected to see a decline in revenue year-over-year in 2026, primarily due to recent divestments accounting for over 80% of the decline.
- The company anticipates a heavy capital expenditure in the first half of 2026, which may impact short-term free cash flow generation.
- Select Water Solutions Inc (WTTR) faces significant produced water challenges in the Northern Delaware Basin, with increasing regulatory scrutiny and disposal availability issues.
Greetings and welcome to the Select Water Solutions 4th quarter earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press 0 on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Garrett Williams, Vice President of corporate finance and Investor relations. Garrett, please go ahead.
Thank you, operator, and good morning everyone. We appreciate you joining us for Select Water Solutions conference call and webcast to review our financial and operational results for the 4th quarter and full year of 2025.
With me today are John Schmitz, our founder, Chairman, President, and Chief Executive Officer, Chris George, executive Vice President and Chief Financial Officer, Michael Scarkey, executive Vice President and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
