Select Water Solutions Inc (NYSE:WTTR)

Q2 2026 Select Water Solutions Inc Earnings Call Transcript

Aug 5, 2026 / 03:00 PM GMT

Release Date Price: $22.26 (+20.32%)

Transcript 8-K

Key Points

Positve

Select Water Solutions Inc (WTTR) delivered record revenue and gross profit in both its water infrastructure and chemical technology segments during Q2 2026, with consolidated revenue up 8% and adjusted EBITDA up 19% sequentially.
The company secured a major seven-year agreement with a large public operator in the Northern Delaware Basin, backed by a substantial 128 million barrel minimum volume commitment (MVC), which also included the conveyance of 14 strategic saltwater disposal wells (SWDs).
Water infrastructure segment revenue grew 26% year-over-year to $102 million, driven by increased produced water volumes and improved skim oil recovery, with gross margins before D&A reaching a strong 58%.
Chemical technology segment posted a stellar quarter with revenue of $96 million, up 23% sequentially, driven by market share gains and increased demand for higher-spec, higher-margin products like surfactants and friction reducers.
The company is well-positioned for continued growth, expecting to hit the upper end of its 25% to 30% full-year growth guidance for water infrastructure and projecting double-digit growth into 2027, supported by a robust project pipeline and new mineral extraction agreements (e.g., iodine).

Negative

Select Water Solutions Inc (WTTR) faces potential margin pressure in its chemical technology segment due to increased oil-based raw material input costs, despite achieving margin gains in Q2.
The company's water services segment is expected to see generally steady revenue levels in Q3, with margins forecast to decline slightly to the 20% to 22% range from 23% in Q2, indicating limited near-term growth.
Chemical technology revenue is forecast to retrench to $85 million to $90 million in Q3 from $96 million in Q2, reflecting a modest pullback based on current customer schedules.
The ongoing build phase of the Northern Delaware infrastructure network will limit free cash flow potential in 2026, with net capital expenditures increased to $250 million to $290 million, potentially constraining near-term shareholder returns.
The company anticipates potential modest seasonal impacts in the fourth quarter across parts of the business, which could temper the strong growth momentum seen in the first half of the year.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

WTTR.N - Select Water Solutions, Inc.
Q2 2026 Select Water Solutions Inc Earnings Call
Aug 05, 2026 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings. Welcome to the Select Water Solutions 2026 second 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 star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Garrett Williams. President of Corporate Finance and Investor Relations.

Thank you, Garrett. You may begin.

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Unidentified_2 [2]
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