WTTR · Select Water Solutions, Inc.

Select Water Solutions delivered a strong first quarter of 2026, marked by sequential improvements across all key income statement metrics: revenue rose 6% to $366.0 million, net income swung from a $2.1 million loss in Q4 2025 to $9.4 million, and Adjusted EBITDA increased $13.4 million to $77.6 million. Gross margin expanded meaningfully to 17.8% (from 13.1% Q/Q), driven by higher-margin Water Infrastructure performance — where gross margin before D&A reached 56.2%, supported by volume gains in recycling and disposal, particularly from the integrated New Mexico system. Management attributed the outperformance to successful commercialization, including three new MVCs, two acreage dedications, two ROFRs, and eight interruptible agreements across four major basins. The Water Infrastructure segment’s record $96.7 million revenue (up 19% Q/Q) underpinned an upward revision of full-year growth guidance to 25–30% YoY, reflecting confidence in upcoming project ramps and recent $28.6 million Northern Delaware Basin acquisitions — which added critical infrastructure assets and are expected to integrate efficiently. While Water Services and Chemical Technologies showed mixed but generally positive trends, the consolidated outlook remains robust: second-quarter Adjusted EBITDA is guided to $77–$80 million, and elevated capital spending ($200–$250 million for 2026) signals sustained investment in high-return infrastructure. Importantly, the company strengthened its balance sheet during the quarter, raising $191.7 million in net proceeds from a Class A share offering and reducing revolving credit facility usage to zero — resulting in total liquidity of $307.7 million as of March 31, 2026. This positions Select to fund growth while maintaining financial flexibility amid evolving basin dynamics and commodity price conditions.