Select Water Solutions (WTTR) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 consolidated revenue of $366 million, up 6% sequentially but down 2.3% year-over-year, with net income of $9.4 million, nearly matching Q1 2025 and reversing a Q4 2025 loss.

• Adjusted EBITDA rose to $77.6 million, up $13 million sequentially and $13.6 million year-over-year, reflecting margin expansion in Water Infrastructure.

• Water Infrastructure revenue grew 33–34% year-over-year to a record $96.7 million, offsetting declines in Water Services.

• Closed multiple acquisitions in the Northern Delaware Basin, expanding surface acreage, disposal capacity, water rights, and storage.

• Outperformed expectations across all business segments, adding new contracts and expanding service offerings.

Financial highlights

• Gross profit was $65.3 million, up 17.1% year-over-year and 44% sequentially, with gross margin improving to 17.8% from 14.9% year-over-year.

• Water Infrastructure segment revenue up 19% sequentially and 33–34% year-over-year, reaching $96.7 million with 56% gross margins before D&A.

• Water Services revenue was $191.2 million, up 7% sequentially but down 15% year-over-year, with gross margins before D&A rising to 21.8%.

• Chemical Technologies revenue was $78 million, with gross margin before D&A of 19.1%, in line with guidance.

• Free cash flow was negative $67.1 million, reflecting significant capital expenditures and working capital build.

Outlook and guidance

• Raised full-year Water Infrastructure growth guidance to 25–30% year-over-year, up from 20–25%.

• Q2 2026 consolidated Adjusted EBITDA projected at $77–$80 million.

• CapEx guidance increased to $200–$250 million for 2026, with $50–$60 million for maintenance and margin improvement.

• Chemical Technologies expects 10–15% sequential revenue growth and margin improvement in Q2.

• Positioned for strong free cash flow generation in 2027 and beyond.