Select Water Solutions Announces Third Quarter 2026 Financial, Operational and Strategic Updates

Select Water Solutions posts strong Q3 growth and executes major M&A and financing moves.

What the company is saying

Select Water Solutions, Inc. (NYSE:WTTR) emphasizes robust financial and operational growth for the third quarter of 2026, highlighting a 28% year-over-year revenue increase to $412 million and a 57% jump in Adjusted EBITDA to $93 million. The company underscores record Water Infrastructure segment revenue of $110 million, attributing gains to a 30%+ increase in produced water volumes handled. Management, led by Chairman, President, and CEO John Schmitz, frames these results as evidence of successful execution across all segments and points to the completed divestment of a 55% majority interest in Peak Rentals and the acquisition of Pilot Water Solutions as strategic milestones. The narrative is confident, with forward guidance for Q4 calling for continued growth, including anticipated Adjusted EBITDA of $95–$100 million and Water Infrastructure revenues of $150–$160 million. The company also stresses its enhanced liquidity and capital structure following a $900 million senior notes issuance and a new $500 million revolving credit facility, both supporting recent and future expansion.

What the data suggests

The disclosed figures show clear operational and financial momentum: consolidated Q3 2026 revenue reached $412 million, up $90 million or 28% year-over-year, while net income rose to $22.9 million from $2.3 million a year earlier. Adjusted EBITDA increased to $93.5 million, up 57% year-over-year, with segment-level strength most pronounced in Water Infrastructure, which delivered $110 million in revenue (up 40%) and handled 1.7 million barrels per day of produced water. Water Services and Chemical Technologies segments also outperformed guidance, with Chemical Technologies revenue at $90 million, the high end of the guided range. Gross profit before D&A rose to $129.4 million, and gross margin before D&A improved to 31.4%. The company completed the $76.8 million Peak Rentals divestment and closed the Pilot Water Solutions acquisition, both materially impacting segment composition and future earnings. Liquidity remains strong, with $34.1 million in cash, $271.6 million in total liquidity, and a new $500 million revolving credit facility undrawn as of November 9, 2026. Capital intensity is high, with Q3 net capex of $88.1 million and full-year 2026 guidance of $300–$310 million. Q4 guidance implies further sequential growth, with Water Infrastructure revenues expected to rise to $150–$160 million and Adjusted EBITDA to $95–$100 million. The data is comprehensive, with detailed segment, margin, and cash flow disclosure, and management’s explanations for growth are supported by volume and transaction data.

Analysis

The announcement provides a comprehensive and detailed account of realised financial and operational progress, including revenue, net income, Adjusted EBITDA, segment-level results, and cash flow metrics for the third quarter of 2026. The majority of key claims are realised and supported by hard numbers, with only a minority of statements being forward-looking (primarily Q4 guidance and commentary on anticipated segment performance). The company discloses significant capital activity (acquisition, divestment, debt issuance), but these are already executed transactions, not merely aspirational. While capital intensity is high, the benefits of recent acquisitions and investments are expected to begin contributing immediately or in the near term, as reflected in Q4 guidance. There is no evidence of narrative inflation or exaggerated tone; language is proportionate to the strong, measurable improvements reported.

Risk flags

• ●Integration risk from the Pilot Water Solutions acquisition is material, as the company must combine new assets and operations while delivering on projected Water Infrastructure growth. Failure to realize anticipated synergies or manage operational complexity could impact margins and earnings.
• ●High capital intensity, with net capital expenditures guided at $300–$310 million for 2026 and significant debt issuance ($900 million in senior notes), increases financial leverage and requires sustained cash flow generation to maintain balance sheet strength.
• ●Segment volatility remains a risk, particularly in Water Services and Chemical Technologies, where revenues are subject to customer activity levels and seasonal patterns. Any downturn in macro activity or customer demand could pressure segment results and overall profitability.
• ●Recent divestment of a 55% interest in Peak Rentals reduces exposure to that business but also means future earnings from this segment will be less predictable and dependent on the performance of a minority interest.

Bottom line

Select Water Solutions delivered strong Q3 2026 results, with double-digit revenue and EBITDA growth, record Water Infrastructure performance, and successful execution of both a major divestment and a transformative acquisition. The company’s liquidity and capital structure have been significantly enhanced by a $900 million notes offering and a new $500 million revolving credit facility, positioning it to fund ongoing expansion. Management’s guidance for Q4 and full-year 2026 implies continued near-term growth, but execution will depend on successful integration of Pilot Water Solutions and realization of forecasted segment gains. High capital intensity and increased leverage heighten the need for disciplined cash flow management. Investors should focus on Q4 delivery versus guidance, integration progress, and any early evidence of synergy capture from recent M&A. The most important takeaway is that Select is now a larger, more leveraged water midstream operator with near-term growth prospects, but must execute flawlessly to justify the scale of recent investments.

Announcement summary

(NYSE: WTTR) Select Water Solutions, Inc. reported consolidated revenue of $412 million for the third quarter of 2026, representing an increase of $90 million or 28% year-over-year compared to the third quarter of 2025. Net income for the third quarter of 2026 was $23 million, up $21 million from the prior year period. Adjusted EBITDA for the quarter was $93 million, an increase of $34 million or 57% year-over-year. The Water Infrastructure segment achieved record revenue of $110 million, up $31 million or 40% year-over-year. The company completed the recapitalization and sale of a 55% majority interest in Peak Rentals during the third quarter of 2026, receiving approximately $76.8 million in consideration, including $41.5 million in cash and a $35.3 million seller note. Subsequent to quarter end, Select closed the acquisition of Pilot Water Solutions, expanding its water midstream position in the Delaware Basin. Total produced water volumes handled increased to 1.7 million barrels per day in the third quarter of 2026, up more than 30% from the third quarter of 2025. The Water Services segment generated revenues of $212 million, while the Chemical Technologies segment generated revenues of $90 million, at the high end of the $85 to $90 million guided range. Gross profit for the third quarter of 2026 was $81.4 million, with a total gross margin of 19.7%. Gross profit before D&A was $129.4 million, and gross margin before D&A was 31.4%. SG&A expenses were $53.6 million, including $7.4 million in transaction costs. Cash flow provided by operating activities was $84 million, and free cash flow was ($3.6) million. Net capital expenditures for the quarter were $88.1 million. As of September 30, 2026, cash and cash equivalents totaled $34.1 million, with $234.4 million of borrowings outstanding under the term loan component of the sustainability-linked credit facility. The borrowing base under the facility was $256.2 million, with available borrowing capacity of approximately $237.5 million. Total liquidity was $271.6 million as of September 30, 2026. The company had 127,774,689 weighted average shares of Class A common stock and 8,190,743 weighted average shares of Class B common stock outstanding during the quarter. Subsequent to quarter end, Select issued $900 million aggregate principal amount of 7.625% Senior Notes due November 1, 2034, with the majority of proceeds used to fund the Pilot Water acquisition and repay outstanding obligations under the sustainability-linked credit facility. Select also entered into a new five-year $500 million senior secured cash flow revolving credit facility, which remains undrawn as of November 9, 2026, with approximately $483.4 million of available borrowing capacity. The company anticipates Adjusted EBITDA in the fourth quarter of 2026 to be in the range of $95 to $100 million and net capital expenditures for 2026 of approximately $300 to $310 million. Water Infrastructure revenues for the fourth quarter are anticipated to be $150 to $160 million, with gross margins before D&A in the 52% to 56% range. Water Services revenues for the fourth quarter are expected to be $150 to $160 million, with gross margins before D&A in the 21% to 24% range. Chemical Technologies revenues for the fourth quarter are anticipated to be $75 to $80 million, with gross margins before D&A in the 17% to 18% range.

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