Select Water Solutions, Inc.

Select reported consolidated second-quarter 2026 revenue of $396 million, net income of $23 million, and adjusted EBITDA of $93 million. Water Infrastructure revenue was $102 million, up 26% year over year, with gross profit before D&A up 27% year over year and gross margins before D&A of 58%. Chemical Technologies revenue was $96 million, up 23% sequentially, with gross margin before D&A of 20% and gross profit before D&A of $19.4 million. Water Services revenue rose about 4% sequentially, with gross margins before D&A of 23% versus 21.8% in Q1. For Q3, management expects consolidated adjusted EBITDA of $90 million to $94 million, Water Infrastructure revenue growth of 5% to 10% with 56% to 58% margins before D&A, Water Services margins of 20% to 22%, and Chemical Technologies revenue of $85 million to $90 million with margins of 20% to 21%. Full-year net capital expenditures are now expected to be $250 million to $290 million, up from the prior high end of $250 million.

John Schmitz described the quarter as very strong and emphasized that the business is benefiting from a basin-wide infrastructure strategy that is still early in its potential. He highlighted record performance in Water Infrastructure and Chemicals, a new 7-year contract with a 128 million barrel MVC, and the strategic value of the 14 conveyed SWDs as evidence that customers increasingly view Select’s network as more valuable than stand-alone assets. His tone was optimistic but grounded in execution, repeatedly stressing that the company is building long-term contracted cash flows and has additional growth opportunities across recycling, disposal, minerals, surfactants, and data center-related services.

Chris George focused on the numbers and the outlook, noting consolidated revenue of $396 million, net income of $23 million, and adjusted EBITDA of $93 million, all supported by stronger gross profit and relatively steady SG&A. He said operating cash flow was $87 million in the quarter, net interest expense fell sequentially and should stay in the $4 million to $6 million range per quarter, and D&A should rise to $48 million to $52 million in Q3. He also said the company deployed $112 million in Q2 for CapEx and acquisitions, including $70 million of net CapEx and $42 million of strategic bolt-ons, and raised 2026 net CapEx guidance to $250 million to $290 million while still describing the business as maintenance-light and cash-generative over time.

Analysts focused heavily on how fast Water Infrastructure can grow into 2027, and management said a base case would start with double-digit growth next year, with room for more if additional project wins or bolt-ons come through. Questions also centered on the new 128 million barrel MVC and the conveyed SWDs, and management explained that these assets improve firm takeaway, support higher utilization, and extend the network into new geography, including toward Texas. On Chemicals, analysts asked about surfactants and mineral extraction; management said surfactant adoption is still early but growing quickly, while mineral extraction is drawing more inbound interest from a diverse set of potential offtakers and is expected to scale over time, largely in 2027 and beyond.