Select Water Solutions Guides for Record 2026 Adjusted EBITDA and Strong Infrastructure Growth
Summary
Select Water Solutions reported mixed Q4 and full year 2025 results but provided strong 2026 guidance, projecting record Adjusted EBITDA and significant growth in its Water Infrastructure segment, supported by new long-term contracts and reduced capital expenditures.
Key Events
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Mixed Q4 and Full Year 2025 Financials
Reported Q4 2025 revenue of $346.5 million (up sequentially) and a net loss of $2.1 million. Full year 2025 revenue was $1.4 billion (down year-over-year) and net income was $21.5 million (down year-over-year), while Adjusted EBITDA increased slightly to $260.3 million.
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Strong 2026 Outlook
Anticipates a "record setting year for Adjusted EBITDA" in 2026, with the Water Infrastructure segment expected to grow revenue by 20-25% year-over-year.
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Reduced Capital Expenditures for 2026
Targets net capital expenditures of $175-$225 million for full year 2026, a reduction from $279.3 million in 2025, indicating improved capital efficiency.
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Significant New Water Infrastructure Contracts
Secured multiple new long-term contracts for water infrastructure projects, adding 15 million barrels of minimum volume commitments (MVC) and approximately 180,000 acres of new dedicated leasehold.
Analysis
Select Water Solutions reported mixed financial results for Q4 and full year 2025, with full-year revenue and net income declining, but Adjusted EBITDA showing a slight increase. However, the filing's significance is driven by its strong forward-looking guidance and strategic updates. The company anticipates a "record setting year for Adjusted EBITDA" in 2026 and projects 20-25% revenue growth in its high-margin Water Infrastructure segment. This outlook, combined with a reduction in targeted net capital expenditures for 2026 compared to 2025, signals improved capital efficiency and a successful strategic shift towards a more resilient, contracted infrastructure business model. The numerous new long-term contracts and asset acquisitions further solidify this positive trajectory, indicating a strong foundation for future growth and enhanced earnings quality.
At the time of this filing, WTTR was trading at $14.19 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $7.20 to $13.50. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.