Gainesville – November 10, 2026 -- Select Water Solutions (NYSE: WTTR) reported third-quarter 2026 revenue of $412 million, up $90 million or 28% from a year earlier, as record Water Infrastructure sales offset a softer Chemical Technologies segment. Net income reached $22.9 million, against $2.3 million in the third quarter of 2025. Adjusted EBITDA rose 57% to $93.5 million from $59.5 million.
Gross profit climbed to $81.4 million from $43.6 million a year earlier. Total gross margin widened to 19.7% from 13.5%. SG&A rose to $53.6 million from $41.7 million, including $7.4 million of transaction costs.
Water Infrastructure revenue hits record $110 million on 1.7 million barrels per day
Water Infrastructure revenue rose 40% year-over-year from $79 million and 8.4% sequentially from $102 million. Produced water volumes handled reached 1.7 million barrels per day, up from 1.5 million in the second quarter and more than 30% above the prior-year quarter. Gross margin before D&A in the segment was 57.2%, versus 58.3% in the second quarter and 53.1% a year earlier.
Select guides fourth-quarter Water Infrastructure revenue to $150-$160 million, including a partial-quarter contribution from Pilot Water Solutions. Gross margin before D&A is expected at 52%-56%. Management expects incremental revenue growth in the base business even before Pilot Water is counted.
Select closes Pilot Water acquisition after quarter end, funded by $900 million in notes
Select closed the Pilot Water acquisition after the quarter ended, expanding its water midstream position across the Delaware Basin. It funded the deal and repaid its existing term loan with an upsized $900 million inaugural senior notes offering. At closing it also entered a new $500 million revolving credit facility, which more than doubles available liquidity compared with the prior facility.
Net capital expenditures for 2026 are now expected at roughly $300-$310 million, reflecting integration and completion of Pilot Water's ongoing capital projects in the fourth quarter.
Select sells 55% of Peak Rentals and keeps a minority stake
The company completed the recapitalization and sale of a 55% majority interest in Peak Rentals late in the third quarter. Select retains a minority position. The deconsolidation produced a $4.2 million gain, which was adjusted out of Adjusted EBITDA. Peak Rentals contributed about 21% of Water Services revenue year-to-date.
Water Services revenue rose to $212 million from $167 million a year earlier and $198 million in the second quarter, a 7.1% sequential gain driven mainly by the Permian Basin. Gross margin before D&A improved to 23.8% from 18.0%. For the fourth quarter, Select expects mid single-digit sequential declines in the remaining segment from typical seasonality. That implies revenue of $150-$160 million and gross margins before D&A of 21%-24%.
Chemical Technologies revenue falls to $90 million, top of guided range
Chemical Technologies revenue was $90 million, down from $96 million in the second quarter but up from $77 million a year earlier. The result landed at the high end of the company's $85-$90 million guidance.
CEO John Schmitz called the period a strong quarter across all three operating segments. Select forecasts fourth-quarter Adjusted EBITDA of $95-$100 million, accounting for the Peak Rentals deconsolidation and a partial quarter of Pilot Water.