Select Water Solutions’ second quarter results were met with a significant positive market reaction, as management attributed the performance to strong revenue and profit growth across all three operating segments. CEO John Schmitz highlighted record revenue and gross profit in both the Water Infrastructure and Chemical Technologies divisions, driven by increased produced water volumes, improved skim oil recovery, and greater demand for high-spec chemical products. Management also pointed to strategic acquisitions and new contracts, particularly a large minimum volume commitment in the Northern Delaware Basin, as key contributors to the quarter’s momentum.
Is now the time to buy WTTR? Find out in our full research report (it’s free for active Edge members).
Select Water Solutions (WTTR) Q2 CY2026 Highlights:
- Revenue: $395.8 million vs analyst estimates of $374.5 million (8.7% year-on-year growth, 5.7% beat)
- Adjusted EPS: $0.24 vs analyst estimates of $0.12 (significant beat)
- Adjusted EBITDA: $92.75 million vs analyst estimates of $78.48 million (23.4% margin, 18.2% beat)
- Operating Margin: 8.7%, up from 4.2% in the same quarter last year
- Market Capitalization: $2.69 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Select Water Solutions’s Q2 Earnings Call
- James Rollyson (Raymond James) asked about the sustainability of double-digit infrastructure growth. CFO Chris George confirmed that current project momentum supports ongoing double-digit growth into 2027, with additional project wins and bolt-on acquisitions expected to add to this trajectory.
- Robert Brooks (Northland Capital Markets) inquired if year-to-date results benefitted from right-of-first-refusal (ROFR) acres. EVP Michael Skarke clarified that there had not been material conversions yet, but future upside is expected as system utilization increases and more ROFR acres become active.
- James Larkin (Bank of America) questioned the drivers of Water Infrastructure’s volume growth in the next quarter. CEO John Schmitz explained that both new facility startups and increased commercialization of existing assets will contribute, with commodity price variability also affecting skim oil revenue.
- Donald Crist (Johnson Rice) asked about customer activity trends and basin diversification. Schmitz responded that increased completion intensity and drilling in the Haynesville and Bakken are providing tailwinds, while Select’s multi-basin infrastructure provides flexibility to capture growth beyond the Permian.
- Jeffrey Robertson (Water Tower Research) requested detail on pipeline utilization and the impact of new SWDs on margins. Skarke stated that greater throughput through existing infrastructure yields higher incremental margins, and the ability to tie in additional disposal assets increases capacity reliability and margin potential.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will be watching (1) the pace of new water infrastructure contract wins and system utilization, (2) adoption rates of specialty chemical products, particularly surfactants, and (3) execution on mineral extraction projects and their contribution to margin expansion in 2027. Additional attention will be given to the company’s ability to scale data center water solutions and manage capital investments for long-term free cash flow.
Select Water Solutions currently trades at $20.92, up from $18.50 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.