Select Water Hits Record Revenue, Secures Major Deal

Select Water Solutions Inc. reported substantial Q2 2026 performance, achieving record revenue and gross profit across its water infrastructure and chemical technology segments. Consolidated revenue increased by 8% and adjusted EBITDA by 19% compared to the previous quarter. A key development was a new seven-year agreement with a major operator in the Northern Delaware Basin, including a minimum volume commitment of 128 million barrels and the transfer of 14 saltwater disposal wells.

The water infrastructure segment saw revenue climb 26% year-over-year to $102 million, fueled by higher produced water volumes and improved oil recovery. The chemical technology segment also posted strong sequential revenue growth of 23% to $96 million, driven by market share gains and demand for premium products. The company anticipates hitting the upper end of its 25% to 30% full-year growth target for water infrastructure and expects double-digit growth into 2027.

However, the company faces potential headwinds. Increased oil-based raw material costs could pressure chemical technology margins, and the water services segment is projected to experience a slight margin decrease to 20%-22% in Q3. Chemical technology revenue is also expected to retract modestly in Q3 from its Q2 peak. Furthermore, significant capital expenditures for infrastructure development in the Northern Delaware Basin will likely constrain free cash flow in 2026.