Select Water Solutions beats Q3 2026 on record infrastructure revenue
As seen on the 24/7 Wall St. homepage on November 9, 2026.
The Delaware Basin build-out is still mostly ahead of the numbers: produced water volumes hit 1.7 million barrels per day, driving record Water Infrastructure revenue and a beat on both lines. Fourth-quarter adjusted EBITDA guidance of $95 to $100 million includes only a partial quarter of the newly closed Pilot Water Solutions deal.
Continue ReadingShow less
Select Water Solutions reported third-quarter 2026 revenue of $412.19 million, beating expectations, with diluted earnings of $0.16 per share also topping estimates. Both beats came primarily from the Water Infrastructure segment, which posted record revenue as total produced water volumes climbed to 1.7 million barrels per day.
Water Infrastructure revenue rose 40% year-over-year, with gross margin before depreciation and amortization reaching 57.2%. Water Services revenue also moved higher sequentially on Permian Basin gains, and Chemical Technologies landed at the high end of its guided range.
The reported per-share figure carries several one-time items investors should be aware of, including a gain tied to the deconsolidation of Peak Rentals, non-recurring insurance-related gains, and transaction costs running through SG&A. Those items make the GAAP EPS figure noisy relative to underlying operating performance, which the company measures through Adjusted EBITDA of $93 million for the quarter.
Sponsored
The bigger story for the stock is what happens next. After quarter-end, Select closed the acquisition of Pilot Water Solutions, funded by a $900 million senior notes offering and accompanied by a new $500 million revolving credit facility. CEO John Schmitz said the combined asset base is designed to address what he described as the complex water dynamics in the Delaware Basin, with the company continuing to win new contracted organic growth projects.
For the fourth quarter, management guided Adjusted EBITDA to $95 to $100 million, a figure that reflects only a partial quarter of Pilot Water's contribution alongside the removal of Peak Rentals following the sale of a 55% interest in that business. Full-year 2026 net capital expenditures are now expected at approximately $300 to $310 million as integration work and Pilot's ongoing capital projects are absorbed. Water Infrastructure revenue is guided higher again in Q4, so the Delaware Basin build-out still has further to run.
Sources
Mentioned: WTTR