Select Water Solutions | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 395.81 M

Revenue: As of FY2026 Q2, the actual value is USD 395.81 M, beating the estimate of USD 373.02 M.

EPS: As of FY2026 Q2, the actual value is USD 0.17.

EBIT: As of FY2026 Q2, the actual value is USD 34.51 M.

Operational Metrics

Select Water Solutions, Inc. reported net income of $22,562 thousand for the second quarter of 2026, an increase from $9,432 thousand in Q1 2026 and $11,671 thousand in Q2 2025.Gross profit for Q2 2026 was $76,841 thousand, up from $65,280 thousand in Q1 2026 and $57,753 thousand in Q2 2025.The total gross margin was 19.4% in Q2 2026, compared to 17.8% in Q1 2026 and 15.9% in Q2 2025.Gross profit before depreciation, amortization, and accretion (D&A) was $124,066 thousand in Q2 2026, an increase from $111,022 thousand in Q1 2026 and $98,807 thousand in Q2 2025.Gross margin before D&A was 31.3% in Q2 2026, compared to 30.3% in Q1 2026 and 27.1% in Q2 2025.Selling, General and Administrative (SG&A) expenses were $41,178 thousand in Q2 2026, compared to $40,551 thousand in Q1 2026 and $38,935 thousand in Q2 2025.Income from operations was $34,344 thousand in Q2 2026, increasing from $17,968 thousand in Q1 2026 and $15,425 thousand in Q2 2025.Adjusted EBITDA reached $92,747 thousand in Q2 2026, up from $77,624 thousand in Q1 2026 and $72,614 thousand in Q2 2025.

Segment Revenue

Water Infrastructure revenue was $101,614 thousand in Q2 2026, an increase of 5.0% sequentially from $96,736 thousand in Q1 2026, and a 26% increase compared to $80,855 thousand in Q2 2025.Water Services revenue was $198,153 thousand in Q2 2026, up 3.6% sequentially from $191,231 thousand in Q1 2026, but down from $215,660 thousand in Q2 2025.Chemical Technologies revenue was $96,040 thousand in Q2 2026, an increase of 23% sequentially from $77,991 thousand in Q1 2026, and up from $67,700 thousand in Q2 2025.

Segment Gross Margin Before D&A

Water Infrastructure gross margin before D&A was 58.3% in Q2 2026, compared to 56.2% in Q1 2026 and 55.2% in Q2 2025.Water Services gross margin before D&A was 23.0% in Q2 2026, compared to 21.8% in Q1 2026 and 19.6% in Q2 2025.Chemical Technologies gross margin before D&A was 20.2% in Q2 2026, compared to 19.1% in Q1 2026 and 17.5% in Q2 2025.

Cash Flow

Cash flow provided by operating activities was $86,736 thousand in Q2 2026, significantly up from $10,242 thousand in Q1 2026 and $82,586 thousand in Q2 2025.Free cash flow was $17,015 thousand in Q2 2026, compared to - $67,079 thousand in Q1 2026 and $10,839 thousand in Q2 2025.

Capital Expenditures

Net capital expenditures for Q2 2026 were $69,700 thousand, including $71,019 thousand in capital expenditures and $1,298 thousand from asset sales proceeds.Cash flows from investing activities included $41,992 thousand of acquisition-related outflows in Q2 2026.

Balance Sheet Highlights

Total cash and cash equivalents were $33,396 thousand as of June 30, 2026, compared to $55,970 thousand as of March 31, 2026, and $18,084 thousand as of December 31, 2025.Total liquidity stood at $277,800 thousand as of June 30, 2026, compared to $307,700 thousand as of March 31, 2026, and $163,600 thousand as of December 31, 2025.The company had $250,000 thousand of term loan borrowings outstanding and $12,900 thousand under an agricultural loan as of June 30, 2026, with no amounts drawn on the revolving credit facility.

Unique Operational Metrics

Approximately 1.5 million barrels of produced water were recycled or disposed of per day in the Water Infrastructure segment during Q2 2026.Select Water Solutions, Inc. executed a definitive agreement for the conveyance of 14 saltwater disposal wells and the development of a new pipeline project with a 128-million-barrel minimum volume commitment in the Northern Delaware Basin.The company signed multiple additional commercialization contracts, including MVC agreements, acreage dedications, and a new mineral extraction agreement for iodine extraction across its portfolio.

Outlook / Guidance

Select Water Solutions, Inc. expects Water Infrastructure revenues to increase by 5% – 10% in Q3 2026 compared to Q2 2026, with margins ranging from 56% – 58%. The company anticipates steady revenues for its Water Services segment in Q3 2026, with gross margins before D&A between 21% – 22%. For the Chemical Technologies segment, Q3 2026 revenues are projected to be $85 million – $90 million, with gross margins before D&A expected to be 20% – 21%.