Select Water Solutions Announces Fourth Quarter and Full Year 2025 Financial and Operational Results and Strategic Updates

prnewswire.com · Feb 17, 2026 · Collected from GDELT

Full Article

Generated full year and fourth quarter 2025 consolidated revenue of $1.4 billion and $347 million, respectively Generated full year net income of $21 million and Adjusted EBITDA of $260 million Water Infrastructure generated full year 2025 revenues of $313 million, up 8% year-over-year Chemical Technologies generated full year 2025 revenues of $308 million, up 19% year-over-year Announces multiple new long-term contracted Water Infrastructure projects supported by 15 million barrels of minimum volume commitments ("MVC") and approximately 180,000 acres of new leasehold and ROFR acreage dedications , /PRNewswire/ -- Select Water Solutions, Inc. (NYSE: WTTR) ("Select," the "Company," "we," "our" or "us"), a leading provider of sustainable water infrastructure and chemical solutions, today announced its financial and operating results for the quarter and year ended December 31, 2025. John Schmitz, Chairman of the Board, President and CEO, stated, "The fourth quarter concluded a record year for Select across a number of key operational and financial metrics. During full-year 2025, we improved our consolidated margins, increased adjusted EBITDA, streamlined our Water Services segment, deployed high-performing chemical product offerings that drove significant market share capture, and most importantly, made great strides with our ongoing Northern Delaware water infrastructure network build-out. In 2025, we proudly surpassed one billion barrels of cumulative produced water recycled, culminating from a multi-year strategic effort that has concurrently driven more than 800% revenue growth in our Water Infrastructure segment since the beginning of 2021. This milestone achievement has driven significant value to not only Select and our shareholders, but also the regions and communities where we operate. "During 2025, we significantly bolstered our long-term Water Infrastructure growth strategy by adding 950,000 acres under new dedication with an 11-year average contract length, while also adding long-term diversification potential with our first large-scale municipal & industrial project, multiple lithium extraction partnerships across key basins, and multiple successful beneficial reuse pilots. We continued to add to our infrastructure footprint with new contract wins during the fourth quarter, and importantly, added multiple sizable MVC awards that underpin future growth alongside additional acreage dedication expansions. Included in the fourth quarter development wins was the direct conveyance from a key customer in the Northern Delaware Basin of three treated produced water pits and a disposal permit, which we have already drilled and completed. This, and prior, asset conveyance from operators to Select remains a strong endorsement of the value-add solutions we are providing to our customers with our large-scale infrastructure networks. "We are rapidly scaling a differentiated produced water infrastructure business that focuses and builds around a commercial recycling-first platform. This allows our fixed recycling facilities to serve as aggregation points and distribution hubs for significant produced water volumes, supported by large-diameter dual-lined gathering and distribution pipeline systems, interconnecting with disposal and, in the future, potential beneficial reuse or mineral extraction. Our growing gathering and distribution pipeline networks allow us to water balance across a broad geographic footprint – managing the regional supply and demand of oilfield water to where it is needed, or to reallocate from regions of oversupply or potential pore pressure risk to alternative sustainable disposal solutions. "As we continue our expansive New Mexico system build-out, we are working closely with our customers to support their evolving development schedules alongside our build-out timelines. We continue to find value in the integrated solutions we can provide, with our temporary water transfer logistics capabilities allowing us to manage customer schedule variability efficiently and flexibly. For example, during the fourth quarter, while we saw lower growth than anticipated on our fixed infrastructure as schedule timelines adjusted, we saw a 77% uplift in our temporary water transfer service revenues in New Mexico, resulting in a sizable outperformance during the quarter for our Water Services segment as compared to our prior expectations. We expect a growing shift in volume activity onto our fixed infrastructure network in the coming months, which should drive high-margin sequential growth for the Water Infrastructure segment during the first quarter and further throughout 2026. "Our Chemical Technologies segment finished the year with a record fourth quarter, resulting in annual gains of 19%, 57% and 45% in revenue, gross profit and gross profit before D&A, respectively, in 2025 as compared to 2024. Supported by the outsized growth in New Mexico, the Water Services segment outperformed expectations and traditional fourth quarter seasonality, posting a 7% sequential revenue increase and a 39% and 16% sequential increase in gross profit and gross profit before D&A, respectively. "Looking forward to 2026 overall, we expect yet another record setting year for Adjusted EBITDA and consolidated margins as the growth opportunities in our Water Infrastructure segment continue to expand. With several projects already undergoing construction in addition to our recent awards, we anticipate the Water Infrastructure segment to grow revenue by 20% to 25% on a year-over-year basis in 2026. "Supported by strong recent gains in 2025, we expect our Chemical Technologies segment to deliver a similar revenue profile in 2026 as compared to full year 2025, while improving its overall margin profile. On the Water Services side, we expect to maintain a relatively steady annual revenue run-rate as compared to the fourth quarter of 2025, with continued margin improvement opportunities, which captures the ongoing segment performance after accounting for the OMNI divestiture in the third quarter of 2025. "Overall, we expect the first quarter to grow sequentially from the fourth quarter, with consolidated Adjusted EBITDA of $65 – $68 million. To support our growth objectives, for full year 2026, we are targeting net capital expenditures of $175 – $225 million, after accounting for an expected $10 – $15 million of ongoing asset sales. This includes approximately $50 – $60 million of maintenance capex, consistent with 2025, with the remaining spend primarily weighted towards our growth capital projects within our Water Infrastructure segment, and particularly the continued build-out of our Northern Delaware Basin network. This capital program includes all currently contracted development projects, however, we continue to have a strong backlog of future development opportunities and remain highly confident in our ability to secure additional long-term contracts and development projects during the year, which could provide incremental growth. With a steady trajectory of growth throughout 2026, we believe we are establishing a strong foundation for continued growth into 2027. As we continue to execute on our infrastructure build-out, we are deploying highly cash-generative facilities and midstream networks to our business. We anticipate an increasingly improved free cash flow profile over time with the ongoing maturation of the Water Infrastructure segment, allowing for future capital allocation strength and optionality, supported by the resilient, contracted earnings streams we are building. The ongoing expansion of our high-margin, contractually supported Water Infrastructure segment is further enhancing the quality of our earnings and reinforces our confidence and conviction in Select's strategic direction. "In summary, I believe that Select remains distinctively positioned both in the traditional energy industry, and soon beyond, to advance a unique integration of Water Infrastructure, Water Services and Chemical Technologies solutions underpinned by a growing high-margin, long-term contracted infrastructure business. I look forward to creating further long-term shareholder value in both 2026 and the years to come," concluded Schmitz. Full Year 2025 Consolidated Financial Information Revenue for full year 2025 was $1.4 billion as compared to $1.5 billion during full year 2024. Net income for full year 2025 was $21.5 million as compared to $35.5 million during full year 2024. For full year 2025, gross profit was $202.4 million, as compared to $219.5 million during full year 2024, driven by $21.0 million of increased depreciation, amortization and accretion ("D&A") expense associated with our ongoing water infrastructure build-out. Total gross margin was 14.4% during full year 2025 as compared to 15.1% during full year 2024. Gross profit before D&A was $376.9 million for full year 2025 as compared to $373.0 million in full year 2024, while gross margin before D&A for full year 2025 was 26.8% as compared to 25.7% for full year 2024. Selling, general and administrative expense ("SG&A") during full year 2025 of $161.3 million was relatively steady on a year-over-year basis as compared to $160.0 million during full year 2024. Supported by ongoing cost improvement initiatives, the Company is targeting a 5 – 10% reduction in SG&A over the course of 2026 relative to full year 2025. Adjusted EBITDA was $260.3 million during full year 2025 as compared to $258.4 million during full year 2024. Adjusted EBITDA during full year 2025 was reduced by $14.9 million of remeasurement gain on business combination, while adjusted for $10.3 million of non-recurring transaction costs, $6.2 million of impairments and abandonments, $5.0 million in tax receivable agreements expense, $4.9 million of equity in losses of unconsolidated entities and $6.1 million in other non-recurring adjustments. Non-cash compensation expense accounted for an additional $19.9 million adj