Key Highlights

  • Revenue was USD 412 million, with Net Income of USD 23 million.
  • Adjusted EBITDA was more than USD 93 million for the quarter.
  • Produced water volumes reached 1.7 MMbpd, up 14% from the second quarter.
  • Water Infrastructure Revenue reached a record USD 110 million.

Select Water Solutions, Inc. (NYSE:WTTR) reported third quarter 2026 revenue of USD 412 million, net income of USD 23 million and adjusted EBITDA of more than USD 93 million. Reported EPS was USD 0.22, compared with estimates of EPS of USD 0.18 and revenue of USD 397.96 million.

Year-to-date adjusted EBITDA was USD 264 million, which the company said already exceeds its 2025 full-year record before any pro forma contribution from the Pilot Water acquisition. Founder and chief executive John Schmitz said the company expects another record year in 2027 with a full-year benefit from Pilot Water.

Water Infrastructure and Water Services

Produced water volumes handled reached 1.7 MMbpd, a 14% increase from the second quarter and more than 30% above the third quarter of 2025. Water Infrastructure segment revenue rose more than 40% year over year to a record USD 110 million, with gross margins before D&A of 57%. Revenue increased 8% and Gross Profit before D&A increased 6% from the second quarter, and the company cited year-over-year growth of about 40% and 50% respectively.

In August, the company signed a Northern Delaware Basin contract expansion with an investment-grade customer. It added more than 250,000 new acres under dedication, converted more than 100,000 acres from right of first refusal to base dedication and extended the term another 12 years at an increased rate on an existing contract.

Water Services revenue grew approximately 7% quarter over quarter, against guidance of flat revenue, on continued activity in the Permian Basin. Gross margins before D&A in the segment increased to 24% from 23% in the second quarter.

Pilot Water Acquisition and Financing

Subsequent to quarter end, the company completed a debut senior unsecured notes offering raising USD 900 million of eight-year financing, upsized by USD 100 million from the initial launch. Proceeds were used primarily to fund the Pilot Water acquisition and to refinance the prior sustainability-linked Credit Facility and term loan. In connection with the closing, the company also closed a new five-year USD 500 million Cash Flow revolving credit facility.

Pro forma net Debt to adjusted EBITDA is approximately 2x following the closing, before any growth projected for 2027 or synergies from the integration. The company projects Pilot Water to finish 2026 within its prior guidance of USD 250 million to USD 270 million of revenue and USD 100 million to USD 110 million of adjusted EBITDA, and maintains a 2027 adjusted EBITDA outlook of USD 120 million to USD 130 million for the business, tied primarily to new minimum Volume commitments and capital projects coming online in early 2027.

Fourth Quarter Outlook

For the fourth quarter, the Water Infrastructure segment includes a partial quarter of Pilot Water, with projected revenue growth of 35% to 45%, or about USD 150 million to USD 160 million. Combined gross margins are projected at 52% to 56%, as integration-related costs and seasonal expenses affect the segment.

The company projects results above the high end of its previously increased 2026 guidance of 25% to 30% year-over-year growth for the base business, before any benefit from Pilot Water. Management said new contracted projects from both the base Business and Pilot Water come online in 2027 and that it sees significant remaining capacity for commercial expansion.

Fourth Quarter Segment Ranges

Select Water Solutions reported produced water volumes of 1.7 MMbpd and record Water Infrastructure revenue of USD 110 million. Management cited a fourth quarter segment revenue range, a combined gross Margin range of 52% to 56%, Pilot Water guidance figures, pro forma Leverage of about 2x and new contracted projects in early 2027, and noted an evolving macro and geopolitical environment.