WaterBridge Raises Outlook as Margins Expand
Second-quarter revenue reached $217.8 million as higher volumes and contract rates revived growth.
WaterBridge Infrastructure (WBI), a water-infrastructure company, posted a 12.5% sequential increase in adjusted EBITDA as its margin expanded for a second consecutive quarter. Adjusted EBITDA rose to $115.8 million from $102.9 million, while the margin widened to 53% from 51%.
The results extended a recovery from late 2024. Revenue rose 8% from the first quarter, reversing the decline to $201.0 million from $208.9 million in the fourth quarter. Net income increased to $14.6 million from $9.5 million in the first quarter, after WaterBridge recorded a $13.6 million loss in the fourth quarter.
Produced-water handling volumes climbed 6% sequentially to 2.6 million barrels a day, returning to the fourth-quarter level after a 4% decline in the first quarter. The increase was due to the Kraken project ramp and stronger commercial demand.
Produced-water handling revenue excluding related parties rose 10.8% to $169.7 million, while related-party revenue declined 2.8% to $27.9 million. Gross margin increased to $58.1 million from $48.2 million, and gross margin per barrel improved to $0.22 from $0.20.
WaterBridge raised its 2026 adjusted EBITDA guidance to $435 million to $475 million, adding $10 million to each end of its previous range. The company also lifted its produced-water volume forecast by 25,000 barrels a day at both endpoints, to a range of 2.55 million to 2.75 million barrels a day, incorporating volumes from the Ranger acquisition.
Capital spending rose to $123.3 million as WaterBridge continued construction at Speedway Phase I and invested in Stateline infrastructure. Speedway began initial operations in July, with its first volumes online and ramping during the third quarter. The company now expects 2026 capital expenditures of $530 million to $590 million, $100 million above its earlier guidance, as it integrates Ranger and accelerates other projects.
WaterBridge closed its $80 million acquisition of Ranger Water Midstream during the quarter and, after quarter-end, agreed to acquire the NDB Landfill for net consideration of $169 million. Borrowings increased $150 million to $1.636 billion during the quarter, alongside $347.6 million of liquidity, while expanded revolving-credit commitments provide $750 million of capacity and carry pricing margins 25 basis points below the prior grid.