Select Water Closes Pilot Deal After Record Infrastructure Quarter

The Tip Desk · November 12, 2026 · 3 min read

Water Infrastructure revenue reached a record $110 million as produced-water volumes hit 1.7 million barrels a day.

Select Water Solutions, Inc. (WTTR), a provider of water and chemical solutions to the energy industry, reported third-quarter revenue of $412 million, up $90 million or 28% from a year earlier, after an 8% sequential increase in the second quarter.

Net income was $23 million, up $21 million from the third quarter of 2025. Adjusted EBITDA was $93 million, up $34 million or 57% year-over-year. Gross profit was $81.4 million and total gross margin was 19.7%, versus 13.5% a year earlier. Gross profit before depreciation, amortization and accretion was $129.4 million, or 31.4% of revenue.

The Water Infrastructure segment produced another record, with revenue of $110 million, up $31 million or 40% from the third quarter of 2025. Chairman, President and CEO John Schmitz said the company increased total produced water volumes handled to 1.7 million barrels per day, an increase of more than 30% relative to the third quarter of 2025, from 1.5 million barrels per day in the second quarter. Those volume gains, the company said, drove the segment’s 40% year-over-year revenue increase. Segment gross margin before D&A was 57.2%.

Water Services revenue was $212 million, up 7% sequentially, which the company said outpaced a guided expectation of a flat sequential quarter. Gross margin before D&A for the segment was 23.8%. Chemical Technologies revenue was $90 million, at the high end of the company’s $85 million to $90 million guided range, after a record $96 million in the second quarter. Gross margin before D&A for Chemical Technologies was 17.8%.

Selling, general and administrative expense was $53.6 million, including $7.4 million of transaction costs. Cash flow from operations was $84 million. Free cash flow was ($3.6) million. Net capital expenditures were $88.1 million.

Late in the quarter the company completed the recapitalization and sale of a 55% majority interest in Peak Rentals, receiving approximately $76.8 million of consideration, including about $41.5 million in cash and a $35.3 million seller note. It retained a 45% indirect interest, to be accounted for as an equity-method investment. Peak contributed approximately 21% of Water Services revenues year-to-date. Adjusted EBITDA was adjusted for $4.2 million related to a gain on the deconsolidation.

Subsequent to quarter end, Select closed the acquisition of Pilot Water Solutions and issued $900 million of 7.625% senior notes due 2034. The majority of net proceeds funded the Pilot cash consideration and repaid the sustainability-linked credit facility, which the company terminated. It entered a new five-year $500 million revolving credit facility, undrawn as of November 9, with about $483.4 million of available capacity after letters of credit.

The company now anticipates 2026 net capital expenditures of approximately $300 million to $310 million, versus a prior outlook of $250 million to $290 million. Taking into consideration the Peak Rentals deconsolidation and a partial quarter from Pilot Water, it anticipates fourth-quarter Adjusted EBITDA of an estimated $95 million to $100 million.

Water Infrastructure fourth-quarter revenue is anticipated at $150 million to $160 million, including a partial quarter from Pilot Water, with gross margins before D&A in the 52% to 56% range. Water Services fourth-quarter revenue is anticipated at $150 million to $160 million after normalizing for Peak Rentals, with gross margins before D&A in the 21% to 24% range. Chemical Technologies fourth-quarter revenue is anticipated at $75 million to $80 million, with gross margins before D&A in the 17% to 18% range.