Select Water Solutions Reports Q1 2026 Financial Results with Revenue Decline and Gross Profit Increase

Select Water Solutions, Inc. reported its financial results for the first quarter of 2026, revealing a total revenue of $365.96 million, a decrease of 2.3% from $374.38 million in the same period last year. The decline was primarily driven by a significant drop in revenue from the Water Services segment, which fell by 15.3% to $191.23 million, largely due to lower fluids hauling revenue following the divestiture of certain operations. In contrast, the Water Infrastructure segment saw a 33.6% increase in revenue, reaching $96.74 million, attributed to higher recycling revenues and increased activity from ongoing infrastructure projects in New Mexico.

The company's gross profit for the quarter was $65.28 million, up from $55.77 million a year earlier, reflecting a gross margin improvement from 14.9% to 17.8%. This increase was supported by a favorable shift in revenue mix towards higher-margin recycling services. Operating expenses rose to $47.31 million, up 17.6% from the previous year, driven by higher selling, general, and administrative costs, as well as increased impairments and abandonments totaling $5.71 million, primarily related to the abandonment of a saltwater disposal well.

Select Water Solutions also completed a public offering of 15,784,315 shares of Class A common stock in February 2026, generating approximately $192.2 million in net proceeds. These funds are intended to support ongoing water infrastructure projects, potential acquisitions, and general corporate purposes. The company’s total assets increased to $1.71 billion as of March 31, 2026, compared to $1.60 billion at the end of 2025, with cash and cash equivalents rising to $55.97 million.

Operationally, Select Water Solutions continues to focus on expanding its Water Infrastructure segment, which is seen as a key growth area. The company has made significant investments in infrastructure, including a network of pipelines and recycling facilities, to enhance its service offerings. As of the end of the quarter, the company reported a total employee headcount of 1,200, reflecting its commitment to scaling operations in response to market demand.

Looking ahead, Select Water Solutions anticipates continued demand for its services, driven by the increasing volumes of produced water associated with oil and gas production. The company remains focused on enhancing its operational efficiency and expanding its market share, particularly in the Permian Basin and other key regions. However, it also acknowledges potential risks from geopolitical tensions and fluctuating commodity prices, which could impact customer activity levels and overall demand for its services.