GET DAILY SIGNALSSelect Water Solutions (WTTR) Reports +28% Revenue Growth in Q3 2026
Key Takeaways
- Consolidated revenue reached $412 million in the third quarter of 2026, up roughly 28% from $322 million a year earlier and above analyst consensus estimates.
- Diluted earnings per share (EPS) came in at $0.16, compared with $0.03 in the prior-year quarter, but slightly below the consensus estimate.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surpassed $93 million, reflecting strong operating leverage.
- The Water Infrastructure segment posted record produced water volumes of 1.7 million barrels per day and a record $110 million in revenue.
- Select completed the recapitalization and majority divestment of Peak Rentals and issued $900 million of senior notes to fund the Pilot Water acquisition.
- Get more details on the company's Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
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Earnings Context and Why It Matters
Select Water Solutions, a leading provider of sustainable water and chemical solutions to the energy industry, has been repositioning its portfolio toward higher-margin, longer-lived water infrastructure assets. This quarter's results arrive at a pivotal moment: the company closed the majority divestment of its Peak Rentals business, issued $900 million of senior notes, and advanced the Pilot Water acquisition. For investors, the report matters because it shows whether Select's infrastructure-heavy strategy can sustain revenue growth and margin expansion even as it reshapes its balance sheet. Strong produced water volumes and expanding contract dedications signal durable demand, while capital spending and integration costs highlight the near-term trade-offs of this strategic pivot.
Reported Results
Select Water Solutions reported third quarter 2026 consolidated revenue of $412 million, an increase of approximately 28% from $322 million in the same period last year and above consensus estimates, which ranged from roughly $390 million to $398 million. Diluted EPS was $0.16, up from $0.03 a year ago but modestly below the consensus range of about $0.17 to $0.19. Net income was approximately $20.6 million, compared with $2.7 million in the prior-year quarter, while Adjusted EBITDA exceeded $93 million.
Segment performance drove the top-line beat. Water Infrastructure generated record revenue of $110 million, up about 40% year over year, with gross margin before depreciation and amortization (D&A) near 57% and produced water volumes of 1.7 million barrels per day. Water Services revenue rose to $212 million with a gross margin before D&A of 23.8%, while Chemical Technologies contributed $90 million with a 17.8% gross margin before D&A. I also checked this using Tickeron’s AI Screener to see how WTTR compares to others in the industry.
Market Reaction and Investor Sentiment
Heading into the report, Select Water Solutions shares had been under pressure, with the stock down meaningfully over the prior month amid a broader pullback in energy-linked equities. The third quarter results delivered a revenue beat and strong Adjusted EBITDA, but the modest EPS shortfall relative to consensus, combined with elevated capital expenditures and a negative free cash flow quarter, tempered the initial read. Investors also weighed the near-term financial impact of deconsolidating Peak Rentals, which had represented about 21% of Water Services revenue year to date. The strategic clarity around the Pilot Water acquisition and the newly issued senior notes provided balance-sheet context, but integration costs and seasonal headwinds remain central to how the market interprets the quarter.
Forward Outlook and Key Factors to Monitor
Looking ahead, Select provided fourth quarter 2026 guidance across its segments. Water Infrastructure is expected to generate revenue of $150 million to $160 million, benefiting from a partial-quarter contribution from Pilot Water, with combined gross margins in the 52% to 56% range as integration costs and seasonal expenses weigh on margins. Water Services revenue is guided to $150 million to $160 million, reflecting the Peak Rentals divestiture and typical year-end seasonality, with margins before D&A of 21% to 24%. Chemical Technologies revenue is expected to be $75 million to $80 million, with margins steady at 17% to 18%.
Management indicated it is positioned to deliver above the high end of its previously increased 2026 guidance of 25% to 30% year-over-year growth, before any benefit from the Pilot Water acquisition. Investors should monitor the integration of Pilot Water, the pace of capital spending, and the impact of the $900 million senior notes on interest expense and leverage. The Northern Delaware Basin contract expansion, which added more than 250,000 acres under dedication, and additional contract wins provide visibility into future organic growth. Free cash flow generation will be a key metric as the company balances infrastructure buildout with shareholder returns.
Using Tickeron’s AI Tools in My Research
In my own work, I frequently rely on Tickeron’s AI Screener to quickly filter energy-services names and spot patterns that complement traditional analysis. It helps surface comparable opportunities and track technical signals without spending hours on manual screens, which keeps the focus on the fundamentals that matter most for names like WTTR.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
WTTR in upward trend: price may ascend as a result of having broken its lower Bollinger Band on November 04, 2026
WTTR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 32 of 34 cases where WTTR's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WTTR's RSI Oscillator exited the oversold zone, 16 of 18 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 89%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +2.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where WTTR advanced for three days, in 246 of 324 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on WTTR as a result. In 65 of 101 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 64%.
The Moving Average Convergence Divergence Histogram (MACD) for WTTR turned negative on November 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 60 similar instances when the indicator turned negative. In 41 of the 60 cases the stock turned lower in the days that followed. This puts the odds of success at 68%.
WTTR moved below its 50-day moving average on November 02, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WTTR crossed bearishly below the 50-day moving average on October 02, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 69%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WTTR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
The Aroon Indicator for WTTR entered a downward trend on November 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 28 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 51 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating steady price growth. WTTR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 83 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.988) is normal, around the industry mean (1.488). P/E Ratio (57.786) is within average values for comparable stocks, (-21.917). Projected Growth (PEG Ratio) (2.800) is also within normal values, averaging (1.687). Dividend Yield (0.017) settles around the average of (0.043) among similar stocks. P/S Ratio (1.817) is also within normal values, averaging (1.663).
The Tickeron SMR rating for this company is 86 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a provider of water management services to oil and gas producers
Industry OilfieldServicesEquipment
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