Select Energy Services Inc (WTTR)
NYSE:WTTR
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Select Energy Services
(NYSE:WTTR)
Select Model
Select Model
Rating:61Neutral
Price Target:
$16.00
â–²(5.40% Upside)
Action:ReiteratedDate:02/25/26
The score is held back primarily by deteriorating TTM fundamentals (revenue/earnings pressure, higher leverage, and negative free cash flow). Offsetting that are supportive price momentum and a positive earnings-call outlook with clear growth targets and record adjusted EBITDA, while valuation remains a notable headwind due to a high P/E.
Positive Factors
Water Infrastructure Profitability
High mid-50s gross margins and explicit 2026 growth targets signal a durable, high-margin business within the company. Sustained margin profile and strong segment growth can drive steady cash generation, fund infrastructure investment and improve consolidated profitability over multiple years.
Negative Factors
TTM Revenue & Earnings Weakness
An ~18% TTM revenue decline with near-breakeven net income and negative free cash flow signals weakening operating leverage. Persistent top-line pressure can impair margin recovery, slow deleveraging and constrain capacity to fund growth or absorb execution hiccups over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Water Infrastructure Profitability
High mid-50s gross margins and explicit 2026 growth targets signal a durable, high-margin business within the company. Sustained margin profile and strong segment growth can drive steady cash generation, fund infrastructure investment and improve consolidated profitability over multiple years.
Read all positive factors
Select Energy Services (WTTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend Yield2.62%
Average Volume (3M)2.06M
Price to Earnings (P/E)50.5
Beta (1Y)1.14
Revenue Growth-4.60%
EPS Growth-67.28%
CountryUS
Employees3,700
SectorEnergy
Sector Strength52
IndustryRegulated Water
Share Statistics
EPS (TTM)0.06
Shares Outstanding120,924,860
10 Day Avg. Volume1,855,343
30 Day Avg. Volume2,055,774
Financial Highlights & Ratios
PEG Ratio-1.57
Price to Book (P/B)1.33
Price to Sales (P/S)0.76
P/FCF Ratio-13.41
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue1.37
Enterprise Value/Gross Profit7.89
Enterprise Value/Ebitda8.52
Forecast
1Y Price Target
$17.33Price Target Upside14.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.4
Revenue Forecast (FY)$1.41B
Select Energy Services Business Overview & Revenue Model
Company Description
Select Water Solutions, Inc. engages in the provision of water management and chemical solutions. It operates through the following business segments: Water Infrastructure, Water Services, and Chemical Technologies. The Water Infrastructure segmen...
How the Company Makes Money
Select Energy Services generates revenue primarily by providing fee-based services and selling related products to oil and gas producers and E&P service operators. Key revenue streams generally include: (1) Water sourcing and transfer: charging cu...
Select Energy Services Key Performance Indicators (KPIs)
Select Energy Services Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive operational and financial momentum — record consolidated revenue and adjusted EBITDA, robust growth and high margins in Water Infrastructure and Chemical Technologies, volume milestones, long-term contracts, and promising diversification initiatives (lithium and beneficial reuse). Offsetting risks include near-term project timing slippages, significant 2026 capital expenditures that will consume cash until assets mature, regulatory/disposal constraints in the Northern Delaware Basin, and some revenue decline in Water Services driven by divestments. On balance, the positives (record results, high-margin infrastructure, clear growth guidance and long-term contracts) outweigh the near-term execution and capital intensity risks.Positive Updates
Record Annual Revenue and Adjusted EBITDA
Consolidated 2025 revenue of $1.4 billion and record adjusted EBITDA of $260 million; Q4 adjusted EBITDA of $64.2 million (above guidance of $60M–$64M) with Q1 2026 adjusted EBITDA guidance of $65M–$68M.
Negative Updates
Project Timing Slippage and Near‑Term Volume Variability
Late Q4 experienced modestly lighter-than-anticipated volume growth on fixed infrastructure due to customer schedule changes and right-of-way delays, creating temporary timing slippage that management expects to normalize in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue and Adjusted EBITDA
Consolidated 2025 revenue of $1.4 billion and record adjusted EBITDA of $260 million; Q4 adjusted EBITDA of $64.2 million (above guidance of $60M–$64M) with Q1 2026 adjusted EBITDA guidance of $65M–$68M.
Read all positive updates
Company Guidance
Select's guidance builds on a strong 2025 backdrop ($1.4B revenue, record $260M adjusted EBITDA, 330M+ barrels recycled in 2025 and >1 billion barrels recycled since 2021) and outlines specific near‑term and 2026 targets: Water Infrastructure is expected to grow 20%–25% year‑over‑year in 2026 (Q1 revenue and gross profit before D&A up 7%–10% vs. Q4’25) while maintaining roughly 54% gross margins; Water Services should hold relatively steady into Q1 with gross margin before D&A of 19%–21% (FY26 revenues down YoY largely due to divestments—>80% of the decline); Chemical Technologies is expected to deliver similar full‑year revenue in 2026 with 19%–20% gross margins (Q1 revenue in the high $70s–$80M range); consolidated adjusted EBITDA is guided to $65M–$68M for Q1 (Q4’25 was $64.2M, above prior $60M–$64M guidance). Financial and cash‑flow items include 2026 net CapEx of $175M–$225M (after $10M–$15M asset sales) with ~$50M–$60M of maintenance spend, Q1 D&A of $46M–$50M (trending to low‑$50Ms over 2026), interest expense of $5M–$7M/quarter, cash tax payments of $5M–$10M in 2026, and a targeted 5%–10% YoY reduction in SG&A (below 11% of revenue for FY26); operationally the company added 55,000 bpd of disposal capacity in Q4, executed multiple MVCs adding nearly 1M dedicated acres with an average contract term of 11 years, and remains on track to grow Water Infrastructure to >60% of consolidated gross profit within 24 months.Select Energy Services Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
61
Positive
Cash Flow
47
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.41B | 1.45B | 1.59B | 1.39B | 764.62M |
| Gross Profit | 197.08M | 219.47M | 231.66M | 160.75M | 20.86M |
| EBITDA | 210.26M | 211.02M | 165.29M | 174.03M | 44.30M |
| Net Income | 21.22M | 30.64M | 74.40M | 48.28M | -42.23M |
Balance Sheet | |||||
| Total Assets | 1.60B | 1.37B | 1.22B | 1.22B | 950.19M |
| Cash, Cash Equivalents and Short-Term Investments | 18.08M | 19.98M | 57.08M | 7.32M | 85.80M |
| Total Debt | 374.26M | 132.74M | 53.55M | 80.16M | 67.31M |
| Total Liabilities | 668.54M | 450.75M | 326.02M | 339.13M | 255.02M |
| Stockholders Equity | 805.62M | 793.52M | 772.49M | 765.98M | 592.10M |
Cash Flow | |||||
| Free Cash Flow | -79.89M | 61.73M | 149.49M | -38.65M | -56.24M |
| Operating Cash Flow | 214.67M | 234.89M | 285.36M | 33.23M | -16.25M |
| Investing Cash Flow | -402.09M | -318.62M | -137.17M | -53.25M | -64.46M |
| Financing Cash Flow | 185.51M | 46.64M | -98.42M | -58.45M | -2.54M |
Select Energy Services Technical Analysis
Positive
15.18
Price Trends
13.55
Positive
12.14
Positive
10.82
Positive
Market Momentum
0.52
Positive
62.57
Neutral
54.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTTR, the sentiment is Positive. The current price of 15.18 is above the 20-day moving average (MA) of 14.62, above the 50-day MA of 13.55, and above the 200-day MA of 10.82, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 54.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTTR.
Select Energy Services Peers Comparison
UnderperformOutperform
Sector (65)
WTTR
Select Energy Services
15.18
7.04
86.56%
HTO
H2O America
59.18
9.60
19.35%
ARIS
Aris Mining
19.31
15.03
351.17%
Select Energy Services Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Select Water Solutions Completes Upsized Equity Offering
Positive
Feb 25, 2026
Select Water Solutions, Inc. completed an underwritten public offering of its Class A common stock, initially agreeing on February 19, 2026 to sell $175 million of shares through a syndicate led by J.P. Morgan Securities LLC and BofA Securities, I...
Business Operations and StrategyPrivate Placements and Financing
Select Energy Services Announces $175 Million Equity Offering
Positive
Feb 23, 2026
On February 19, 2026, Select Water Solutions announced it had priced an underwritten public offering of 13,725,491 shares of its Class A common stock at $12.75 per share, for gross proceeds of about $175 million and expected net proceeds of approx...
Business Operations and StrategyPrivate Placements and Financing
Select Energy Services Announces $175 Million Equity Offering
Positive
Feb 19, 2026
On February 19, 2026, Select Water Solutions, Inc. announced it has launched an underwritten public offering of $175 million of its Class A common stock, under an effective shelf registration statement. The company also expects to grant underwrite...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.