Select Water misses Q2 revenue estimates

Overview

• Select Water Solutions Q2 revenue misses analyst expectations,

• Adjusted EBITDA beats estimates, per LSEG data

• Co announces asset swap with OMNI, acquiring Bakken infrastructure assets

• Company evaluates strategic alternatives for Peak Rentals, exploring growth options

Outlook

• Select expects Q3 Water Infrastructure revenue to be flat-to-modestly down

• Company anticipates 10% growth in Water Infrastructure revenue in Q4 2025

• Select forecasts 20% year-over-year growth in Water Infrastructure for 2026

• Company expects Q3 Adjusted EBITDA to sequentially decline to $55-60 mln

Result Drivers

• WATER INFRASTRUCTURE GROWTH - Increased recycling and disposal volumes drove revenue and gross profit growth in Water Infrastructure segment

• ASSET SWAP - Transaction with OMNI expected to reduce Water Services revenue short-term but improve margins over time

• PERMIAN EXPANSION - New long-term contracts in Permian Basin backed by significant acreage dedications

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Select Water Solutions Inc is $15.00, about 39.9% above its August 4 closing price of $9.02

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn8twVSha