Overview

* Select Water Solutions ( WTTR ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $364.20 $365.40

Revenue mln mln (5

Analysts

)

Q2 Net $11.70

Income mln

Q2 Beat $72.60 $68.70

Adjusted mln mln (6

EBITDA Analysts

)

Q2 Gross 15.9%

Margin

Q2 27.1%

Adjusted

Gross

Margin

Q2 Gross $57.80

Profit mln

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 ( WTTR ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)