Select Water Solutions, Inc. (NYSE: WTTR) has priced a $175 million public offering of Class A common stock at $12.75 per share, with proceeds intended for general corporate purposes. This includes funding water infrastructure projects, potential acquisitions, or debt repayment. The offering involves 13,725,491 shares and is expected to close on February 23, 2026, subject to customary conditions. This financial strategy could support the company's growth and stability in the competitive energy sector. North ...

Core Viewpoint - Select Water Solutions, Inc. has announced the pricing of a public offering of 13,725,491 shares of its Class A common stock at a price of $12.75 per share, with the intention to use the net proceeds for general corporate purposes, including water infrastructure projects, potential acquisitions, or debt repayment [1] Group 1: Offering Details - The public offering consists of 13,725,491 shares of Class A common stock priced at $12.75 per share [1] - The company has granted underwriters a 30-day option to purchase up to 2,058,824 additional shares at the public offering price [1] - The offering is expected to close on February 23, 2026, subject to customary closing conditions [1] Group 2: Use of Proceeds - Net proceeds from the offering will be used for general corporate purposes, including water infrastructure growth capital projects, potential acquisitions, or debt repayment under the sustainability-linked credit facility [1] Group 3: Underwriters - J.P. Morgan and BofA Securities are the lead book-running managers for the offering, with Citigroup, Piper Sandler, and Raymond James serving as joint book-running managers [1] - Additional co-managers include Johnson Rice & Company, MUFG, Northland Capital Markets, Roth Capital Partners, Seaport Global Securities, and Texas Capital Securities [1] Group 4: Company Overview - Select Water Solutions is a leading provider of sustainable water and chemical solutions to the energy industry, supported by critical water infrastructure assets, chemical manufacturing, and water treatment and recycling capabilities [1]

Core Viewpoint - Select Water Solutions, Inc. has announced a public offering of $175.0 million of its Class A common stock to support general corporate purposes, including water infrastructure growth, potential acquisitions, and debt repayment [1] Group 1: Offering Details - The public offering is for $175.0 million of Class A common stock, with a par value of $0.01 per share [1] - The company plans to grant underwriters a 30-day option to purchase up to $26.25 million of additional shares at the public offering price [1] - J.P. Morgan Securities LLC and BofA Securities are the lead book-running managers for the offering [1] Group 2: Use of Proceeds - Net proceeds from the offering will be used for general corporate purposes, including water infrastructure growth capital projects, potential acquisitions, or debt repayment under the sustainability-linked credit facility [1] Group 3: Regulatory and Market Conditions - The offering is subject to market and other conditions, with no assurance on the completion or terms of the offering [1] - The offering is being conducted under an effective shelf registration statement filed with the SEC [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38066 Select Water Solutions, Inc. (Exact name of registrant as specified in its charter) Delaware 81-4561945 (Stat ...

Financial Data and Key Metrics Changes - In 2025, the company generated $1.4 billion in consolidated revenue, with a record adjusted EBITDA of $260 million, despite a challenging macro environment [17][25] - The company improved consolidated margins and achieved a gross profit margin of 54% in Q4 2025 [18][22] - Adjusted EBITDA for Q4 2025 was $64.2 million, exceeding guidance [25] Business Line Data and Key Metrics Changes - The Water Infrastructure segment saw revenue growth of over 800% over five years, becoming the largest segment by profitability [8] - The Chemical Technology segment achieved 19% year-over-year revenue growth and 45% growth in gross profit before depreciation and amortization [13][24] - The Water Services segment maintained market-leading positions and achieved 7% revenue growth in Q4 2025 [20][23] Market Data and Key Metrics Changes - The company anticipates a steady commodity price environment in 2026, with oil prices expected to remain between $55-$65 [17] - The company expects 20%-25% year-over-year growth in the Water Infrastructure segment for 2026 [9][21] Company Strategy and Development Direction - The company is focusing on expanding its water infrastructure in the Northern Delaware Basin, which is characterized by productive geology and low breakevens [9][10] - Strategic investments are being made in long-term diversification efforts, including beneficial reuse and mineral extraction [7][12] - The company aims to grow its water infrastructure to account for over 60% of consolidated gross profit in the next 24 months [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for 2026, supported by ongoing infrastructure projects and market demand [16][30] - The company is well-positioned to generate healthy and durable free cash flows over the long term, with a focus on capital allocation for growth and shareholder returns [30] Other Important Information - The company is exploring additional opportunities in lithium extraction and other high-margin revenue streams [44][45] - The Peak Rentals business is under strategic evaluation to maximize value for shareholders while supporting core water infrastructure growth [15][50] Q&A Session Summary Question: Expansion opportunities in Northern Delaware - Management noted a mix of smaller opportunities and some larger projects in the Northern Delaware, with a focus on leveraging the existing system for attractive returns [32][34] Question: Future growth for infrastructure business - Management indicated ongoing expansion in Lea and Eddy County, with potential for growth into other basins [37] Question: Lithium extraction partnerships - Management confirmed ongoing evaluations for additional high-margin opportunities, including iodine and strontium extraction [44][45] Question: Update on Peak Rentals business - Management is strategically engaging around Peak Rentals to ensure positive outcomes for both Peak and Select [46][50] Question: Beneficial reuse pilots - Management highlighted successful pilots in collaboration with operators and universities, focusing on treated produced water for agricultural applications [53][56]

Financial Data and Key Metrics Changes - In 2025, the company generated $1.4 billion in consolidated revenue, with a record Adjusted EBITDA of $260 million, despite a challenging macro environment [17][25] - The company improved consolidated margins and achieved a gross profit margin of 54% in the fourth quarter [18][22] - Adjusted EBITDA for the fourth quarter was $64.2 million, exceeding guidance [25] Business Line Data and Key Metrics Changes - The Water Infrastructure segment saw revenue growth of over 800% over five years, becoming the largest segment by profitability [8] - The Chemical Technology segment achieved 19% year-over-year revenue growth and 45% growth in gross profit before depreciation and amortization [13][24] - The Water Services segment maintained market-leading positions and achieved 7% revenue growth in the fourth quarter [20][22] Market Data and Key Metrics Changes - The company anticipates a steady commodity price environment in 2026, with oil prices expected to remain between $55-$65 [17] - The company expects 20%-25% year-over-year growth in the Water Infrastructure segment for 2026 [9][21] Company Strategy and Development Direction - The company is focusing on expanding its water infrastructure in the Northern Delaware Basin, which is characterized by productive geology and low breakevens [9][10] - Strategic investments are being made in long-term diversification efforts, including beneficial reuse and mineral extraction [7][12] - The company aims to grow its water infrastructure to represent over 60% of consolidated gross profit in the next 24 months [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for 2026, supported by ongoing construction projects and customer demand [16][21] - The company is well-positioned to benefit from market-leading positions in key gas basins and anticipates stable activity levels [17][18] Other Important Information - The company is targeting a reduction in SG&A expenses to below 11% of revenue for the full year 2026 [25] - Capital expenditures for 2026 are expected to be between $175 million and $225 million, with a focus on water infrastructure growth [27][28] Q&A Session Summary Question: Expansion opportunities in Northern Delaware - Management noted that smaller opportunities are more prevalent as the system matures, with some larger projects still being pursued [32][34] Question: Long-term growth opportunities beyond Northern Delaware - Management indicated potential expansion into other basins, including Winkler County, and emphasized the unique opportunities in Lea and Eddy County [35][37] Question: Lithium extraction partnerships and other high-margin opportunities - Management confirmed ongoing evaluations of additional high-margin revenue streams, including iodine and strontium extraction [42][44] Question: Update on Peak Rentals business - Management is strategically engaging around Peak Rentals to ensure positive outcomes for both Peak and Select [46][50] Question: Beneficial reuse pilots - Management highlighted successful pilots in collaboration with operators and universities, focusing on treated produced water applications [53][56]

Financial Data and Key Metrics Changes - In 2025, the company generated $1.4 billion in consolidated revenue, with a record adjusted EBITDA of $260 million, despite a challenging macro environment [15][22] - The company achieved a consolidated gross profit margin improvement, with the Water Infrastructure segment gross profit before D&A increasing by 5% in Q4 2025, reaching 54% [16][19] - Adjusted EBITDA for Q4 2025 was $64.2 million, exceeding guidance of $60 million-$64 million [22] Business Line Data and Key Metrics Changes - The Water Infrastructure segment grew recycled produced water volumes by 18%, totaling over 330 million barrels in 2025, contributing to over 800% revenue growth over five years [6][19] - The Chemical Technology segment achieved 19% year-over-year revenue growth and 45% growth in gross profit before D&A in 2025 [12][20] - The Water Services segment maintained market-leading positions and saw a 7% revenue growth in Q4 2025, driven by a 77% sequential uplift in Water Transfer revenues in New Mexico [18][20] Market Data and Key Metrics Changes - The company anticipates a steady commodity price environment in 2026, with oil prices expected to remain in the $55-$65 range [15][16] - The company is well-positioned to benefit from potential upside in the natural gas market, particularly in key gas basins [16] Company Strategy and Development Direction - The company is focusing on expanding its water infrastructure in the Northern Delaware Basin, which is characterized by productive geology and low breakeven costs [8][9] - Strategic investments are being made in long-term diversification efforts across municipal and industrial spaces, including beneficial reuse and mineral extraction technologies [5][11] - The company aims to grow its water infrastructure to account for over 60% of consolidated gross profit within the next 24 months, targeting 20%-25% year-over-year growth in 2026 [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong demand for water infrastructure solutions and the successful integration of new assets [10][14] - The company is focused on enhancing operational efficiencies and reducing costs, with a target to decrease SG&A expenses below 11% of revenue in 2026 [22][24] - Management highlighted the importance of leveraging existing infrastructure to generate incremental cash flow and high-margin royalty streams [11][27] Other Important Information - The company is entering 2026 with a capital expenditure plan of $175 million-$225 million, with a focus on infrastructure growth and maintenance spending [24][25] - The company has multiple ongoing construction projects and anticipates a heavier CapEx weighting in the first half of 2026 [25][26] Q&A Session Summary Question: Expansion opportunities in Northern Delaware - Management noted a shift towards smaller opportunities as the system matures, with a focus on leveraging the existing infrastructure for attractive returns [30][31] Question: Long-term growth opportunities beyond Northern Delaware - Management indicated plans to explore expansion into other regions, including Winkler County and potentially the Central Basin Platform [33] Question: Lithium extraction partnerships and other high-margin opportunities - Management confirmed ongoing evaluations of additional high-margin revenue streams, including potential iodine and strontium extraction projects [41][42] Question: Update on Peak Rentals business - Management is strategically engaging around Peak Rentals to ensure positive outcomes for both Peak and Select, while exploring opportunities in power generation [43][48] Question: Beneficial reuse pilots and their success - Management discussed successful pilots involving treated produced water, emphasizing the importance of proving water quality and informing regulatory efforts [51][54] Question: Macro environment impact on growth opportunities - Management anticipates a maturation phase in New Mexico, with potential for increased capital allocation and free cash flow generation in the coming years [62]

Core Insights - Select Water Solutions, Inc. reported revenue of $346.5 million for the quarter ended December 2025, reflecting a slight decline of 0.7% year-over-year, while EPS improved to $0 from -$0.01 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $320.81 million by 8.01%, although the EPS fell short of the consensus estimate of $0.01, resulting in a 100% EPS surprise [1] Financial Performance - Revenue from Chemical Technologies was $86.97 million, surpassing the average estimate of $75.19 million, marking a significant year-over-year increase of 38.2% [4] - Water Services generated revenue of $178.34 million, exceeding the estimated $156.36 million but showing a decline of 14.8% compared to the same quarter last year [4] - Revenue from Water Infrastructure was reported at $81.19 million, slightly below the estimated $88 million, but showed a year-over-year increase of 5.7% [4] Profitability Metrics - Gross Profit before D&A for Water Services was $34.94 million, exceeding the average estimate of $30.2 million [4] - Gross Profit before D&A for Chemical Technologies was $17.66 million, higher than the estimated $14.3 million [4] - Gross Profit before D&A for Water Infrastructure was $43.92 million, which fell short of the average estimate of $46.67 million [4] Stock Performance - Shares of Select Water Solutions, Inc. have increased by 8.5% over the past month, contrasting with a -1.4% change in the Zacks S&P 500 composite [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Select Water Solutions, Inc. reported break-even quarterly earnings per share, which was below the Zacks Consensus Estimate of $0.01, compared to a loss of $0.01 per share a year ago, indicating a significant earnings surprise of -100.00% [1] Financial Performance - The company posted revenues of $346.5 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 8.01%, although this represents a slight decline from year-ago revenues of $349.05 million [2] - Over the last four quarters, Select Water Solutions has surpassed consensus revenue estimates three times [2] Stock Performance - Shares of Select Water Solutions have increased approximately 21.9% since the beginning of the year, contrasting with a 0.1% decline in the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $326.58 million, and for the current fiscal year, it is $0.26 on revenues of $1.35 billion [7] - The estimate revisions trend prior to the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Waste Removal Services industry, to which Select Water Solutions belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Performance - Full year 2025 consolidated revenue was $1.4 billion, with fourth quarter revenue of $347 million, representing a decrease from $1.5 billion in 2024[12]. - Full year net income for 2025 was $21 million, down from $35.5 million in 2024, while Adjusted EBITDA increased to $260 million from $258.4 million[15]. - Total revenue for Q4 2025 was $346.5 million, a 7.5% increase from $322.2 million in Q3 2025 and a slight decrease from $349.0 million in Q4 2024[41]. - Gross profit for Q4 2025 was $45.3 million, compared to $43.6 million in Q3 2025 and $44.2 million in Q4 2024, indicating a stable gross margin[41]. - Net loss attributable to Select Water Solutions, Inc. for Q4 2025 was $0.35 million, a decrease from a net income of $2.68 million in Q3 2025 and a loss of $1.64 million in Q4 2024[41]. - Total assets increased to $1.60 billion in 2025 from $1.37 billion in 2024, reflecting a growth of 16.7%[43]. - Long-term debt rose significantly to $285.0 million in 2025 from $85.0 million in 2024, indicating increased leverage[43]. - Total liabilities increased to $668.5 million in 2025 from $450.7 million in 2024, indicating a rise in financial obligations[43]. Segment Performance - Water Infrastructure segment revenues for 2025 were $313 million, up 8% year-over-year, while Chemical Technologies revenues reached $308 million, up 19% year-over-year[1]. - The Water Services segment generated revenues of $178.3 million in Q4 2025, a 7% sequential increase, driven by temporary water transfer volumes[22]. - The Chemical Technologies segment achieved record quarterly revenues of $87 million in Q4 2025, with gross margins before D&A at 20.3%[23]. - Select Water Solutions, Inc. plans to focus on expanding its Water Services segment, which generated $178.3 million in revenue for Q4 2025, up from $166.9 million in Q3 2025[41]. Cash Flow and Investments - Cash flow from operations for 2025 was $214.7 million, down from $234.9 million in 2024, with Q4 cash flow at $65.5 million[24]. - Net capital expenditures for 2025 were $279.3 million, significantly higher than $157.3 million in 2024, indicating aggressive investment in infrastructure[25]. - Cash used in investing activities totaled $71,256 million, compared to $126,212 million in the prior quarter[45]. - The company experienced a net cash outflow of $404,962 million from investing activities for the year, compared to $318,623 million in the previous year[45]. Liquidity and Borrowings - Total cash and cash equivalents decreased to $18.1 million as of December 31, 2025, from $20.0 million as of December 31, 2024[29]. - Total borrowings under the sustainability-linked credit facility increased to $320 million as of December 31, 2025, compared to $85 million as of December 31, 2024[29]. - Total liquidity improved to $163.6 million as of December 31, 2025, up from $134.8 million as of December 31, 2024[31]. - The borrowing base under the sustainability-linked credit facility increased to $235.1 million as of December 31, 2025, from $218.8 million in the prior year[30]. - Available borrowing capacity under the sustainability-linked credit facility rose to approximately $145.5 million as of December 31, 2025, compared to $114.8 million in the previous year[30]. Operational Developments - The company achieved over one billion barrels of cumulative produced water recycled, contributing to over 800% revenue growth in the Water Infrastructure segment since 2021[2]. - The company executed new long-term contracts expected to add 14 miles of pipeline, 3.5 million barrels of storage, and 55,000 barrels per day of disposal capacity by the end of Q2 2026[32]. - Select signed 10- and 7-year produced water handling agreements, including the construction of eight miles of pipeline and two million barrels of storage capacity, expected to be operational by the end of Q2 2026[33]. - A disposal permit acquisition added 30,000 barrels per day of disposal capacity and 1.5 million barrels of storage capacity to the Northern Delaware network[34]. - The company acquired disposal facilities in Winkler County, TX, adding 25,000 barrels per day of disposal capacity to support infrastructure growth[35]. - A 15-year agreement was signed to construct produced water gathering pipeline infrastructure, supported by a 9.6-million-barrel minimum volume commitment[36]. Changes in Accounts and Expenses - Accounts receivable decreased to $264.0 million in 2025 from $281.6 million in 2024, suggesting improved collection or reduced sales[43]. - Total equity-based compensation for the year was $19,875 million, down from $26,358 million in the previous year[45]. - Interest expense for the three months ended September 30, 2025, was $6,697 thousand, compared to $5,963 thousand in the same period of 2024, an increase of 12.3%[50]. - Depreciation, amortization, and accretion increased to $52,358 million from $44,888 million in the prior quarter[45].