Revenue grew 8.7% year-over-year to $395.8M in 2026Q2 with operating margin expanding to 8.7%, but this follows a 13.2% revenue decline in 2025Q3 and net income swings from -$1.6M to $21.0M over ten quarters, underscoring cyclicality rather than stable earnings power.
Select Water Solutions, Inc. (WTTR) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Revenue | 1.43B | 1.41B | 1.45B | 1.59B | 1.39B | 764.62M | 605.11M | 1.29B | 1.53B | 692.49M | 302.4M | 535.58M |
| Revenue Growth % | -1.95% | -3.08% | -8.41% | 14.27% | 81.45% | 26.36% | -53.15% | -15.52% | 120.79% | 129% | -43.54% | - |
| Cost of Revenue | 1.16B | 1.21B | 1.23B | 1.35B | 1.23B | 743.76M | 634.37M | 1.14B | 1.33B | 634.71M | 346.53M | 523.33M |
| Gross Profit | 272.29M | 197.08M | 219.47M | 231.66M | 160.75M | 20.86M | -29.27M | 148.74M | 198.48M | 57.78M | -44.13M | 12.24M |
| Gross Margin % | 19.03% | 14% | 15.11% | 14.61% | 11.59% | 2.73% | -4.84% | 11.52% | 12.98% | 8.34% | -14.59% | 2.29% |
| Gross Profit Growth % | - | -10.2% | -5.26% | 44.11% | 670.64% | 171.28% | -119.68% | -25.06% | 243.51% | 230.94% | -460.38% | - |
| Operating Expenses | 214.9M | 161.32M | 164.98M | 170.47M | 121.59M | 86.4M | 365.51M | 125.67M | 106.33M | 84.21M | 36.73M | 59.65M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 249.93M | 210.26M | 209.18M | 201.27M | 153.76M | 26.71M | -293.11M | 143.74M | 195.39M | 73.45M | -201.87M | 38.94M |
| EBITDA Margin % | 17.47% | 14.94% | 14.41% | 12.7% | 11.08% | 3.49% | -48.44% | 11.13% | 12.78% | 10.61% | -66.75% | 7.27% |
| EBITDA Growth % | 14.93% | 0.52% | 3.93% | 30.89% | 475.68% | 109.11% | -303.91% | -26.43% | 166.01% | 136.39% | -618.42% | - |
| Depreciation & Amortization | 192.54M | 174.5M | 154.69M | 140.08M | 114.6M | 92.25M | 101.67M | 120.67M | 133.71M | 103.45M | 97.11M | 107.71M |
| D&A / Revenue % | 13.46% | 12.4% | 10.65% | 8.84% | 8.26% | 12.06% | 16.8% | 9.34% | 8.75% | 14.94% | 32.11% | 20.11% |
| Operating Income (EBIT) | 57.38M | 35.76M | 54.49M | 61.19M | 39.16M | -65.54M | -394.78M | 23.07M | 61.67M | -30M | -298.97M | -68.77M |
| Operating Margin % | 4.01% | 2.54% | 3.75% | 3.86% | 2.82% | -8.57% | -65.24% | 1.79% | 4.03% | -4.33% | -98.87% | -12.84% |
| Operating Income Growth % | - | -34.37% | -10.95% | 56.25% | 159.75% | 83.4% | -1810.92% | -62.59% | 305.59% | 89.97% | -334.72% | - |
| Interest Expense | 2M | 23.18M | 6.96M | 4.39M | 2.7M | 1.71M | 2.14M | 2.69M | 5.31M | 6.63M | 16.13M | 13.69M |
| Interest Coverage | - | 1.86x | 8.09x | 5.74x | 22.01x | -28.02x | -187.77x | 3.26x | 17.58x | -4.43x | -18.50x | -4.96x |
| Interest / Revenue % | 0.14% | 1.65% | 0.48% | 0.28% | 0.19% | 0.22% | 0.35% | 0.21% | 0.35% | 0.96% | 5.33% | 2.56% |
| Non-Operating Income | -2M | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | 32.57M | 19.86M | 49.02M | 19.02M | 55.81M | -49.94M | -403.21M | 6.08M | 56M | -35.98M | -314.47M | -81.57M |
| Pretax Margin % | 2.28% | 1.41% | 3.38% | 1.2% | 4.02% | -6.53% | -66.63% | 0.47% | 3.66% | -5.2% | -103.99% | -15.23% |
| Income Tax | -230K | -1.61M | 13.57M | -60.2M | 957K | 147K | -1.48M | 1.95M | 1.7M | -851K | -524K | 324K |
| Effective Tax Rate % | -0.71% | -8.1% | 27.68% | -316.44% | 1.71% | -0.29% | 0.37% | 32.03% | 3.04% | 2.37% | 0.17% | -0.4% |
| Net Income | 31.98M | 21.22M | 30.64M | 74.4M | 48.28M | -42.23M | -338.68M | 2.78M | 36.51M | -16.82M | -1.04M | -81.89M |
| Net Margin % | 2.24% | 1.51% | 2.11% | 4.69% | 3.48% | -5.52% | -55.97% | 0.22% | 2.39% | -2.43% | -0.34% | -15.29% |
| Net Income Growth % | -3.21% | -30.74% | -58.81% | 54.11% | 214.34% | 87.53% | -12265.37% | -92.38% | 317.13% | -1512.27% | 98.73% | - |
| EPS (Diluted) | 0.23 | 0.20 | 0.30 | 0.72 | 0.50 | -0.48 | -3.98 | 0.03 | 0.49 | -0.23 | -0.02 | -2.13 |
| EPS Growth % | -13.26% | -33.33% | -58.33% | 44% | 204.17% | 87.94% | -13366.67% | -93.88% | 313.04% | -1184.92% | 99.16% | - |
| EPS (Basic) | - | 0.21 | 0.31 | 0.73 | 0.51 | -0.48 | -3.98 | 0.03 | 0.49 | -0.23 | -0.02 | -2.13 |
| Diluted Shares Outstanding | 138.17M | 103.78M | 102.15M | 103.34M | 96.56M | 87.97M | 85.1M | 92.8M | 74.25M | 71.72M | 58.37M | 38.46M |
Quick answers to the most common questions about buying WTTR stock.
For fiscal year 2025, Select Water Solutions, Inc. (WTTR) reported total revenue of $1.41B. This represents a 162.8% increase compared to $535.6M in 2015.
Select Water Solutions, Inc. (WTTR) is profitable, generating $21.2M in net income for the fiscal year ending 2025 with a net profit margin of 1.5%.
Select Water Solutions, Inc. (WTTR) reported an operating income of $35.8M, resulting in an operating profit margin of 2.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Select Water Solutions, Inc. (WTTR) generated $197.1M in gross profit for the year, representing a gross profit margin of 14.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cyclical demand and margin volatility
Metrics are mathematically derived from official filings.
Revenue Recovery Amidst Volatile Activity
According to quarterly filings, WTTR's revenue rose 8.7% year-over-year in 2026Q2 to $395.8M, yet 2025Q3 saw a 13.2% decline, indicating demand cyclicality rather than steady rate base growth.
The revenue trajectory is highly volatile, swinging from a 13.2% contraction in 2025Q3 to an 8.7% expansion in 2026Q2. This pattern suggests that revenue is driven by oilfield activity levels and water logistics demand, not by regulated rate base additions. The absence of a decoupling mechanism or formula rate plan means revenue is directly exposed to commodity-driven activity, making the recovery trajectory dependent on upstream spending rather than regulatory outcomes.
Margins Reflect Cyclicality, Not Regulation
Operating margin swung from -0.5% in 2025Q3 to 8.7% in 2026Q2, per income statements, indicating that WTTR's profitability is tied to utilization and pricing power, not authorized returns.
Unlike a regulated utility, WTTR's operating margin is not anchored to an authorized ROE. The wide fluctuation—from negative in 2025Q3 to 8.7% in 2026Q2—reflects the cyclical nature of water services in the energy sector. The 2026Q2 margin improvement suggests better cost absorption or higher pricing, but this is not a regulatory construct; it is market-driven. Investors should monitor whether this margin expansion is sustainable or merely a cyclical peak.
Cost Pressures and Recovery Mechanisms
As reported in financial statements, D&A rose from $37.9M in 2024Q1 to $48.4M in 2026Q2, while operating income improved, suggesting that cost recovery is not automatic but dependent on operational efficiency.
WTTR's cost structure is dominated by operating expenses and D&A, which have increased as the company invests in water infrastructure. Unlike a utility with fuel pass-through mechanisms, WTTR must recover these costs through market pricing. The 2026Q2 operating margin of 8.7% indicates that the company is currently covering its costs, but the negative margin in 2025Q3 shows that cost recovery is not guaranteed. The rising D&A suggests a growing asset base that may not always be fully utilized, posing a risk to future margins if demand softens.
Earnings Quality Clouded by Volatility
Based on reported figures, net income swung from -$1.6M in 2024Q4 to $21.0M in 2026Q2, with EPS growth of 70% in 2026Q2, but this is not steady regulated earnings power.
The earnings pattern is highly erratic, with losses in some quarters and strong profits in others. This volatility suggests that reported earnings are not a reliable indicator of durable earnings power. The 2026Q2 EPS of $0.17 is a significant improvement, but it follows a period of near-zero or negative earnings. The absence of weather normalization or regulatory smoothing means that earnings are directly exposed to cyclical swings in oil and gas activity. Investors should adjust for this volatility when assessing the company's intrinsic value.
CAPEX and Rate Base: A Different Dynamic
D&A increased by 27.7% from 2024Q1 to 2026Q2, per income statements, but revenue growth has been inconsistent, suggesting that capital spending is not yet translating into stable earnings growth.
WTTR's rising D&A indicates significant capital investment, likely in water infrastructure and equipment. However, unlike a utility where CAPEX expands rate base and generates predictable returns, WTTR's investments are subject to market utilization. The revenue growth in 2026Q2 suggests some payoff, but the prior declines indicate that the asset base may be underutilized during downturns. The lack of a direct link between CAPEX and EPS growth—evidenced by the volatile EPS—implies that the investment cycle is not a reliable driver of shareholder returns.
Cyclicality Undermines Stability Narrative
The strongest challenge to WTTR's income statement is its extreme earnings volatility, with net income ranging from -$1.6M to $21.0M over ten quarters, per SEC filings, questioning the sustainability of recent improvements.
While 2026Q2 shows strong growth, the historical pattern reveals deep cyclicality. The 2025Q3 operating loss and 2024Q4 net loss highlight that the company is not insulated from downturns. The recent improvement may be driven by a temporary uptick in oilfield activity, not by structural changes. If commodity prices fall, margins could compress again, as seen in 2025. Investors should not extrapolate the 2026Q2 performance as a new norm; instead, they should consider the cyclicality as a core risk. The lack of regulatory protection means WTTR's earnings are fully exposed to market forces.