On this page of StockholderLetter.com we present the latest annual shareholder letter from Select Water Solutions, Inc. — ticker symbol WTTR. Reading current and past WTTR letters to shareholders can bring important insights into the investment thesis.
Annual Report 2025
Financial & Operational Highlights Select Water Solutions, Inc. ( Select or the Company ) is the clear market leader in full-life cycle water solutions for the energy industry, supported by the Company s critical water infrastructure assets, chemical manufacturing and water treatment and recycling technologies. 18% YoY Recycled Water Volumes 332 Million Barrels Adjusted EBITDA 1% YoY 1 260 Million 8% YoY Water Infrastructure Revenue 313 Million Gross Margin 4% YoY 1 Before D&A 26.8 19% YoY Chemical Technologies Revenue 308 Million Water Infrastructure Water Sustainability Organic & M&A Growth Select has the largest produced water recycling and infrastructure platform in the industry and proprietary automation technology to reduce spills and provide water balancing to customers More than 1 billion barrels of produced water recycled since 2021, significantly reducing the need for fresh water for our customers Select has a proven strategy of valueaccretive, M&A with more than 30 acquisitions since 2021 and has achieved organic growth through our fixed long-term infrastructure footprint (1) Adjusted EBITDA and Gross Margin before D&A are non-GAAP financial measures. For a reconciliation of non-GAAP financial measures, see Item 7, Management s Discussion and Analysis of Financial Condition and Results of Operations Comparison of Non-GAAP Financial Measures in our Annual Report on Form 10-K included in this annual report to shareholders or visit our website at www.selectwater.com.
A Letter to Stockholders March 17, 2026 I am pleased to update you on Select Water Solution s recent performance, following a record setting 2025, as well as our outlook for the future ahead. We continued to execute our long-term strategy, strengthened our infrastructureled business model, and invested in growth initiatives that we believe will drive sustainable value creation in the years ahead. I want to thank our employees, many of whom are also stockholders, for their hard work and commitment to safety and operational excellence. Their efforts, together with the support and trust of our customers, made 2025 a year of meaningful progress for Select. In 2025, we improved our consolidated margins, streamlined our Water Services segment, and drove significant market share gains in our Chemical Technologies segment, all while making substantial progress on our core Water Infrastructure growth strategy. We also advanced our diversification initiatives in municipal and industrial markets and continued to build out our technology capabilities in beneficial reuse and mineral extraction. These efforts position Select as a differentiated, recycling-first water infrastructure provider with growing exposure to long-term, contract-backed cash flows. Highlighting our 2025 performance and strategic progress: Water Infrastructure revenue and gross profit increased meaningfully again year-over-year, with the segment having grown from our smallest business to our largest by profitability, supported by more than 800% Water Infrastructure revenue growth over the past five years. Achieved record consolidated Adjusted EBITDA of approximately $260 million for 2025.1 Generated $214.7 million in cash flow from operating activities in 2025, enabling strategic investments in key growth areas and stockholder value initiatives. Recycled more than 330 million barrels of produced water during 2025 and reached a cumulative milestone of 1 billion barrels recycled since the beginning of 2021. Executed multiple new minimum volume commitments and added nearly 1 million acres of new dedicated and right-of-first-refusal acreage in 2025 across an average contract term of 11 years. Completed strategic infrastructure-focused bolt-on asset acquisitions and customer asset conveyances in 2025 (including new recycling, storage and disposal assets), adding capacity and scale in our core Northern Delaware footprint and other key basins. Returned $41.0 million to stockholders through dividends and share repurchases, and maintained our commitment to an attractive, sustainable stockholder return profile. Our Water Infrastructure segment remains the centerpiece of our strategy, transforming Select into a more durable growthoriented infrastructure franchise. During 2025, we grew recycled volumes by 18%, driving continued year-over-year growth for the Water Infrastructure segment and expanding the segment to our largest by profitability, underscoring its vital contribution to our long-term growth trajectory. Near-term, we remain focused on the expansion of our differentiated Northern Delaware Basin infrastructure network. This area combines some of the most productive wells and lowest development costs in the industry with some of the most complex water management challenges alongside evolving regulatory requirements. Our recyclingfirst water network in the Northern Delaware Basin gathers hundreds of thousands of barrels per day through regional hubs and pipeline systems that help match water supply and demand across a wide geographic area. In 2025, we supplemented our organic build-out with customer asset conveyances and targeted acquisitions, adding recycling, storage and disposal capacity in Eddy and Lea County, New Mexico. These assets, together with our construction backlog, support our expectation for continued year-overyear revenue growth in Water Infrastructure in 2026. Beyond New Mexico, we are applying the same disciplined infrastructure approach across other basins where we have strong customer relationships and attractive geology. We maintain leading disposal positions in the Haynesville and Marcellus and see emerging opportunities as natural gas markets improve. We are also advancing projects in other parts of the Permian, including Winkler County and the Central Basin Platform, where we can extend our system and
connect to existing infrastructure to create highly accretive expansion opportunities. Our Chemical Technologies and Water Services segments also remain central to our success. In 2025, Chemical Technologies delivered another strong year, with 19% revenue growth and 45% growth in gross profit before depreciation and amortization1 relative to 2024, driven by our chemical product enhancements and increased demand for our highest quality friction reducers and advanced surfactant product offerings. The business exited the year with record fourth-quarter revenue of $87 million and 20% gross margin before depreciation and amortization1 and continues to drive strong cash conversion from its profitability. In Water Services, 2025 was a year of disciplined simplification and margin enhancement. We streamlined our offerings while maintaining market-leading positions, growing fourthquarter revenue 7% sequentially and improved gross margin before depreciation and amortization to 20%1 following the completion of our asset divestments during the third quarter of 2025. We continue to focus on how we can further integrate our service offerings into the scope of our long-term contracts and improve the margin profile of the segment over time. free cash flows and to enhance through-cycle stability. This will provide us with substantial flexibility in future capital allocation, including additional growth investments, further diversification, and potential enhancements to our stockholder return framework. In closing, I am proud of what our team accomplished in 2025 and am confident in our path forward. We are building a premier, recycling-first water infrastructure platform supported by market-leading Water Services and Chemical Technologies capabilities and enhanced by emerging mineral extraction and beneficial reuse opportunities. Our growing long-term contract base, disciplined capital allocation, and strong balance sheet provide a solid foundation for continued growth and value creation. On behalf of our Board of Directors and management team, thank you for your continued support and confidence in Select Water Solutions. Sincerely, John D. Schmitz Chairman, President & Chief Executive Officer Innovation and diversification remained important priorities and during 2025, we advanced mineral extraction partnerships and beneficial reuse technologies that can create new, highmargin royalty revenue from water we already handle, with limited additional investment. We announced strategic partnerships for produced water lithium extraction in both the Haynesville and Permian regions, which we expect to begin contributing initial royalty revenue by early 2027. During 2025, we also completed multiple beneficial reuse pilots, including projects that treated produced water for land application and crop growth near one of our facilities. These efforts demonstrate the technical feasibility of largescale reuse and provide a fact-based foundation that can help shape future standards and market objectives. Overall, our capital allocation remains disciplined and aligned with our long-term strategic priorities. In 2025, we invested $279 million of net capital expenditures, primarily to fund Water Infrastructure projects and related pipeline expansions in response to strong customer demand, and have a strong pipeline of active construction projects and potential expansion opportunities that will support further growth into 2026 and beyond. We enter 2026 with strong momentum and as our contracted Water Infrastructure buildout continues and our cost rationalization efforts materialize, we believe we are well-positioned to deliver healthy, durable (1) Adjusted EBITDA, Gross Profit before D&A, and Gross Margin before D&A are non-GAAP financial measures. For a reconciliation of non-GAAP financial measures, see Item 7, Management s Discussion and Analysis of Financial Condition and Results of Operations Comparison of Non-GAAP Financial Measures in our Annual Report on Form 10-K included in this annual report to shareholders or visit our website at www.selectwater.com.
 • shareholder letter icon 3/24/2026 Letter Continued (Full PDF)
 • stockholder letter icon 3/20/2023 WTTR Stockholder Letter
 • stockholder letter icon 3/27/2024 WTTR Stockholder Letter
 • stockholder letter icon 3/18/2025 WTTR Stockholder Letter
 • stockholder letter icon More "Oil & Gas Equipment & Services" Category Stockholder Letters
 • Benford's Law Stocks icon WTTR Benford's Law Stock Score = 61


WTTR Shareholder/Stockholder Letter Transcript:

Annual Report
2025

Financial & Operational
Highlights
Select Water Solutions, Inc. (   Select   
or the    Company   ) is the clear
market leader in full-life cycle water
solutions for the energy industry,
supported by the Company   s critical
water infrastructure assets, chemical
manufacturing and water treatment
and recycling technologies.
18% YoY
Recycled
Water
Volumes
332
Million
Barrels
Adjusted
EBITDA
1% YoY
1
260

Million
8% YoY
Water
Infrastructure
Revenue
313

Million
Gross
Margin
4% YoY
1
Before D&A
26.8

19% YoY
Chemical
Technologies
Revenue
308

Million
Water
Infrastructure
Water
Sustainability
Organic &
M&A Growth
Select has the largest produced water
recycling and infrastructure platform
in the industry and proprietary
automation technology to reduce
spills and provide water balancing to
customers
More than 1 billion barrels of
produced water recycled since 2021,
significantly reducing the need for fresh
water for our customers
Select has a proven strategy of valueaccretive, M&A with more than 30
acquisitions since 2021 and has
achieved organic growth through our
fixed long-term infrastructure footprint
(1) Adjusted EBITDA and Gross Margin before D&A are non-GAAP financial measures. For a reconciliation of non-GAAP financial measures, see    Item 7,
Management   s Discussion and Analysis of Financial Condition and Results of Operations     Comparison of Non-GAAP Financial Measures    in our Annual Report
on Form 10-K included in this annual report to shareholders or visit our website at www.selectwater.com.

A Letter to
Stockholders
March 17, 2026
I am pleased to update you on Select Water Solution   s recent
performance, following a record setting 2025, as well as
our outlook for the future ahead. We continued to execute
our long-term strategy, strengthened our infrastructureled business model, and invested in growth initiatives that
we believe will drive sustainable value creation in the years
ahead.
I want to thank our employees, many of whom are also
stockholders, for their hard work and commitment to safety
and operational excellence. Their efforts, together with the
support and trust of our customers, made 2025 a year of
meaningful progress for Select.
In 2025, we improved our consolidated margins, streamlined
our Water Services segment, and drove significant market share
gains in our Chemical Technologies segment, all while making
substantial progress on our core Water Infrastructure growth
strategy. We also advanced our diversification initiatives in
municipal and industrial markets and continued to build out
our technology capabilities in beneficial reuse and mineral
extraction. These efforts position Select as a differentiated,
recycling-first water infrastructure provider with growing
exposure to long-term, contract-backed cash flows.
Highlighting our 2025 performance and strategic progress:

Water Infrastructure revenue and gross profit increased
meaningfully again year-over-year, with the segment
having grown from our smallest business to our largest
by profitability, supported by more than 800% Water
Infrastructure revenue growth over the past five years.

Achieved record consolidated Adjusted EBITDA of
approximately $260 million for 2025.1

Generated $214.7 million in cash flow from operating
activities in 2025, enabling strategic investments in key
growth areas and stockholder value initiatives.

Recycled more than 330 million barrels of produced
water during 2025 and reached a cumulative milestone
of 1 billion barrels recycled since the beginning of 2021.

Executed multiple new minimum volume commitments
and added nearly 1 million acres of new dedicated and
right-of-first-refusal acreage in 2025 across an average
contract term of 11 years.

Completed strategic infrastructure-focused bolt-on asset
acquisitions and customer asset conveyances in 2025
(including new recycling, storage and disposal assets),
adding capacity and scale in our core Northern Delaware
footprint and other key basins.

Returned $41.0 million to stockholders through dividends
and share repurchases, and maintained our commitment
to an attractive, sustainable stockholder return profile.
Our Water Infrastructure segment remains the centerpiece of
our strategy, transforming Select into a more durable growthoriented infrastructure franchise. During 2025, we grew
recycled volumes by 18%, driving continued year-over-year
growth for the Water Infrastructure segment and expanding
the segment to our largest by profitability, underscoring its
vital contribution to our long-term growth trajectory.
Near-term, we remain focused on the expansion of our
differentiated Northern Delaware Basin infrastructure
network. This area combines some of the most productive
wells and lowest development costs in the industry with
some of the most complex water management challenges
alongside evolving regulatory requirements. Our recyclingfirst water network in the Northern Delaware Basin gathers
hundreds of thousands of barrels per day through regional
hubs and pipeline systems that help match water supply
and demand across a wide geographic area. In 2025, we
supplemented our organic build-out with customer asset
conveyances and targeted acquisitions, adding recycling,
storage and disposal capacity in Eddy and Lea County,
New Mexico. These assets, together with our construction
backlog, support our expectation for continued year-overyear revenue growth in Water Infrastructure in 2026.
Beyond New Mexico, we are applying the same disciplined
infrastructure approach across other basins where we have
strong customer relationships and attractive geology. We
maintain leading disposal positions in the Haynesville and
Marcellus and see emerging opportunities as natural gas
markets improve. We are also advancing projects in other
parts of the Permian, including Winkler County and the
Central Basin Platform, where we can extend our system and

connect to existing infrastructure to create highly accretive
expansion opportunities.
Our Chemical Technologies and Water Services segments
also remain central to our success.
In 2025, Chemical Technologies delivered another strong
year, with 19% revenue growth and 45% growth in gross
profit before depreciation and amortization1 relative to
2024, driven by our chemical product enhancements and
increased demand for our highest quality friction reducers
and advanced surfactant product offerings. The business
exited the year with record fourth-quarter revenue of $87
million and 20% gross margin before depreciation and
amortization1 and continues to drive strong cash conversion
from its profitability.
In Water Services, 2025 was a year of disciplined simplification
and margin enhancement. We streamlined our offerings
while maintaining market-leading positions, growing fourthquarter revenue 7% sequentially and improved gross margin
before depreciation and amortization to 20%1 following the
completion of our asset divestments during the third quarter
of 2025. We continue to focus on how we can further integrate
our service offerings into the scope of our long-term contracts
and improve the margin profile of the segment over time.
free cash flows and to enhance through-cycle stability.
This will provide us with substantial flexibility in future
capital allocation, including additional growth investments,
further diversification, and potential enhancements to our
stockholder return framework.
In closing, I am proud of what our team accomplished in
2025 and am confident in our path forward. We are building
a premier, recycling-first water infrastructure platform
supported by market-leading Water Services and Chemical
Technologies capabilities and enhanced by emerging mineral
extraction and beneficial reuse opportunities. Our growing
long-term contract base, disciplined capital allocation,
and strong balance sheet provide a solid foundation for
continued growth and value creation. On behalf of our Board
of Directors and management team, thank you for your
continued support and confidence in Select Water Solutions.
Sincerely,
John D. Schmitz
Chairman, President & Chief Executive Officer
Innovation and diversification remained important priorities
and during 2025, we advanced mineral extraction partnerships
and beneficial reuse technologies that can create new, highmargin royalty revenue from water we already handle, with
limited additional investment. We announced strategic
partnerships for produced water lithium extraction in both
the Haynesville and Permian regions, which we expect to
begin contributing initial royalty revenue by early 2027.
During 2025, we also completed multiple beneficial reuse
pilots, including projects that treated produced water for
land application and crop growth near one of our facilities.
These efforts demonstrate the technical feasibility of largescale reuse and provide a fact-based foundation that can
help shape future standards and market objectives.
Overall, our capital allocation remains disciplined and
aligned with our long-term strategic priorities. In 2025, we
invested $279 million of net capital expenditures, primarily
to fund Water Infrastructure projects and related pipeline
expansions in response to strong customer demand, and
have a strong pipeline of active construction projects and
potential expansion opportunities that will support further
growth into 2026 and beyond. We enter 2026 with strong
momentum and as our contracted Water Infrastructure buildout continues and our cost rationalization efforts materialize,
we believe we are well-positioned to deliver healthy, durable
(1) Adjusted EBITDA, Gross Profit before D&A, and Gross Margin before D&A are non-GAAP financial measures. For a reconciliation of non-GAAP financial measures, see    Item 7, Management   s Discussion and Analysis of Financial Condition and Results of Operations     Comparison of Non-GAAP Financial Measures    in our Annual Report on Form 10-K included in this annual report to shareholders or
visit our website at www.selectwater.com.


shareholder letter icon 3/24/2026 Letter Continued (Full PDF)
 

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