Select Water Solutions Upgraded to Outperform with $18 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy WTTR?
Source: seekingalpha
- Optimistic Earnings Outlook: Despite a 2.4% drop in Select Water Solutions (WTTR) stock on Thursday, Northland upgraded its rating from Market Perform to Outperform, raising the price target from $12 to $18, reflecting the analyst's decisively bullish view on the company's Q4 results.
- Infrastructure Network Effect: Analyst Bobby Brooks noted that the network effect of Select Water Solutions' infrastructure segment is becoming evident, alongside strong growth in the chemicals segment, indicating enhanced competitiveness across multiple business areas.
- Future Growth Potential: Brooks sees 2026 as a catalyst-rich year for the company and anticipates that the ability to generate free cash flow will begin to materialize in 2027, following years of capital spending on infrastructure projects, showcasing long-term growth potential.
- Elevated Market Expectations: The analyst emphasized that combined with their high and achievable FY27 estimates, Select Water Solutions presents a compelling story that may attract more investor attention, despite the current stock price performance.
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Analyst Views on WTTR
Wall Street analysts forecast WTTR stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 14.410
Low
12.00
Averages
14.67
High
18.00
Current: 14.410
Low
12.00
Averages
14.67
High
18.00
About WTTR
Select Water Solutions, Inc. is a provider of sustainable water and chemical solutions to the energy industry. The Company’s segments include Water Infrastructure, Water Services and Chemical Technologies. The Water Infrastructure segment consists of the Company’s fixed infrastructure assets, including operations associated with its water distribution pipeline infrastructure, its water recycling solutions, and its produced water pipeline gathering systems. The Water Services segment consists of the Company’s services businesses, including water sourcing, water transfer, flowback and well testing, fluids hauling, water monitoring, water containment and water network automation. The Chemical Technologies segment provides technical solutions, products and expertise related to chemical applications in the oil and gas industry. It develops, manufactures, manages logistics and provides a full suite of chemicals used in hydraulic fracturing, stimulation, and cementing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Select Water Solutions Reports Record Q4 2025 Earnings and Growth Outlook
- Record Financial Performance: Select Water Solutions achieved $1.4 billion in consolidated revenue and $260 million in adjusted EBITDA for 2025, demonstrating significant operational and financial improvements that solidify its leadership in the water infrastructure market.
- Water Infrastructure Growth: Management projects a 20% to 25% year-over-year growth for the Water Infrastructure segment in 2026, aiming for this segment to account for over 60% of consolidated gross profit within the next 24 months, indicating a strategic focus on water resource management.
- Strong Chemical Technologies Performance: The Chemical Technologies segment reported a 19% year-over-year revenue growth in Q4 2025, reaching $87 million in quarterly revenue with a gross margin of 20%, reflecting increased demand and market share gains from new product enhancements.
- Strategic Investments and Partnerships: The company announced a strategic partnership for lithium extraction in the Haynesville and Permian regions, expected to begin contributing initial royalty revenues by early 2027, further enhancing profitability and market competitiveness.
See More
Select Water Solutions Upgraded to Outperform with $18 Target
- Optimistic Earnings Outlook: Despite a 2.4% drop in Select Water Solutions (WTTR) stock on Thursday, Northland upgraded its rating from Market Perform to Outperform, raising the price target from $12 to $18, reflecting the analyst's decisively bullish view on the company's Q4 results.
- Infrastructure Network Effect: Analyst Bobby Brooks noted that the network effect of Select Water Solutions' infrastructure segment is becoming evident, alongside strong growth in the chemicals segment, indicating enhanced competitiveness across multiple business areas.
- Future Growth Potential: Brooks sees 2026 as a catalyst-rich year for the company and anticipates that the ability to generate free cash flow will begin to materialize in 2027, following years of capital spending on infrastructure projects, showcasing long-term growth potential.
- Elevated Market Expectations: The analyst emphasized that combined with their high and achievable FY27 estimates, Select Water Solutions presents a compelling story that may attract more investor attention, despite the current stock price performance.
See More
Select Water WTTR Q4 2025 Earnings Call Transcript
See More
Select Energy Services Q4 Earnings Beat Expectations
- Earnings Highlights: Select Energy Services reported a Q4 GAAP EPS of $0.00, beating expectations by $0.01, indicating stability in profitability, while revenue of $346.5 million, down 0.7% year-over-year, still exceeded forecasts by $25.65 million, showcasing the company's competitive position in the market.
- Future Outlook: The company anticipates record-setting Adjusted EBITDA and consolidated margins by 2026, primarily driven by expanding growth opportunities in its Water Infrastructure segment, reflecting strong confidence in future development.
- Revenue Growth Expectations: Select Energy Services expects its Water Infrastructure segment to achieve a revenue increase of 20% to 25% year-over-year in 2026, which will significantly boost overall performance and highlight the company's strategic positioning in this sector.
- Project Progress: With several projects already under construction and recent awards, the Water Infrastructure segment of Select Energy Services is set to further solidify its market position, driving sustained growth for the company in the coming years.
See More
Select Water Solutions Reports Strong 2025 Financial Performance
- Revenue Growth: Select Water Solutions reported total revenue of $1.4 billion for 2025, a slight decrease from $1.5 billion in 2024, while fourth-quarter revenue reached $347 million, indicating stable market demand and business resilience.
- Net Income and EBITDA: The company achieved a net income of $21 million and an Adjusted EBITDA of $260 million for 2025, reflecting ongoing improvements in cost control and operational efficiency compared to the previous year.
- Water Infrastructure Expansion: The Water Infrastructure segment generated $313 million in revenue for 2025, an 8% year-over-year increase, with the addition of 950,000 acres under long-term contracts, showcasing strong growth potential in sustainable water management.
- Chemical Technologies Performance: The Chemical Technologies segment saw a 19% revenue increase to $308 million in 2025, indicating success in market share capture and product innovation, with expectations to maintain similar growth trends in 2026.
See More
Select Energy Services to Announce Q4 Earnings on February 17
- Earnings Announcement: Select Energy Services is set to release its Q4 earnings on February 17 after market close, with a consensus EPS estimate of $0.02, reflecting a substantial year-over-year increase of 200%, which could enhance investor confidence in the company's profitability.
- Revenue Expectations: Despite the optimistic EPS forecast, the revenue estimate stands at $320.85 million, indicating an 8.1% year-over-year decline, which may suggest weakening market demand or increased competition, necessitating close attention to how the company addresses these challenges to maintain profitability.
- Estimate Revision Trends: Over the past three months, EPS estimates have seen one upward revision with no downward adjustments, indicating growing analyst confidence in the company's earnings outlook; concurrently, revenue estimates have experienced four upward revisions, suggesting improved market expectations for revenue growth that could influence stock price movements.
- Market Positioning Discussion: Select Water Solutions, Inc. discussed its strategic transition to focus on water infrastructure at the 17th Annual Southwest IDEAS Conference, emphasizing its market positioning, which may provide new growth opportunities for the company, particularly as water resource management becomes increasingly critical.
See More
Select Water Solutions Reports Record Q4 2025 Earnings and Growth Outlook
- Record Financial Performance: Select Water Solutions achieved $1.4 billion in consolidated revenue and $260 million in adjusted EBITDA for 2025, demonstrating significant operational and financial improvements that solidify its leadership in the water infrastructure market.
- Water Infrastructure Growth: Management projects a 20% to 25% year-over-year growth for the Water Infrastructure segment in 2026, aiming for this segment to account for over 60% of consolidated gross profit within the next 24 months, indicating a strategic focus on water resource management.
- Strong Chemical Technologies Performance: The Chemical Technologies segment reported a 19% year-over-year revenue growth in Q4 2025, reaching $87 million in quarterly revenue with a gross margin of 20%, reflecting increased demand and market share gains from new product enhancements.
- Strategic Investments and Partnerships: The company announced a strategic partnership for lithium extraction in the Haynesville and Permian regions, expected to begin contributing initial royalty revenues by early 2027, further enhancing profitability and market competitiveness.
See More
Select Water Solutions Upgraded to Outperform with $18 Target
- Optimistic Earnings Outlook: Despite a 2.4% drop in Select Water Solutions (WTTR) stock on Thursday, Northland upgraded its rating from Market Perform to Outperform, raising the price target from $12 to $18, reflecting the analyst's decisively bullish view on the company's Q4 results.
- Infrastructure Network Effect: Analyst Bobby Brooks noted that the network effect of Select Water Solutions' infrastructure segment is becoming evident, alongside strong growth in the chemicals segment, indicating enhanced competitiveness across multiple business areas.
- Future Growth Potential: Brooks sees 2026 as a catalyst-rich year for the company and anticipates that the ability to generate free cash flow will begin to materialize in 2027, following years of capital spending on infrastructure projects, showcasing long-term growth potential.
- Elevated Market Expectations: The analyst emphasized that combined with their high and achievable FY27 estimates, Select Water Solutions presents a compelling story that may attract more investor attention, despite the current stock price performance.
See More
Select Water WTTR Q4 2025 Earnings Call Transcript
See More
Select Energy Services Q4 Earnings Beat Expectations
- Earnings Highlights: Select Energy Services reported a Q4 GAAP EPS of $0.00, beating expectations by $0.01, indicating stability in profitability, while revenue of $346.5 million, down 0.7% year-over-year, still exceeded forecasts by $25.65 million, showcasing the company's competitive position in the market.
- Future Outlook: The company anticipates record-setting Adjusted EBITDA and consolidated margins by 2026, primarily driven by expanding growth opportunities in its Water Infrastructure segment, reflecting strong confidence in future development.
- Revenue Growth Expectations: Select Energy Services expects its Water Infrastructure segment to achieve a revenue increase of 20% to 25% year-over-year in 2026, which will significantly boost overall performance and highlight the company's strategic positioning in this sector.
- Project Progress: With several projects already under construction and recent awards, the Water Infrastructure segment of Select Energy Services is set to further solidify its market position, driving sustained growth for the company in the coming years.
See More
Select Water Solutions Reports Strong 2025 Financial Performance
- Revenue Growth: Select Water Solutions reported total revenue of $1.4 billion for 2025, a slight decrease from $1.5 billion in 2024, while fourth-quarter revenue reached $347 million, indicating stable market demand and business resilience.
- Net Income and EBITDA: The company achieved a net income of $21 million and an Adjusted EBITDA of $260 million for 2025, reflecting ongoing improvements in cost control and operational efficiency compared to the previous year.
- Water Infrastructure Expansion: The Water Infrastructure segment generated $313 million in revenue for 2025, an 8% year-over-year increase, with the addition of 950,000 acres under long-term contracts, showcasing strong growth potential in sustainable water management.
- Chemical Technologies Performance: The Chemical Technologies segment saw a 19% revenue increase to $308 million in 2025, indicating success in market share capture and product innovation, with expectations to maintain similar growth trends in 2026.
See More
Select Energy Services to Announce Q4 Earnings on February 17
- Earnings Announcement: Select Energy Services is set to release its Q4 earnings on February 17 after market close, with a consensus EPS estimate of $0.02, reflecting a substantial year-over-year increase of 200%, which could enhance investor confidence in the company's profitability.
- Revenue Expectations: Despite the optimistic EPS forecast, the revenue estimate stands at $320.85 million, indicating an 8.1% year-over-year decline, which may suggest weakening market demand or increased competition, necessitating close attention to how the company addresses these challenges to maintain profitability.
- Estimate Revision Trends: Over the past three months, EPS estimates have seen one upward revision with no downward adjustments, indicating growing analyst confidence in the company's earnings outlook; concurrently, revenue estimates have experienced four upward revisions, suggesting improved market expectations for revenue growth that could influence stock price movements.
- Market Positioning Discussion: Select Water Solutions, Inc. discussed its strategic transition to focus on water infrastructure at the 17th Annual Southwest IDEAS Conference, emphasizing its market positioning, which may provide new growth opportunities for the company, particularly as water resource management becomes increasingly critical.
See More
