Select Water Solutions, Inc. (WTTR)
NYSEEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-04
$20.06-0.55%
Close 2026-09-04 · 1-day change
NYSEEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-04
Broken: Primary pillar broken — Grow Water Infrastructure revenue by 20-25% in 2026: Q2 FY26 revenue +8.0% YoY vs 15% trip threshold.
Select Water Solutions plans to grow Water Infrastructure revenue 20-25% in 2026. They raised revenue guidance to at least $366 million for 2026. The company increased capital spending guidance to $200-$250 million for 2026. Recent earnings beats show management is executing well.
If revenue growth falls below 8% or capital spending fails to generate returns, the stock could suffer. Rising costs or weaker oilfield demand could hurt margins and cash flow.
The price is about 12% above our fair value near $16.60. Analysts expect 8.4% revenue growth, which aligns with management's growth targets. Our fair value is below the Street median, reflecting more cautious assumptions.
Breaks if: Capital expenditures fall below $180 million in FY26
Breaks if: Total revenue falls below $350 million in FY26
Breaks if: Water Infrastructure revenue growth falls below 15% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable growth opportunity in the energy sector, particularly focused on water infrastructure. The current thesis is supported by strong recent financial performance and management's commitment to growth.
The market seems to have priced in a low expectations gap, indicating that investors are not overly optimistic but recognize the company's potential. Valuation is justified given the current sector backdrop and the company's performance relative to peers.
Fundamentals are expected to remain strong, with management on track to achieve growth and margin expansion in the Water Infrastructure segment. However, there is a moderate risk due to the potential for guidance cuts, which could negatively impact sentiment.
The thesis hinges on several factors, including inflation trends that could benefit the energy sector and the performance of sector leaders like SLB, BKR, and FTI. Additionally, management's ability to maintain guidance and deliver on growth targets will be crucial.
The most important moves since the prior daily snapshot.
Confidence changed from 'high' to 'medium'.
Yes, our read has strengthened. The latest earnings beat supports revenue growth in the Water Infrastructure segment. Additionally, the expansion of the Delaware Basin water deal reinforces this positive outlook. There are no new threats impacting the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
In the 1 to 3 year view, WTTR is positioned well within a supportive sector, but it faces risks that could impact its trajectory. Not investment advice.