Select Water Solutions Inc. (NYSE:WTTR) soared to a fresh all-time high on Wednesday after its profits nearly doubled in the second quarter of the year, signaling strong demand for its services.
In intra-day trading, the stock surged to its highest price of $22.47 before trimming a few cents to end the session just up by 20.43 percent at $22.28 apiece.
In an updated report, the company was able to grow its net income by 98 percent to $21 million from $10.6 million in the same period last year, thanks to solid growth in consolidated revenues and gross profits.
Total revenues amounted to $395.8 million, an 8.7 percent growth from the $364.2 million in the same period last year, with water services accounting for $198 million, albeit 8 percent lower than the $215.66 million year-on-year.
Water infrastructure revenues stood at $101.6 million, or 26 percent higher than the $80.8 million in the comparable period.
“The second quarter was a very strong quarter for Select across all three operating segments, with both our Water Infrastructure and Chemical Technologies segments producing record revenue and gross profit in the quarter,” Select Water Solutions Inc. (NYSE:WTTR) President and CEO John Schmitz said.
Photo by Tima Miroshnichenko on Pexels
Path to More Solid Growth
Encouraged by the results, Schmitz issued a highly optimistic growth outlook for the short-term period.
“We expect to see further growth in the third quarter and are well on track to meet the upper end of our full year guidance for the segment, setting the stage for solid year-over-year growth into 2027,” he said, highlighting its multi-basin relationship and operations with a key customer for a seven-year 128-million-barrel contract.
Dividend Cutoff Date Looms
The rally can also be attributed to the company’s looming dividend cutoff for its next dividend.
In a separate announcement, Select Water Solutions Inc. (NYSE:WTTR) said that its board of directors approved the distribution of $0.07 in dividends for every Class A common share held by its shareholders on record as of Friday, August 7. The dividends are payable on August 19, 2026.
Institutional Investors Bullish
Institutional investors appeared to be bullish about the company’s long-term growth prospects, with more hedge funds participating in its stock and significantly increasing their exposure.
Data from Insider Monkey showed that 36 hedge funds held positions in Select Water Solutions Inc. (NYSE:WTTR) as of the first quarter of the year, up from 25 in the quarter prior.
Their combined holdings more-than-doubled to $274 million from $129.7 million quarter-on-quarter.
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