Shares of Select Water Solutions Inc. (WTTR) plummeted 10.50% in after-hours trading on Tuesday following the release of its second quarter 2025 financial results and forward-looking statements. The company, which provides water and chemical solutions to the oil and gas industry, reported mixed results that fell short of some analyst expectations.

Select Water Solutions reported Q2 earnings of $0.10 per share, missing the analyst consensus estimate of $0.11 by 11.5%. This represents a 23.08% decrease compared to earnings of $0.13 per share from the same period last year. While the company's revenue of $364.21 million slightly beat the analyst consensus estimate of $362.93 million, it still marked a 0.25% decrease from the $365.13 million reported in the same quarter of the previous year.

Adding to investor concerns, the company provided a weak outlook for its Water Services segment in the third quarter of 2025. Select Water Solutions anticipates a significant 25% decrease in revenues for this segment, citing the divestiture of certain trucking operations from the OMNI transaction and decreased activity levels across the U.S. Lower 48. Despite this, the company expects gross margins before depreciation and amortization to remain steady in the 19%-20% range. The company also announced an asset swap transaction with OMNI Environmental Solutions and is evaluating strategic alternatives for its Peak Rentals business, which may have contributed to investor uncertainty. These factors, combined with the earnings miss, appear to have triggered the sharp after-hours sell-off in WTTR stock.