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Mar 31, 2024
Select Water Solutions Q1 2024 Earnings Report
Financial results and operational updates announced for Q1 2024.
Key Takeaways
Select Water Solutions reported revenue of $366.5 million and net income of $3.9 million in Q1 2024. The company closed on the acquisitions of Buckhorn Waste Services and Trinity Environmental Services during the quarter, expanding its waste management and disposal capabilities. The Water Infrastructure segment saw revenue growth and margin improvement, while the Water Services segment experienced a decline.
Generated revenue of $367 million during the first quarter of 2024
Water Infrastructure segment generated revenue of $64 million during the first quarter of 2024, up 4% sequentially from the fourth quarter of 2023 and 14% from the first quarter of 2023
Adjusted EBITDA improved 3% sequentially during the first quarter of 2024 relative to the fourth quarter of 2023
Closed on the acquisitions of Buckhorn Waste Services and Trinity Environmental Services
Revenue by Segment
Forward Guidance
The Company expects to see segment revenue decline by low single digit percentages, driven primarily by the continued consolidation and elimination of certain non-core operations, for the second quarter of 2024. The Company expects gross margins before D&A to improve to 21 – 24% during the second quarter of 2024. The Company anticipates Water Infrastructure revenues increasing by more than 10% during the second quarter of 2024, driven by full quarter revenue contribution from our recent acquisitions, while gross margins should stay relatively steady sequentially. For the second quarter of 2024, the Company anticipates low single-digit percentage revenue improvements and gross margins before D&A of 17% – 19%.
Positive Outlook
- Maintain strong Water Infrastructure gross margins
- See meaningful margin gains in Water Services
- See meaningful margin gains in Chemical Technologies segments during the second quarter
- Strategic initiatives and margin improvement opportunities should support modest consolidated revenue growth
- Adjusted EBITDA increasing during the second quarter to $64 – $68 million
Challenges Ahead
- Revenue decline by low single digit percentages, driven primarily by the continued consolidation and elimination of certain non-core operations
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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