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Mar 31, 2025
Select Water Solutions Q1 2025 Earnings Report
Reported strong financial and operational results for the quarter ended March 31, 2025
Key Takeaways
Select Water Solutions had a strong start to 2025 with increased revenue, net income, and adjusted EBITDA in the first quarter compared to the previous quarter. The company also expanded its Water Infrastructure segment with new long-term contracts and strategic acquisitions.
Consolidated revenue for Q1 2025 was $374.4 million, a 7% sequential increase.
Net income increased by $11.7 million sequentially in Q1 2025.
Adjusted EBITDA increased by 14% sequentially to $64.0 million in Q1 2025.
Secured multiple new long-term contracted Water Infrastructure projects in the Permian Basin.
Revenue by Segment
Forward Guidance
Select Water Solutions anticipates continued growth in Water Infrastructure revenue and Adjusted EBITDA in Q2 2025, driven by increased recycling and disposal volumes. However, Water Services and Chemical Technologies segments may see sequential revenue decreases due to operational consolidation and macro headwinds. Capital expenditures are expected to increase for infrastructure projects.
Positive Outlook
- Anticipates low double-digit percentage increase in Water Infrastructure revenues in Q2 2025.
- Expects Water Infrastructure gross margins before D&A to remain consistently above 50% in Q2 2025.
- Expects continued growth trajectory for Water Infrastructure over the second half of the year.
- Adding new capital projects for Water Infrastructure that should provide growth into 2026 and beyond.
- Water Services and Chemical Technologies segments are expected to drive better combined cash flow in Q2 2025.
Challenges Ahead
- Potential activity reductions during the second half of 2025 due to macro pressure and potential activity dislocations.
- Water Infrastructure revenue and gross profit growth for 2025 likely tracking towards the lower end of previously guided range.
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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