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Jun 30, 2023
Select Water Solutions Q2 2023 Earnings Report
Second quarter results were announced, showing revenue growth and margin improvements driven by operational integration and efficiency.
Key Takeaways
Select Water Solutions reported a strong second quarter with revenue of $404.6 million, a 20% increase year-over-year, and net income increasing 55% to $22.6 million. The company saw improvements in gross profit and Adjusted EBITDA, driven by a focus on operational efficiency and resilience in its infrastructure and specialty chemistry businesses. Strong cash flows allowed for debt reduction and significant capital returns to shareholders.
Generated revenue of $404.6 million, up 20% year-over-year.
Net income increased 55% year-over-year to $22.6 million.
Adjusted EBITDA improved 47% year-over-year to $69.8 million.
Returned $44.6 million to shareholders through dividends and share repurchases.
Revenue by Segment
Forward Guidance
The Company anticipates low- to mid-single digit percentage revenue declines for the Water Services segment, while expecting up to 100 basis points of margin improvement. The Water Infrastructure segment is projected to see mid-single digit revenue increases with gross margins before D&A improving 200-400 basis points. The Chemical Technologies segment expects relatively steady revenues and margins.
Positive Outlook
- Water Infrastructure revenues are expected to increase by mid-single digit percentages.
- Gross margins before D&A for Water Infrastructure are anticipated to improve by 200-400 basis points.
- Chemical Technologies segment anticipates relatively steady revenues and margins.
- Company expects gross margins before D&A to see up to 100 basis points of margin improvement in Water Services.
- Company reaffirms its robust free cash flow outlook for the year.
Challenges Ahead
- Water Services segment expects to see low- to mid-single digit percentage revenue declines.
- Decline in completions activity combined with the consolidation and elimination of certain non-core and underperforming 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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