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Jun 30, 2024
Select Water Solutions Q2 2024 Earnings Report
Revenue and profitability improved due to Water Infrastructure segment growth and strategic acquisitions.
Key Takeaways
Select Water Solutions reported revenue of $365.1 million, with net income more than tripling and Adjusted EBITDA improving 17% sequentially. The Water Infrastructure segment drove growth, achieving record performance with increased revenue and gross margins.
Generated revenue of $365.1 million, slightly down from $366.5 million in the previous quarter and $404.6 million year-over-year.
Net income reached $14.9 million, a significant increase from $3.9 million in the first quarter of 2024.
Operating cash flow was $83.1 million and free cash flow was $37.4 million.
Water Infrastructure segment revenue increased by 8% sequentially.
Revenue by Segment
Forward Guidance
The Company anticipates Water Infrastructure revenues increasing by mid-to-high single-digit percentages during the third quarter of 2024, driven by increases in our recycling business and full quarter contributions from second quarter disposal acquisitions, while gross margins should stay relatively steady at 50% – 52%.
Positive Outlook
- Water Infrastructure revenues increasing by mid-to-high single-digit percentages during the third quarter of 2024
- Gross margins for Water Infrastructure expected to stay relatively steady at 50% – 52%.
- Growth driven by increases in recycling business.
- Growth driven by full quarter contributions from second quarter disposal acquisitions.
- Adjusted EBITDA to be relatively flat from the second quarter at $66 million - $70 million.
Challenges Ahead
- Segment revenue for Water Services expected to decline by mid-to-high single-digit percentages.
- Gross margins before D&A for Water Services to hold steady at 22% - 23%.
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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