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Jun 30, 2025
Select Water Solutions Q2 2025 Earnings Report
Select Water Solutions reported improved profitability and cash flow in Q2 2025, driven by strong performance in Water Infrastructure despite a modest decline in consolidated revenue.
Key Takeaways
Select Water Solutions delivered a strong second quarter in 2025, with net income increasing by 22.1% and adjusted EBITDA improving by 13.4% sequentially. The Water Infrastructure segment showed significant growth in revenue and gross profit, while the company continued to execute strategic initiatives, including an asset swap with OMNI Environmental Solutions and the evaluation of strategic alternatives for Peak Rentals, to focus on its core Water Infrastructure business.
Net income increased by 22.1% sequentially to $11.7 million in Q2 2025.
Adjusted EBITDA improved by 13.4% sequentially to $72.6 million in Q2 2025.
Water Infrastructure revenue grew by 11.7% sequentially to $80.9 million, with gross margin before D&A reaching 55.2%.
The company generated $82.6 million in operating cash flow and $10.8 million in free cash flow during the quarter.
Revenue by Segment
Forward Guidance
Select Water Solutions anticipates continued growth in its Water Infrastructure segment, with a projected 10% sequential growth in Q4 2025 and 20% year-over-year growth in 2026. However, consolidated Adjusted EBITDA is expected to decline sequentially in Q3 2025 due to reduced activity levels and the impact of divestments in the Water Services segment, with a subsequent tick-up in Q4.
Positive Outlook
- Water Infrastructure revenue expected to see 10% sequential growth in Q4 2025.
- Water Infrastructure segment positioned for strong 20% year-over-year growth in 2026.
- Gross margins before D&A for Water Infrastructure expected to remain consistently above 50% in Q3 2025.
- New long-term contracted Water Infrastructure projects in the Permian Basin are expected to provide further growth potential in 2026.
- Strategic initiatives like the OMNI asset swap and Peak Rentals evaluation are aimed at focusing on core Water Infrastructure growth and improving consolidated margins.
Challenges Ahead
- Water Infrastructure revenue anticipated to be flat-to-modestly down in Q3 2025 due to asset interconnection and commissioning.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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