Loading...
•
Sep 30, 2023
Select Water Solutions Q3 2023 Earnings Report
Select Water Solutions reported Q3 2023 financial results with revenue up 4% year-over-year and strong operating cash flows.
Key Takeaways
Select Water Solutions announced its Q3 2023 financial results, reporting a revenue of $389.3 million, a 4% increase compared to Q3 2022. The company delivered strong operating cash flows and reduced accounts receivable by $75 million during the quarter. The Water Infrastructure business saw solid sequential revenue growth and margin improvement.
Generated consolidated revenue of $389 million during the third quarter of 2023, up 4% year-over-year as compared to the third quarter of 2022
Water Infrastructure generated revenues of $58.4 million, an 86% increase year-over-year as compared to the third quarter of 2022
Delivered $118.2 million of operating cash flows during the third quarter of 2023
Announced multiple new contracted infrastructure projects expanding upon existing systems in the Northern Delaware Basin and Haynesville Shale
Revenue by Segment
Forward Guidance
Select Water Solutions anticipates continued strong free cash flow generation in Q4, with full-year targets intact. Net capital expenditure forecast is tightened to $120 to $130 million. Water Infrastructure revenues are expected to increase by mid-single digit percentages during Q4 2023, with gross margins before D&A improving 200-300 basis points.
Positive Outlook
- Expect to continue to generate strong free cash flow during the fourth quarter, with our full-year targets intact
- Net capital expenditure forecast tightens further to $120 to $130 million, remaining within our latest guidance range
- Recent organic recycling and disposal infrastructure projects have delivered strong performance over the last few quarters, and we expect to see this momentum continue in the fourth quarter and into 2024
- Have a very strong backlog remaining for both greenfield and brownfield infrastructure system projects, and we expect multiple additional capital projects will come under contract in the months ahead
- The Company anticipates Water Infrastructure revenues increasing by mid-single digit percentages during the fourth quarter of 2023, with gross margins before D&A improving 200-300 basis points, supported by the accretive margin contributions of new organic projects commencing operations during the quarter.
Challenges Ahead
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
Loading earnings performance data...
Loading earnings reaction data...