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Sep 30, 2024
Select Water Solutions Q3 2024 Earnings Report
Select Water Solutions reported increased revenue and improved profitability.
Key Takeaways
Select Water Solutions announced its Q3 2024 financial results, reporting revenue of $371.3 million, a net income of $18.8 million, and free cash flow of $20.4 million. The company experienced sequential growth in revenue and profitability, driven by the Water Infrastructure segment. They also secured new long-term contracts for pipeline gathering, recycling, and disposal infrastructure projects.
Revenue for Q3 2024 was $371.3 million, a 2% increase sequentially.
Operating Cash Flow reached $51.9 million and Free Cash Flow was $20.4 million.
Net income increased by 26% and Adjusted EBITDA improved by 4% sequentially.
Water Infrastructure segment revenue increased sequentially by 20%.
Revenue by Segment
Forward Guidance
The company anticipates a seasonal activity slowdown in the Water Services segment for Q4, offset by recovery in the Chemical Technologies segment. Adjusted EBITDA is expected to decrease in Q4 but rebound in Q1 2025, with substantial year-over-year growth expected throughout 2025.
Positive Outlook
- Recovery in Chemical Technologies segment with new product wins.
- Adjusted EBITDA expected to rebound in Q1 2025 to at or above Q3 2024 levels.
- Substantial year-over-year Adjusted EBITDA growth expected throughout 2025.
- Ongoing capital projects expected to provide additional revenue and profitability for the Water Infrastructure segment throughout 2025.
- Additional contract wins expected during the fourth quarter and in 2025.
Challenges Ahead
- Seasonal activity slowdown expected to impact the Water Services segment in Q4.
- Activity reductions in water transfer, sourcing, and recycling businesses due to ongoing capital projects in the Northern Delaware Basin.
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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