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Dec 31, 2024
Select Water Solutions Q4 2024 Earnings Report
Select Water Solutions reported a record-setting year in 2024, driven by strong earnings, margin gains, and record Adjusted EBITDA, with significant growth in its Water Infrastructure segment and strategic investments in new projects and water rights.
Key Takeaways
Select Water Solutions concluded 2024 with a record-setting fourth quarter, achieving strong financial and operational results. The company reported consolidated revenue of $349 million for Q4 2024 and $1.5 billion for the full year. Water Infrastructure revenue grew 26% year-over-year for the full year, with gross profit up 62%. Operating cash flow remained strong at $235 million for the full year, with $68 million in Q4. The company also announced new long-term contracted Water Infrastructure projects in the Permian and a new water rights and storage partnership in Colorado.
Generated full year and fourth quarter 2024 consolidated revenue of $1.5 billion and $349 million, respectively.
Water Infrastructure achieved full year 2024 revenues of $291 million, up 26% year-over-year, with gross profit up 62% year-over-year.
Delivered full year and fourth quarter 2024 operating cash flows of $235 million and $68 million, respectively.
Announced multiple new long-term contracted Water Infrastructure projects in the Permian backed by new 150,000+ acre dedication, anticipating $39 – $41 million of capital deployed, and a new water rights and storage partnership in Colorado with $62 million initial investment.
Revenue by Segment
Forward Guidance
For the full year 2025, Select anticipates another record-setting year for Adjusted EBITDA and consolidated margins, with robust growth expected in the second half of the year. The Water Infrastructure segment is projected to lead this growth, with revenues and gross profit increasing by 15%–25% year-over-year. The company targets net capital expenditures of $170–$190 million for 2025, primarily for high gross margin, long-term contracted growth capital projects within Water Infrastructure.
Positive Outlook
- Anticipates another record-setting year for Adjusted EBITDA and consolidated margins in 2025.
- Water Infrastructure segment revenues and gross profit expected to grow by another 15% – 25% year-over-year.
- Objective to propel Water Infrastructure segment to reach 50% of consolidated profitability by the end of 2025.
- Backlog of infrastructure projects is at an all-time high, with a steady cadence of new contracts expected in 2025.
- Chemical Technologies segment expected to grow revenues in 2025 and improve margin profile.
Challenges Ahead
- U.S. Lower 48 activity levels expected to be modestly down year-over-year in 2025.
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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