Select Water Solutions Announces First Quarter 2025 Financial, Operational and Strategic Updates
- Revenue increased 7% sequentially to $374.4 million in Q1 2025
- Net income improved by $11.7 million, turning from a $2.1M loss to $9.6M profit
- Adjusted EBITDA grew 14% to $64.0 million
- Secured major 11-year contract with 265,000 additional dedicated acres
- Water Infrastructure segment maintained strong gross margins of 54%
- Expanded recycling capacity to 1.3 million barrels per day in Northern Delaware Basin
- Water Infrastructure segment revenue declined 5.8% sequentially
- Operating cash flow turned negative at -$5.1 million in Q1 2025
- Free cash flow declined to -$51.5 million from $16.2 million in Q4 2024
- Expects reduced industry activity levels in second half of 2025 due to macro pressures
- Anticipates 5-10% revenue decrease in Water Services segment for Q2 2025
Insights
WTTR delivered strong Q1 with 7% sequential revenue growth and 14% EBITDA improvement, but increased capex to $225-250M will lower free cash flow conversion to 5-15% of EBITDA.
Select Water Solutions reported robust Q1 2025 results with consolidated revenue of
The company's gross margin expansion is particularly notable, with consolidated gross margins before D&A improving to
The Q1 cash flow picture warrants attention, with operations consuming
The company has significantly increased its 2025 capital expenditure guidance to
The new 5-year sustainability-linked credit facility, which provided
WTTR secured substantial new long-term contracts covering 265,000+ acres in the Permian Basin, prioritizing recycling and produced water infrastructure while acknowledging potential H2 2025 headwinds.
Select Water Solutions is executing a strategic transformation toward higher-margin, more stable water infrastructure operations, particularly in the Northern Delaware Basin. The company announced its largest capital project ever - an 11-year contract adding 265,000 dedicated acres in Eddy County, New Mexico, extending their infrastructure network westward from Lea County through approximately 100 miles of large-diameter pipeline buildout.
This expansion is strategically significant as it positions WTTR in what management describes as "the best geology in the US Lower 48." The company is deliberately shifting its asset base from freshwater delivery toward produced water management (recycling and disposal), evidenced by the conversion of legacy freshwater pipelines to produced water distribution lines. This transition temporarily reduced Water Infrastructure segment revenue by
Upon completion of current projects, WTTR will have over 1.3 million barrels per day of fixed facility recycling throughput capacity in the Northern Delaware Basin alone, representing more than
Management's acknowledgment of macroeconomic uncertainties stemming from "recent tariff and trade actions" is prudent, as they're expecting "potential activity reductions during the second half of the year." However, they've positioned the company in the most resilient basins - the Permian for oil and Haynesville/Marcellus for natural gas. They're still projecting Water Infrastructure segment revenue growth in the "low double-digit percentages" for Q2 2025.
The company's strategic focus on securing long-term contracts with dedicated acreage creates substantial revenue visibility and positions them to benefit from production activities rather than drilling cycles. While near-term free cash flow is sacrificed to fund this infrastructure buildout, the increasing proportion of contracted, production-weighted earnings should enhance business stability and valuation multiples over time.
Generated first quarter 2025 consolidated revenue of
Increased net income by
Announced multiple new long-term contracted Water Infrastructure projects in the Permian Basin backed by over 265,000 acres of new acreage and right-of-first refusal dedications, anticipating
John Schmitz, Chairman of the Board, President and CEO, stated, "The first quarter represented a strong start to the year for Select, with net income increasing by
"In our Water Infrastructure segment, we increased both our recycling and disposal volumes during the first quarter of 2025, a trend we anticipate will continue as we look ahead to the second quarter. While we did see revenue and gross profit declines for the Water Infrastructure segment in the first quarter, which were consistent with our guidance and expectations, gross margins before D&A for the Water Infrastructure segment remained strong at
"We continue to add a large portfolio of long-term contracts to the business while also increasing the weighting of our profitability coming from full life-cycle and production-weighted revenues. Since year-end we have executed several new key contracts in the Permian Basin and bolstered our disposal footprint with additional bolt-on acquisitions that complement our industry-leading recycling footprint and operations in the Permian Basin. While macro pressure and potential activity dislocations caused by recent tariff and global trade announcements have been pervasive topics as of late, and may lead to reduced activity levels during the second half of 2025, we are well-positioned with a growing asset base in the Permian Basin, which possesses the best geology and break-even wells in the industry, and a market-leading position in natural gas basins such as the Haynesville and Marcellus/Utica, which we expect to demonstrate resiliency during the remainder of the year.
"In the
"Looking at the latest contract awards more specifically, the largest of the new agreements is an 11-year contract supporting the largest single capital project in the history of Select, encompassing water recycling, storage, disposal and pipeline gathering and distribution in the
"While we do expect that recent tariff and trade actions and the resulting commodity and supply chain dislocations will have some impacts on the oil and gas industry, including potential activity reductions during the second half of the year, near-term we believe the direct impact on Select will be limited and we expect continued growth in our consolidated Adjusted EBITDA in the second quarter to an estimated
"Our Water Services and Chemical Technologies segments are off to a good start in 2025, and these segments continue to generate strong free cash flow overall, but we do expect to see operational consolidation decisions as well as macro-related headwinds impact the sequential revenue performance in these segments. However, we expect the combined gross profit of these segments to remain relatively in line with the first quarter of 2025, while also driving better combined cash flow in the second quarter from these two segments to help fund our continued infrastructure capital deployment.
"We remain steadfast in our commitment to grow with our key customers and execute on our growing backlog of infrastructure projects. With the opportunity to enhance the contracted base of our earnings with additional accretive infrastructure projects, we now expect net capital expenditures in 2025 to increase to
"In summary, I am pleased with our financial performance in the first quarter of 2025, and I look forward to further building out our water networks in both the oil and gas, municipal, industrial and agricultural sectors. Activity pressures and market dislocation will undoubtedly exist following recent commodity price volatility and industry reactions to the ongoing trade-related uncertainty, but Select is increasingly resilient and distinctively positioned to continue to advance our leading water infrastructure platform and deliver on our strategic goals and targets" concluded Schmitz.
First Quarter 2025 Consolidated Financial Information
Revenue for the first quarter of 2025 was
For the first quarter of 2025, gross profit was
SG&A during the first quarter of 2025 was
Adjusted EBITDA was
Business Segment Information
The Water Infrastructure segment generated revenues of
The Water Services segment generated revenues of
The Chemical Technologies segment generated revenues of
Cash Flow and Capital Expenditures
Cash flow used in operations for the first quarter of 2025 was
Net capital expenditures for the first quarter of 2025 were
Cash flow used in investing activities in the first quarter of 2025 included
Cash flows from financing activities during the first quarter of 2025 included
Balance Sheet and Capital Structure
On January 24, 2025 (the "Closing Date") Select entered into a new 5-year sustainability-linked credit facility, which initially provides for
Total cash and cash equivalents were
As of March 31, 2025, the borrowing base under the Company's sustainability-linked credit facility was
Total liquidity was
Water Infrastructure Business Development and Acquisition Updates
Since the start of the first quarter of 2025, Select has executed multiple new long-term contracts for additional full life-cycle produced water gathering, recycling and distribution infrastructure projects in the Permian Basin. Additionally, Select has executed the acquisitions of two disposal wells to support infrastructure projects and additional future development. The combined capital expenditures associated with these new projects and acquisitions is expected to be
Since the first quarter of 2025, Select signed an 11-year agreement for the construction and expansion of recycling and pipeline infrastructure for a large operator in the
Since the start of the first quarter of 2025, Select has signed two additional 11-year contracts, exercising existing right-of-first-refusal options for one of the agreements, to support the operational expansion for a large existing customer in the
Midland Basin Disposal Acquisitions
In the first quarter of 2025, Select acquired two active disposal wells in the Midland Basin, adding 35,000 barrels per day of additional disposal capacity, to help support our growing infrastructure development activities in the Permian Basin.
Central Basin Platform Produced Water Pipeline Connection
During the first quarter of 2025, Select signed a 7-year agreement to facilitate the transportation of produced water and treated produced water to accommodate a large public independent operator in the Central Basin Platform area of the Permian Basin. To support the agreement, Select will construct in parallel 11 miles of produced water gathering and 11 miles of treated produced water distribution pipelines to connect the operator's acreage to Select's Central Basin Platform recycling facility. Previously announced in February 2025, the Central Basin Platform recycling facility includes 120,000 barrels per day of recycling capacity and 1.5 million barrels of storage capacity. This new agreement is supported by an approximately 124,000 acre produced water recycling area dedication. The combined project is expected to be operational by the end of the third quarter of 2025.
Colorado Water Rights Investment
During the first quarter of 2025, Select entered into a new partnership, AV Farms, LP, which was formed to consolidate one of the largest water resource holding and storage portfolios in
First Quarter Earnings Conference Call
In conjunction with today's release, Select has scheduled a conference call on Wednesday, May 7, 2025, at 11:00 a.m. Eastern time / 10:00 a.m. Central time. Please dial 201-389-0872 and ask for the Select Water Solutions call at least 10 minutes prior to the start time of the call, or listen to the call live over the Internet by logging on to the website at the address https://investors.selectwater.com/events-presentations/current. A telephonic replay of the conference call will be available through May 21, 2025, and may be accessed by calling 201-612-7415 using passcode 13752539#. A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days.
About Select Water Solutions, Inc.
Select is a leading provider of sustainable water and chemical solutions to the energy industry. These solutions are supported by the Company's critical water infrastructure assets, chemical manufacturing and water treatment and recycling capabilities. As a leader in sustainable water and chemical solutions, Select places the utmost importance on safe, environmentally responsible management of water throughout the lifecycle of a well. Additionally, Select believes that responsibly managing water resources throughout its operations to help conserve and protect the environment is paramount to the Company's continued success. For more information, please visit Select's website, https://www.selectwater.com.
Cautionary Statement Regarding Forward-Looking Statements
All statements in this communication other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "could," "believe," "anticipate," "expect," "intend," "project," "will," "estimates," "preliminary," "forecast" and other similar expressions. Examples of forward-looking statements include, but are not limited to, the expectations of plans, business strategies, objectives and growth, projected financial results and future financial and operational performance, expected capital expenditures, our share repurchase program and future dividends. Although we believe that the expectations reflected, and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include the risks that the benefits contemplated from our recent acquisitions may not be realized, the ability of Select to successfully integrate the acquired businesses' operations, including employees, and realize anticipated synergies and cost savings and the potential impact of the consummation of the acquisitions on relationships, including with employees, suppliers, customers, competitors and creditors. Factors that could materially impact such forward-looking statements include, but are not limited to: the global macroeconomic uncertainty related to the
SELECT WATER SOLUTIONS, INC. | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(unaudited) | |||||||||
(in thousands, except share and per share data) | |||||||||
Three months ended, | |||||||||
Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | |||||||
Revenue | |||||||||
Water Infrastructure | $ | 72,391 | $ | 76,811 | $ | 63,508 | |||
Water Services | 225,648 | 209,323 | 228,307 | ||||||
Chemical Technologies | 76,345 | 62,913 | 74,733 | ||||||
Total revenue | 374,384 | 349,047 | 366,548 | ||||||
Costs of revenue | |||||||||
Water Infrastructure | 33,493 | 34,797 | 33,692 | ||||||
Water Services | 181,718 | 174,995 | 181,532 | ||||||
Chemical Technologies | 64,728 | 54,771 | 61,755 | ||||||
Depreciation, amortization and accretion | 38,675 | 40,300 | 36,892 | ||||||
Total costs of revenue | 318,614 | 304,863 | 313,871 | ||||||
Gross profit | 55,770 | 44,184 | 52,677 | ||||||
Operating expenses | |||||||||
Selling, general and administrative | 37,432 | 39,749 | 43,980 | ||||||
Depreciation and amortization | 925 | 737 | 1,258 | ||||||
Impairments and abandonments | 1,148 | 1,146 | 45 | ||||||
Lease abandonment costs | 724 | (53) | 389 | ||||||
Total operating expenses | 40,229 | 41,579 | 45,672 | ||||||
Income from operations | 15,541 | 2,605 | 7,005 | ||||||
Other income (expense) | |||||||||
Gain on sales of property and equipment and divestitures, net | 1,365 | 924 | 325 | ||||||
Interest expense, net | (4,876) | (1,761) | (1,272) | ||||||
Tax receivable agreements expense | — | (836) | — | ||||||
Other | 329 | (255) | (282) | ||||||
Income before income tax expense and equity in earnings (losses) of unconsolidated entities | 12,359 | 677 | 5,776 | ||||||
Income tax expense | (2,894) | (2,305) | (1,452) | ||||||
Equity in earnings (losses) of unconsolidated entities | 95 | (506) | (449) | ||||||
Net income (loss) | 9,560 | (2,134) | 3,875 | ||||||
Less: net (income) loss attributable to noncontrolling interests | (1,321) | 494 | (250) | ||||||
Net income (loss) attributable to Select Water Solutions, Inc. | $ | 8,239 | $ | (1,640) | $ | 3,625 | |||
Net income (loss) per share attributable to common stockholders: | |||||||||
Class A—Basic | $ | 0.08 | $ | (0.02) | $ | 0.04 | |||
Class B—Basic | $ | — | $ | — | $ | — | |||
Net income (loss) per share attributable to common stockholders: | |||||||||
Class A—Diluted | $ | 0.08 | $ | (0.02) | $ | 0.04 | |||
Class B—Diluted | $ | — | $ | — | $ | — | |||
SELECT WATER SOLUTIONS, INC. | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(unaudited) | |||||||||||
(in thousands, except share data) | |||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 27,892 | $ | 19,978 | $ | 12,753 | |||||
Accounts receivable trade, net of allowance for credit losses | 338,129 | 281,569 | 323,113 | ||||||||
Accounts receivable, related parties | 194 | 150 | 330 | ||||||||
Inventories | 40,795 | 38,447 | 37,636 | ||||||||
Prepaid expenses and other current assets | 50,840 | 45,354 | 37,886 | ||||||||
Total current assets | 457,850 | 385,498 | 411,718 | ||||||||
Property and equipment | 1,471,791 | 1,405,486 | 1,242,133 | ||||||||
Accumulated depreciation | (704,300) | (679,832) | (650,952) | ||||||||
Total property and equipment, net | 767,491 | 725,654 | 591,181 | ||||||||
Right-of-use assets, net | 33,511 | 36,851 | 42,931 | ||||||||
Goodwill | 18,215 | 18,215 | 31,202 | ||||||||
Other intangible assets, net | 119,337 | 123,715 | 127,649 | ||||||||
Deferred tax assets, net | 43,851 | 46,339 | 60,489 | ||||||||
Investments in unconsolidated entities | 83,501 | 11,347 | 11,298 | ||||||||
Other long-term assets | 21,455 | 18,663 | 14,839 | ||||||||
Total assets | $ | 1,545,211 | $ | 1,366,282 | $ | 1,291,307 | |||||
Liabilities and Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 44,996 | $ | 39,189 | $ | 54,389 | |||||
Accrued accounts payable | 111,144 | 76,196 | 62,833 | ||||||||
Accounts payable and accrued expenses, related parties | 5,904 | 4,378 | 4,227 | ||||||||
Accrued salaries and benefits | 15,345 | 29,937 | 17,692 | ||||||||
Accrued insurance | 21,698 | 24,685 | 17,227 | ||||||||
Sales tax payable | 2,139 | 2,110 | 2,973 | ||||||||
Current portion of tax receivable agreements liabilities | 17 | 93 | 469 | ||||||||
Accrued expenses and other current liabilities | 32,338 | 40,137 | 35,800 | ||||||||
Current operating lease liabilities | 15,814 | 16,439 | 16,241 | ||||||||
Current portion of finance lease obligations | 490 | 211 | 196 | ||||||||
Total current liabilities | 249,885 | 233,375 | 212,047 | ||||||||
Long-term tax receivable agreements liabilities | 38,409 | 38,409 | 37,718 | ||||||||
Long-term operating lease liabilities | 27,952 | 31,092 | 39,667 | ||||||||
Long-term debt, net of deferred debt issuance costs | 245,888 | 85,000 | 75,000 | ||||||||
Other long-term liabilities | 66,128 | 62,872 | 38,554 | ||||||||
Total liabilities | 628,262 | 450,748 | 402,986 | ||||||||
Commitments and contingencies | |||||||||||
Class A common stock, | 1,039 | 1,031 | 1,027 | ||||||||
Class B common stock, | 162 | 162 | 162 | ||||||||
Additional paid-in capital | 989,785 | 998,474 | 1,001,967 | ||||||||
Accumulated deficit | (197,908) | (206,147) | (233,166) | ||||||||
Total stockholders' equity | 793,078 | 793,520 | 769,990 | ||||||||
Noncontrolling interests | 123,871 | 122,014 | 118,331 | ||||||||
Total equity | 916,949 | 915,534 | 888,321 | ||||||||
Total liabilities and equity | $ | 1,545,211 | $ | 1,366,282 | $ | 1,291,307 | |||||
SELECT WATER SOLUTIONS, INC. | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(unaudited) | ||||||||||
(in thousands) | ||||||||||
Three months ended | ||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||
Cash flows from operating activities | ||||||||||
Net income (loss) | $ | 9,560 | $ | (2,134) | $ | 3,875 | ||||
Adjustments to reconcile net income (loss) to net cash (used in) | ||||||||||
Depreciation, amortization and accretion | 39,600 | 41,037 | 38,150 | |||||||
Deferred tax expense | 2,486 | 1,929 | 1,129 | |||||||
Tax receivable agreements expense | — | 836 | — | |||||||
Gain on disposal of property and equipment and divestitures | (1,365) | (924) | (325) | |||||||
Equity in (earnings) losses of unconsolidated entities | (95) | 506 | 449 | |||||||
Credit loss expense | 514 | (797) | 596 | |||||||
Amortization and write off of debt issuance costs | 998 | 123 | 122 | |||||||
Inventory adjustments | (40) | (110) | (33) | |||||||
Equity-based compensation | 3,481 | 7,999 | 6,359 | |||||||
Impairments and abandonments | 1,148 | 1,146 | 45 | |||||||
Other operating items, net | 487 | 167 | 312 | |||||||
Changes in operating assets and liabilities | ||||||||||
Accounts receivable | (57,117) | 17,872 | 128 | |||||||
Prepaid expenses and other assets | (8,666) | 1,904 | (2,180) | |||||||
Accounts payable and accrued liabilities | 3,948 | (1,787) | (16,498) | |||||||
Net cash (used in) provided by operating activities | (5,061) | 67,767 | 32,129 | |||||||
Cash flows from investing activities | ||||||||||
Purchase of property and equipment | (48,427) | (55,073) | (33,763) | |||||||
Purchase of equity-method investments | (72,059) | — | — | |||||||
Acquisitions, net of cash received | (13,980) | (2,841) | (108,311) | |||||||
Proceeds received from sales of property and equipment | 1,944 | 3,534 | 5,166 | |||||||
Net cash used in investing activities | (132,522) | (54,380) | (136,908) | |||||||
Cash flows from financing activities | ||||||||||
Borrowings from revolving line of credit | 40,000 | 15,000 | 90,000 | |||||||
Payments on revolving line of credit | (125,000) | (10,000) | (15,000) | |||||||
Borrowings from long-term debt | 250,000 | — | — | |||||||
Payments of finance lease obligations | (89) | (68) | (66) | |||||||
Payments of debt issuance costs | (7,352) | — | — | |||||||
Dividends and distributions paid | (8,567) | (8,212) | (7,487) | |||||||
Proceeds from share issuance | — | 50 | — | |||||||
Contributions from noncontrolling interests | 2,875 | — | — | |||||||
Repurchase of common stock | (6,291) | (589) | (6,996) | |||||||
Payments under tax receivable agreement | (77) | (521) | — | |||||||
Net cash provided by (used in) financing activities | 145,499 | (4,340) | 60,451 | |||||||
Effect of exchange rate changes on cash | (2) | (7) | (2) | |||||||
Net increase (decrease) in cash and cash equivalents | 7,914 | 9,040 | (44,330) | |||||||
Cash and cash equivalents, beginning of period | 19,978 | 10,938 | 57,083 | |||||||
Cash and cash equivalents, end of period | $ | 27,892 | $ | 19,978 | $ | 12,753 | ||||
Comparison of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, gross profit before depreciation, amortization and accretion ("D&A"), gross margin before D&A and free cash flow are not financial measures presented in accordance with accounting principles generally accepted in the
Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. Gross profit and gross margin are the GAAP measures most directly comparable to gross profit before D&A and gross margin before D&A, respectively. Net cash provided by (used in) operating activities is the GAAP measure most directly comparable to free cash flow. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measure. Each of these non-GAAP financial measures has important limitations as an analytical tool due to exclusion of some but not all items that affect the most directly comparable GAAP financial measures. You should not consider EBITDA, Adjusted EBITDA, gross profit before D&A, gross margin before D&A or free cash flow in isolation or as substitutes for an analysis of our results as reported under GAAP. Because EBITDA, Adjusted EBITDA, gross profit before D&A, gross margin before D&A and free cash flow may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
For forward-looking non-GAAP measures, the Company is unable to provide a reconciliation of the forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measure as the information necessary for a quantitative reconciliation, including potential acquisition-related transaction and rebranding costs as well as the purchase price accounting allocation of the recent acquisitions and the resulting impacts to depreciation, amortization and accretion expense, among other items is not available to the Company without unreasonable efforts due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy at this time.
The following table presents a reconciliation of free cash flow to net cash provided by operating activities, which is the most directly comparable GAAP measure for the periods presented:
Three months ended | |||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
(unaudited) (in thousands) | |||||||||||
Net cash (used in) provided by operating activities | $ | (5,061) | $ | 67,767 | $ | 32,129 | |||||
Purchase of property and equipment | (48,427) | (55,073) | (33,763) | ||||||||
Proceeds received from sale of property and equipment | 1,944 | 3,534 | 5,166 | ||||||||
Free cash flow | $ | (51,544) | $ | 16,228 | $ | 3,532 | |||||
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to our net income, which is the most directly comparable GAAP measure for the periods presented:
Three months ended, | ||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||
(unaudited) (in thousands) | ||||||||||
Net income (loss) | $ | 9,560 | $ | (2,134) | $ | 3,875 | ||||
Interest expense, net | 4,876 | 1,761 | 1,272 | |||||||
Income tax expense | 2,894 | 2,305 | 1,452 | |||||||
Depreciation, amortization and accretion | 39,600 | 41,037 | 38,150 | |||||||
EBITDA | 56,930 | 42,969 | 44,749 | |||||||
Tax receivable agreements expense | — | 836 | — | |||||||
Impairments and abandonments | 1,148 | 1,146 | 45 | |||||||
Non-cash loss on sale of assets or subsidiaries | 173 | 61 | 1,748 | |||||||
Non-recurring severance expenses | — | — | 648 | |||||||
Non-cash compensation expenses | 3,481 | 7,999 | 6,359 | |||||||
Transaction and rebranding costs | 1,183 | 1,533 | 4,929 | |||||||
Lease abandonment costs | 724 | (53) | 389 | |||||||
Other non-recurring charges | 487 | 1,243 | 442 | |||||||
Equity in (earnings) losses of unconsolidated entities | (95) | 506 | 449 | |||||||
Adjusted EBITDA | $ | 64,031 | $ | 56,240 | $ | 59,758 | ||||
The following table presents a reconciliation of gross profit before D&A to total gross profit, which is the most directly comparable GAAP measure, and a calculation of gross margin before D&A for the periods presented:
Three months ended, | |||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||
(unaudited) (in thousands) | |||||||||
Gross profit by segment | |||||||||
Water Infrastructure | $ | 19,101 | $ | 23,009 | $ | 15,915 | |||
Water Services | 26,765 | 14,831 | 25,661 | ||||||
Chemical technologies | 9,904 | 6,344 | 11,101 | ||||||
As reported gross profit | 55,770 | 44,184 | 52,677 | ||||||
Plus D&A | |||||||||
Water Infrastructure | 19,797 | 19.005 | 13,901 | ||||||
Water Services | 17,165 | 19,497 | 21,114 | ||||||
Chemical technologies | 1,713 | 1,798 | 1,877 | ||||||
Total D&A | 38,675 | 40,300 | 36,892 | ||||||
Gross profit before D&A | $ | 94,445 | $ | 84,484 | $ | 89,569 | |||
Gross profit before D&A by segment | |||||||||
Water Infrastructure | 38,898 | 42,014 | 29,816 | ||||||
Water Services | 43,930 | 34,328 | 46,775 | ||||||
Chemical technologies | 11,617 | 8,142 | 12,978 | ||||||
Total gross profit before D&A | $ | 94,445 | $ | 84,484 | $ | 89,569 | |||
Gross margin before D&A by segment | |||||||||
Water Infrastructure | 53.7 % | 54.7 % | 46.9 % | ||||||
Water Services | 19.5 % | 16.4 % | 20.5 % | ||||||
Chemical technologies | 15.2 % | 12.9 % | 17.4 % | ||||||
Total gross margin before D&A | 25.2 % | 24.2 % | 24.4 % | ||||||
Contacts: | Select Water Solutions, Inc. |
Garrett Williams – VP, Corporate Finance & Investor Relations | |
(713) 296-1010 | |
Dennard Lascar Investor Relations | |
Ken Dennard / Natalie Hairston | |
(713) 529-6600 | |
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SOURCE Select Water Solutions, Inc.
FAQ
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