Select Water Solutions Announces Fourth Quarter and Full Year 2025 Financial and Operational Results and Strategic Updates
Rhea-AI Summary
Select Water Solutions (NYSE:WTTR) reported full year 2025 consolidated revenue of $1.4 billion, net income of $21.5 million and Adjusted EBITDA of $260.3 million. Fourth quarter revenue was $346.5 million. The company added long-term contracts including 15 million barrels MVC and ~180,000 acres of leasehold/ROFR dedications, plus 950,000 acres of new dedication at an 11-year average contract length. 2026 guidance targets consolidated Adjusted EBITDA of $65–68 million for Q1 and $175–225 million in net capex for the year.
Positive
- Chemical Technologies revenue +19% YoY to $308 million
- Adjusted EBITDA of $260.3 million for full year 2025
- Secured 15 million barrels of MVC underpinning infrastructure volumes
- Added 950,000 acres under dedication with 11-year average contract length
- Surpassed 1 billion barrels of cumulative produced water recycled
Negative
- Full year net income down to $21.5M from $35.5M in 2024 (≈39% decline)
- Net capital expenditures rose to $279.3M in 2025 from $157.3M in 2024
- Fourth quarter reported a $2.1M net loss
Market Reaction
Following this news, WTTR has gained 4.60%, reflecting a moderate positive market reaction. Argus tracked a peak move of +15.2% during the session. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $13.87. This price movement has added approximately $71M to the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
WTTR gained 3.81% while several peers also traded higher (e.g., MRC +10.59%, EFXT +5.04%, RES +3.37%), but no names appeared in the momentum scanner, suggesting the move was more company-specific than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Positive | -1.7% | Q3 2025 beat guidance with higher EBITDA and new Permian contracts. |
| Aug 05 | Q2 2025 earnings | Positive | -5.6% | Strong Q2 2025 cash flow, EBITDA growth, and new infrastructure contracts. |
| May 06 | Q1 2025 earnings | Positive | -11.4% | Q1 2025 revenue and EBITDA growth with major Northern Delaware deal. |
| Feb 18 | FY 2024 earnings | Positive | -5.4% | Strong 2024 growth and new long-term Water Infrastructure projects. |
| Nov 05 | Q3 2024 earnings | Positive | +25.5% | Q3 2024 revenue and EBITDA growth plus multiple new infrastructure deals. |
Earnings releases have generally described strong operational progress, yet 4 of the last 5 such updates saw negative next-day moves, indicating a tendency for muted or adverse price reactions to positive-sounding results.
Over the past five earnings cycles from Nov 2024 through Nov 2025, WTTR has repeatedly highlighted revenue growth, expanding Water Infrastructure contracts, and rising Adjusted EBITDA. Several quarters featured higher cash flow and new long-term Permian Basin dedications, alongside increased capex plans. Despite these constructive updates, shares often traded down the next day, with only the Nov 5, 2024 report posting a strong positive reaction. Today’s full-year 2025 results and 2026 outlook extend that growth and infrastructure build-out narrative.
Historical Comparison
In the past year, WTTR’s 5 earnings releases saw an average next-day move of 0.29%, often negative despite positive updates. Today’s 3.81% gain represents a stronger‑than‑usual, but not extreme, reaction versus that pattern.
Earnings updates show continued expansion of Water Infrastructure and steady Adjusted EBITDA growth, supported by rising long-term acreage dedications and higher capital deployment.
Market Pulse Summary
This announcement details full-year 2025 revenue of $1.4 billion, net income of $21.5 million, and record Adjusted EBITDA of $260.3 million, alongside strong segment growth in Water Infrastructure and Chemical Technologies. Investors may weigh this against lower operating cash flow of $214.7 million and significantly higher net capex of $279.3 million. The update also reiterates continued build-out in Northern Delaware and guidance for further Water Infrastructure expansion in 2026.
Key Terms
adjusted ebitda financial
gross margin financial
free cash flow financial
net capital expenditures financial
minimum volume commitments technical
AI-generated analysis. Not financial advice.
Generated full year and fourth quarter 2025 consolidated revenue of
Generated full year net income of
Water Infrastructure generated full year 2025 revenues of
Chemical Technologies generated full year 2025 revenues of
Announces multiple new long-term contracted Water Infrastructure projects supported by 15 million barrels of minimum volume commitments ("MVC") and approximately 180,000 acres of new leasehold and ROFR acreage dedications
John Schmitz, Chairman of the Board, President and CEO, stated, "The fourth quarter concluded a record year for Select across a number of key operational and financial metrics. During full-year 2025, we improved our consolidated margins, increased adjusted EBITDA, streamlined our Water Services segment, deployed high-performing chemical product offerings that drove significant market share capture, and most importantly, made great strides with our ongoing
"During 2025, we significantly bolstered our long-term Water Infrastructure growth strategy by adding 950,000 acres under new dedication with an 11-year average contract length, while also adding long-term diversification potential with our first large-scale municipal & industrial project, multiple lithium extraction partnerships across key basins, and multiple successful beneficial reuse pilots. We continued to add to our infrastructure footprint with new contract wins during the fourth quarter, and importantly, added multiple sizable MVC awards that underpin future growth alongside additional acreage dedication expansions. Included in the fourth quarter development wins was the direct conveyance from a key customer in the
"We are rapidly scaling a differentiated produced water infrastructure business that focuses and builds around a commercial recycling-first platform. This allows our fixed recycling facilities to serve as aggregation points and distribution hubs for significant produced water volumes, supported by large-diameter dual-lined gathering and distribution pipeline systems, interconnecting with disposal and, in the future, potential beneficial reuse or mineral extraction. Our growing gathering and distribution pipeline networks allow us to water balance across a broad geographic footprint – managing the regional supply and demand of oilfield water to where it is needed, or to reallocate from regions of oversupply or potential pore pressure risk to alternative sustainable disposal solutions.
"As we continue our expansive
"Our Chemical Technologies segment finished the year with a record fourth quarter, resulting in annual gains of
"Looking forward to 2026 overall, we expect yet another record setting year for Adjusted EBITDA and consolidated margins as the growth opportunities in our Water Infrastructure segment continue to expand. With several projects already undergoing construction in addition to our recent awards, we anticipate the Water Infrastructure segment to grow revenue by
"Supported by strong recent gains in 2025, we expect our Chemical Technologies segment to deliver a similar revenue profile in 2026 as compared to full year 2025, while improving its overall margin profile. On the Water Services side, we expect to maintain a relatively steady annual revenue run-rate as compared to the fourth quarter of 2025, with continued margin improvement opportunities, which captures the ongoing segment performance after accounting for the OMNI divestiture in the third quarter of 2025.
"Overall, we expect the first quarter to grow sequentially from the fourth quarter, with consolidated Adjusted EBITDA of
"In summary, I believe that Select remains distinctively positioned both in the traditional energy industry, and soon beyond, to advance a unique integration of Water Infrastructure, Water Services and Chemical Technologies solutions underpinned by a growing high-margin, long-term contracted infrastructure business. I look forward to creating further long-term shareholder value in both 2026 and the years to come," concluded Schmitz.
Full Year 2025 Consolidated Financial Information
Revenue for full year 2025 was
For full year 2025, gross profit was
Selling, general and administrative expense ("SG&A") during full year 2025 of
Adjusted EBITDA was
Please refer to the end of this release for reconciliations of gross profit before D&A (non-GAAP measure) to gross profit, free cash flow (non-GAAP measure) to net cash provided by operating activities, and of Adjusted EBITDA (non-GAAP measure) to net income.
Fourth Quarter 2025 Consolidated Financial Information
Revenue for the fourth quarter of 2025 was
For the fourth quarter of 2025, gross profit was
SG&A during the fourth 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 record quarterly revenues of
Cash Flow and Capital Expenditures
Cash flow from operations for the full year 2025 was
Net capital expenditures for the full year 2025 were
Additionally, cash flow from investing activities during the fourth quarter of 2025 included
Cash flows from financing activities during the full year 2025 included
Balance Sheet and Capital Structure
Total cash and cash equivalents were
As of December 31, 2025, the borrowing base under the sustainability-linked credit facility was
Total liquidity was
Water Infrastructure Business Development and Acquisition Updates
Since the start of the fourth quarter of 2025, Select has executed multiple new long-term contracts for additional full life-cycle produced water gathering and distribution infrastructure projects in the Permian Basin and Rockies regions while also adding disposal and storage assets via both acquisition and direct conveyance. In aggregate, these initiatives are expected to add 14 miles of pipeline, 3.5 million barrels of storage and 55,000 barrels per day of disposal capacity to Select's infrastructure networks, supported by 179,000 dedicated acres and approximately 15 million barrels of MVC volumes. The combined capital expenditures associated with these new projects is expected to be approximately
Northern Delaware Produced Water Takeaway Agreements
During the fourth quarter of 2025, Select signed separate 10- and 7-year produced water handling agreements with a large public independent operator for the operator's development areas in
Northern Delaware Asset Conveyance
During the fourth quarter of 2025, a key customer conveyed to Select a disposal permit in
Northern Delaware Disposal Well Acquisition
In the fourth quarter of 2025, Select acquired disposal facilities in
Rockies Pipeline Connection and Disposal Agreement
During the fourth quarter of 2025, Select signed a 15-year agreement to construct and connect produced water gathering pipeline infrastructure for a large operator to existing Select disposal facilities in the Rockies region. This agreement is supported by a 9.6-million-barrel MVC and an approximate 24,000-acre dedication for the gathering of produced water. We expect construction to be complete and the pipeline to be operational by the beginning of the second quarter of 2026.
Fourth Quarter Earnings Conference Call
In conjunction with today's release, Select has scheduled a conference call on Wednesday, February 18, 2026, 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 March 4, 2026, and may be accessed by calling 201-612-7415 using passcode 13757758#. 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 | |||||||||||||||||||||||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||||||||||||||||||||
Three months ended, | Year ended December 31, | ||||||||||||||||||||||||||||||||||
Dec 31, 2025 | (unaudited) Sept 30, 2025 | Dec 31, 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||
Water Infrastructure | $ | 81,188 | $ | 78,805 | $ | 76,811 | $ | 313,239 | $ | 290,900 | |||||||||||||||||||||||||
Water Services | 178,340 | 166,877 | 209,323 | 786,525 | 901,657 | ||||||||||||||||||||||||||||||
Chemical Technologies | 86,974 | 76,561 | 62,913 | 307,580 | 259,518 | ||||||||||||||||||||||||||||||
Total revenue | 346,502 | 322,243 | 349,047 | 1,407,344 | 1,452,075 | ||||||||||||||||||||||||||||||
Costs of revenue | |||||||||||||||||||||||||||||||||||
Water Infrastructure | 37,272 | 36,964 | 34,797 | 143,940 | 137,573 | ||||||||||||||||||||||||||||||
Water Services | 143,400 | 136,795 | 174,995 | 635,225 | 720,876 | ||||||||||||||||||||||||||||||
Chemical Technologies | 69,319 | 61,352 | 54,771 | 251,284 | 220,617 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 51,190 | 43,578 | 40,300 | 174,497 | 153,543 | ||||||||||||||||||||||||||||||
Total costs of revenue | 301,181 | 278,689 | 304,863 | 1,204,946 | 1,232,609 | ||||||||||||||||||||||||||||||
Gross profit | 45,321 | 43,554 | 44,184 | 202,398 | 219,466 | ||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 43,275 | 41,674 | 39,749 | 161,316 | 159,978 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 1,168 | 1,310 | 737 | 5,321 | 3,404 | ||||||||||||||||||||||||||||||
Impairments and abandonments | 1,317 | 2,279 | 1,146 | 6,221 | 1,237 | ||||||||||||||||||||||||||||||
Lease abandonment costs | (51) | 63 | (53) | 734 | 358 | ||||||||||||||||||||||||||||||
Total operating expenses | 45,709 | 45,326 | 41,579 | 173,592 | 164,977 | ||||||||||||||||||||||||||||||
(Loss) income from operations | (388) | (1,772) | 2,605 | 28,806 | 54,489 | ||||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||
(Loss) gain on sales of property and equipment and divestitures, net | (130) | 2,600 | 924 | 10,338 | 3,255 | ||||||||||||||||||||||||||||||
Interest expense, net | (6,697) | (5,963) | (1,761) | (23,181) | (6,965) | ||||||||||||||||||||||||||||||
Remeasurement gain on business combination | — | 14,924 | — | 14,924 | — | ||||||||||||||||||||||||||||||
Tax receivable agreements expense | (4,995) | — | (836) | (4,995) | (836) | ||||||||||||||||||||||||||||||
Other | 715 | (2,277) | (255) | (1,141) | (573) | ||||||||||||||||||||||||||||||
(Loss) income before income tax benefit (expense) and equity in losses | (11,495) | 7,512 | 677 | 24,751 | 49,370 | ||||||||||||||||||||||||||||||
Income tax benefit (expense) | 9,457 | (434) | (2,305) | 1,608 | (13,568) | ||||||||||||||||||||||||||||||
Equity in losses of unconsolidated entities | (20) | (4,784) | (506) | (4,892) | (352) | ||||||||||||||||||||||||||||||
Net (loss) income | (2,058) | 2,294 | (2,134) | 21,467 | 35,450 | ||||||||||||||||||||||||||||||
Less: net loss (income) attributable to noncontrolling interests | 1,712 | 389 | 494 | (244) | (4,806) | ||||||||||||||||||||||||||||||
Net (loss) income attributable to Select Water Solutions, Inc. | $ | (346) | $ | 2,683 | $ | (1,640) | $ | 21,223 | $ | 30,644 | |||||||||||||||||||||||||
Net (loss) income per share attributable to common stockholders: | |||||||||||||||||||||||||||||||||||
Class A—Basic | $ | (0.00) | $ | 0.03 | $ | (0.02) | $ | 0.21 | $ | 0.31 | |||||||||||||||||||||||||
Class B—Basic | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Net (loss) income per share attributable to common stockholders: | |||||||||||||||||||||||||||||||||||
Class A—Diluted | $ | (0.00) | $ | 0.03 | $ | (0.02) | $ | 0.21 | $ | 0.30 | |||||||||||||||||||||||||
Class B—Diluted | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||
Class A—Basic | 102,585,084 | 102,512,351 | 100,341,695 | 101,860,662 | 99,986,771 | ||||||||||||||||||||||||||||||
Class B—Basic | 16,221,101 | 16,221,101 | 16,221,101 | 16,221,101 | 16,221,101 | ||||||||||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||
Class A—Diluted | 102,585,084 | 104,236,739 | 100,341,695 | 103,783,796 | 102,194,323 | ||||||||||||||||||||||||||||||
Class B—Diluted | 16,221,101 | 16,221,101 | 16,221,101 | 16,221,101 | 16,221,101 | ||||||||||||||||||||||||||||||
SELECT WATER SOLUTIONS, INC. | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(in thousands, except share data) | ||||||||||||
As of December 31, | ||||||||||||
2025 | 2024 | |||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 18,084 | $ | 19,978 | ||||||||
Accounts receivable trade, net of allowance for credit losses | 263,965 | 281,569 | ||||||||||
Accounts receivable, related parties | 63 | 150 | ||||||||||
Inventories | 34,278 | 38,447 | ||||||||||
Prepaid expenses and other current assets | 37,996 | 45,354 | ||||||||||
Total current assets | 354,386 | 385,498 | ||||||||||
Property and equipment | 1,629,406 | 1,405,486 | ||||||||||
Accumulated depreciation | (717,223) | (679,832) | ||||||||||
Total property and equipment, net | 912,183 | 725,654 | ||||||||||
Right-of-use assets, net | 28,708 | 36,851 | ||||||||||
Goodwill | 48,485 | 18,215 | ||||||||||
Other intangible assets, net | 106,204 | 123,715 | ||||||||||
Deferred tax assets | 48,881 | 46,339 | ||||||||||
Investments in unconsolidated entities | 78,234 | 11,347 | ||||||||||
Other long-term assets, net | 18,531 | 18,663 | ||||||||||
Total assets | $ | 1,595,612 | $ | 1,366,282 | ||||||||
Liabilities and Equity | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 49,682 | $ | 39,189 | ||||||||
Accrued accounts payable | 46,275 | 76,196 | ||||||||||
Accounts payable and accrued expenses, related parties | 3,634 | 4,378 | ||||||||||
Accrued salaries and benefits | 17,702 | 29,937 | ||||||||||
Accrued insurance | 22,272 | 24,685 | ||||||||||
Sales tax payable | 2,435 | 2,110 | ||||||||||
Tax receivable agreements liabilities | — | 93 | ||||||||||
Accrued expenses and other current liabilities | 37,549 | 40,137 | ||||||||||
Current operating lease liabilities | 14,247 | 16,439 | ||||||||||
Current portion of long-term debt | 31,250 | — | ||||||||||
Current portion of finance lease obligations | 650 | 211 | ||||||||||
Total current liabilities | 225,696 | 233,375 | ||||||||||
Tax receivable agreements liabilities | 43,421 | 38,409 | ||||||||||
Long-term operating lease liabilities | 21,533 | 31,092 | ||||||||||
Long-term debt | 285,043 | 85,000 | ||||||||||
Other long-term liabilities | 92,852 | 62,872 | ||||||||||
Total liabilities | 668,545 | 450,748 | ||||||||||
Commitments and contingencies | ||||||||||||
Class A common stock, | 1,049 | 1,031 | ||||||||||
Class B common stock, | 162 | 162 | ||||||||||
Additional paid-in capital | 989,329 | 998,474 | ||||||||||
Accumulated deficit | (184,924) | (206,147) | ||||||||||
Total stockholders' equity | 805,616 | 793,520 | ||||||||||
Noncontrolling interests | 121,451 | 122,014 | ||||||||||
Total equity | 927,067 | 915,534 | ||||||||||
Total liabilities and equity | $ | 1,595,612 | $ | 1,366,282 | ||||||||
SELECT WATER SOLUTIONS, INC. | ||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
Three months ended, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||
Dec 31, 2025 | (unaudited) Sept 30, 2025 | Dec 31, 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (2,058) | $ | 2,294 | $ | (2,134) | $ | 21,467 | $ | 35,450 | ||||||||||||||||||||||||||||
Adjustments to reconcile net (loss) income to net cash provided | ||||||||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 52,358 | 44,888 | 41,037 | 179,818 | 156,947 | |||||||||||||||||||||||||||||||||
Deferred tax (benefit) expense | (8,782) | 608 | 1,929 | (1,216) | 12,500 | |||||||||||||||||||||||||||||||||
Tax receivable agreements expense | 4,995 | — | 836 | 4,995 | 836 | |||||||||||||||||||||||||||||||||
Loss (gain) on disposal of property and equipment and | 130 | (2,600) | (924) | (10,338) | (3,255) | |||||||||||||||||||||||||||||||||
Equity in losses of unconsolidated entities | 20 | 4,784 | 506 | 4,892 | 352 | |||||||||||||||||||||||||||||||||
Credit loss (recovery) expense | (135) | (98) | (797) | 989 | 58 | |||||||||||||||||||||||||||||||||
Amortization and write-off of debt issuance costs | 413 | 412 | 123 | 2,228 | 489 | |||||||||||||||||||||||||||||||||
Inventory adjustments | 23 | 32 | (110) | 75 | (638) | |||||||||||||||||||||||||||||||||
Equity-based compensation | 5,798 | 7,398 | 7,999 | 19,875 | 26,358 | |||||||||||||||||||||||||||||||||
Impairments and abandonments | 1,317 | 2,279 | 1,146 | 6,221 | 1,237 | |||||||||||||||||||||||||||||||||
Remeasurement gain on business combination | — | (14,924) | — | (14,924) | ||||||||||||||||||||||||||||||||||
Other operating items, net | 669 | 625 | 167 | 2,447 | 1,093 | |||||||||||||||||||||||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||||||||||||||||||||||||
Accounts receivable | 13,098 | 31,824 | 17,872 | 16,113 | 46,883 | |||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | 13,576 | (5,874) | 1,904 | 11,825 | (14,590) | |||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | (15,970) | 48 | (1,787) | (29,794) | (28,834) | |||||||||||||||||||||||||||||||||
Net cash provided by operating activities | 65,452 | 71,696 | 67,767 | 214,673 | 234,886 | |||||||||||||||||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||||||||||||||||||
Purchase of property and equipment | (71,499) | (95,230) | (55,073) | (294,562) | (173,153) | |||||||||||||||||||||||||||||||||
Purchase of equity-method investments | — | — | — | (72,059) | — | |||||||||||||||||||||||||||||||||
Acquisitions, net of cash received | (1,251) | (35,136) | (2,841) | (53,592) | (161,279) | |||||||||||||||||||||||||||||||||
Proceeds received from sales of property and equipment | 1,494 | 4,154 | 3,534 | 15,251 | 15,809 | |||||||||||||||||||||||||||||||||
Net cash used in investing activities | (71,256) | (126,212) | (54,380) | (404,962) | (318,623) | |||||||||||||||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||||||||||||||
Borrowings from revolving line of credit | 26,500 | 40,000 | 15,000 | 131,500 | 165,000 | |||||||||||||||||||||||||||||||||
Payments on revolving line of credit | (11,500) | (10,000) | (10,000) | (146,500) | (80,000) | |||||||||||||||||||||||||||||||||
Borrowings from long-term debt | — | — | — | 250,000 | — | |||||||||||||||||||||||||||||||||
Payments of finance lease obligations | (159) | (129) | (68) | (601) | (231) | |||||||||||||||||||||||||||||||||
Payment of debt issuance costs | — | — | — | (7,867) | — | |||||||||||||||||||||||||||||||||
Dividends and distributions paid | (8,405) | (8,377) | (8,212) | (33,655) | (29,745) | |||||||||||||||||||||||||||||||||
Proceeds from share issuance | — | — | 50 | — | 50 | |||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | 2,875 | — | |||||||||||||||||||||||||||||||||
Repurchase of common stock | (377) | (332) | (589) | (7,286) | (7,912) | |||||||||||||||||||||||||||||||||
Payments under tax receivable agreement | — | — | (521) | (77) | (521) | |||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 6,059 | 21,162 | (4,340) | 188,389 | 46,641 | |||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | 1 | (4) | (7) | 6 | (9) | |||||||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 256 | (33,358) | 9,040 | (1,894) | (37,105) | |||||||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 17,828 | 51,186 | 10,938 | 19,978 | 57,083 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 18,084 | $ | 17,828 | $ | 19,978 | $ | 18,084 | $ | 19,978 | ||||||||||||||||||||||||||||
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 (loss) 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 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 | ||||||||||||||||||||||
Dec 31, 2025 | Sept 30, 2025 | Dec 31, 2024 | ||||||||||||||||||||
(unaudited) (in thousands) | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 65,452 | $ | 71,696 | $ | 67,767 | ||||||||||||||||
Purchase of property and equipment | (71,499) | (95,230) | (55,073) | |||||||||||||||||||
Proceeds received from sale of property and equipment | 1,494 | 4,154 | 3,534 | |||||||||||||||||||
Free cash flow | $ | (4,553) | $ | (19,380) | $ | 16,228 | ||||||||||||||||
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to our net (loss) income, which is the most directly comparable GAAP measure for the periods presented:
Three months ended, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
Dec 31, 2025 | Sept 30, 2025 | Dec 31, 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||
(unaudited) (in thousands) | (unaudited) (in thousands) | ||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (2,058) | $ | 2,294 | $ | (2,134) | $ | 21,467 | $ | 35,450 | |||||||||||||||||||||||||
Interest expense, net | 6,697 | 5,963 | 1,761 | 23,181 | 6,965 | ||||||||||||||||||||||||||||||
Income tax (benefit) expense | (9,457) | 434 | 2,305 | (1,608) | 13,568 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 52,358 | 44,888 | 41,037 | 179,818 | 156,947 | ||||||||||||||||||||||||||||||
EBITDA | 47,540 | 53,579 | 42,969 | 222,858 | 212,930 | ||||||||||||||||||||||||||||||
Tax receivable agreements expense | 4,995 | — | 836 | 4,995 | 836 | ||||||||||||||||||||||||||||||
Impairments and abandonments | 1,317 | 2,279 | 1,146 | 6,221 | 1,237 | ||||||||||||||||||||||||||||||
Remeasurement gain on business combination | — | (14,924) | — | (14,924) | — | ||||||||||||||||||||||||||||||
Non-cash loss on sale of assets or subsidiaries | 87 | 875 | 61 | 1,399 | 3,609 | ||||||||||||||||||||||||||||||
Non-recurring severance expenses | — | 1,467 | — | 1,467 | 648 | ||||||||||||||||||||||||||||||
Non-cash compensation expenses | 5,798 | 7,398 | 7,999 | 19,875 | 26,358 | ||||||||||||||||||||||||||||||
Transaction and rebranding costs | 3,779 | 3,289 | 1,533 | 10,269 | 10,038 | ||||||||||||||||||||||||||||||
Lease abandonment costs | (51) | 63 | (53) | 734 | 358 | ||||||||||||||||||||||||||||||
Other non-recurring charges | 672 | 671 | 1,243 | 2,497 | 2,029 | ||||||||||||||||||||||||||||||
Equity in losses of unconsolidated entities | 20 | 4,784 | 506 | 4,892 | 352 | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 64,157 | $ | 59,481 | $ | 56,240 | $ | 260,283 | $ | 258,395 | |||||||||||||||||||||||||
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, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
Dec 31, 2025 | Sept 30, 2025 | Dec 31, 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||
Gross profit by segment | ||||||||||||||||||||||||||||||||||||||||||
Water infrastructure | $ | 10,970 | $ | 16,776 | $ | 23,009 | $ | 69,239 | $ | 88,235 | ||||||||||||||||||||||||||||||||
Water services | 18,369 | 13,244 | 14,831 | 83,637 | 99,662 | |||||||||||||||||||||||||||||||||||||
Chemical technologies | 15,982 | 13,534 | 6,344 | 49,522 | 31,569 | |||||||||||||||||||||||||||||||||||||
As reported gross profit | 45,321 | 43,554 | 44,184 | 202,398 | 219,466 | |||||||||||||||||||||||||||||||||||||
Plus depreciation, amortization and accretion | ||||||||||||||||||||||||||||||||||||||||||
Water infrastructure | 32,946 | 25,065 | 19,005 | 100,060 | 65,092 | |||||||||||||||||||||||||||||||||||||
Water services | 16,571 | 16,838 | 19,497 | 67,663 | 81,119 | |||||||||||||||||||||||||||||||||||||
Chemical technologies | 1,673 | 1,675 | 1,798 | 6,774 | 7,332 | |||||||||||||||||||||||||||||||||||||
Total depreciation and amortization | 51,190 | 43,578 | 40,300 | 174,497 | 153,543 | |||||||||||||||||||||||||||||||||||||
Gross profit before D&A | $ | 96,511 | $ | 87,132 | $ | 84,484 | $ | 376,895 | $ | 373,009 | ||||||||||||||||||||||||||||||||
Gross profit before D&A by segment | ||||||||||||||||||||||||||||||||||||||||||
Water infrastructure | 43,916 | 41,841 | 42,014 | 169,299 | 153,327 | |||||||||||||||||||||||||||||||||||||
Water services | 34,940 | 30,082 | 34,328 | 151,300 | 180,781 | |||||||||||||||||||||||||||||||||||||
Chemical technologies | 17,655 | 15,209 | 8,142 | 56,296 | 38,901 | |||||||||||||||||||||||||||||||||||||
Total gross profit before D&A | $ | 96,511 | $ | 87,132 | $ | 84,484 | $ | 376,895 | $ | 373,009 | ||||||||||||||||||||||||||||||||
Gross margin before D&A by segment | ||||||||||||||||||||||||||||||||||||||||||
Water infrastructure | 54.1 % | 53.1 % | 54.7 % | 54.0 % | 52.7 % | |||||||||||||||||||||||||||||||||||||
Water services | 19.6 % | 18.0 % | 16.4 % | 19.2 % | 20.0 % | |||||||||||||||||||||||||||||||||||||
Chemical technologies | 20.3 % | 19.9 % | 12.9 % | 18.3 % | 15.0 % | |||||||||||||||||||||||||||||||||||||
Total gross margin before D&A | 27.9 % | 27.0 % | 24.2 % | 26.8 % | 25.7 % | |||||||||||||||||||||||||||||||||||||
Contacts: | Select Water Solutions, Inc. |
Garrett Williams – VP, Corporate Finance & Investor | |
(713) 296-1010 | |
Dennard Lascar Investor Relations | |
Ken Dennard / Natalie Hairston | |
(713) 529-6600 | |
View original content:https://www.prnewswire.com/news-releases/select-water-solutions-announces-fourth-quarter-and-full-year-2025-financial-and-operational-results-and-strategic-updates-302689943.html
SOURCE Select Water Solutions, Inc.
FAQ
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