Select Water Solutions Announces Q2 2025 Financial Results

Select Water Solutions, Inc., a leading provider of sustainable water and chemical solutions, has released its financial and operational results for the second quarter of 2025. The company reported significant improvements in profitability and cash flow, alongside strategic initiatives aimed at enhancing its Water Infrastructure segment.

Financial Highlights

For the second quarter of 2025, Select Water Solutions reported:

• Revenue of $364.2 million, a slight decrease from $374.4 million in the first quarter of 2025 and $365.1 million in the second quarter of 2024.
• Net income of $11.7 million, up from $9.6 million in the first quarter of 2025 but down from $14.9 million in the second quarter of 2024.
• Gross profit of $57.8 million, compared to $55.8 million in the first quarter of 2025 and $60.2 million in the second quarter of 2024.
• Adjusted EBITDA of $72.6 million, an increase from $64.0 million in the first quarter of 2025 and $69.6 million in the second quarter of 2024.
• Operating cash flow of $82.6 million, significantly up from a negative $5.1 million in the first quarter of 2025.

Business and Operational Highlights

Key performance indicators for the quarter include:

• Water Infrastructure segment revenue increased by 12% sequentially, with gross profit up by 17%.
• Water Services segment revenue decreased by 4.4% sequentially, impacted by declining activity levels and reduced freshwater sourcing sales.
• Chemical Technologies segment revenue decreased by 11.3% sequentially, though gross margin improved to 17.5% from 15.2% in the first quarter of 2025.

Strategic Initiatives and Corporate Developments

Significant corporate developments include:

• An asset swap transaction with OMNI Environmental Solutions, acquiring infrastructure assets in the Bakken and divesting certain trucking operations.
• Evaluation of strategic alternatives for Peak Rentals, aiming to accelerate growth and optimize the Water Services portfolio.
• New long-term contracted Water Infrastructure projects in the Permian Basin, backed by nearly 60,000 newly dedicated leasehold acres and 385,000 acres under right-of-first-refusal.

Management's Perspective

John Schmitz, Chairman of the Board, President, and CEO, commented on the results, highlighting the company's improved profitability and cash flow. He emphasized the strategic focus on growing the Water Infrastructure segment and rationalizing the Water Services portfolio to drive future growth.

Future Outlook

The company anticipates:

• Flat-to-modestly down Water Infrastructure revenue in the third quarter of 2025, with a 10% growth expected in the fourth quarter.
• Consolidated Adjusted EBITDA to decline sequentially to an estimated $55 – $60 million in the third quarter, with an expected increase in the fourth quarter driven by Water Infrastructure growth.
• Maintaining 2025 net capital expenditures guidance of $225 million to $250 million, with a bias towards the higher end.

SEC Filing: Select Water Solutions, Inc. [ WTTR ] - 8-K - Aug. 05, 2025