Select Energy Services ( (WTTR) ) has released its Q1 earnings. Here is a breakdown of the information Select Energy Services presented to its investors.
Select Water Solutions, Inc. is a prominent provider of sustainable water and chemical solutions, primarily serving the energy sector with a focus on water infrastructure and recycling capabilities. The company is known for its environmentally responsible management of water resources throughout the lifecycle of a well.
In the first quarter of 2025, Select Water Solutions reported a consolidated revenue of $374.4 million, marking a 7% increase from the previous quarter. The company also saw a significant rise in net income, reaching $9.6 million, and an improvement in adjusted EBITDA by 14% sequentially. These results were bolstered by new long-term contracts and infrastructure projects in the Permian Basin.
Key financial highlights include a gross profit of $55.8 million and a total gross margin of 14.9%. The Water Infrastructure segment, despite a revenue decline, maintained strong margins, while the Water Services and Chemical Technologies segments showed revenue growth. The company also announced strategic expansions in the Northern Delaware Basin and other regions, with significant investments in recycling and disposal infrastructure.
Looking ahead, Select Water Solutions anticipates continued growth in its Water Infrastructure segment, with expectations of increased adjusted EBITDA in the second quarter. Despite potential macroeconomic pressures, the company is poised to maintain its growth trajectory through strategic infrastructure investments and long-term contracts, ensuring a resilient position in the market.
Overall, Select Water Solutions remains committed to expanding its water networks and enhancing its infrastructure projects, aiming to capitalize on long-term revenue opportunities while navigating industry challenges.