Select Water Solutions Inc · Q1 2023 earnings

Briefing

Achieved sequential earnings and revenue growth, driven by Water Infrastructure segment and margin expansion across all business segments.

Select Energy Services reported a strong first quarter with revenue of $416.6 million, a 9% increase sequentially. Net income nearly doubled to $13.7 million, and Adjusted EBITDA increased by 29% sequentially to $67.2 million. The Water Infrastructure segment saw significant growth, and the company reinitiated its share repurchase program.

• Generated revenue of $417 million, up 9% sequentially from Q4 2022.
• Water Infrastructure segment revenue increased 32% sequentially to $102 million.
• Net income increased 81% sequentially to $13.7 million.
• Adjusted EBITDA improved 29% sequentially to $67.2 million.

Headline financials

Revenue & EPS history

The Company anticipates relatively steady revenues in Water Infrastructure during the second quarter of 2023 with gross margins before D&A improving 200-300 basis points supported by the accretive margin contributions of our recent organic projects. For the second quarter of 2023, the Company anticipates mid-single digit percentage revenue improvements and steady margins for the Oilfield Chemicals segment as the segment continues to advance from its all-time high-water mark levels.