NYSE$WTTR
Select Water Solutions Inc · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Financial results and operational updates announced for Q1 2024.
Select Water Solutions reported revenue of $366.5 million and net income of $3.9 million in Q1 2024. The company closed on the acquisitions of Buckhorn Waste Services and Trinity Environmental Services during the quarter, expanding its waste management and disposal capabilities. The Water Infrastructure segment saw revenue growth and margin improvement, while the Water Services segment experienced a decline.
- Generated revenue of $367 million during the first quarter of 2024
- Water Infrastructure segment generated revenue of $64 million during the first quarter of 2024, up 4% sequentially from the fourth quarter of 2023 and 14% from the first quarter of 2023
- Adjusted EBITDA improved 3% sequentially during the first quarter of 2024 relative to the fourth quarter of 2023
- Closed on the acquisitions of Buckhorn Waste Services and Trinity Environmental Services
Headline financials
Revenue & EPS history
Select Water Solutions · Revenue · Quarterly
$367M
Revenue by segment
Select Water Solutions · $389M total across 3 segments · Q3 2023
- Water Services$252M+13.8%64.7%
- Chemical Technologies$79M—20.3%
- Water Infrastructure$58.4M-21.5%15.0%
Forward guidance
The Company expects to see segment revenue decline by low single digit percentages, driven primarily by the continued consolidation and elimination of certain non-core operations, for the second quarter of 2024. The Company expects gross margins before D&A to improve to 21 – 24% during the second quarter of 2024. The Company anticipates Water Infrastructure revenues increasing by more than 10% during the second quarter of 2024, driven by full quarter revenue contribution from our recent acquisitions, while gross margins should stay relatively steady sequentially. For the second quarter of 2024, the Company anticipates low single-digit percentage revenue improvements and gross margins before D&A of 17% – 19%.
Tailwinds
- Maintain strong Water Infrastructure gross margins
- See meaningful margin gains in Water Services
- See meaningful margin gains in Chemical Technologies segments during the second quarter
- Strategic initiatives and margin improvement opportunities should support modest consolidated revenue growth
- Adjusted EBITDA increasing during the second quarter to $64 – $68 million
Headwinds
- Revenue decline by low single digit percentages, driven primarily by the continued consolidation and elimination of certain non-core operations
- Expected retrenchment in our Water Services segment
- Reductions in legacy trucking and well testing operations
- Decline in recycling and pipeline volumes during the quarter.
- Working capital needs of the business, primarily resulting from a $16.5 million reduction in accounts payable, including the settlement of certain payables associated with our recent acquisitions.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2024
+1.5%
Avg return
Earnings day
+2.1%
Avg return
5 days after
-0.0%
Avg return
30 days after
46%
17 / 37 earnings
Positive
+32.2%
Q3 2024
Best reaction
-13.0%
Q4 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.9% | +2.1% | +4.4% | |
| Q4 2025 | +9.1% | -3.5% | +8.7% | |
| Q3 2025 | -1.3% | -5.8% | -4.1% | |
| Q2 2025 | -5.4% | -9.8% | -8.2% | |
| Q1 2025 | -11.8% | +4.5% | +7.4% | |
| Q4 2024 | -5.4% | -9.0% | -24.0% | |
| Q3 2024 | +32.2% | +32.0% | +38.1% | |
| Q2 2024 | +2.7% | -3.0% | -0.4% | |
| Q1 2024 | -4.1% | -3.7% | +12.2% | |
| Q4 2023 | +16.0% | +12.4% | +18.6% | |
| Q3 2023 | +2.2% | +3.6% | +0.5% | |
| Q2 2023 | +0.1% | -3.3% | -2.3% | |
| Q1 2023 | -2.6% | +0.5% | -0.8% | |
| Q4 2022 | -13.0% | -9.9% | -23.4% | |
| Q3 2022 | -6.2% | +1.1% | -11.2% | |
| Q2 2022 | -1.3% | -2.9% | -3.2% | |
| Q1 2022 | +9.9% | +10.6% | +11.8% | |
| Q4 2021 | +14.0% | +9.8% | +18.6% | |
| Q3 2021 | +4.2% | +15.5% | -5.6% | |
| Q2 2021 | -5.6% | -5.8% | -2.6% | |
| Q1 2021 | +15.2% | +30.1% | +26.3% | |
| Q4 2020 | +3.3% | -1.1% | -16.7% | |
| Q3 2020 | -5.2% | +0.9% | +38.3% | |
| Q2 2020 | +8.7% | +8.7% | -1.3% | |
| Q1 2020 | +4.2% | +22.6% | +31.2% | |
| Q4 2019 | -1.1% | -10.5% | -58.1% | |
| Q3 2019 | -1.1% | -0.2% | +0.0% | |
| Q2 2019 | -4.1% | -3.2% | -3.4% | |
| Q1 2019 | -3.8% | -0.9% | -3.9% | |
| Q4 2018 | +4.9% | +4.9% | +23.4% | |
| Q3 2018 | +11.8% | +4.9% | -10.7% | |
| Q2 2018 | -5.0% | -14.9% | -23.5% | |
| Q1 2018 | +6.9% | +11.6% | -9.6% | |
| Q4 2017 | -6.0% | -6.0% | -17.2% | |
| Q3 2017 | -4.0% | -5.3% | -3.9% | |
| Q2 2017 | -0.7% | -1.3% | -5.5% | |
| Q1 2017 | -1.6% | — | — | |
| Q3 2016 | — | — | — | |
| Q2 2016 | — | — | — | |
| Q1 2016 | — | — | — | |
| Q4 2015 | — | — | — |
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