NYSE$WTTR
Select Water Solutions Inc · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
Revenue increased due to overall industry improvements, while strategic acquisitions expanded the company's sustainable solution offerings.
Select Energy Services reported a revenue of $161.1 million for Q2 2021, a 12% increase sequentially. The company's net loss was $19.6 million, an improvement from the previous quarter's $27.4 million loss. Strategic acquisitions like Complete Energy Services and UltRecovery, along with an exclusive agreement with Emission Rx, enhanced the company's portfolio and are expected to contribute to future growth.
- Revenue increased by 12% sequentially, reaching $161.1 million.
- Net loss improved to $19.6 million compared to $27.4 million in the previous quarter.
- Closed acquisition of Complete Energy Services, Inc. to expand water solutions.
- Enhanced sustainability-focused technologies with UltRecovery acquisition and Emission Rx agreement.
Headline financials
Revenue & EPS history
Select Water Solutions · Revenue · Quarterly
$161M
Revenue by segment
Select Water Solutions · $110M total across 2 segments · Q2 2021
- Water Services$76.7M+37.4%69.7%
- Water Infrastructure$33.3M+117.8%30.3%
Forward guidance
Select Energy Services anticipates continued revenue and margin growth in Q3, driven by increasing completions activity, pricing improvements, contributions from recycling projects, and the recent Complete acquisition. SG&A is expected to increase by $2.0 - 2.5 million due to the Complete acquisition.
Tailwinds
- Expect to see further meaningful revenue and margin growth in the base business during the third quarter supported by increasing completions activity.
- Expect to see further meaningful revenue and margin growth in the base business during the third quarter supported by pricing improvements
- Expect to see further meaningful revenue and margin growth in the base business during the third quarter supported by incremental contributions from our recently announced organic recycling projects.
- Expect to see significant revenue growth and margin improvement resulting from our recent acquisitions, most notably Complete.
- Anticipate segment revenues increasing by more than 30% during the third quarter and low double-digit to mid-teen gross margins before D&A, driven by increasing completions activity, meaningful pricing improvements and most notably, the sizable contribution from the recently acquired operations of Complete.
Headwinds
- SG&A during the third quarter of 2021 is expected to increase by $2.0 - 2.5 million as a result of the Complete acquisition.
- Gross margins were impacted by continued raw materials cost inflation
- Gross margins were impacted by continued supply chain challenges
- Anticipate modest mid-single digit percentage sequential revenue growth in Oilfield Chemicals segment during the third quarter, with gross margins before D&A in the low double digit range, as the segment will be impacted by reactivation costs associated with the Tyler facility during the third quarter.
- Cost inflation continued to impact the margins during the quarter.
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 Q2 2021
+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 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro