NYSE$WTTR
Select Water Solutions Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Second quarter results were announced, showing revenue growth and margin improvements driven by operational integration and efficiency.
Select Water Solutions reported a strong second quarter with revenue of $404.6 million, a 20% increase year-over-year, and net income increasing 55% to $22.6 million. The company saw improvements in gross profit and Adjusted EBITDA, driven by a focus on operational efficiency and resilience in its infrastructure and specialty chemistry businesses. Strong cash flows allowed for debt reduction and significant capital returns to shareholders.
- Generated revenue of $404.6 million, up 20% year-over-year.
- Net income increased 55% year-over-year to $22.6 million.
- Adjusted EBITDA improved 47% year-over-year to $69.8 million.
- Returned $44.6 million to shareholders through dividends and share repurchases.
Headline financials
Revenue & EPS history
Select Water Solutions · Revenue · Quarterly
$405M
Revenue by segment
Select Water Solutions · $405M total across 3 segments · Q2 2023
- Water Services$265M+35.0%65.4%
- Chemical Technologies$84.8M—20.9%
- Water Infrastructure$55.3M-8.3%13.7%
Forward guidance
The Company anticipates low- to mid-single digit percentage revenue declines for the Water Services segment, while expecting up to 100 basis points of margin improvement. The Water Infrastructure segment is projected to see mid-single digit revenue increases with gross margins before D&A improving 200-400 basis points. The Chemical Technologies segment expects relatively steady revenues and margins.
Tailwinds
- Water Infrastructure revenues are expected to increase by mid-single digit percentages.
- Gross margins before D&A for Water Infrastructure are anticipated to improve by 200-400 basis points.
- Chemical Technologies segment anticipates relatively steady revenues and margins.
- Company expects gross margins before D&A to see up to 100 basis points of margin improvement in Water Services.
- Company reaffirms its robust free cash flow outlook for the year.
Headwinds
- Water Services segment expects to see low- to mid-single digit percentage revenue declines.
- Decline in completions activity combined with the consolidation and elimination of certain non-core and underperforming operations
- Modest declines in completions activity
- Commodity price and activity volatility
- Additional operational integration
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 2023
+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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