NYSE$WTTR

Select Water Solutions Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Revenue and profitability improved due to Water Infrastructure segment growth and strategic acquisitions.

Select Water Solutions reported revenue of $365.1 million, with net income more than tripling and Adjusted EBITDA improving 17% sequentially. The Water Infrastructure segment drove growth, achieving record performance with increased revenue and gross margins.

  • Generated revenue of $365.1 million, slightly down from $366.5 million in the previous quarter and $404.6 million year-over-year.
  • Net income reached $14.9 million, a significant increase from $3.9 million in the first quarter of 2024.
  • Operating cash flow was $83.1 million and free cash flow was $37.4 million.
  • Water Infrastructure segment revenue increased by 8% sequentially.

Headline financials

Total Revenue

$365M

Previous: $405M-9.8%
EPS (adj)

$0.13

Previous: $0.20-35.0%
Capital Expenditures

-$82.9M

Previous: -$67.2M-23.3%
Free Cash Flow

-$70M

Previous: -$47.1M-48.6%
Net Income

$12.9M

Previous: $20.1M-36.0%
Operating Income

$20.4M

Previous: $25.7M-20.9%
Gross Profit

$60.2M

Previous: $61.2M-1.7%
Cash & Equivalents

$16.4M

Previous: $10.6M+55.4%
Total Assets

$1.32B

Previous: $1.23B+7.8%

Revenue & EPS history

Select Water Solutions · Revenue · Quarterly

$365M

Q2 2024-9.8%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Select Water Solutions · $389M total across 3 segments · Q3 2023

  • Water Services
    $252M+13.8%
  • Chemical Technologies
    $79M
  • Water Infrastructure
    $58.4M-21.5%

Forward guidance

The Company anticipates Water Infrastructure revenues increasing by mid-to-high single-digit percentages during the third quarter of 2024, driven by increases in our recycling business and full quarter contributions from second quarter disposal acquisitions, while gross margins should stay relatively steady at 50% – 52%.

Tailwinds

  • Water Infrastructure revenues increasing by mid-to-high single-digit percentages during the third quarter of 2024
  • Gross margins for Water Infrastructure expected to stay relatively steady at 50% – 52%.
  • Growth driven by increases in recycling business.
  • Growth driven by full quarter contributions from second quarter disposal acquisitions.
  • Adjusted EBITDA to be relatively flat from the second quarter at $66 million - $70 million.

Headwinds

  • Segment revenue for Water Services expected to decline by mid-to-high single-digit percentages.
  • Gross margins before D&A for Water Services to hold steady at 22% - 23%.
  • Chemical Technologies revenues decreasing low-to-mid single digit percentages.
  • Gross margins before D&A for Chemical Technologies of 14% - 16%.
  • Manufacturing margins hindered by decreased throughput at manufacturing plants.

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 2024

Historical avgQ2 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

Earnings price reactions
QuarterReport dateReaction (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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