NYSE$WTTR

Select Water Solutions Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Select Water Solutions reported increased revenue and improved profitability.

Select Water Solutions announced its Q3 2024 financial results, reporting revenue of $371.3 million, a net income of $18.8 million, and free cash flow of $20.4 million. The company experienced sequential growth in revenue and profitability, driven by the Water Infrastructure segment. They also secured new long-term contracts for pipeline gathering, recycling, and disposal infrastructure projects.

  • Revenue for Q3 2024 was $371.3 million, a 2% increase sequentially.
  • Operating Cash Flow reached $51.9 million and Free Cash Flow was $20.4 million.
  • Net income increased by 26% and Adjusted EBITDA improved by 4% sequentially.
  • Water Infrastructure segment revenue increased sequentially by 20%.

Headline financials

Total Revenue

$371M

Previous: $389M-4.6%
EPS (adj)

$15.00

Previous: $0.14+10614.3%
Adjusted EBITDA

$72.8M

No prior period
Free Cash Flow

$20.4M

No prior period
Gross Margin Before D&A

27.3%

No prior period
Water Infrastructure GM before D&A

56.7%

No prior period
Water Services GM before D&A

20.5%

No prior period
Chemical Technologies GM before D&A

12.4%

No prior period
Total Gross Margin

16.8%

No prior period
Capital Expenditures

-$118M

Previous: -$102M-15.3%
Net Income

$15.8M

Previous: $14.3M+10.1%
Operating Income

$24.5M

Previous: $16.8M+46.4%
Gross Profit

$62.4M

Previous: $56.3M+11.0%
Cash & Equivalents

$10.9M

Previous: $25M-56.3%
Total Assets

$1.35B

Previous: $1.18B+13.9%

Revenue & EPS history

Select Water Solutions · Revenue · Quarterly

$371M

Q3 2024-4.6%vs Q3 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 a seasonal activity slowdown in the Water Services segment for Q4, offset by recovery in the Chemical Technologies segment. Adjusted EBITDA is expected to decrease in Q4 but rebound in Q1 2025, with substantial year-over-year growth expected throughout 2025.

Tailwinds

  • Recovery in Chemical Technologies segment with new product wins.
  • Adjusted EBITDA expected to rebound in Q1 2025 to at or above Q3 2024 levels.
  • Substantial year-over-year Adjusted EBITDA growth expected throughout 2025.
  • Ongoing capital projects expected to provide additional revenue and profitability for the Water Infrastructure segment throughout 2025.
  • Additional contract wins expected during the fourth quarter and in 2025.

Headwinds

  • Seasonal activity slowdown expected to impact the Water Services segment in Q4.
  • Activity reductions in water transfer, sourcing, and recycling businesses due to ongoing capital projects in the Northern Delaware Basin.
  • Downtime planned for a New Mexico recycling facility during Q4.
  • Offline large diameter freshwater distribution pipeline in the Northern Delaware Basin for conversion to treated produced water distribution.
  • Adjusted EBITDA expected to be down in the fourth quarter at $60 million - $62 million.

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 Q3 2024

Historical avgQ3 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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