NYSE$WTTR

Select Water Solutions Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Select Water Solutions reported a record-setting year in 2024, driven by strong earnings, margin gains, and record Adjusted EBITDA, with significant growth in its Water Infrastructure segment and strategic investments in new projects and water rights.

Select Water Solutions concluded 2024 with a record-setting fourth quarter, achieving strong financial and operational results. The company reported consolidated revenue of $349 million for Q4 2024 and $1.5 billion for the full year. Water Infrastructure revenue grew 26% year-over-year for the full year, with gross profit up 62%. Operating cash flow remained strong at $235 million for the full year, with $68 million in Q4. The company also announced new long-term contracted Water Infrastructure projects in the Permian and a new water rights and storage partnership in Colorado.

  • Generated full year and fourth quarter 2024 consolidated revenue of $1.5 billion and $349 million, respectively.
  • Water Infrastructure achieved full year 2024 revenues of $291 million, up 26% year-over-year, with gross profit up 62% year-over-year.
  • Delivered full year and fourth quarter 2024 operating cash flows of $235 million and $68 million, respectively.
  • Announced multiple new long-term contracted Water Infrastructure projects in the Permian backed by new 150,000+ acre dedication, anticipating $39 – $41 million of capital deployed, and a new water rights and storage partnership in Colorado with $62 million initial investment.

Headline financials

Total Revenue

$349M

Previous: $375M-6.9%
EPS (adj)

-$0.02

Previous: $0.27-107.4%
Adjusted EBITDA

$56.2M

Previous: $58.3M-3.5%
Free Cash Flow

$16.2M

Previous: $55.2M-70.6%
Gross Margin Before D&A

24.2%

Previous: 24.2%+0.0%
Water Infrastructure GM before D&A

54.7%

Previous: 43.3%+26.3%
Water Services GM before D&A

16.4%

Previous: 22.3%-26.5%
Chemical Technologies GM before D&A

12.9%

Previous: 14.1%-8.5%
Total Gross Margin

12.7%

No prior period
Capital Expenditures

-$55.1M

Previous: -$33.5M-64.6%
Net Income

-$2.13M

Previous: $27.6M-107.7%
Operating Income

$2.61M

Previous: $6.71M-61.1%
Gross Profit

$44.2M

Previous: $54.6M-19.0%

Revenue & EPS history

Select Water Solutions · Revenue · Quarterly

$349M

Q4 2024-6.9%vs Q4 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

For the full year 2025, Select anticipates another record-setting year for Adjusted EBITDA and consolidated margins, with robust growth expected in the second half of the year. The Water Infrastructure segment is projected to lead this growth, with revenues and gross profit increasing by 15%–25% year-over-year. The company targets net capital expenditures of $170–$190 million for 2025, primarily for high gross margin, long-term contracted growth capital projects within Water Infrastructure.

Tailwinds

  • Anticipates another record-setting year for Adjusted EBITDA and consolidated margins in 2025.
  • Water Infrastructure segment revenues and gross profit expected to grow by another 15% – 25% year-over-year.
  • Objective to propel Water Infrastructure segment to reach 50% of consolidated profitability by the end of 2025.
  • Backlog of infrastructure projects is at an all-time high, with a steady cadence of new contracts expected in 2025.
  • Chemical Technologies segment expected to grow revenues in 2025 and improve margin profile.

Headwinds

  • U.S. Lower 48 activity levels expected to be modestly down year-over-year in 2025.
  • Modest revenue reductions anticipated in the Water Services segment year-over-year due to potential consolidation or divestment of underperforming operations.
  • Water Infrastructure revenues expected to modestly decrease by low single-digit percentages during Q1 2025.
  • Capital expenditures are expected to increase year-over-year due to growth in Water Infrastructure.
  • First quarter 2025 consolidated Adjusted EBITDA expected to be $60-$64 million, reflecting some seasonal weakness from Q4 2024.

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 Q4 2024

Historical avgQ4 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

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