Select Water Solutions(US:WTTR) Prnewswire·2025-02-18 21:15Core Insights - Select Water Solutions, Inc. reported consolidated revenue of $1.5 billion for the full year 2024, a decrease from $1.6 billion in 2023, with a net income of $35.5 million compared to $79.2 million in the previous year [13][24] - The Water Infrastructure segment achieved significant growth, with revenues of $291 million in 2024, up 26% year-over-year, and gross profit increasing by 62% [4][14] - The company announced new long-term contracts and partnerships, including a $62 million investment in Colorado for water rights and storage, targeting high-margin municipal, industrial, and agricultural contracts [2][36] Financial Performance - Full year 2024 operating cash flows were $235 million, with free cash flow of $78 million, meeting expectations of converting approximately 30% of Adjusted EBITDA into free cash flow [3][24] - Adjusted EBITDA for 2024 was $258.4 million, slightly up from $258.3 million in 2023, despite non-recurring costs impacting the results [16][24] - The fourth quarter of 2024 saw a revenue decline to $349 million from $374.9 million in Q4 2023, with a net loss of $2.1 million compared to a net income of $27.6 million in the same quarter of the previous year [17][18] Segment Performance - The Water Infrastructure segment generated $76.8 million in revenue for Q4 2024, a decrease from $82.0 million in Q3 2024, but a significant increase from $60.9 million in Q4 2023 [21] - The Water Services segment reported revenues of $209.3 million in Q4 2024, down from $234.0 million in Q3 2024, primarily due to seasonal activity declines [22] - The Chemical Technologies segment saw revenues of $62.9 million in Q4 2024, an increase from $55.3 million in Q3 2024, but a decrease from $72.3 million in Q4 2023 [23] Capital Expenditures and Investments - The company plans net capital expenditures of $170 million to $190 million for 2025, focusing on high-margin, long-term contracted growth projects within the Water Infrastructure segment [7][32] - Select Water Solutions has executed multiple new long-term contracts in the Permian Basin, with anticipated capital expenditures of $39 million to $41 million for these projects [32][33] - The company has also entered a partnership to consolidate a significant water rights and storage portfolio in Colorado, with an initial investment of $62 million [36][39] Future Outlook - For 2025, Select expects another record-setting year for Adjusted EBITDA and consolidated margins, with growth in the Water Infrastructure segment projected at 15% to 25% year-over-year [6][8] - The company anticipates modest revenue reductions in the Water Services segment due to ongoing evaluations of underperforming operations [5] - The backlog of infrastructure projects is at an all-time high, with expectations for a steady cadence of new contracts throughout 2025 [7][8]