Select Water Solutions Announces First Quarter 2025 Financial, Operational and Strategic Updates

Core Viewpoint - Select Water Solutions, Inc. reported strong financial performance in the first quarter of 2025, with significant increases in revenue, net income, and adjusted EBITDA compared to the previous quarter, alongside new long-term contracts in the Water Infrastructure segment that are expected to drive future growth [1][2][11]. Financial Performance - Consolidated revenue for Q1 2025 was $374.4 million, up$25 million or 7% sequentially from Q4 2024 [1][11]. - Net income increased by $11.7 million to$9.6 million compared to a net loss of $2.1 million in Q4 2024 [1][11]. - Adjusted EBITDA rose 14$64.0 million from $56.2 million in Q4 2024 [1][14]. Business Segments - **Water Infrastructure Segment**: Generated revenues of$72.4 million, down 5.8% sequentially, with gross margin before D&A at 53.7% [15]. The segment anticipates low double-digit revenue growth in Q2 2025 [15]. - Water Services Segment: Revenues increased to $225.6 million, up 7.8$76.3 million, up 21.3% sequentially, with gross margin before D&A at 15.2% [17]. A mid single-digit percentage decrease in revenue is anticipated for Q2 2025 [17]. Capital Expenditures and Investments - The company plans to increase net capital expenditures for 2025 to $225 million to$250 million, driven by new infrastructure projects [9]. - Cash flow used in operations for Q1 2025 was $5.1 million, impacted by a$61.8 million increase in net working capital [18][19]. - Significant investments include $72.1 million related to a partnership in Colorado and$14.0 million for asset acquisitions to support ongoing Water Infrastructure projects [20][32]. Strategic Developments - Multiple new long-term contracts were executed in the Permian Basin, with anticipated capital deployment of $100 million to$125 million [1][26]. - An 11-year contract was signed for a major water recycling project in the Northern Delaware Basin, expected to enhance the company's infrastructure and revenue potential [6][27]. - The company has developed a leading water infrastructure network in the Northern Delaware Basin, with over 1 million acres under dedication or right-of-first-refusal [5][27]. Balance Sheet and Liquidity - Total cash and cash equivalents were $27.9 million as of March 31, 2025, compared to$12.8 million a year earlier [23]. - The company entered a new sustainability-linked credit facility with $250 million in term loan commitments, enhancing its liquidity position [22][24].