Select Water Solutions(WTTR) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $322 million, down from $364.2 million in Q2 2025 and $371.3 million in Q3 2024[10] - Net income for Q3 2025 was $2.3 million, compared to $11.7 million in Q2 2025 and $18.8 million in Q3 2024[10] - Adjusted EBITDA for Q3 2025 was $59.5 million, down from $72.6 million in Q2 2025[13] - Total revenue for Q3 2025 was $322.2 million, a decrease from $371.3 million in Q3 2024, with Water Services revenue at $166.9 million[36] - Gross profit for Q3 2025 was $43.6 million, down from $62.4 million in Q3 2024, reflecting a gross margin decline[36] - Net income attributable to Select Water Solutions, Inc. for Q3 2025 was $2.7 million, compared to $15.8 million in Q3 2024[36] - Net income per share attributable to common stockholders for Q3 2025 was $0.03, down from $0.16 in Q3 2024[36] - Net income for the three months ended September 30, 2025, was $2,294 thousand, a decrease of 87.8% compared to $18,810 thousand for the same period in 2024[40] - EBITDA for the same period was $53.579 million, down from $64.809 million quarter-over-quarter and $66.135 million year-over-year[45] - Adjusted EBITDA for the three months ended September 30, 2025, was $59.481 million, compared to $72.614 million in the previous quarter and $72.750 million in the same quarter last year[45] - Free cash flow for the three months ended September 30, 2025, was $(19.380) million, a significant decline from $10.839 million in the previous year[45] Segment Performance - Chemical Technologies revenue increased by 13% and gross profit by 34% in Q3 2025 compared to Q2 2025[1] - Water Infrastructure segment generated revenues of $78.8 million in Q3 2025, a 2.5% sequential decline from Q2 2025[14] - Water Services segment revenues decreased by 22.6% sequentially to $166.9 million in Q3 2025, impacted by divested trucking operations[15] - The water infrastructure segment reported gross profit of $16.775 million, down from $22.392 million in the previous quarter and $28.957 million in the same quarter last year[45] - The water services segment gross profit decreased to $13.245 million from $25.259 million quarter-over-quarter and $28.482 million year-over-year[45] - The chemical technologies segment gross profit increased to $13.533 million from $10.102 million in the previous quarter and $5.010 million in the same quarter last year[45] Cash Flow and Liquidity - Cash flow from operations was $71.7 million in Q3 2025, benefiting from a $26 million decrease in net working capital[17] - Total liquidity was $175.5 million as of September 30, 2025, down from $279.3 million as of June 30, 2025[23] - Cash and cash equivalents decreased to $17,828 thousand at the end of the period from $51,186 thousand at the end of the previous quarter, reflecting a decline of 65.2%[40] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $149,221 thousand, down from $167,119 thousand for the same period in 2024[40] - The company incurred $126,212 thousand in net cash used in investing activities for the three months ended September 30, 2025, compared to $74,972 thousand in the previous quarter[40] - The company reported a cash flow from financing activities of $21,162 thousand for the three months ended September 30, 2025, compared to a cash outflow of $17,232 thousand for the same period in 2024[40] Assets and Liabilities - Total assets increased to $1,588,151 thousand as of March 31, 2025, up from $1,366,282 thousand a year earlier, representing a growth of approximately 16.2%[38] - Total liabilities rose to $656,496 thousand, an increase of 45.6% from $450,748 thousand a year ago[38] - Long-term debt increased to $285,440 thousand as of March 31, 2025, up from $85,000 thousand a year earlier, indicating a significant rise in leverage[38] - Total stockholders' equity increased to $931,655 thousand as of March 31, 2025, compared to $915,534 thousand a year earlier, reflecting a growth of 1.3%[38] Strategic Agreements and Acquisitions - In Q3 2025, Select signed a 7-year acreage dedication agreement for produced water services in the Midland Basin, supported by approximately 5,400 acres dedicated for gathering, recycling, and disposal[25] - A 12-year acreage dedication agreement was signed in the Northern Delaware Basin, integrating into Select's New Mexico system, with approximately 3,000 acres dedicated for produced water services[26] - Select signed a 12-year contract for operational expansion in Winkler County, Texas, supported by approximately 16,500 dedicated acres and over 40,000 acres under right-of-first-refusal for future development[27] - A long-term water transfer agreement was established for a key customer's operations in the Delaware Basin, covering approximately 309,000 acres of combined leasehold and right-of-first-refusal[28] - Select closed multiple strategic infrastructure acquisitions, adding 78,000 barrels per day of incremental permitted disposal capacity across various regions, including the Permian and Northeast[29] - The company executed a strategic asset swap with Omni Environmental Services, acquiring landfill, treatment, and disposal assets in the Bakken region[30]