Select Water Solutions(US:WTTR)2026-02-17 22:29Financial Performance - Full year 2025 consolidated revenue was $1.4 billion, with fourth quarter revenue of $347 million, representing a decrease from $1.5 billion in 2024[12]. - Full year net income for 2025 was $21 million, down from $35.5 million in 2024, while Adjusted EBITDA increased to $260 million from $258.4 million[15]. - Total revenue for Q4 2025 was $346.5 million, a 7.5% increase from $322.2 million in Q3 2025 and a slight decrease from $349.0 million in Q4 2024[41]. - Gross profit for Q4 2025 was $45.3 million, compared to $43.6 million in Q3 2025 and $44.2 million in Q4 2024, indicating a stable gross margin[41]. - Net loss attributable to Select Water Solutions, Inc. for Q4 2025 was $0.35 million, a decrease from a net income of $2.68 million in Q3 2025 and a loss of $1.64 million in Q4 2024[41]. - Total assets increased to $1.60 billion in 2025 from $1.37 billion in 2024, reflecting a growth of 16.7%[43]. - Long-term debt rose significantly to $285.0 million in 2025 from $85.0 million in 2024, indicating increased leverage[43]. - Total liabilities increased to $668.5 million in 2025 from $450.7 million in 2024, indicating a rise in financial obligations[43]. Segment Performance - Water Infrastructure segment revenues for 2025 were $313 million, up 8% year-over-year, while Chemical Technologies revenues reached $308 million, up 19% year-over-year[1]. - The Water Services segment generated revenues of $178.3 million in Q4 2025, a 7% sequential increase, driven by temporary water transfer volumes[22]. - The Chemical Technologies segment achieved record quarterly revenues of $87 million in Q4 2025, with gross margins before D&A at 20.3%[23]. - Select Water Solutions, Inc. plans to focus on expanding its Water Services segment, which generated $178.3 million in revenue for Q4 2025, up from $166.9 million in Q3 2025[41]. Cash Flow and Investments - Cash flow from operations for 2025 was $214.7 million, down from $234.9 million in 2024, with Q4 cash flow at $65.5 million[24]. - Net capital expenditures for 2025 were $279.3 million, significantly higher than $157.3 million in 2024, indicating aggressive investment in infrastructure[25]. - Cash used in investing activities totaled $71,256 million, compared to $126,212 million in the prior quarter[45]. - The company experienced a net cash outflow of $404,962 million from investing activities for the year, compared to $318,623 million in the previous year[45]. Liquidity and Borrowings - Total cash and cash equivalents decreased to $18.1 million as of December 31, 2025, from $20.0 million as of December 31, 2024[29]. - Total borrowings under the sustainability-linked credit facility increased to $320 million as of December 31, 2025, compared to $85 million as of December 31, 2024[29]. - Total liquidity improved to $163.6 million as of December 31, 2025, up from $134.8 million as of December 31, 2024[31]. - The borrowing base under the sustainability-linked credit facility increased to $235.1 million as of December 31, 2025, from $218.8 million in the prior year[30]. - Available borrowing capacity under the sustainability-linked credit facility rose to approximately $145.5 million as of December 31, 2025, compared to $114.8 million in the previous year[30]. Operational Developments - The company achieved over one billion barrels of cumulative produced water recycled, contributing to over 800% revenue growth in the Water Infrastructure segment since 2021[2]. - The company executed new long-term contracts expected to add 14 miles of pipeline, 3.5 million barrels of storage, and 55,000 barrels per day of disposal capacity by the end of Q2 2026[32]. - Select signed 10- and 7-year produced water handling agreements, including the construction of eight miles of pipeline and two million barrels of storage capacity, expected to be operational by the end of Q2 2026[33]. - A disposal permit acquisition added 30,000 barrels per day of disposal capacity and 1.5 million barrels of storage capacity to the Northern Delaware network[34]. - The company acquired disposal facilities in Winkler County, TX, adding 25,000 barrels per day of disposal capacity to support infrastructure growth[35]. - A 15-year agreement was signed to construct produced water gathering pipeline infrastructure, supported by a 9.6-million-barrel minimum volume commitment[36]. Changes in Accounts and Expenses - Accounts receivable decreased to $264.0 million in 2025 from $281.6 million in 2024, suggesting improved collection or reduced sales[43]. - Total equity-based compensation for the year was $19,875 million, down from $26,358 million in the previous year[45]. - Interest expense for the three months ended September 30, 2025, was $6,697 thousand, compared to $5,963 thousand in the same period of 2024, an increase of 12.3%[50]. - Depreciation, amortization, and accretion increased to $52,358 million from $44,888 million in the prior quarter[45].