Select Water Solutions, Inc. (WTTR) reported $322.24 million in revenue for the quarter ended September 2025, representing a year-over-year decline of 13.2%. EPS of $0.03 for the same period compares to $0.15 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $306.17 million, representing a surprise of +5.25%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.03.While investors closely watch year-over-year changes in headline numbers -- revenue and ...

Core Insights - Select Water Solutions reported a revenue of $322 million for Q3 2025, a decrease from $364.2 million in Q2 2025 and $371.3 million in Q3 2024 [9] - The company achieved a cash flow from operating activities of $72 million during the same quarter [1] - The Chemical Technologies segment saw a revenue increase of 13% and gross profit growth of 34% compared to Q2 2025 [1][16] - New long-term contracts in Water Infrastructure were announced, covering approximately 65,000 acres, enhancing the company's service capabilities in the Permian Basin [1][25] Financial Performance - Revenue for Q3 2025 was $322.2 million, down from $364.2 million in Q2 2025 and $371.3 million in Q3 2024 [9] - Net income for Q3 2025 was $2.3 million, compared to $11.7 million in Q2 2025 and $18.8 million in Q3 2024 [9] - Gross profit was $43.6 million in Q3 2025, down from $57.8 million in Q2 2025 and $62.4 million in Q3 2024, with a gross margin of 13.5% [10] - Adjusted EBITDA for Q3 2025 was $59.5 million, a decrease from $72.6 million in Q2 2025 and $72.8 million in Q3 2024 [12] Segment Performance - The Water Infrastructure segment generated revenues of $78.8 million in Q3 2025, down from $80.9 million in Q2 2025 and $82.0 million in Q3 2024, with a gross margin before D&A of 53.1% [14] - The Water Services segment reported revenues of $166.9 million in Q3 2025, a significant decrease from $215.7 million in Q2 2025 and $234.0 million in Q3 2024, with a gross margin before D&A of 18.0% [15] - The Chemical Technologies segment achieved revenues of $76.6 million in Q3 2025, up from $67.7 million in Q2 2025 and $55.3 million in Q3 2024, with a gross margin before D&A of 19.9% [16] Strategic Developments - The company signed multiple long-term contracts for water gathering, recycling, and disposal in the Permian Basin, with a total capital expenditure of approximately $25 million expected for these projects [25] - A 12-year agreement was executed for water recycling and disposal in the Northern Delaware Basin, adding approximately 60,000 acres under dedication [4][27] - Select Water Solutions is expanding its infrastructure in the Midland Basin, integrating new contracts into existing facilities to enhance service capabilities [5][26] Cash Flow and Capital Expenditures - Cash flow from operations for Q3 2025 was $71.7 million, compared to $82.6 million in Q2 2025 and $51.9 million in Q3 2024 [17] - Net capital expenditures for Q3 2025 were $91.1 million, with free cash flow reported at ($19.4) million [18] - The company is increasing its 2025 net capital expenditures guidance to a range of $250 million to $275 million [7] Balance Sheet and Liquidity - Total cash and cash equivalents decreased to $17.8 million as of September 30, 2025, down from $51.2 million as of June 30, 2025 [21] - Total liquidity was reported at $175.5 million as of September 30, 2025, compared to $279.3 million as of June 30, 2025 [24] - The company had $250 million in borrowings outstanding under its sustainability-linked credit facility as of September 30, 2025 [22]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $0.4 million and adjusted earnings of $0.03 per share for Q3 2025, an increase of $0.01 per share compared to Q3 2024 [4][11] - For the first nine months of 2025, adjusted net income was $33.5 million, or $2.03 per share, an increase of $1.4 million, or $0.03 per share, compared to the same period in 2024 [4][11] - The ratio of funds from operations to debt was approximately 17% as of September 30, 2025, indicating a strong balance sheet [5][18] Business Line Data and Key Metrics Changes - Electric adjusted gross margin for the nine months ended September 30, 2025, was $86.4 million, an increase of $4.7 million, or 5.8%, compared to the same period in 2024, driven by higher distribution rates and customer growth [11][12] - Gas adjusted gross margin for the same period was $134.7 million, an increase of $19.1 million, or approximately 16.5%, attributed to higher distribution rates, customer growth, and colder winter weather [12][13] - The company added approximately 9,400 new gas customers, including about 8,800 from the acquisition of Bangor Natural Gas [12][13] Market Data and Key Metrics Changes - The company expects the acquisitions to accelerate rate-based growth to approximately 10% annually through 2029, supporting earnings growth in the upper half of the guidance range [8][19] - The New Hampshire Public Utilities Commission approved the acquisition of Aquarion on October 7, 2025, with further approvals expected in Connecticut, Massachusetts, and Maine [7][6] Company Strategy and Development Direction - The company is focused on sustainable growth and has successfully integrated Bangor Natural Gas and completed the acquisition of Maine Natural Gas [21] - The company plans to file a base rate case for Maine Natural Gas in mid-2027, following the successful integration of Bangor Natural Gas [6][5] - The company aims to reduce direct greenhouse gas emissions by 50% by 2030 and achieve net zero by 2050, highlighting its commitment to sustainability [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their strategic priorities and the ability to provide strong shareholder returns for many years [21] - The company reaffirmed its 2025 earnings guidance range of $3.01-$3.17 per share, with a midpoint of $3.09 per share on an adjusted earnings basis [19] Other Important Information - The company completed a $72 million equity offering to strengthen its balance sheet and improve credit metrics [5][18] - Capital spending for the year is consistent with expectations, with a five-year capital plan totaling approximately $1.1 billion, which is 19% higher than the prior plan [19] Q&A Session Summary Question: Clarification on rate base figures - The difference between the $1.2 billion rate base and the $1.4 billion forecast reflects additional rate base for the acquired companies, including Maine Natural Gas, Bangor Natural Gas, and Aquarion [24][25] - The change in capital expenditures versus rate base increase is due to the timing of when capital projects are closed and placed into service [25] Question: Inclusion of future M&A in rate base - The $1.4 billion rate base includes additional base rates for all three companies being acquired, indicating implications for future M&As [26]

Core Insights - California American Water has initiated the construction of a new water treatment facility in Madera County, which represents a significant investment aimed at enhancing water service quality and system reliability for customers in the Goldside system [1] Company Developments - The new treatment facility is designed to improve water quality and ensure compliance with health and safety standards without any interruption to service [1]

Financial Performance - The company's Q3 2025 adjusted net income was $0.4 million, or $0.03 per share, a $0.01 increase per share compared to the same period in 2024[8] - Year-to-date adjusted net income reached $33.5 million, or $2.03 per share, a $1.4 million or $0.03 per share increase compared to the first nine months of 2024[8] - Adjusted gross margin increased by $4.7 million year-to-date for electric operations[25] - Adjusted gross margin for gas operations increased by $19.1 million year-to-date, driven by higher rates, customer growth, and colder weather[27] Acquisitions and Growth - Maine Natural Gas (MNG) acquisition closed on October 31, 2025, and Bangor Natural Gas (BNG) integration was completed[8, 10] - The combined price for BNG and MNG acquisitions was $157 million, with a combined rate base of $128 million and 15,100 customers[10] - Rate base is expected to grow by 10% including acquisitions[8] - Acquisitions are expected to accelerate long-term EPS and rate base growth, with an additional 17% in rate base and gas customers, and a 15% increase in gas margin[11] Capital Investments and Regulatory Updates - The company completed a utility-scale solar project in New Hampshire[13] - Advanced Metering Infrastructure (AMI) replacement is on schedule, with a combined capital investment of approximately $40 million[14, 17] - A temporary electric rate increase of $7.8 million took effect in Q3 2025 in New Hampshire[8] - The company's five-year projected capital investment is approximately $1.1 billion[43]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is often preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below intrinsic value, making them attractive for investors seeking upside potential [3][10] - Companies such as Macy's Inc. (M), California Water Service Group (CWT), Shoe Carnival (SCVL), Pebblebrook Hotel Trust (PEB), and FTI Consulting Inc. (FCN) have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Macy's Inc. (M)**: Undergoing a transformation with its "Bold New Chapter" program, focusing on digital initiatives and strong fundamentals, currently has a Value Score of A and Zacks Rank 1 [12][13] - **California Water Service Group (CWT)**: Aims to expand operations in the western U.S. through acquisitions, with a Value Score of B and Zacks Rank 2 [14][15] - **Shoe Carnival (SCVL)**: Transitioning to a higher-end market with a disciplined strategy, currently has a Zacks Rank 1 and Value Score of A [16][17] - **Pebblebrook Hotel Trust (PEB)**: Focused on operational efficiency and capital allocation, with a Value Score of A and Zacks Rank 1 [18][20] - **FTI Consulting Inc. (FCN)**: A global advisory firm with a diversified platform, currently has a Value Score of B and Zacks Rank 2 [21][22]

Summary of First Pacific Company Conference Call Company Overview - **Company**: First Pacific Company (SEHK:00142) - **Industry**: Investment holding company with interests in various sectors including food, telecommunications, utilities, and natural resources - **Key Assets**: Indofood, Metro Pacific Investments (MPIC), PLDT, PacificLight Power, IndoAgri, Philex Mining Corporation Core Points and Arguments - **Investment Strategy**: Focus on defensive assets in Southeast Asia, particularly in sectors less affected by economic downturns such as utilities and telecommunications [6][7][8] - **Financial Performance**: - First half of 2025 showed an 8% increase in recurring profit and an 11% increase in overall profit due to controlled head office costs [10] - Record high earnings reported in the past four years, with the first half of 2025 exceeding the total profit of 2020 [9][10] - **Dividend Policy**: Progressive dividend policy aimed at increasing per-share distributions annually, contingent on financial performance [10][34] - **Market Position**: - First Pacific's market cap is approximately $3.5 billion, with a low price-to-earnings ratio of less than five times compared to peers [22] - Significant NAV discount of about 7.4% as of September [27] Key Holdings - **Indofood**: - Largest maker of wheat-based instant noodles globally, contributing $1.9 billion to First Pacific's asset value [4][13] - Revenue growth from IDR 40 trillion to over IDR 100 trillion over 14 years, with strong EBIT margins around 25% [14][15] - **Metro Pacific Investments (MPIC)**: - Major electricity distributor in the Philippines, owning 48% of Meralco and 93% of Metro Pacific Tollways Corporation [17][18] - Strong earnings growth, with power generation becoming a significant source of income [19] - **PLDT**: - Largest telecommunications company in the Philippines, providing steady earnings and significant dividends [20] - **PacificLight Power**: - Operator of LNG power plants in Singapore, contributing to dividend income and future growth with new projects [21] Growth Catalysts - **Philex Mining Corporation**: New Salangan mine expected to open next year, potentially increasing earnings significantly [23][24] - **Maya**: Fintech platform with rapid growth, currently the largest consumer fintech app in the Philippines, showing a net interest margin increase from 7% to over 20% [25][26] - **MPIC Valuation**: Potential for revaluation as the market recognizes the value of its assets, particularly Meralco [28][29] Additional Insights - **Geographic Focus**: Majority of assets located in the Philippines (over 50%), with significant investments in Indonesia and Singapore [5] - **Debt Management**: Gross debt of approximately $1.4 billion, with a balanced approach to fixed and floating interest rate borrowings [12] - **Market Conditions**: Confidence in continued earnings growth supported by economic forecasts for the regions of operation [11][29] Conclusion - First Pacific Company is positioned as a stable investment opportunity with a focus on defensive assets in high-growth markets. The company is confident in its ability to deliver continued earnings growth and shareholder value through its diversified portfolio and strategic investments in key sectors.

Core Points - Virginia American Water has filed a request with the Virginia State Corporation Commission for new rates, reflecting over $115 million in investments in water and wastewater systems [1] - The request emphasizes the company's commitment to replacing aging infrastructure and ensuring safe, clean, reliable, and affordable service in compliance with environmental regulations [1] Investment and Infrastructure - The proposed rate changes are a result of significant investments aimed at modernizing the water and wastewater systems [1] - The company aims to enhance service quality and reliability for its customers through these long-term investments [1]

Core Points - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper functionality [1] - The presence of ad-blockers can lead to blocked access, necessitating their temporary disablement [1]

Core Insights - Consolidated Water Co. Ltd. has secured an $11.7 million contract to construct a wastewater recycling plant in the San Francisco Bay Area, which will have a capacity of 200,000 gallons per day and 600,000 gallons of treated water storage [1][2] Company Overview - Consolidated Water Co. Ltd. specializes in developing and operating advanced water supply and treatment plants, including seawater desalination facilities in various regions [6][7] - The company is currently engaged in a $204 million design-build-operate project for a seawater desalination plant in Hawaii [6] Project Details - The contract was awarded to PERC Water Corporation, a subsidiary of Consolidated Water, which focuses on water infrastructure in the Southwestern U.S. [2] - The plant will utilize membrane bioreactor technology to treat untreated wastewater, producing high-quality recycled water suitable for irrigation [2][3] - Key design features include the use of precast concrete basins and prefabricated equipment, which are expected to lower construction costs and expedite the project timeline [2] Environmental Impact - The wastewater recycling plant is projected to save 36 to 38 million gallons of potable water annually, thereby reducing dependence on local freshwater resources [3] Management Commentary - The CEO of Consolidated Water, Rick McTaggart, noted that this contract is part of a larger strategy, with three design and/or build projects totaling over $20 million expected in 2025 [4] - The company attributes its success in securing the contract to competitive pricing, extensive permitting experience, and a fast-tracked construction schedule [4]