#USA #Gainesville #Select Water Solutions #Bakken Infrastructure #OMNI Environmental

Select Water Solutions Reports Strong Q2 2025 Financial Performance

Select Water Solutions, Inc. (NYSE WTTR), a prominent provider of sustainable water and chemical solutions, recently released its financial results for the second quarter of 2025, showcasing a notable increase in profitability and cash flow.

Financial Highlights

During Q2 2025, Select Water Solutions achieved an operating cash flow of $82.6 million, coupled with a $10.8 million free cash flow. The company also saw a 22.1% year-over-year increase in net income and improved adjusted EBITDA by 13.4% sequentially compared to Q1 2025. Revenue for the quarter totaled $364.2 million, demonstrating resilience amidst fluctuating market conditions.

Water Infrastructure Performance

The Water Infrastructure segment exhibited robust growth, with revenues rising by 12% and gross profit by 17% compared to Q1 2025. The gross margins for this segment reached 55%, underscoring the efficiency and effectiveness of Select's extensive water networks. This performance is reflected in the increase in recycling and disposal volumes, which contributed significantly to revenue growth.

Strategic Updates

In addition to its impressive financial performance, Select Water Solutions announced key strategic initiatives:

• - Asset Swap with OMNI Environmental Solutions: In July 2025, the company finalized an asset swap deal with OMNI that included acquiring several infrastructure assets in the Bakken region while divesting certain trucking operations. This strategic move is expected to bolster Select's water infrastructure operations and simplify its portfolio.
• - Evaluation of Peak Rentals Alternatives: Select is exploring various capital structure options for Peak Rentals, its power solutions and equipment rental business. This evaluation aims to accelerate growth and optimize the Water Services segment.
• - New Long-Term Contracts: Select signed multiple significant contracts for water infrastructure in the Permian Basin, expanding their dedicated leasehold acreage. These contracts will further solidify Select's position in the industry's recycling and disposal markets.

Future Outlook

Looking ahead, the company remains optimistic about continued growth within the Water Infrastructure segment. Select anticipates a flat-to-modestly declining revenue outlook in Q3 due to transitional phases in existing projects; however, projections for Q4 suggest a return to growth driven by new contracts and strong customer demand. CEO John Schmitz expressed high confidence in the company's strategies to capitalize on emerging opportunities, particularly as demand for innovative water and chemical solutions grows.

Overall, Select Water Solutions’ Q2 2025 performance not only highlights its financial resilience but also its strategic adaptability in a challenging market environment. As the company focuses on enhancing its water infrastructure capabilities while navigating the complexities of its service segments, stakeholders can anticipate continued positive momentum into the latter half of the year and beyond.