#USA #Gainesville #Permian Basin #Select Water Solutions #Chemical Technologies

Select Water Solutions' Q3 2025 Financial Results Overview

Select Water Solutions, Inc. (NYSE: WTTR), a prominent provider of sustainable water and chemical solutions to the energy industry, has disclosed its financial results for the third quarter of 2025. The company recorded remarkable revenue growth and operational efficiencies, solidifying its position as a leader in the industry.

Financial Highlights

During the third quarter, Select Water recorded revenues of $322 million, a decrease from $364 million in the previous quarter but a notable achievement compared to $371 million in Q3 2024. The company reported cash flow from operating activities of $72 million, reflecting a robust operational performance despite a challenging market environment.

Gross profit for the quarter stood at $43.6 million, yielding a gross margin of 13.5%, a slight decline from 15.9% in the second quarter of 2025. This reduction can be attributed to lower revenue from oil sales and operational challenges faced due to the divestment of specific trucking operations.

In contrast, the Chemical Technologies segment experienced significant growth, with revenue jumping 13% and gross profit soaring by 34%. This segment's achievements underline the success of new product developments and the expansion of market share within the chemical solutions sector.

Strategic Contracts and Expansions

Select Water solutions not only maintained a strong operational performance but also announced new long-term contracted projects in the Permian Basin. These contracts are supported by approximately 65,000 acres of additional leasehold and right-of-first-refusal acreage dedications, enhancing the company's water infrastructure footprint.

Company President and CEO John Schmitz emphasized the strategic focus on expanding water infrastructure scale, stating, “Our recent contracts reflect an increasing market demand for integrated water midstream solutions.” The contracts include a 12-year agreement for water recycling services covering operations in Texas and New Mexico, indicating widespread geographical growth.

Operational Efficiencies and Plans for the Future

Despite facing seasonal challenges and the impact of divested operations, Select Water is forecasting approximately 10% revenue growth in its Water Infrastructure segment for the fourth quarter, driven by ongoing expansion efforts and commercialization.

Select Water remains committed to recycling processes, with nearly one million barrels of produced water being recycled daily in the Permian Basin. This effort is complemented by expansion in disposal capacity and enhancing logistics services that significantly improve water management for its customers. In addition, the company is advancing its mineral extraction solutions, particularly focusing on lithium extraction from produced water, which is expected to provide new revenue streams through royalty-based income.

Moreover, there are plans for an increase in capital expenditures for 2025, now estimated between $250 million to $275 million, aimed at bolstering infrastructure growth in the upcoming year.

Conclusion

In conclusion, Select Water Solutions demonstrates significant growth potential amid market challenges, bolstered by strategic initiatives in both water infrastructure and chemical technologies. Their adaptive strategies aim to maintain a leading market position and cater to increasing demands within the energy sector. As the company looks ahead, stakeholders can anticipate robust future performance driven by solid operational foundations and strategic expansions.

For more information on Select Water Solutions and their offerings, visit Select Water Solutions.