Select Water misses Q2 revenue estimates

Select Water Solutions

05/08/2025 21:25

Overview

Select Water Solutions Q2 revenue misses analyst expectations,

Adjusted EBITDA beats estimates, per LSEG data

Co announces asset swap with OMNI, acquiring Bakken infrastructure assets

Company evaluates strategic alternatives for Peak Rentals, exploring growth options

Outlook

Select expects Q3 Water Infrastructure revenue to be flat-to-modestly down

Company anticipates 10% growth in Water Infrastructure revenue in Q4 2025

Select forecasts 20% year-over-year growth in Water Infrastructure for 2026

Company expects Q3 Adjusted EBITDA to sequentially decline to $55-60 mln

Result Drivers

WATER INFRASTRUCTURE GROWTH - Increased recycling and disposal volumes drove revenue and gross profit growth in Water Infrastructure segment

ASSET SWAP - Transaction with OMNI expected to reduce Water Services revenue short-term but improve margins over time

PERMIAN EXPANSION - New long-term contracts in Permian Basin backed by significant acreage dedications

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$364.20 mln
$365.40 mln (5 Analysts)
Q2 Net Income
$11.70 mln
Q2 Adjusted EBITDA
Beat
$72.60 mln
$68.70 mln (6 Analysts)
Q2 Gross Margin
15.9%
Q2 Adjusted Gross Margin
27.1%
Q2 Gross Profit
$57.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil related services and equipment peer group is "buy"

Wall Street's median 12-month price target for Select Water Solutions Inc is $15.00, about 39.9% above its August 4 closing price of $9.02

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn8twVSha

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)