Select Water Solutions Q3 revenue beats on higher volumes handled

Select Water Solutions

Yesterday 12:12

Overview
US water solutions provider's Q3 revenue rose 28% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 increased 57% yr/yr, beating analyst estimates
Company completed Peak Rentals divestment and closed Pilot Water Solutions acquisition post-quarter

Outlook
Company expects Q4 adj EBITDA of $95-$100 mln
Select sees Q4 Water Infrastructure revenue of $150-$160 mln, gross margin before D&A 52%-56%

Result Drivers
WATER INFRASTRUCTURE GROWTH - Record Water Infrastructure revenue driven by over 30% increase in produced water volumes handled, per CEO John Schmitz
SEGMENT PERFORMANCE - Water Services and Chemical Technologies segments generated strong performance relative to guided expectations, with Water Services revenue up 7% sequentially and Chemical Technologies at high end of guidance
STRATEGIC TRANSACTIONS - Completed Peak Rentals divestment and closed Pilot Water Solutions acquisition, expanding water midstream position

Company press release: ID:nPn5TYGFPa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$412 mln
$397.53 mln (4 Analysts)
Q3 Net Income
 
$23 mln
 
Q3 Adjusted EBITDA
Beat
$93 mln
$90.91 mln (6 Analysts)
Q3 Gross Margin
 
19.70%
 
Q3 Adjusted Gross Margin
 
31.40%
 
Q3 Gross Profit
 
$81.40 mln
 

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)