In This Article:
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Revenue Growth: Water Infrastructure segment revenue increased by 20% to $82 million in Q3 2024.
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Gross Profit: Gross profit for Water Infrastructure improved to $47 million, a 33% increase from Q2 2024 and a 99% increase from Q3 2023.
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Gross Margin: Water Infrastructure gross margin before D&A increased to 57% in Q3 2024, up 6 percentage points from Q2 2024.
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Net Income: Achieved net income of $19 million in Q3 2024.
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Adjusted EBITDA: Adjusted EBITDA of $73 million in Q3 2024, exceeding the guidance range of $66 million to $70 million.
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SG&A Reduction: SG&A expenses decreased by more than 4% or $1.7 million compared to Q2 2024.
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Free Cash Flow: Generated $20 million of free cash flow in Q3 2024.
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Debt Reduction: Reduced outstanding borrowings by $10 million, ending Q3 2024 with $80 million in debt.
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Dividend Increase: Announced a 17% increase in quarterly dividend to $0.07 per share.
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Capital Expenditures: Net CapEx of $31 million in Q3 2024, with expectations to remain on the low end of the $170 million to $190 million annual guidance.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Select Water Solutions Inc (NYSE:WTTR) achieved record high quarterly revenue and gross profit in its Water Infrastructure segment during the third quarter of 2024.
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The company reported a 26% increase in net income compared to the second quarter, driven by reduced SG&A expenses and operational improvements.
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Select Water Solutions Inc (NYSE:WTTR) successfully entered into multiple new long-term contracts, expanding its footprint in the Permian Basin and Bakken.
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The company completed a strategic disposal acquisition in the Northern Delaware Basin, enhancing its capacity in a key growth area.
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Select Water Solutions Inc (NYSE:WTTR) increased its quarterly dividend by 17% to $0.07 per share, demonstrating a commitment to returning capital to shareholders.
Negative Points
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The company anticipates a seasonal activity slowdown in the fourth quarter, impacting its Water Services segment.
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Operational downtime in the Northern Delaware Basin is expected to cause a short-term financial impact in the fourth quarter.
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The Chemical Technologies segment experienced decreased activity with legacy pressure pumping customers, leading to a sequential revenue decline.
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Select Water Solutions Inc (NYSE:WTTR) expects a 10% to 15% sequential decline in Water Infrastructure revenue in the fourth quarter due to planned operational downtime.
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The company faces challenges from commodity prices and industry activity, affecting its Water Services and Chemical Technologies segments.