Select Water Solutions Reports 13.2% Revenue Decline and 87.8% Drop in Net Income for Q3 2025

Select Water Solutions, Inc. reported a decline in financial performance for the third quarter of 2025, with total revenue decreasing by 13.2% to $322.2 million compared to $371.3 million in the same quarter of the previous year. The decrease was primarily driven by a significant drop in revenue from the Water Services segment, which fell by 28.7% to $166.9 million, attributed to reduced activity levels and pricing pressures in the hydraulic fracturing market. In contrast, the Chemical Technologies segment saw a revenue increase of 38.4%, reaching $76.6 million, bolstered by enhanced sales performance and new product developments.

In terms of profitability, Select Water Solutions reported a net income of $2.3 million for the quarter, a substantial decrease of 87.8% from $18.8 million in the prior year. This decline was influenced by lower gross profit, which fell to $43.6 million from $62.4 million, alongside increased interest expenses and higher selling, general, and administrative costs. The company's gross margin also contracted, dropping to 13.5% from 16.8% in the previous year, reflecting the challenges faced in the Water Services segment.

Strategically, the company has been active in acquisitions, including the purchase of assets from Omni Environmental Solutions in July 2025, which expanded its capabilities in the Bakken region. This acquisition included a solids waste landfill and a processing facility, enhancing Select's Water Infrastructure segment. Additionally, the company executed several smaller asset acquisitions totaling $24.4 million, aimed at improving its water infrastructure capabilities. These strategic moves are part of Select's broader focus on integrating water management solutions to meet the evolving needs of its customers.

Operationally, Select Water Solutions reported a total employee headcount of 1,200 as of September 30, 2025, reflecting a slight increase from the previous year. The company continues to emphasize its commitment to sustainability and efficient water management practices, which are critical in the current market environment characterized by volatility in energy prices and geopolitical tensions. The company’s outlook remains cautious, with management highlighting the potential impacts of ongoing global conflicts and economic conditions on demand for its services.

Looking ahead, Select Water Solutions anticipates continued challenges in the market, particularly in the Water Services segment, due to macroeconomic factors and reduced drilling activity. However, the company remains focused on leveraging its recent acquisitions and expanding its service offerings to enhance operational efficiency and drive future growth. The management is committed to maintaining liquidity and has sufficient cash reserves and borrowing capacity to navigate the upcoming fiscal periods.