Select Water Solutions Reports 2.1% Revenue Growth and 146.7% Increase in Net Income for Q1 2025

Select Water Solutions, Inc. reported a revenue increase of 2.1% for the first quarter of 2025, totaling $374.4 million compared to $366.5 million in the same period last year. The growth was primarily driven by a 14.0% rise in the Water Infrastructure segment, which generated $72.4 million, up from $63.5 million. The Chemical Technologies segment also saw a modest increase of 2.2%, reaching $76.3 million. However, the Water Services segment experienced a slight decline of 1.2%, with revenue falling to $225.6 million from $228.3 million. The overall gross profit for the quarter was $55.8 million, reflecting a gross margin of 14.9%, compared to 14.4% in the prior year.

In terms of profitability, Select Water Solutions reported a net income of $9.6 million, a significant increase of 146.7% from $3.9 million in the previous year. This surge in net income was attributed to higher gross profits and reduced selling, general, and administrative expenses, which decreased by 14.9% to $37.4 million. The company also noted an increase in net interest expense, which rose to $4.9 million due to the new Sustainability-Linked Credit Facility.

Strategically, the company executed three asset acquisitions totaling $13.1 million during the quarter, enhancing its water infrastructure capabilities. Additionally, Select Water Solutions made a $72.1 million equity investment in AV Farms, aimed at consolidating a significant water holdings and storage portfolio in Colorado. This investment is expected to support agricultural, municipal, and industrial stakeholders in the region. The company also entered into a $550 million sustainability-linked senior secured credit facility, which replaced its previous debt structure.

Operationally, Select Water Solutions reported a decrease in cash provided by operating activities, which turned negative at $5.1 million compared to a positive $32.1 million in the prior year. This decline was primarily due to increased accounts receivable. The company’s cash and cash equivalents stood at $27.9 million as of March 31, 2025, with approximately $232.3 million available under its credit facility. The total employee headcount remained stable, supporting ongoing operations across its segments.

Looking ahead, Select Water Solutions anticipates continued growth driven by its strategic investments in water infrastructure and the expansion of its service offerings. The company remains focused on enhancing its operational efficiency and maintaining strong partnerships with customers, particularly in light of ongoing geopolitical tensions and market volatility affecting the oil and gas industry. The management expressed confidence in navigating these challenges while capitalizing on opportunities for sustainable growth in the water management sector.