Select Water Solutions Reports Q2 2025 Revenue of $364.2 Million, Net Income Declines 21.7%

Select Water Solutions, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $364.2 million, a slight decrease of 0.3% from $365.1 million in the same quarter of the previous year. The company's revenue was driven by a 17.9% increase in its Water Infrastructure segment, which generated $80.9 million, up from $68.6 million. However, this was offset by a 6.2% decline in Water Services revenue, which fell to $215.7 million from $230.0 million, primarily due to a shift from freshwater to produced water operations. The Chemical Technologies segment saw a modest increase of 1.7%, reaching $67.7 million.

In terms of profitability, Select Water Solutions reported a net income of $11.7 million for the quarter, down 21.7% from $14.9 million in the prior year. This decline was attributed to lower gross profit, increased net interest expenses, and higher income tax expenses, despite gains on sales of property and equipment amounting to $6.5 million. The company's gross profit for the quarter was $57.8 million, compared to $60.2 million in the previous year, reflecting a gross margin of 15.9%, down from 16.5%.

Operationally, Select Water Solutions has made significant strides in expanding its capabilities. The company completed four asset acquisitions totaling $14.6 million in the first half of 2025, enhancing its Water Infrastructure segment. Additionally, it made a $72.1 million equity investment in AV Farms, aimed at consolidating water holdings in Colorado. The company also entered into a $550 million sustainability-linked credit facility, which replaced its previous debt and is expected to support future growth initiatives.

As of June 30, 2025, Select Water Solutions reported total assets of $1.55 billion, up from $1.37 billion at the end of 2024. The company’s cash and cash equivalents increased to $51.2 million, and it had $275 million in outstanding debt. The company’s employee headcount remained stable, and it continues to focus on enhancing its operational efficiency and expanding its market share in the water management sector.

Looking ahead, Select Water Solutions anticipates continued growth driven by its strategic investments and the increasing demand for sustainable water management solutions in the energy sector. However, the company remains cautious of external factors such as geopolitical tensions, fluctuating commodity prices, and potential regulatory changes that could impact its operations and financial performance.