Select Water Solutions, Inc. announced its financial results for the first quarter ended March 31, 2025, reporting consolidated revenue of $374.4 million, a 7% sequential increase from Q4 2024. Net income increased to $9.6 million from a net loss of $2.1 million in the prior quarter, and Adjusted EBITDA grew 14% sequentially to $64.0 million.
The company secured multiple new long-term contracted Water Infrastructure projects in the Permian Basin, backed by over 265,000 acres of new acreage and right-of-first-refusal dedications. The largest new agreement is an 11-year contract in Eddy County, New Mexico, involving water recycling, storage, disposal, and pipeline gathering/distribution, with approximately 100 miles of incremental large-diameter pipeline buildout. These projects anticipate $100-$125 million of incremental capital deployment.
Water Infrastructure segment revenue decreased 5.8% sequentially to $72.4 million, primarily due to legacy freshwater pipeline assets being taken offline for conversion into produced water distribution lines. However, recycling and disposal volumes increased, and gross margins before D&A remained strong at 53.7%.
For the second quarter of 2025, consolidated Adjusted EBITDA is projected to be $68-$72 million. The company increased its full-year 2025 net capital expenditures guidance to $225-$250 million, with a bias towards the higher end, and adjusted its free cash flow conversion rate to approximately 5-15% of Adjusted EBITDA, reflecting increased investment in infrastructure growth.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.