Select Water Solutions Q3 revenue beats on higher volumes handled
WTTR•Select Water Solutions’ third-quarter revenue rose 28% year over year to $412 million, beating the $397.53 million estimate, while adjusted EBITDA increased 57% to $93 million. The company expects fourth-quarter adjusted EBITDA of $95 million to $100 million.
1. Quarterly results
Third-quarter revenue was $412 million, compared with analyst expectations of $397.53 million. Adjusted EBITDA was $93 million, above the $90.91 million estimate, and net income was $23 million.
2. Volume growth
Record Water Infrastructure revenue was driven by a more than 30% increase in produced water volumes handled, CEO John Schmitz said. Water Services revenue rose 7% sequentially, while Chemical Technologies performance was at the high end of guidance.
3. Outlook and transactions
Select expects fourth-quarter adjusted EBITDA of $95 million to $100 million and Water Infrastructure revenue of $150 million to $160 million, with gross margin before depreciation and amortization of 52% to 56%. The company completed the Peak Rentals divestment and closed its acquisition of Pilot Water Solutions after the quarter.
