GAAP earnings per share for Select Energy Services fall short by one cent, registering at $0.10, while revenue also falls short, coming in at $364.2 million, missing the mark by $660,000.
Select Water Solutions (NYSE: WTTR) has released its financial results for the second quarter of 2025, showcasing a mixed performance compared to previous years.
The company's revenue for Q2 2025 stood at $364.2 million, marking a slight year-over-year decline of 0.2%. Despite this dip, the Water Infrastructure segment experienced a robust 12% growth in revenue during the same period.
Operating cash flow was strong, totalling $82.6 million, with free cash flow of $10.8 million also reported. Liquidity and cash on hand remained robust, with liquidity at $279.3 million and cash on hand at $51.2 million as of June 30, 2025.
The Q2 earnings per share (EPS) was $0.10, the same as the GAAP EPS. However, this figure represents a significant 23% drop compared to previous periods.
The adjusted EBITDA for Q2 2025 was $72.6 million, reflecting a 13.4% improvement compared to Q1 2025. The company's gross profit margin was $144.5 million, equating to a 39.7% margin. Operating expenses for Q2 2025 amounted to $321.7 million, representing 88.1% of revenue.
The Q2 operating income was -$77.5 million, and the Q2 diluted weighted average shares outstanding was 96.6 million. Capital expenditures for the second quarter of 2025 were $27.7 million. The effective tax rate for Q2 2025 was 18.9%.
It's worth noting that the financial data provided does not include net income or other financial metrics beyond EPS, revenue, and cash flow. The press release does not specify the reason for the earnings miss or revenue shortfall.
In an effort to enhance margins and focus, Select Water Solutions engaged in strategic asset swaps and business unit adjustments, such as acquiring Bakken assets and divesting trucking operations.
In summary, Q2 2025 exhibited operational cash flow growth and strong segment revenue in Water Infrastructure but was tempered by a marginal overall revenue decline and a notable EPS drop compared to prior periods.
Despite the overall revenue decline, Select Water Solutions managed to secure notable growth in the energy sector through the strategic acquisition of Bakken assets. To bolster financial performance and focus operations, the company also divested its trucking operations within the finance industry.
