Select Water Solutions Q3 revenue beats on higher volumes handled
Overview
US water solutions provider's Q3 revenue rose 28% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 increased 57% yr/yr, beating analyst estimates
Company completed Peak Rentals divestment and closed Pilot Water Solutions acquisition post-quarter
Outlook
Company expects Q4 adj EBITDA of $95-$100 mln
Select sees Q4 Water Infrastructure revenue of $150-$160 mln, gross margin before D&A 52%-56%
Result Drivers
WATER INFRASTRUCTURE GROWTH - Record Water Infrastructure revenue driven by over 30% increase in produced water volumes handled, per CEO John Schmitz
SEGMENT PERFORMANCE - Water Services and Chemical Technologies segments generated strong performance relative to guided expectations, with Water Services revenue up 7% sequentially and Chemical Technologies at high end of guidance
STRATEGIC TRANSACTIONS - Completed Peak Rentals divestment and closed Pilot Water Solutions acquisition, expanding water midstream position
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $412 mln | $397.53 mln (4 Analysts) |
Q3 Net Income | $23 mln | ||
Q3 Adjusted EBITDA | Beat | $93 mln | $90.91 mln (6 Analysts) |
Q3 Gross Margin | 19.70% | ||
Q3 Adjusted Gross Margin | 31.40% | ||
Q3 Gross Profit | $81.40 mln |
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)