Select Water Solutions Inc (WTTR) Reports Q3 2023 Earnings: Revenue Up 4% YoY to $389 Million
Select Water Solutions Inc (NYSE:WTTR) reported consolidated revenue of $389 million in Q3 2023, a 4% increase YoY.
The Water Infrastructure segment generated revenues of $58.4 million, marking an 86% increase YoY.
The company delivered $118.2 million of operating cash flows during Q3 2023.
WTTR announced multiple new contracted infrastructure projects expanding upon existing systems in the Northern Delaware Basin and Haynesville Shale.
On October 31, 2023, Select Water Solutions Inc (NYSE:WTTR), a leading provider of sustainable water and chemical solutions, announced its financial and operating results for the quarter ended September 30, 2023. The company reported a consolidated revenue of $389 million, marking a 4% increase year-over-year (YoY) compared to Q3 2022. The Water Infrastructure segment saw a significant 86% increase in revenues YoY, generating $58.4 million.
Financial Highlights
The company's net income for Q3 2023 was $15.3 million, compared to $22.6 million in Q2 2023 and $24.7 million in Q3 2022. The gross profit for the quarter was $56.3 million, compared to $61.2 million in Q2 2023 and $58.8 million in Q3 2022. Total gross margin was 14.5% in Q3 2023, compared to 15.1% in Q2 2023 and 15.7% in Q3 2022.
John Schmitz, Chairman of the Board, President, and CEO, stated,
During the third quarter, we delivered strong operating cash flows, ending the quarter with a debt-free balance sheet once again. Our Water Infrastructure business achieved solid sequential revenue growth and margin improvement, as we continue to bring new contracted infrastructure projects online and add additional opportunities to the backlog."
Segment Performance
The Water Services segment generated revenues of $251.9 million in Q3 2023, compared to $264.6 million in Q2 2023 and $264.3 million in Q3 2022. The Chemical Technologies segment generated revenues of $79.0 million in Q3 2023, compared to $84.8 million in Q2 2023 and $79.4 million in Q3 2022.
Future Outlook
Heading into year-end, WTTR has a strong backlog remaining for both greenfield and brownfield infrastructure system projects. The company expects multiple additional capital projects will come under contract in the months ahead. This backlog of accretive capital projects positions the Water Infrastructure segment to see continued steady financial growth during Q4 2023, and into 2024 and beyond.
Balance Sheet and Capital Structure
As of September 30, 2023, the company had no borrowings outstanding under its sustainability-linked credit facility and total cash and cash equivalents were $25.0 million. The company had 99,777,776 weighted average shares of Class A common stock and 16,221,101 weighted average shares of Class B common stock outstanding during Q3 2023.
Explore the complete 8-K earnings release (here) from Select Water Solutions Inc for further details.
This article first appeared on GuruFocus.
