Select Water Solutions, Inc. has released its financial and operational results for the third quarter of 2025, revealing a generated revenue of $322 million and cash flow from operating activities of $72 million. The company increased its chemical technologies revenue and gross profit by 13% and 34%, respectively, compared to the second quarter of 2025.
In terms of long-term contracted water infrastructure projects, Select Water Solutions announced multiple new projects in the Permian Basin, supported by approximately 65,000 acres of additional leasehold and right-of-first-refusal acreage dedications. Additionally, the company enhanced multiple existing water infrastructure long-term contracts covering 309,000 acres of dedication through the addition of long-term contracted last-mile water transfer and logistics services.
The financial results for the third quarter of 2025 revealed a revenue of $322.2 million, representing a decrease from the previous quarter's revenue of $364.2 million. The net income for the third quarter was $2.3 million, down from $11.7 million in the second quarter of 2025. Gross profit for the third quarter was $43.6 million, compared to $57.8 million in the second quarter of 2025.
The water infrastructure segment saw a sequential decrease in revenues to $78.8 million in the third quarter of 2025, compared to $80.9 million in the second quarter. The water services segment generated revenues of $166.9 million, down from $215.7 million in the second quarter, while the chemical technologies segment reported revenues of $76.6 million, up from $67.7 million in the second quarter.
Cash flow provided by operations for the third quarter of 2025 was $71.7 million, a decrease from $82.6 million in the second quarter. Net capital expenditures for the third quarter were $91.1 million, with free cash flow standing at ($19.4) million. Total cash and cash equivalents were reported at $17.8 million as of September 30, 2025.
The company's CEO, John Schmitz, expressed optimism about the future, citing the ongoing advancement of their strategy and the dedication of their employees and long-term shareholders. He highlighted the company's commitment to delivering industry-leading water midstream and infrastructure growth while maintaining a conservative balance sheet.
The financial and operational results indicate both successes and challenges for Select Water Solutions, with notable changes in various segments and key financial metrics compared to the previous quarter. The market has reacted to these announcements by moving the company's shares 1.09% to a price of $11.12. For the full picture, make sure to review Select Water Solutions's 8-K report.
