Select Water Solutions, Inc. (NYSE: WTTR) has announced its financial and operational results for the third quarter of 2025, along with strategic updates. The company reported generating revenue of $322 million and cash flow from operating activities of $72 million during the quarter. Compared to the second quarter of 2025, the company increased its chemical technologies revenue and gross profit by 13% and 34%, respectively.
The company also announced new long-term contracted water infrastructure projects in the Permian Basin, backed by approximately 65,000 acres of additional leasehold and right-of-first-refusal (ROFR) acreage dedications. Additionally, it 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.
In the third quarter of 2025, Select Water Solutions saw a revenue decline of $42 million from the second quarter of 2025, reporting a net income of $2.3 million compared to $11.7 million in the second quarter. However, the third quarter was impacted by the recent divestment of certain trucking operations, partially offset by the addition of key infrastructure assets in the Bakken region associated with the Omni transaction, accounting for approximately $16 million or 37% of the net sequential revenue reduction.
The company's gross profit in the third quarter of 2025 was $43.6 million, compared to $57.8 million in the second quarter of 2025. The total gross margin was 13.5% in the third quarter of 2025, representing a decrease from the second quarter's 15.9%.
In the water infrastructure segment, Select Water Solutions reported revenues of $78.8 million in the third quarter of 2025, a decrease from $80.9 million in the second quarter. Gross margin before depreciation, amortization, and accretion for water infrastructure was 53.1% in the third quarter of 2025, down from 55.2% in the second quarter.
The water services segment generated revenues of $166.9 million in the third quarter of 2025, a decline from $215.7 million in the second quarter. Gross margin before depreciation, amortization, and accretion for water services was 18.0% in the third quarter of 2025, down from 19.6% in the second quarter.
In the chemical technologies segment, revenues increased to $76.6 million in the third quarter of 2025 from $67.7 million in the second quarter. Gross margin before depreciation, amortization, and accretion for chemical technologies was 19.9% in the third quarter of 2025, up from 17.5% in the second quarter.
Cash flow provided by operations for the third quarter of 2025 was $71.7 million, down from $82.6 million in the second quarter. The company's net capital expenditures for the third quarter of 2025 were $91.1 million, with free cash flow at ($19.4) million.
Total cash and cash equivalents were $17.8 million as of September 30, 2025, compared to $51.2 million as of June 30, 2025. The company had $250.0 million of borrowings outstanding under the term loan component of its sustainability-linked credit facility as of both September 30, 2025, and June 30, 2025, with an additional $55.0 million and $25.0 million of revolver borrowings outstanding as of September 30, 2025, and June 30, 2025, respectively. 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.
