Select Energy Services . Class A Stock Earnings Reports

Select Water Solutions reported Q3 2025 progress across its three segments, with particular strength in Water Infrastructure and Chemical Technologies. Key highlights: continued expansion in the Permian (recycling ~1 million barrels/day in Permian fixed facilities), >65,000 acres of new long-term dedications in the Permian this quarter (nearly 800,000 acres added in 2025), a new long‑term water transfer (last‑mile pipeline/logistics) contract covering +300,000 acres, and continued bolt-on disposal acquisitions to backstop recycling-first networks. Chemical Technologies posted +13% sequential revenue and +29% sequential gross profit before D&A driven by new product market share gains. The company is advancing beneficial reuse and mineral extraction initiatives (notably a Haynesville lithium project yielding expected royalties: ~$2.5M/year in early 2027 ramping to ~$5M/year at full capacity) and expects strong Water Infrastructure growth: +~10% Q4 vs Q3 and >20% growth for 2026 with gross margins before D&A consistently >50%. Q3 cash from operations was $72M; adjusted EBITDA ~ $60M; growth CapEx rose to $95M in Q3 and full-year 2025 net CapEx guidance was modestly raised to $250–$275M. Water Services revenues declined (impacted by divestitures and lower activity) but management is pursuing further rationalization to drive margins back to mid-20s over time. Management reiterated focus on a streamlined, infrastructure‑centric company, strong liquidity, low leverage, and staged commercialization of beneficial reuse/mineral extraction opportunities.