Select Water Solutions sees FY25 CapEx $225M-$250M

John Schmitz, Chairman of the Board, President and CEO, stated, “Our Water Services and Chemical Technologies segments are off to a good start in 2025, and these segments continue to generate strong free cash flow overall, but we do expect to see operational consolidation decisions as well as macro-related headwinds impact the sequential revenue performance in these segments. However, we expect the combined gross profit of these segments to remain relatively in line with the first quarter of 2025, while also driving better combined cash flow in the second quarter from these two segments to help fund our continued infrastructure capital deployment. We remain steadfast in our commitment to grow with our key customers and execute on our growing backlog of infrastructure projects. With the opportunity to enhance the contracted base of our earnings with additional accretive infrastructure projects, we now expect net capital expenditures in 2025 to increase to $225M-$250M. Accordingly, we are also adjusting our full-year free cash flow conversion rate to approximately 5-15% of Adjusted EBITDA. With the support of the new sustainability-linked credit facility we executed in the first quarter, cash flow from our existing operations, and increasing exposure to contracted and production-oriented earnings streams, we are well positioned to fund this growth while maintaining a healthy balance sheet in a dynamic market.”