Aris Water Solutions (ARIS) Q1 2025 earnings summary

Executive summary

• Achieved record produced water handling and water solutions volumes in Q1 2025, with 7% sequential and up to 54% year-over-year growth, driven by strong customer activity and strategic acquisitions.

• Net income for Q1 2025 was $16.0 million; Adjusted EBITDA reached up to $57 million, up 4% sequentially and 6% year-over-year, with strong margins and operational efficiency.

• Completed integration of McNeil Ranch and acquired Crosstek Membrane Technology, expanding into industrial water and surface royalty development.

• Strengthened financial profile through successful refinancing of senior notes, upsizing to $500 million, and receiving a Moody's credit upgrade.

• Advanced beneficial reuse, desalination, and mineral extraction initiatives, with the first iodine facility expected online by early 2026.

Financial highlights

• Total Q1 2025 revenue was $120.5 million, up 17% year-over-year; produced water handling revenue was $92.2 million and water solutions revenue was $27.4 million.

• Adjusted EBITDA for Q1 2025 was up to $57 million, with Adjusted Operating Margin per barrel stable at $0.44.

• CapEx for Q1 2025 was about $21 million, down 44% year-over-year.

• Net income attributable to the company was $8.6 million; diluted EPS was $0.25.

• Declared a Q2 2025 dividend of $0.14 per share, a 56% increase from Q1 2024.

Outlook and guidance

• Q2 2025 produced water handling volumes expected at 1.2–1.25 million barrels/day; water solutions at 475,000–525,000 barrels/day.

• Q2 2025 Adjusted EBITDA guidance is $50–$55 million; Adjusted Operating Margin per barrel expected at $0.41–$0.43.

• 2025 capital expenditures projected at $85–$105 million, with flexibility to reduce by 25–30% if customer activity slows.

• No change to full-year 2025 volume, Adjusted EBITDA, or CapEx outlook, but monitoring for potential changes in 2H25.

• Board declared a Q2 2025 dividend of $0.14 per share.