Why did WTTR's Q2 earnings fall short?

Select Water Solutions Inc (WTTR) experienced a decline in gross profit and net income in the fourth quarter of 2024 compared to the previous quarter, which can be attributed to several factors:

1. **Revenue Decline**: The company's revenue for the fourth quarter of 2024 was $349.05 million, which is lower than the revenue of $371.35 million in the previous quarter. This decline in revenue could contribute to the decrease in gross profit and net income.
2. **Cost Efficiency Warning**: Select Water Solutions has issued a cost efficiency warning, indicating potential difficulties in maintaining profitability compared to its peers. The company's gross margin is reported to be low, which could be a result of high operating costs or inefficiencies in the operation.

In conclusion, the decline in WTTR's Q4 earnings can be attributed to a combination of revenue decline and cost efficiency warning.