KLX Energy Services Announces 2025 Full Year and Fourth Quarter Earnings Release and Conference Call Schedule Accessibility Statement Skip NavigationHOUSTON, March 5, 2026 /PRNewswire/ -- KLX Energy Services Holdings, Inc. ("KLX" or the "Company") (NASDAQ: KLXE) announced today that it will report its 2025 full year and fourth quarter financial results prior to the Company's live conference call, which can be accessed via dial-in or webcast, on Thursday, March 12, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. ...

Group 1 - KLX Energy Services (KLXE) is part of the Oils-Energy group, which consists of 234 companies and is currently ranked 15 in the Zacks Sector Rank [2] - KLXE has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for KLXE's full-year earnings has increased by 6% over the past 90 days, reflecting improved analyst sentiment [3] Group 2 - KLXE has returned approximately 24.3% year-to-date, outperforming the average gain of 16.1% for Oils-Energy stocks [4] - Another stock in the Oils-Energy sector, Precision Drilling (PDS), has also outperformed with a year-to-date return of 22.7% [4] - KLXE belongs to the Oil and Gas - Field Services industry, which is ranked 71 in the Zacks Industry Rank, with an average gain of 28.9% this year, indicating slight underperformance relative to its industry [6] Group 3 - Precision Drilling is categorized under the Oil and Gas - Drilling industry, currently ranked 88, which has seen a significant increase of 40.4% since the beginning of the year [7] - Investors in the Oils-Energy sector should monitor both KLX Energy Services and Precision Drilling for their ongoing performance [7]

Core Insights - KLX Energy (KLXE) is identified as a US small-cap oil and gas service provider with a focus on onshore operations [1] - The rig count for onshore drilling, particularly for oil rigs, has seen a significant decline over recent years [1] Company Overview - KLX Energy operates primarily in the oil and gas service sector, catering to onshore drilling needs [1] - The company is positioned within a challenging market environment due to the reduction in oil rig counts [1] Industry Context - The overall trend in the oil and gas industry indicates a substantial decrease in the number of operational oil rigs, impacting service providers like KLX Energy [1]

Industry Overview - The Oil/Energy sector faced significant challenges in 2025, with oil prices remaining under pressure and the sector lagging behind the broader market, which saw the S&P 500 increase by approximately 20% [1][3] - Crude oil prices fell below $60 per barrel, representing a decline of about 20% for the year, driven by oversupply concerns and a lack of strong upward momentum [3] Market Sentiment - Negative sentiment in the energy sector led to many equities falling out of favor, despite some companies performing well [5] - Stocks trading at least 35% below their highs can attract investor interest, particularly when the declines are driven by macroeconomic factors rather than company-specific issues [6][7] Investment Opportunities - Historical patterns suggest that periods of deep pessimism can create opportunities for contrarian investors looking ahead to potential recoveries in 2026 [1][5] - Companies like Drilling Tools International (DTI), KLX Energy Services Holdings (KLXE), and W&T Offshore (WTI) are highlighted as potential investment opportunities due to their strong fundamentals despite significant stock price declines [2][9][14] Company Highlights - **Drilling Tools International (DTI)**: Specializes in downhole tools and has a projected earnings growth of 650% for 2026, with its stock trading 38% below its 2025 highs [8][11] - **KLX Energy Services Holdings (KLXE)**: Provides a range of services to onshore oil and gas producers and is positioned for a 14.5% earnings growth in 2026, with shares nearly 80% off their peak [12][14] - **W&T Offshore (WTI)**: An independent oil and natural gas producer with a strong cash flow and a drilling success rate near 90%, its stock remains over 35% below its October peak [15][17]

Core Viewpoint - KLX Energy Services Holdings, Inc. has appointed Geoffrey C. Stanford as Interim Chief Financial Officer effective January 7, 2026, following the resignation of Keefer M. Lehner, which is not related to any operational or financial issues within the company [1]. Group 1: Leadership Changes - Geoffrey C. Stanford, currently Senior Vice President and Chief Accounting Officer, will take over as Interim CFO [1]. - Keefer M. Lehner will resign from his position as Executive Vice President and CFO effective January 7, 2026 [1]. - The resignation of Lehner is confirmed to be unrelated to any issues with the company's operations, financial reporting, or controls [1]. Group 2: Background of Geoffrey C. Stanford - Stanford joined KLX in 2018 as Vice President and Chief Accounting Officer and was promoted to Senior Vice President in December 2020 [2]. - Prior to KLX, he held positions at Amedisys Home Health & Hospice and Willbros Construction, focusing on corporate accounting initiatives [2]. - Stanford is a licensed Certified Public Accountant with an MBA from Tulane University and bachelor's degrees in Accounting and Finance from Louisiana State University [2]. Group 3: Company Overview - KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies [4]. - The company operates in all major active basins in the United States, delivering critical services focused on drilling, completion, production, and intervention activities [4]. - KLX has over 60 service and support facilities across the United States, supported by skilled personnel and a broad portfolio of innovative in-house manufacturing, repair, and maintenance capabilities [4].

Core Viewpoint - KLX Energy Services Holdings, Inc. will participate in the Emerging Growth Conference on December 10, 2025, with a presentation by CEO Chris Baker [1]. Group 1: Company Overview - KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies across all major basins in the United States [3]. - The company offers mission-critical oilfield services focused on drilling, completion, production, and intervention activities for technically demanding wells [3]. - KLX operates over 60 service and support facilities throughout the United States, supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair, and maintenance capabilities [3]. Group 2: Event Details - The presentation by Chris Baker is scheduled for 12:35 p.m. EST on December 10, 2025, and participants can register in advance [1]. - Following the presentation, there will be a Q&A session, and participants are encouraged to submit questions in advance [2]. - An archived webcast of the event will be available on EmergingGrowth.com and the Emerging Growth YouTube Channel after the conference [2].

Financial Performance - Revenue for Q3 2025 totaled $166.7 million, a 5% increase from Q2 2025 revenue of $159.0 million[8] - Adjusted EBITDA for Q3 2025 was $21.1 million, a 14% increase from Q2 2025 Adjusted EBITDA of $18.5 million[9] - Net loss for Q3 2025 was $(14.3) million, an improvement from a net loss of $(19.9) million in Q2 2025[9] - Adjusted EBITDA margin for Q3 2025 was 13%, up from 12% in Q2 2025, reflecting improved operational efficiency[9] - Revenues for the three months ended September 30, 2025, were $166.7 million, a decrease of 11.7% compared to $188.9 million for the same period in 2024[22] - The net loss for the three months ended September 30, 2025, was $14.3 million, compared to a net loss of $8.2 million for the same period in 2024, representing a year-over-year increase in net loss of 74.4%[22] - Adjusted EBITDA for the three months ended September 30, 2025, was $21.1 million, with an Adjusted EBITDA margin of 12.7%, compared to $27.8 million and 14.7% for the same period in 2024[39] - The consolidated net loss margin for the three months ended September 30, 2025, was (8.6)%, an improvement from (12.5)% in the previous quarter[37] Segment Performance - The Northeast/Mid-Con segment saw a 29% sequential revenue increase to $59.3 million, driven by improved completions utilization[10] - The Rocky Mountains segment reported a revenue decrease of 6% sequentially to $50.8 million, impacted by lower utilization[10] - The Southwest segment had an adjusted EBITDA of $5.1 million for the three months ended September 30, 2025, down from $7.2 million in the previous quarter[52] - The Northeast/Mid-Con segment achieved an adjusted EBITDA of $14.5 million, significantly up from $7.2 million in the previous quarter[52] - The Rocky Mountains segment reported a revenue of $50.8 million with an operating income of $1.8 million, resulting in an operating income margin of 3.5%[51] - The Northeast/Mid-Con segment's revenue increased to $59.3 million, with an operating income margin of 11.1% for the three months ended September 30, 2025[51] Liquidity and Capital Structure - Total liquidity as of September 30, 2025, was $65 million, consisting of approximately $8 million in cash and $57 million in available borrowing capacity[6] - Net working capital as of September 30, 2025, was $50.1 million, a 9% increase from June 30, 2025[14] - Total assets decreased to $358.2 million as of September 30, 2025, down from $456.3 million as of December 31, 2024[24] - Cash and cash equivalents significantly decreased to $8.3 million from $91.6 million as of December 31, 2024[24] - Long-term debt decreased to $254.7 million as of September 30, 2025, compared to $285.1 million as of December 31, 2024[24] - Total debt as of September 30, 2025, was $259.2 million, with net debt standing at $250.8 million after accounting for cash and cash equivalents[59] Costs and Expenses - Capital expenditures in Q3 2025 were $12.0 million, a 6% decrease compared to Q2 2025[15] - The company incurred one-time costs of $0.3 million during the third quarter of 2025, primarily related to legal and operational expenses[37] - The company reported levered free cash flow of $5.7 million for the three months ended September 30, 2025, compared to $8.0 million in the previous quarter[56] Future Outlook - The company anticipates a mid-single-digit revenue decline in Q4 2025 due to typical seasonality and customer budget exhaustion[7] - The adjusted diluted loss per share for the three months ended September 30, 2025, was $0.73, compared to $0.88 in the previous quarter[54] - The company reported a basic net loss per common share of $(0.74) for the three months ended September 30, 2025, compared to $(0.51) for the same period in 2024[22]

Revenue Performance - For the three months ended September 30, 2025, total revenue was $166.7 million, a decrease of $22.2 million or 11.8% compared to $188.9 million in the same period of 2024[101] - Revenue from the Rocky Mountains segment decreased by $17.1 million or 25.2%, primarily due to lower weighted average volume[101] - The Southwest segment revenue decreased by $12.0 million or 17.5%, with lower weighted average price contributing approximately 33% to the decline[101] - The Northeast/Mid-Con segment revenue increased by $6.9 million or 13.2%, driven entirely by higher weighted average price[101] - For the nine months ended September 30, 2025, total revenue was $479.7 million, a decrease of $64.1 million, or 11.8%, compared to the prior year[110] - The Rocky Mountains segment revenue decreased by $22.2 million, or 12.7%, while the Southwest segment revenue decreased by $27.3 million, or 13.1%[110] Cost and Expenses - Cost of sales for the quarter was $130.5 million, representing 78.3% of sales, compared to $142.3 million or 75.3% of sales in the prior year[102] - Labor costs per employee increased by 0.5% compared to the same period in 2024, while repair and maintenance costs as a percentage of revenues increased by 4.1%[102] - Cost of sales for the nine months ended September 30, 2025, was $379.9 million, or 79.2% of sales, up from 77.7% in the prior year[111] - For the quarter ended September 30, 2025, SG&A expenses were $15.6 million, or 9.4% of revenues, down from $21.2 million, or 11.2% of revenues in the prior year[103] Operating Performance - The total operating loss for the quarter was $3.0 million, compared to an operating income of $1.1 million in the prior year, reflecting a decline in activity and pricing[105] - For the nine months ended September 30, 2025, net loss was $62.1 million, compared to a net loss of $38.4 million in the prior year[117] - Operating loss for the Rocky Mountains segment was $4.9 million, down from $19.0 million in the prior year, a decrease of 74.2%[114] Liquidity and Capital Structure - As of September 30, 2025, the company had $8.3 million in cash and cash equivalents, with total liquidity of $65.2 million[118] - The company completed a refinancing of long-term indebtedness on March 12, 2025, issuing approximately $232.2 million in 2030 Senior Notes[123] - The 2030 Senior Notes will mature on March 12, 2030, and bear a floating interest rate based on Term SOFR plus an applicable margin[124] - As of September 30, 2025, the outstanding principal amount under the 2030 Senior Notes was $241.7 million, with total debt related to these notes at $219.2 million after accounting for unamortized costs[130] - The effective interest rate for the 2030 Senior Notes was approximately 12.67% as of September 30, 2025[130] - The Company incurred capital expenditures of $39.7 million during the nine months ended September 30, 2025, down from $49.8 million in the same period of 2024[142] - The Company expects total capital expenditures for the year ending December 31, 2025, to be between $42.5 million and $47.5 million[142] Cash Flow - Cash flows used in operating activities for the nine months ended September 30, 2025, were approximately $5.0 million, compared to $28.2 million provided in the same period of 2024[149] - The Company had $8.3 million in cash and cash equivalents as of September 30, 2025, a decrease of $83.2 million from the previous period[150] - Net cash used in financing activities was $49.1 million for the nine months ended September 30, 2025, compared to $17.4 million in the same period of 2024[154] - The New ABL Facility has a total commitment of $125.0 million and an effective interest rate of approximately 9.02% as of September 30, 2025[136] - The Company had $40.0 million in borrowings outstanding under the New ABL Facility as of September 30, 2025[136] Financial Metrics and Reporting - The company evaluates its financial condition based on GAAP-compliant condensed consolidated financial statements, which involve estimates and assumptions that may lead to materially different reported amounts under varying conditions[155] - Adjusted EBITDA is utilized as a key performance indicator, allowing the company to assess operating performance without regard to financing methods or capital structure[158] - Adjusted EBITDA is defined as net earnings (loss) before interest, taxes, depreciation, and amortization, adjusted for specific items such as goodwill impairment and stock-based compensation[159] - The company recognizes the cyclical nature of its business and emphasizes the importance of metrics to measure operational trends and set performance baselines[157] - Adjusted EBITDA Margin is calculated as Adjusted EBITDA expressed as a percentage of revenue, providing insight into profitability relative to sales[159] - The company continues to evaluate recently issued accounting pronouncements for future adoption, indicating a proactive approach to compliance[156] - The financial performance measures are designed to provide a clearer picture of the company's ongoing operations, excluding items that may not reflect current performance[158] - The company acknowledges that actual results may differ from estimates and assumptions used in financial statement preparation, highlighting the inherent uncertainties in financial reporting[155] - The company’s Adjusted EBITDA calculations may not be directly comparable to similar measures used by other companies in the industry[160] - As a smaller reporting company, the company is not required to disclose certain market risk information, which may limit the available data for investors[161] Strategic Initiatives - The company plans to pursue strategic, accretive acquisitions to strengthen its competitive positioning and drive long-term stockholder value[83] - The company has developed tools covered by 39 patents and 6 pending patent applications, enhancing its competitive edge in the market[88]

Financial Data and Key Metrics Changes - KLX Energy Services reported Q3 2025 revenue of $167 million, a 5% increase from Q2 2025, but 12% lower than Q3 2024 [5][10] - Adjusted EBITDA for Q3 2025 was $21 million, up 14% from Q2 2025, with an adjusted EBITDA margin improving to 13% [5][10] - Revenue and adjusted EBITDA per rig were $318,000 and $40,000 respectively, significantly above levels from Q4 2021 by 20% and 227% [6] Business Line Data and Key Metrics Changes - The Northeast Mid-con segment saw a 29% revenue increase quarter-over-quarter, contributing $59.3 million to total revenue [5][10] - The Southwest segment represented 34% of Q3 revenue, down from 37% in Q2, with revenue decreasing 4% due to reduced activity [8][12] - The Rockies segment accounted for 30% of revenue, down from 34% in Q2, with revenue of $50.8 million, reflecting a 6% sequential decrease [8][12] Market Data and Key Metrics Changes - The average US land rig count declined by 6% and the average frac spread count decreased by 12% during the quarter [5][10] - By end market, drilling, completion, and production intervention services contributed approximately 15%, 60%, and 25% of Q3 revenue respectively [9] Company Strategy and Development Direction - KLX is focusing on operational discipline, margin optimization, and proactive capital stewardship to navigate market volatility [17][19] - The company anticipates a mid-single-digit revenue decline from Q3 to Q4, indicating a less pronounced reduction compared to previous years [17][31] - KLX expects to benefit from increased natural gas demand and new LNG export capacity, positioning itself for growth in 2026 [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging due to OPEC Plus supply growth and depressed rig counts [6] - There are signs of stabilization in rig activity and incremental activity in natural gas basins, which could support future growth [17][19] - The company is optimistic about maintaining stable adjusted EBITDA margins despite anticipated revenue declines [18] Other Important Information - KLX ended Q3 with approximately $65 million in liquidity, including $8.3 million in cash and $56.9 million available on its revolving credit facility [13] - Total debt as of September 30 was $259.2 million, with compliance to debt covenants maintained [13] Q&A Session Summary Question: Performance of Northeast Mid-con - Management highlighted that the Northeast Mid-con segment's strong performance was driven by rentals and fishing, with less white space contributing to margin expansion [25][26] Question: Rockies Market Performance - Management noted that the Rockies segment was generally flat, with episodic completion programs impacting revenue due to fixed cost structures [28][29] Question: Year-End Slowdown and Future Outlook - Management indicated a mid-single-digit revenue decline for Q4, which is less severe than previous years, and expressed optimism for 2026 based on gas market stability [31][34] Question: Balance Sheet and Liquidity - Management discussed the balance sheet's strength, with $65 million in liquidity and a focus on managing PIK versus cash decisions to maintain flexibility [36][37]

Core Points - KLX Energy Services Holdings, Inc. will report its 2025 third quarter financial results on November 6, 2025, at 10:00 a.m. Eastern Time [1][2] - The conference call can be accessed via phone or live webcast, with a replay available until November 20, 2025 [2] Company Overview - KLX is a growth-oriented provider of diversified oilfield services, focusing on drilling, completion, production, and intervention activities for technically demanding wells [3] - The company operates over 60 service and support facilities across the United States, catering to both conventional and unconventional oil and natural gas exploration and production companies [3] - KLX's services are supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair, and maintenance capabilities [3]