UNITED STATES SECURITIES AND EXCHANGE COMMISSION For The Quarterly Period Ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38609 KLX Energy Services Holdings, Inc. (Exact name of registrant as specified in its charter) WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 36-4904146 (State of Incorpora ...

Financial Data and Key Metrics Changes - For Q2 2025, KLX Energy Services reported revenue of $159 million, a 3% increase from Q1 2025, and adjusted EBITDA of $19 million, up 34% from Q1 [5][12] - Adjusted EBITDA margin improved by 260 basis points sequentially to 12%, despite a 7% decline in the US land rig count and a 14% drop in frac spread count [6][8] - The company ended Q2 with $16.7 million in cash and reduced restricted cash from $8.1 million in Q1 to $600,000 [17] Business Line Data and Key Metrics Changes - The Rockies segment revenue was $54.1 million, with adjusted EBITDA of $10.4 million, reflecting a sequential increase of 1355% driven by normalized seasonal operating levels [14] - The Southwest segment revenue decreased by 10% sequentially to $58.8 million, with an adjusted EBITDA of $7.2 million, down 38% due to reduced activity and extended completion holidays [14] - The Northeast Mid Con segment saw a 12% sequential revenue increase to $46.1 million, with adjusted EBITDA more than doubling, driven by higher utilization and reduced white space [15] Market Data and Key Metrics Changes - Q2 revenue and adjusted EBITDA per rig were $286,000 and $33,000 respectively, which were 8% and 172% ahead of results in 2021 [9] - The Rockies represented 34% of Q2 revenue, up from 31% in Q1, while the Southwest accounted for 37%, down from 42% [10] - By end market, drilling, completion, production, and intervention services contributed approximately 16%, 56%, and 28% of Q2 revenue respectively [11] Company Strategy and Development Direction - The company aims to pass along increased costs where possible and adjust sourcing to mitigate risks associated with the evolving tariff landscape [11] - KLX is focused on operational discipline, balance sheet flexibility, and proactive risk mitigation to navigate the volatile market environment [21] - The company is optimistic about long-term fundamentals for US natural gas, particularly in gas-focused basins, as new LNG export capacity ramps up [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains challenging due to OPEC plus production increases, tariff policy overhangs, and recession risks [8] - For Q3, KLX expects to see sequential revenue growth in the low to mid single digits, with continued margin expansion [21] - The company remains committed to deleveraging its balance sheet and pursuing strategic M&A opportunities [22][24] Other Important Information - Total SG&A expense for Q2 was $18 million, with adjusted SG&A expense down 12% year-over-year and 8% sequentially [13] - The company ended Q2 with approximately $65 million in liquidity, an increase of 13% from Q1 [17] - CapEx for Q2 was $12.7 million gross, with expectations for gross CapEx in 2025 to be in the range of $40 to $50 million [19] Q&A Session Summary Question: Concerns about hitting Q3 revenue growth guidance given rig count decline - Management acknowledged the question and noted that while rig count is factored in, unexpected white space from customers could impact results. However, they observed strength in June and expect all three months of Q3 to be base loaded [30][31] Question: Opportunities in gas basins, specifically Haynesville and Marcellus - Management reported a 25% increase in Haynesville revenue quarter-over-quarter and noted stability in the Northeast, with opportunities for incremental work as gas rig count expands [32][33] Question: Cash flow expectations and potential asset sales or cost cuts - Management indicated that while they did not provide explicit guidance on free cash flow, they generated nearly $12 million of unlevered free cash flow in Q2 and expect liquidity to continue improving [34][36] Question: Drivers of elevated M&A discussions - Management attributed the increase in M&A discussions to capitulation among smaller service companies struggling in the current environment, leading to more realistic valuation expectations [43] Question: Impact of SOPs on various OFS service lines - Management emphasized the significance of SOPs and HSE requirements for larger operators, noting that smaller operators may not face the same level of scrutiny [44][46] Question: Expectations for seasonal impact in Q4 gas markets - Management expressed that while visibility is limited, they do not anticipate significant budget exhaustion in the Haynesville, although there may be concerns regarding the Marcellus Utica [48][50]

KLX Energy Services (KLXE) came out with a quarterly loss of $0.88 per share versus the Zacks Consensus Estimate of a loss of $0.62. This compares to a loss of $0.4 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -41.94%. A quarter ago, it was expected that this service provider to oil and natural gas producers would post a loss of $0.86 per share when it actually produced a loss of $1.27, delivering a surprise of -47.67%.Over ...

NEWS RELEASE Contacts: KLX Energy Services Holdings, Inc. Keefer M. Lehner, EVP & CFO 832-930-8066 IR@klx.com Dennard Lascar Investor Relations Ken Dennard / Natalie Hairston 713-529-6600 KLXE@dennardlascar.com KLX ENERGY SERVICES HOLDINGS, INC. REPORTS SECOND QUARTER 2025 RESULTS HOUSTON, TX - August 6, 2025 - KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX", the "Company", "we", "us" or "our") today reported financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financia ...

Group 1 - KLX Energy Services Holdings, Inc. will report its 2025 second quarter financial results on August 7, 2025, at 10:00 a.m. Eastern Time [1] - The conference call can be accessed via phone or live webcast, with a replay available until August 21, 2025 [1] - Questions for management can be submitted via email prior to the call [1] Group 2 - KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies [2] - The company operates over 60 service and support facilities across the United States, focusing on drilling, completion, production, and intervention activities [2] - KLX's services are supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair, and maintenance capabilities [2]

Revenue Performance - For the three months ended March 31, 2025, total revenue was $154.0 million, a decrease of $20.7 million or 11.8% compared to the same period in 2024[103]. - Revenue from the Rocky Mountains segment increased by $2.2 million or 4.8%, driven entirely by an increase in weighted average volume[103]. - The Southwest segment revenue decreased by $4.2 million or 6.1%, attributed solely to a decrease in weighted average volume[103]. - The Northeast/Mid-Con segment revenue decreased by $18.7 million or 31.3%, with lower weighted average price contributing approximately 13% and lower weighted average volume contributing approximately 87% to the decline[103]. Pricing and Market Conditions - The average daily price of West Texas Intermediate (WTI) increased by approximately 1.4% to $71.78 per barrel during the three months ended March 31, 2025, compared to $70.81 per barrel in the previous quarter[94]. - The company anticipates that customers will continue to cautiously allocate capital and operating expenses due to volatile commodity prices[96]. Financial Performance - For the quarter ended March 31, 2025, cost of sales was $123.8 million, representing 80.4% of sales, a decrease from 82.4% in the prior year period[104]. - Selling, general and administrative expenses (SG&A) were $21.6 million, or 14.0% of revenues, up from 12.4% in the prior year, due to lower revenues[105]. - The total operating loss for the quarter was $17.7 million, compared to a loss of $13.1 million in the prior year, reflecting reduced activity and pricing[107]. - The net loss for the quarter was $27.9 million, an increase from a net loss of $22.2 million in the prior year, primarily due to lower revenues[110]. Liquidity and Capital Structure - As of March 31, 2025, the company had $14.6 million in cash and cash equivalents, with total liquidity of $58.1 million[111]. - The company completed a refinancing on March 12, 2025, issuing approximately $232.2 million in 2030 Senior Notes and exchanging $143.6 million of 2025 Senior Notes[115][126]. - The New ABL Facility has a commitment of $125.0 million and includes a first-in-last-out asset-based credit facility with a $10.0 million commitment[119]. - The effective interest rate under the New ABL Facility was approximately 9.06% as of March 31, 2025[122]. - The company is required to redeem 2.00% per annum of all 2030 Senior Notes outstanding starting March 31, 2025[128]. - The 2030 Senior Notes Indenture includes a maximum total net leverage ratio of not greater than 4.50 to 1.0 for specified test periods[129]. - As of March 31, 2025, the principal amount outstanding under the 2030 Senior Notes was $231.0 million, with total debt related to these notes at $206.0 million after adjustments[132]. - The effective interest rate for the 2030 Senior Notes was approximately 12.83% as of March 31, 2025[132]. Capital Expenditures and Cash Flow - Capital expenditures for the three months ended March 31, 2025, were $15.0 million, an increase from $13.5 million in the same period of 2024, with expectations of total capital expenditures between $40.0 million and $50.0 million for the year ending December 31, 2025[137]. - Cash flows used in operating activities for the three months ended March 31, 2025, were approximately $37.6 million, compared to $10.8 million for the same period in 2024[143]. - The company had $14.6 million in cash and cash equivalents and $8.1 million in restricted cash as of March 31, 2025, reflecting a decrease of $68.9 million in cash on hand[144]. - Net cash used in financing activities was $21.1 million for the three months ended March 31, 2025, compared to $6.6 million for the same period in 2024, influenced by refinancing activities[148]. - The company sold 142,769 shares of common stock during the three months ended March 31, 2025, generating gross proceeds of approximately $0.5 million[141]. - The company expects to incur additional pari passu indebtedness of up to $150.0 million within twelve months of refinancing, subject to certain conditions[131]. - Total letters of credit outstanding under the New ABL Facility were $6.4 million as of March 31, 2025[133]. Strategic Initiatives - The company expects to continue pursuing strategic, accretive acquisitions to strengthen competitive positioning and drive efficiencies[85]. - The company has developed tools covered by 37 patents and 7 pending patent applications, enhancing its competitive edge in the market[90]. - The company is focused on maintaining a solid balance sheet and sufficient operating liquidity while managing capital expenditures prudently[101].

Financial Data and Key Metrics Changes - Q1 2025 revenue was $154 million, a 7% sequential decline and 12% lower than Q1 2024 [12] - Consolidated adjusted EBITDA was $13.8 million with a 9% margin, down from 13.7% in Q4 2024 but up from 7% in Q1 2024 [12] - Adjusted EBITDA margin increased by 208 basis points year-over-year despite a 125% decline in revenue and rig count [6] Business Line Data and Key Metrics Changes - Southwest segment revenue was $65.2 million, with adjusted EBITDA at its highest level since Q3 2023, reflecting a shift towards higher-margin product service lines [15][16] - Rockies segment revenue was $47.8 million, with adjusted EBITDA higher by 524% year-over-year despite a 13% decline in rig count [14] - Northeast Mid Con segment revenue was $41 million, with a sequential decrease of 18% primarily due to operational issues [16] Market Data and Key Metrics Changes - The Southwest represented 42% of Q1 revenue, up from 37% in Q4, while the Northeast Mid Con was 27%, down from 30% [9] - Drilling, completion, and production intervention services contributed approximately 20%, 51%, and 29% of Q1 revenue, respectively [9] Company Strategy and Development Direction - The company is focused on maintaining financial flexibility and navigating market volatility through operational discipline and improved balance sheet flexibility [21] - There is an emphasis on strategic M&A opportunities that align with growth and deleveraging goals, particularly in fragmented markets [24][52] - The company is optimistic about the US natural gas market and its implications for service providers, anticipating increased activity in gas-focused basins [23] Management Comments on Operating Environment and Future Outlook - Management noted that Q1 is typically the toughest quarter, but they delivered improved adjusted EBITDA and margin despite a lower rig count [5] - The macro environment remains volatile, influenced by OPEC+ production increases and US tariff policies, but there are signs of recovery in certain areas [6][21] - The company expects modest sequential revenue growth in Q2, driven by a recovery in the Rockies and the Northeast Mid Con [21][22] Other Important Information - The company ended Q1 with $58.1 million in liquidity, including $14.6 million in cash and $43.5 million available on its revolving credit facility [17] - CapEx for Q1 was $15 million gross, with expectations to reduce full-year CapEx estimates to $40 million to $50 million [19] - The company has implemented cost structure changes that are expected to continue benefiting operations throughout 2025 [13] Q&A Session Summary Question: About the Q2 guidance and recovery in the Rockies - Management acknowledged the uncertainty in providing a full-year guide and indicated that Q2 revenue is expected to increase low to mid single digits [28] Question: Impact of lower oil prices on operations - Management noted that smaller operators are more exposed to commodity price fluctuations and may delay projects, impacting revenue [32] Question: Flexibility of the PIK option and capital allocation - Management explained that the PIK option provides flexibility to manage cash flow, especially during uncertain market conditions [36][38] Question: Positioning for potential gas market improvements - Management confirmed that they are monitoring gas market trends and are well-positioned to relocate assets if necessary [44] Question: M&A opportunities and geographic strategy - Management stated that they are being opportunistic regarding M&A, focusing on deleveraging transactions rather than specific geographic areas [52]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $154 million, a 7% sequential decline and 12% lower than Q1 2024 [12] - Consolidated adjusted EBITDA was $13.8 million with a 9% margin, down from 13.7% in Q4 2024 but up from 7% in Q1 2024 [12] - Adjusted EBITDA margin increased by 208 basis points year-over-year despite a 125% decline in revenue and rig count [6] Business Line Data and Key Metrics Changes - Southwest segment revenue was $65.2 million, with adjusted EBITDA at its highest level since Q3 2023, reflecting a 6% sequential increase [14][16] - Rockies segment revenue was $47.8 million, with adjusted EBITDA up 524% year-over-year despite a 13% decline in rig count [14] - Northeast Mid Con segment revenue was $41 million, with a sequential decrease of 18% primarily due to operational issues [16] Market Data and Key Metrics Changes - The Southwest represented 42% of Q1 revenue, up from 37% in Q4, while the Northeast Mid Con was 27%, down from 30% [9] - Drilling, completion, and production services contributed approximately 20%, 51%, and 29% of Q1 revenue, respectively [9] Company Strategy and Development Direction - The company is focused on cost controls and has implemented changes to its cost structure, expecting lower SG&A levels to continue [13] - KLX is developing a second-generation version of its Oracle SRT tool, which is gaining market acceptance [7] - The company is exploring strategic M&A opportunities to align with growth and deleveraging goals, despite market challenges [24] Management Comments on Operating Environment and Future Outlook - Management noted the macro environment remains volatile due to OPEC+ production increases and tariff policies impacting commodity prices [6] - For Q2 2025, the company anticipates modest revenue growth and margin expansion, particularly in the Southwest segment [21] - The company remains optimistic about the US natural gas market and its implications for service providers [22] Other Important Information - The company ended Q1 with $58.1 million in liquidity, including $14.6 million in cash and $43.5 million available on its revolving credit facility [17] - CapEx for Q1 was $15 million gross, with expectations to reduce full-year CapEx estimates to $40 million to $50 million [19] Q&A Session Summary Question: About the Q2 guidance and recovery in the Rockies - Management indicated that while the guidance may seem conservative, it is based on current forecasts and the unpredictable nature of the market [28] Question: Impact of lower oil prices on rig count - Management noted that smaller operators are more sensitive to commodity prices and may delay projects, impacting overall activity [32] Question: Flexibility of the PIK option and capital allocation - Management explained that the PIK option provides flexibility to manage cash flow, especially during uncertain market conditions [36] Question: Positioning for gas plays and asset relocation - Management confirmed that they are well-positioned for gas plays and can relocate assets if necessary [42] Question: M&A opportunities and geographic strategy - Management stated that they are being opportunistic regarding M&A and are not geographically focused, but rather looking for deleveraging opportunities [52]

Core Viewpoint - KLX Energy Services reported a quarterly loss of $1.27 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.86, indicating a significant earnings surprise of -47.67% [1] Financial Performance - The company posted revenues of $154 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.23%, and down from $174.7 million in the same quarter last year [2] - Over the last four quarters, KLX Energy Services has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - KLX Energy Services shares have declined approximately 60.4% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.46 on revenues of $177.1 million, and for the current fiscal year, it is -$2.31 on revenues of $696.9 million [7] Industry Outlook - The Oil and Gas - Field Services industry, to which KLX Energy Services belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

[Financial and Operational Overview](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Operational%20Highlights) [Q1 2025 Key Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Operational%20Highlights) In Q1 2025, KLX Energy Services reported revenue of $154 million and a net loss of $(28) million, while increasing Adjusted EBITDA by 15% to $14 million and improving its Adjusted EBITDA margin by 208 basis points due to effective cost controls, with total liquidity at $58 million Q1 2025 Key Financial Highlights | Financial Metric | Q1 2025 | Change vs Q1 2024 | | :--- | :--- | :--- | | Revenue | $154 million | -12% (YoY) | | Net Loss | $(28) million | - | | Diluted Loss per Share | $(1.62) | - | | Adjusted EBITDA | $14 million | +15% (YoY) | | Adjusted EBITDA Margin | 9% | +30% (YoY) | | Total Liquidity | $58 million | - | - The company successfully increased its **Adjusted EBITDA margin by 208 basis points** compared to Q1 2024, primarily due to a company-wide focus on cost controls, which offset the impact of lower revenue and rig count[4](index=4&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management highlighted the successful completion of refinancing in March, enhancing financial flexibility and reactivating a share repurchase program with approximately $49 million remaining, while cautiously targeting a modest low to mid-single-digit sequential revenue increase and margin expansion for the remainder of 2025, prudently evaluating share and debt buybacks - The company is targeting a modest sequential revenue increase in the **low to mid-single digits** on a percentage basis, accompanied by margin expansion, based on current schedules[5](index=5&type=chunk) - Following a March refinancing, the company has access to its 2019 share repurchase program, which has approximately **$49 million** of availability remaining, with both share and debt buybacks being considered as capital deployment opportunities[7](index=7&type=chunk) - Management believes the company's strategic positioning, operational excellence, and improved financial flexibility position it to manage market volatility effectively[8](index=8&type=chunk) [Detailed Financial Results](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results) [Consolidated Financial Performance](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results) Q1 2025 revenue was $154.0 million, a 6.9% decrease from Q4 2024, primarily due to a seasonal market slowdown and reduced activity in Mid-Con completions and directional drilling, resulting in a net loss of $(27.9) million and an Adjusted EBITDA of $13.8 million, with completion services contributing 51% of revenue Consolidated Financial Performance Metrics | Metric | Q1 2025 | Q4 2024 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Revenue | $154.0 M | $165.5 M | -6.9% | | Net Loss | $(27.9) M | $(14.7) M | Increased Loss | | Adjusted Net Loss | $(21.9) M | $(13.1) M | Increased Loss | | Adjusted EBITDA | $13.8 M | $22.7 M | -39.2% | | Adjusted EBITDA Margin | 9.0% | 13.7% | -470 bps | - Revenue contribution by product line for Q1 2025 was approximately: **drilling (20%)**, **completion (51%)**, **production (18%)**, and **intervention (11%)**[9](index=9&type=chunk) [Segment Performance Analysis](index=2&type=section&id=First%20Quarter%202025%20Segment%20Results) The Southwest segment showed sequential growth in revenue (6.2%) and Adjusted EBITDA (21.9%), achieving a record-high margin, while the Rocky Mountains segment experienced a seasonal sequential decline but improved year-over-year, and the Northeast/Mid-Con segment saw a significant drop in both revenue (-18.2%) and Adjusted EBITDA (-72.4%) due to reduced activity and a non-recurring operational issue Q1 2025 Segment Performance Summary | Segment | Revenue (Q1 2025) | Adjusted EBITDA (Q1 2025) | | :--- | :--- | :--- | | Rocky Mountains | $47.8 M | $6.7 M | | Southwest | $65.2 M | $11.7 M | | Northeast/Mid-Con | $41.0 M | $2.7 M | | **Segment Total** | **$154.0 M** | **$21.1 M** | [Rocky Mountains](index=2&type=section&id=Rocky%20Mountains) The Rocky Mountains segment reported Q1 revenue of $47.8 million, a seasonal 11.5% decrease sequentially but a 5% increase year-over-year, with Adjusted EBITDA at $6.7 million, down 43.2% sequentially but up 24% from Q1 2024, driven by increased activity in directional drilling and wireline services Rocky Mountains Segment Financials | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue | $47.8 M | $54.0 M | $45.6 M | | Operating Loss | $(0.2) M | $4.7 M | $(1.2) M | | Adjusted EBITDA | $6.7 M | $11.8 M | $5.4 M | - Year-over-year revenue improved by **5%** due to increased activity in directional drilling and wireline product offerings[11](index=11&type=chunk) [Southwest](index=2&type=section&id=Southwest) The Southwest segment delivered strong results with revenue of $65.2 million, a 6.2% sequential increase driven by market share gains in the Permian, and Adjusted EBITDA grew 21.9% sequentially to $11.7 million, with its margin reaching the highest level since the 2020 merger, expected to be the "new normal" for the segment Southwest Segment Financials | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue | $65.2 M | $61.4 M | $69.4 M | | Operating Income | $3.0 M | $1.1 M | $(0.7) M | | Adjusted EBITDA | $11.7 M | $9.6 M | $6.7 M | - The Q1 2025 Adjusted EBITDA margin was the **highest** in the company's recent history (post-2020 merger), driven by a shifting revenue mix[12](index=12&type=chunk) [Northeast/Mid-Con](index=3&type=section&id=Northeast%2FMid-Con) The Northeast/Mid-Con segment's performance declined significantly, with revenue falling 18.2% sequentially to $41.0 million and Adjusted EBITDA plummeting 72.4% to $2.7 million, primarily caused by reduced gas-focused activity and a non-recurring operational challenge within its completions business Northeast/Mid-Con Segment Financials | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue | $41.0 M | $50.1 M | $59.7 M | | Operating Loss | $(8.1) M | $0.3 M | $2.4 M | | Adjusted EBITDA | $2.7 M | $9.8 M | $10.2 M | - The sharp decline was attributed to reduced regional gas-focused activity and a non-recurring operational issue that created excessive white space during the quarter[15](index=15&type=chunk) [Corporate and Other](index=3&type=section&id=Corporate%20and%20other) The Corporate and other segment reported an operating loss of $(12.4) million and an Adjusted EBITDA loss of $(7.3) million for Q1 2025, with the Adjusted EBITDA loss showing sequential improvement from $(8.5) million in Q4 2024 Corporate and Other Segment Financials | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Operating Loss | $(12.4) M | $(11.1) M | $(13.6) M | | Adjusted EBITDA Loss | $(7.3) M | $(8.5) M | $(10.3) M | [Balance Sheet and Liquidity](index=4&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2025, KLX had total liquidity of $58.1 million, comprising $14.6 million in cash and $43.5 million in available credit facilities, while Net Working Capital increased substantially by 131% to $59.4 million from the prior quarter, and the company raised approximately $0.5 million in gross proceeds from its at-the-market stock offering program - Total liquidity as of March 31, 2025 was **$58.1 million**, composed of **$14.6 million** in cash, **$38.6 million** available on the ABL Facility, and **$4.9 million** on an undrawn FILO facility[16](index=16&type=chunk) - Net Working Capital increased by **131%** to **$59.4 million** from December 31, 2024, driven by changes in days sales outstanding, days payable outstanding, and accrued liabilities[17](index=17&type=chunk) - In Q1 2025, the company sold **142,769 shares** of common stock for gross proceeds of approximately **$0.5 million** under its at-the-market offering program[18](index=18&type=chunk) [Capital Expenditures and Other Financials](index=4&type=section&id=Other%20Financial%20Information) Capital expenditures for Q1 2025 were $15.0 million, a slight decrease from the previous quarter, primarily directed towards maintenance, with net capital expenditures after asset sales totaling $10.2 million, and the company held $2.3 million in assets for sale at quarter-end - Capital expenditures were **$15.0 million** in Q1 2025, down **2%** from Q4 2024, with net capital expenditures after asset sales at **$10.2 million**[19](index=19&type=chunk) - As of March 31, 2025, the company had **$2.3 million** of assets held for sale, related to a facility and equipment in the Rocky Mountains and Southwest segments[20](index=20&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported revenues of $154.0 million for Q1 2025, down from $174.7 million in Q1 2024, resulting in an operating loss of $(17.7) million and a net loss of $(27.9) million, or $(1.62) per diluted share, compared to a net loss of $(22.2) million, or $(1.38) per diluted share, in the same period last year Condensed Consolidated Statements of Operations | (In millions, except per share data) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenues | $154.0 | $165.5 | $174.7 | | Operating loss | $(17.7) | $(5.0) | $(13.1) | | Net loss | $(27.9) | $(14.7) | $(22.2) | | Diluted loss per share | $(1.62) | $(0.90) | $(1.38) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's balance sheet showed total assets of $379.1 million, a decrease from $456.3 million at year-end 2024, with cash and cash equivalents decreasing to $14.6 million from $91.6 million, total liabilities at $405.7 million, and a total stockholders' deficit of $(26.6) million Condensed Consolidated Balance Sheets | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $14.6 | $91.6 | | Total current assets | $167.9 | $233.0 | | Total assets | $379.1 | $456.3 | | **Liabilities & Equity** | | | | Total current liabilities | $111.3 | $140.1 | | Long-term debt | $256.7 | $285.1 | | Total stockholders' deficit | $(26.6) | $(10.5) | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for key non-GAAP metrics used by management, showing Q1 2025 Adjusted EBITDA reconciled to $13.8 million from a consolidated net loss of $(27.9) million, Levered Free Cash Flow as a usage of $(47.8) million, and Net Debt increasing to $238.3 million from $193.5 million at the end of 2024 Reconciliation of Net Loss to Adjusted EBITDA (Q1 2025) | (In millions) | Amount | | :--- | :--- | | Consolidated net loss | $(27.9) | | Interest expense, net | $10.0 | | Income tax expense | $0.2 | | Depreciation and amortization | $24.7 | | One-time net costs | $6.0 | | Non-cash compensation | $0.8 | | **Adjusted EBITDA** | **$13.8** | Free Cash Flow Reconciliation (Q1 2025) | (In millions) | Amount | | :--- | :--- | | Net cash flow used in operating activities | $(37.6) | | Capital expenditures | $(15.0) | | Proceeds from sale of property | $4.8 | | **Levered Free Cash Flow** | **$(47.8)** | Net Debt Reconciliation | (In millions) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Debt | $261.0 | $285.1 | | Less: Cash & restricted cash | $22.7 | $91.6 | | **Net Debt** | **$238.3** | **$193.5** |