KLX Energy Services(US:KLXE)2025-11-12 12:01Financial 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]