KLX ENERGY SERVICES HOLDINGS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Core Insights - KLX Energy Services Holdings, Inc. reported a net loss of $(77) million for the full year 2025, with total revenue of $637 million, reflecting a challenging year for the company [1][2] - The fourth quarter of 2025 showed improved performance with an adjusted EBITDA of $23 million and a margin of 14%, marking a 7% increase in EBITDA and a 13% increase in margin compared to the previous quarter [1][2] - The company emphasized its focus on cost discipline and strategic capital deployment, which helped to grow earnings despite ongoing commodity price volatility [1][2] Full Year 2025 Financial Highlights - Total liquidity was reported at $56 million, consisting of approximately $6 million in cash and $50 million in available borrowing capacity [1] - Adjusted EBITDA for the year was $76 million, with an adjusted EBITDA margin of 12% [1] - The net loss margin for the year was (12%) with a diluted loss per share of $(4.12) [1] Fourth Quarter 2025 Financial Highlights - Revenue for Q4 2025 was $156.8 million, a decrease of 5.9% from Q3 2025 [2] - The net loss for Q4 was $(15) million, with a net loss margin of (10%) and a diluted loss per share of $(0.78) [2] - Adjusted EBITDA for Q4 was $22.5 million, with an adjusted EBITDA margin of 14.3%, compared to 13.7% in Q4 2024 [2][6] Segment Performance - Northeast/Mid-Con segment revenue was $59.6 million, showing a 0.5% increase from Q3 2025, driven by increased activity [2][6] - Southwest segment revenue decreased by 10.1% to $50.9 million, primarily due to seasonal factors [2][6] - Rocky Mountains segment revenue was $46.3 million, an 8.9% decrease from Q3 2025, affected by seasonal activity [2][6] Balance Sheet and Liquidity - Total debt outstanding as of December 31, 2025, was $258.3 million, with cash and cash equivalents totaling $5.7 million [2][4] - Net working capital increased by 93% to $49.5 million compared to December 31, 2024 [2][4] - Capital expenditures for Q4 2025 were $9.4 million, a decrease of 21.7% from Q3 2025 [2][4] Indenture Amendment and Warrants Issuance - On March 6, 2026, the company entered into an amendment to its indenture for the 2030 Senior Notes, providing financial covenant relief [2][4] - The company issued warrants to purchase up to 803,712 shares of common stock at an exercise price of $0.01 per share [2][4]