KLX ENERGY SERVICES HOLDINGS, INC. REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
KLX Energy Services (Nasdaq: KLXE) reported first quarter 2026 revenue of $144.7 million, down 6% year over year, with a net loss of $24.0 million and Adjusted EBITDA of $11.1 million (7.7% margin).
Total liquidity was $47.7 million. Northeast/Mid-Con revenue grew 28%, while Rocky Mountains and Southwest declined. KLX forecast second quarter 2026 revenue of $162–$172 million, with a midpoint 5% above second quarter 2025 and about $22 million above first quarter 2026.
Positive
- Total liquidity of $47.7 million as of March 31, 2026
- First quarter 2026 net loss improved to $24.0 million from $27.9 million year over year
- Northeast/Mid-Con revenue up 28.0% year over year to $52.5 million
- Northeast/Mid-Con Adjusted EBITDA up 303.7% year over year to $10.9 million
- Corporate operating loss improved 36.3% year over year to $7.9 million
- Second quarter 2026 revenue guidance of $162–$172 million, about $22 million above first quarter 2026
Negative
- Total revenue down 6% year over year to $144.7 million
- First quarter 2026 Adjusted EBITDA fell to $11.1 million from $13.8 million year over year
- Adjusted EBITDA margin declined to 7.7% from 9.0% in first quarter 2025
- Rocky Mountains revenue down 19.2% year over year to $38.6 million
- Southwest revenue down 17.8% year over year to $53.6 million
- Southwest Adjusted EBITDA decreased 60.7% year over year to $4.6 million
News Market Reaction – KLXE
In the May 13 session, KLXE gained 10.62%, reflecting a significant positive market reaction. Argus tracked a peak move of +16.3% during that session. Argus tracked a trough of -12.1% from its starting point during tracking. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 2.3x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 11 | Full-year 2025 earnings | Negative | -9.5% | Reported 2025 revenue decline to $636.6M and net loss of $77M. |
| Nov 05 | Q3 2025 earnings | Positive | +6.3% | Sequential revenue and Adjusted EBITDA growth with stronger Northeast/Mid-Con segment. |
| Aug 06 | Q2 2025 earnings | Neutral | -5.6% | Mixed quarter with higher revenue and EBITDA but ongoing net losses. |
| May 08 | Q1 2025 earnings | Negative | -17.2% | Revenue of $154M with $28M net loss despite better EBITDA margin. |
| Mar 12 | Full-year 2024 earnings | Negative | -6.1% | 2024 net loss of $53M and lower Q4 revenue versus prior quarter. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often coincided with negative next-day moves, even when results showed operational improvements.
Over the last several earnings cycles, KLXE reported recurring net losses but maintained meaningful Adjusted EBITDA and liquidity. Events from Mar 12, 2025 through Mar 11, 2026 show revenue drifting lower from $709M in 2024 to $636.6M in 2025, with Adjusted EBITDA around $76–90M. Earnings headlines frequently prompted share price declines, highlighting market sensitivity to leverage, guidance and margin trends. Today’s Q1 2026 update continues that sequence of quarterly and annual financial disclosures.
Key Terms
non-gaap financial measures financial
adjusted ebitda financial
adjusted ebitda margin financial
net working capital financial
net debt financial
asset-based revolving credit facility financial
first-in-last-out (filo) financial
adjusted net loss financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Quarter 2026 Financial and Operational Highlights
- Revenue of
$145 million - Net loss of
$(24) million $(1.23) - Adjusted EBITDA of
$11.1 million - Net loss margin of (17)%
- Adjusted EBITDA margin of
8% - Total liquidity of
$48 million $6 million $42 million
See "Non-GAAP Financial Measures" at the end of this release for a discussion of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Loss, Adjusted Net Loss, Adjusted Diluted Loss per share, Unlevered and Levered Free Cash Flow, Net Working Capital, Net Debt and their reconciliations to the most directly comparable financial measure calculated and presented in accordance with
Chris Baker, KLX President and Chief Executive Officer, stated, "First quarter revenue was
"From a macro standpoint, we continue to operate in a highly volatile but constructive environment. By all accounts this is the largest energy shock in history," continued Baker. "Commodity prices continue to be volatile and trade in a wide yet constructive band for activity due to the ongoing
"Looking forward, we continue to see good traction with our larger, blue-chip operators, who are increasingly demanding certified, higher-specification equipment — an area where KLX is well positioned. We are forecasting second quarter 2026 revenue of
First Quarter 2026 Financial Results
Revenue for the first quarter of 2026 totaled
Net loss for the first quarter of 2026 was
First Quarter 2026 Segment Results
The Company reports revenue, operating (loss) income and Adjusted EBITDA through three geographic business segments: Rocky Mountains, Southwest and Northeast/Mid-Con. The Company reports operating activities not attributable to an individual geographic business segment through the Corporate and other segment. Segment results are reported after inter-segment eliminations. Due to annual seasonality affecting large portions of our operations, first quarter of 2026 results are reported compared to the first quarter of 2025.
- Rocky Mountains: Revenue, operating loss and Adjusted EBITDA for the Rocky Mountains segment was
$38.6 million $(3.8) million $2.1 million - Southwest: Revenue, operating loss and Adjusted EBITDA for the Southwest segment, which includes the Permian and
South Texas , was$53.6 million $(3.4) million $4.6 million - Northeast/Mid-Con: Revenue, operating income and Adjusted EBITDA for the Northeast/Mid-Con segment was
$52.5 million $3.0 million $10.9 million 28.0% increase over the first quarter of 2025 due to increased regional gas-focused activity. Segment operating income increased by137.0% and segment Adjusted EBITDA increased303.7% , largely due to the aforementioned increase in activity. - Corporate and other: Operating loss and Adjusted EBITDA loss for the Corporate and other segment were
$(7.9) million $(6.5) million 36.3% and Adjusted EBITDA loss improved by11.0% as compared to the first quarter of 2025.
The following is a tabular summary of revenue, operating (loss) income and Adjusted EBITDA (loss) for the first quarter ended March 31, 2026, the fourth quarter ended December 31, 2025 and the first quarter ended March 31, 2025 ($ in millions).
Three Months Ended | ||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||
Revenue: | ||||||
Rocky Mountains | $ 38.6 | $ 46.3 | $ 47.8 | |||
Southwest | 53.6 | 50.9 | 65.2 | |||
Northeast/Mid-Con | 52.5 | 59.6 | 41.0 | |||
Total revenue | $ 144.7 | $ 156.8 | $ 154.0 | |||
Three Months Ended | ||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||
Operating (loss) income: | ||||||
Rocky Mountains | $ (3.8) | $ 0.8 | $ (0.2) | |||
Southwest | (3.4) | (1.6) | 3.0 | |||
Northeast/Mid-Con | 3.0 | 6.5 | (8.1) | |||
Corporate and other | (7.9) | (7.9) | (12.4) | |||
Total operating loss | $ (12.1) | $ (2.2) | $ (17.7) | |||
Three Months Ended | ||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||
Adjusted EBITDA (loss) | ||||||
Rocky Mountains | $ 2.1 | $ 6.9 | $ 6.7 | |||
Southwest | 4.6 | 6.8 | 11.7 | |||
Northeast/Mid-Con | 10.9 | 15.1 | 2.7 | |||
Segment total | 17.6 | 28.8 | 21.1 | |||
Corporate and other | (6.5) | (6.3) | (7.3) | |||
Total Adjusted EBITDA(1) | $ 11.1 | $ 22.5 | $ 13.8 | |||
(1) Excludes one-time costs, as defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA table below, non-cash compensation expense and non-cash asset impairment expense. |
Balance Sheet and Liquidity
As of March 31, 2026, cash and cash equivalents totaled
Net Working Capital as of March 31, 2026 was
Other Financial Information
Capital expenditures were
Conference Call Information
KLX will conduct its first quarter 2026 conference call, which can be accessed via dial-in or webcast, on Wednesday, May 13, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) by dialing 1-201-389-0867 and asking for the KLX conference call at least 10 minutes prior to the start time, or by logging onto the webcast at https://investor.klx.com/events-and-presentations/events. For those who cannot listen to the live call, a replay will be available through May 27, 2026, and may be accessed by dialing 1-201-612-7415 and using passcode 13759558#. Also, an archive of the webcast will be available shortly after the call at https://investor.klx.com/events-and-presentations/events for 90 days. Please submit any questions for management prior to the call via email to KLXE@dennardlascar.com.
About KLX Energy Services Holdings, Inc.
KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout
Forward-Looking Statements and Cautionary Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information to investors. This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) includes forward-looking statements that reflect our current expectations and projections about our future results, performance and prospects. Forward-looking statements include all statements that are not historical in nature and are not current facts. When used in this news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein), the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," "could," "will" or the negative of these terms or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events with respect to, among other things: our operating cash flows; the availability of capital and our liquidity; our future revenue, income and operating performance; our ability to sustain and improve our utilization, revenue and margins; our ability to maintain acceptable pricing for our services; future capital expenditures; our ability to finance equipment, working capital and capital expenditures; our ability to execute our long-term growth strategy and to integrate our acquisitions; our ability to successfully develop our research and technology capabilities and implement technological developments and enhancements; and the timing and success of strategic initiatives and special projects.
Forward-looking statements are not assurances of future performance and actual results could differ materially from our historical experience and our present expectations or projections. These forward-looking statements are based on management's current expectations and beliefs, forecasts for our existing operations, experience, expectations and perception of historical trends, current conditions, anticipated future developments and their effect on us and other factors believed to be appropriate. Although management believes the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Our forward-looking statements involve significant risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks associated with the following: a decline in demand for our services, including due to overcapacity and other competitive factors affecting our industry; the cyclical nature and volatility of the oil and gas industry, which impacts the level of exploration, production and development activity and spending patterns by oil and natural gas exploration and production companies; a decline in, or substantial volatility of, crude oil and gas commodity prices, which generally leads to decreased spending by our customers and negatively impacts drilling, completion and production activity; inflation; changes in interest rates; the ongoing war in
KLX Energy Services Holdings, Inc Condensed Consolidated Statements of Operations (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||
Revenues | $ 144.7 | $ 156.8 | $ 154.0 | ||
Costs and expenses: | |||||
Cost of sales | 119.1 | 121.5 | 123.8 | ||
Depreciation and amortization | 21.9 | 23.7 | 24.7 | ||
Selling, general and administrative | 15.4 | 13.3 | 21.6 | ||
Research and development costs | 0.4 | 0.5 | 0.4 | ||
Operating loss | (12.1) | (2.2) | (16.5) | ||
Non-operating expense: | |||||
Interest income | (0.0) | (0.0) | (0.3) | ||
Interest expense | 11.7 | 12.6 | 10.3 | ||
Loss on debt extinguishment | — | — | 1.2 | ||
Net loss before income tax | (23.8) | (14.8) | (27.7) | ||
Income tax expense | 0.2 | 0.2 | 0.2 | ||
Net loss | $ (24.0) | $ (15.0) | $ (27.9) | ||
Net loss per common share: | |||||
Basic | $ (1.23) | $ (0.78) | $ (1.62) | ||
Diluted | $ (1.23) | $ (0.78) | $ (1.62) | ||
Weighted average common shares: | |||||
Basic | 19.5 | 19.2 | 17.2 | ||
Diluted | 19.5 | 19.2 | 17.2 | ||
KLX Energy Services Holdings, Inc Condensed Consolidated Balance Sheets (In millions of (Unaudited)
| |||
March 31, 2026 | December 31, 2025 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 5.6 | $ 5.7 | |
Accounts receivable–trade, net of allowance for credit losses of | 107.3 | 102.7 | |
Inventories, net | 31.9 | 30.7 | |
Prepaid expenses and other current assets | 9.3 | 10.8 | |
Total current assets | 154.1 | 149.9 | |
Property and equipment, net(1) | 149.0 | 161.1 | |
Operating lease assets | 21.6 | 22.3 | |
Intangible assets, net | 1.0 | 1.1 | |
Other assets | 5.8 | 5.9 | |
Total assets | $ 331.5 | $ 340.3 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 69.7 | $ 68.7 | |
Accrued interest | 0.4 | 0.4 | |
Accrued liabilities | 24.4 | 26.0 | |
Current portion of long-term debt | 4.5 | 4.4 | |
Current portion of operating lease liabilities | 7.4 | 7.1 | |
Current portion of finance lease liabilities | 16.6 | 19.6 | |
Total current liabilities | 123.0 | 126.2 | |
Long-term debt | 271.3 | 253.9 | |
Long-term operating lease liabilities | 14.7 | 15.9 | |
Long-term finance lease liabilities | 17.8 | 17.4 | |
Other non-current liabilities | 0.8 | 1.1 | |
Commitments, contingencies and off-balance sheet arrangements | |||
Stockholders' equity: | |||
Common stock, | 0.2 | 0.2 | |
Additional paid-in capital | 573.6 | 571.3 | |
Treasury stock, at cost, 0.6 shares and 0.5 shares | (6.4) | (6.2) | |
Accumulated deficit | (663.5) | (639.5) | |
Total stockholders' deficit | (96.1) | (74.2) | |
Total liabilities and stockholders' deficit | $ 331.5 | $ 340.3 | |
(1) Includes right-of-use assets - finance leases. |
KLX Energy Services Holdings, Inc.
Additional Selected Operating Data
(Unaudited)
Non-GAAP Financial Measures
This release includes Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Loss, Adjusted Diluted Loss per share, Unlevered and Levered Free Cash Flow, Net Working Capital and Net Debt measures. Each of the metrics are "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934.
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Adjusted EBITDA is not a measure of net earnings or cash flows as determined by GAAP. We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, further adjusted for (i) long-lived asset impairment charges, (ii) stock-based compensation expense, (iii) restructuring charges, (iv) transaction and integration costs related to acquisitions, and (v) other expenses or charges to exclude certain items that we believe are not reflective of the ongoing performance of our business. Adjusted EBITDA is used to calculate the Company's leverage ratio, consistent with the terms of the Company's ABL Facility.
We believe Adjusted EBITDA is useful because it allows us to supplement the GAAP measures in order to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
Adjusted EBITDA margin is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Adjusted EBITDA margin is not a measure of net earnings or cash flows as determined by GAAP. Adjusted EBITDA margin is defined as the quotient of Adjusted EBITDA and total revenue. We believe Adjusted EBITDA margin is useful because it allows us to supplement the GAAP measures in order to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure, as a percentage of revenues.
We define Adjusted Operating Income (Loss) as operating income (loss) adjusted for (i) long-lived asset impairment charges, (ii) restructuring charges, (iii) transaction and integration costs related to acquisitions, and (iv) other expenses or charges to exclude certain items that we believe are not reflective of the ongoing performance of our business. We believe Adjusted Operating Income (Loss) is useful because it allows us to exclude non-recurring items in evaluating our operating performance.
We define Adjusted Net Loss as consolidated net loss adjusted for (i) long-lived asset impairment charges, (ii) restructuring charges, (iii) transaction and integration costs related to acquisitions, and (iv) other expenses or charges to exclude certain items that we believe are not reflective of the ongoing performance of our business. We believe Adjusted Net Loss is useful because it allows us to exclude non-recurring items in evaluating our operating performance.
We define Adjusted Diluted Loss per share as the quotient of Adjusted Net Loss and diluted weighted average common shares. We believe that Adjusted Diluted Loss per share provides useful information to investors because it allows us to exclude non-recurring items in evaluating our operating performance on a diluted per share basis.
We define Unlevered Free Cash Flow as net cash provided by operating activities less capital expenditures and proceeds from sale of property and equipment and other proceeds plus cash interest expense. We define Levered Free Cash Flow as net cash provided by operating activities less capital expenditures and proceeds from sale of property and equipment and other proceeds. Our management uses Unlevered and Levered Free Cash Flow to assess the Company's liquidity and ability to repay maturing debt, fund operations and make additional investments. We believe that each of Unlevered and Levered Free Cash Flow provide useful information to investors because it is an important indicator of the Company's liquidity, including our ability to reduce Net Debt and make strategic investments.
Net Working Capital is calculated as current assets, excluding cash, less current liabilities, excluding accrued interest, current portion of long-term debt, operating lease obligations and finance lease obligations. We believe that Net Working Capital provides useful information to investors because it is an important indicator of the Company's liquidity.
We define Net Debt as total debt less cash and cash equivalents. We believe that Net Debt provides useful information to investors because it is an important indicator of the Company's indebtedness.
The following tables present a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures for the periods indicated:
KLX Energy Services Holdings, Inc Reconciliation of Consolidated Net Loss to Adjusted EBITDA* (In millions of (Unaudited) | |||||
Three Months Ended | |||||
March 31, | December | March 31, | |||
Consolidated net loss | $ (24.0) | $ (15.0) | $ (27.9) | ||
Income tax expense | 0.2 | 0.2 | 0.2 | ||
Interest expense, net | 11.7 | 12.6 | 10.0 | ||
Loss on debt extinguishment | — | — | 1.2 | ||
Operating loss | (12.1) | (2.2) | (16.5) | ||
One-time net costs (1) | 1.0 | 0.5 | 6.0 | ||
Adjusted operating loss | (11.1) | (1.7) | (11.7) | ||
Depreciation and amortization | 21.9 | 23.7 | 24.7 | ||
Non-cash compensation | 0.3 | 0.5 | 0.8 | ||
Adjusted EBITDA | $ 11.1 | $ 22.5 | $ 13.8 | ||
*Previously announced quarterly numbers may not sum to the year-end total due to rounding. |
(1) The one-time costs during the first quarter of 2026 relate mainly to legal costs, facility costs and other. |
KLX Energy Services Holdings, Inc Consolidated Net Loss Margin(1) (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December | March 31, | |||
Consolidated net loss | $ (24.0) | $ (15.0) | $ (27.9) | ||
Revenue | 144.7 | 156.8 | 154.0 | ||
Consolidated net loss margin percentage | (16.6) % | (9.6) % | (18.1) % | ||
(1) Consolidated net loss margin is defined as the quotient of consolidated net loss and total revenue. |
KLX Energy Services Holdings, Inc Consolidated Adjusted EBITDA Margin(1) (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December | March 31, 2025 | |||
Adjusted EBITDA | $ 11.1 | $ 22.5 | $ 13.8 | ||
Revenue | 144.7 | 156.8 | 154.0 | ||
Adjusted EBITDA Margin Percentage | 7.7 % | 14.3 % | 9.0 % | ||
(1) Adjusted EBITDA margin is defined as the quotient of Adjusted EBITDA and total revenue. Adjusted EBITDA is net (loss) income excluding one-time costs (as defined above), depreciation and amortization expense, non-cash compensation expense and non-cash asset impairment expense. |
KLX Energy Services Holdings, Inc Reconciliation of Rocky Mountains Operating (Loss) Income to Adjusted EBITDA (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December | March 31, | |||
Rocky Mountains operating (loss) income | $ (3.8) | $ 0.8 | $ (0.2) | ||
One-time costs (1) | — | — | — | ||
Adjusted operating (loss) income | (3.8) | 0.8 | (0.2) | ||
Depreciation and amortization expense | 5.9 | 6.1 | 6.8 | ||
Non-cash compensation | 0.0 | 0.0 | 0.1 | ||
Rocky Mountains Adjusted EBITDA | $ 2.1 | $ 6.9 | $ 6.7 | ||
(1) One-time costs are defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA table above. For purposes of segment reconciliation, one-time costs also include impairment and other charges. |
KLX Energy Services Holdings, Inc Reconciliation of Southwest Operating (Loss) Income to Adjusted EBITDA (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December | March 31, | |||
Southwest operating (loss) income | $ (3.4) | $ (1.6) | $ 3.0 | ||
One-time costs (1) | 0.1 | 0.2 | 0.3 | ||
Adjusted operating (loss) income | (3.3) | (1.4) | 3.3 | ||
Depreciation and amortization expense | 7.9 | 8.2 | 8.3 | ||
Non-cash compensation | 0.0 | 0.0 | 0.1 | ||
Southwest Adjusted EBITDA | $ 4.6 | $ 6.8 | $ 11.7 | ||
(1) One-time costs are defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA table above. For purposes of segment reconciliation, one-time costs also include impairment and other charges. |
KLX Energy Services Holdings, Inc Reconciliation of Northeast/Mid-Con Operating Income (Loss) to Adjusted EBITDA (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December | March 31, | |||
Northeast/Mid-Con operating income (loss) | $ 3.0 | $ 6.5 | $ (8.1) | ||
One-time costs (1) | — | 0.1 | 1.8 | ||
Adjusted operating income (loss) | 3.0 | 6.6 | (6.3) | ||
Depreciation and amortization expense | 7.9 | 8.5 | 9.0 | ||
Non-cash compensation | 0.0 | 0.0 | 0.0 | ||
Northeast/Mid-Con Adjusted EBITDA | $ 10.9 | $ 15.1 | $ 2.7 | ||
(1) One-time costs are defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA table above. For purposes of segment reconciliation, one-time costs also include impairment and other charges. |
KLX Energy Services Holdings, Inc Reconciliation of Corporate and Other Operating Loss to Adjusted EBITDA Loss (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December | March 31, | |||
Corporate and other operating loss | $ (7.9) | $ (7.9) | $ (12.4) | ||
One-time costs (1) | 0.9 | 0.2 | 3.9 | ||
Adjusted operating loss | (7.0) | (7.7) | (8.5) | ||
Depreciation and amortization expense | 0.2 | 0.9 | 0.6 | ||
Non-cash compensation | 0.3 | 0.5 | 0.6 | ||
Corporate and other Adjusted EBITDA loss | $ (6.5) | $ (6.3) | $ (7.3) | ||
(1) One-time costs are defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA table above. For purposes of segment reconciliation, one-time costs also include impairment and other charges. |
KLX Energy Services Holdings, Inc Segment Operating (Loss) Income Margin(1) (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December 31, | March 31, | |||
Rocky Mountains | |||||
Operating (loss) income | $ (3.8) | $ 0.8 | $ (0.2) | ||
Revenue | 38.6 | 46.3 | 47.8 | ||
Segment operating (loss) income margin percentage | (9.8) % | 1.7 % | (0.4) % | ||
Southwest | |||||
Operating income (loss) | (3.4) | (1.6) | 3.0 | ||
Revenue | 53.6 | 50.9 | 65.2 | ||
Segment operating income (loss) margin percentage | (6.3) % | (3.1) % | 4.6 % | ||
Northeast/Mid-Con | |||||
Operating (loss) income | 3.0 | 6.5 | (8.1) | ||
Revenue | 52.5 | 59.6 | 41.0 | ||
Segment operating (loss) income margin percentage | 5.7 % | 10.9 % | (19.8) % | ||
(1) Segment operating (loss) income margin is defined as the quotient of segment operating (loss) income and segment revenue. |
KLX Energy Services Holdings, Inc Segment Adjusted EBITDA Margin(1) (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December | March 31, | |||
Rocky Mountains | |||||
Adjusted EBITDA | $ 2.1 | $ 6.9 | $ 6.7 | ||
Revenue | 38.6 | 46.3 | 47.8 | ||
Adjusted EBITDA Margin Percentage | 5.4 % | 14.9 % | 14.0 % | ||
Southwest | |||||
Adjusted EBITDA | 4.6 | 6.8 | 11.7 | ||
Revenue | 53.6 | 50.9 | 65.2 | ||
Adjusted EBITDA Margin Percentage | 8.6 % | 13.4 % | 17.9 % | ||
Northeast/Mid-Con | |||||
Adjusted EBITDA | 10.9 | 15.1 | 2.7 | ||
Revenue | 52.5 | 59.6 | 41.0 | ||
Adjusted EBITDA Margin Percentage | 20.8 % | 25.3 % | 6.6 % | ||
(1) Segment Adjusted EBITDA margin is defined as the quotient of Segment Adjusted EBITDA and total segment revenue. Segment Adjusted EBITDA is segment operating (loss) income excluding one-time costs (as defined above), non-cash compensation expense and non-cash asset impairment expense. |
KLX Energy Services Holdings, Inc Reconciliation of Consolidated Net Loss to Adjusted Net Loss and Adjusted Diluted Loss per Share (In millions of (Unaudited)
| |||||
Three Months Ended | |||||
March 31, | December | March 31, | |||
Consolidated net loss | $ (24.0) | $ (15.0) | $ (27.9) | ||
One-time costs(1) | 1.0 | 0.5 | 6.0 | ||
Adjusted Net Loss | $ (23.0) | $ (14.5) | $ (21.9) | ||
Diluted weighted average common shares | 19.5 | 19.2 | 17.2 | ||
Adjusted Diluted Loss per share(2) | $ (1.18) | $ (0.76) | $ (1.27) | ||
*Previously announced quarterly numbers may not sum to the year-end total due to rounding. |
(1) The one-time costs during the first quarter of 2026 relate mainly to legal costs, facility costs and other. |
(2) Adjusted Diluted Loss per share is defined as the quotient of Adjusted Net Loss and diluted weighted average common shares. |
KLX Energy Services Holdings, Inc Reconciliation of Net Cash Flow Provided by (Used in) Operating Activities to Free Cash Flow (In millions of (Unaudited)
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Three Months Ended | |||||
March 31, | December | March 31, | |||
Net cash flow provided by (used in) operating activities | $ 0.3 | $ 12.5 | $ (37.6) | ||
Capital expenditures | (8.7) | (9.4) | (15.0) | ||
Proceeds from sale of property and equipment | 3.4 | 5.6 | 4.8 | ||
Levered Free Cash Flow | (5.0) | 8.7 | (47.8) | ||
Add: Cash interest expense, net | 3.6 | 6.7 | 9.4 | ||
Unlevered Free Cash Flow | $ (1.4) | $ 15.4 | $ (38.4) | ||
KLX Energy Services Holdings, Inc Reconciliation of Current Assets and Current Liabilities to Net Working Capital (In millions of (Unaudited)
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As of | |||
March 31, 2026 | December 31, 2025 | ||
Current assets | $ 154.1 | $ 149.9 | |
Less: Cash and cash equivalents | 5.6 | 5.7 | |
Net current assets | 148.5 | 144.2 | |
Current liabilities | 123.0 | 126.2 | |
Less: Current portion of long-term debt | 4.5 | 4.4 | |
Less: Accrued interest | 0.4 | 0.4 | |
Less: Operating lease obligations | 7.4 | 7.1 | |
Less: Finance lease obligations | 16.6 | 19.6 | |
Net current liabilities | 94.1 | 94.7 | |
Net Working Capital | $ 54.4 | $ 49.5 | |
KLX Energy Services Holdings, Inc Reconciliation of Net Debt(1) (In millions of (Unaudited)
| |||
As of | |||
March 31, 2026 | December 31, 2025 | ||
Total Debt | $ 275.8 | $ 258.3 | |
Cash and cash equivalents | 5.6 | 5.7 | |
Net Debt | $ 270.2 | $ 252.6 | |
(1) Net Debt is defined as total debt less cash and cash equivalents. |
Contacts: | KLX Energy Services Holdings, Inc. |
Geoffrey C. Stanford, SVP, Interim CFO & CAO | |
832-930-8066 | |
Dennard Lascar Investor Relations | |
Ken Dennard / Natalie Hairston | |
713-529-6600 | |
View original content:https://www.prnewswire.com/news-releases/klx-energy-services-holdings-inc-reports-first-quarter-2026-results-302770051.html
SOURCE KLX Energy Services Holdings, Inc.