KLX ENERGY SERVICES HOLDINGS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
Rhea-AI Summary
KLX Energy Services (Nasdaq: KLXE) reported full year 2025 revenue of $637 million, a net loss of $77 million (diluted loss per share $4.12) and full year Adjusted EBITDA of $76 million. Fourth-quarter revenue was $156.8 million with Adjusted EBITDA of $22.5 million and a 14.3% Adjusted EBITDA margin.
As of December 31, 2025, total debt was $258.3 million, cash was $5.7 million, and available liquidity was $56.3 million. On March 6–11, 2026, the company amended the 2030 note indenture for covenant relief and issued warrants to noteholders to purchase up to 803,712 shares.
Positive
- Adjusted EBITDA of $76 million for full year 2025
- Fourth-quarter Adjusted EBITDA margin improved to 14.3%
- Available liquidity of $56.3 million as of December 31, 2025
- Northeast/Mid-Con segment revenue growth and $15.1 million Adjusted EBITDA
Negative
- Full year net loss of $77 million (diluted loss per share $4.12)
- Total debt of $258.3 million with 2030 notes at ~12.3% interest
- Cash balance only $5.7 million at year-end
- Issuance of warrants for up to 803,712 shares could dilute equity
News Market Reaction – KLXE
In the Mar 12 session, KLXE declined 9.49%, reflecting a notable negative market reaction. Argus tracked a peak move of +10.4% during that session. Argus tracked a trough of -14.1% from its starting point during tracking. Our momentum scanner triggered 27 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Positive | +6.3% | Sequential revenue and Adjusted EBITDA growth with stronger margins and liquidity. |
| Aug 06 | Q2 2025 earnings | Positive | -5.6% | Revenue and EBITDA increases with improved net loss versus prior quarter. |
| May 08 | Q1 2025 earnings | Negative | -17.2% | Revenue decline and sizeable net loss despite year-over-year margin improvement. |
| Mar 12 | FY/Q4 2024 earnings | Neutral | -6.1% | Full-year revenue growth with net loss and refinancing into 2030 Senior Notes. |
| Oct 31 | Q3 2024 earnings | Neutral | -3.9% | Revenue growth but continued net loss and guided seasonal revenue decline. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Across the last five earnings releases, KLXE has often seen negative next-day moves, with an average change of -5.28%, even when operational metrics improved.
Recent KLXE earnings have shown alternating periods of growth and contraction. Q3 2024 delivered $189M revenue and $28M Adjusted EBITDA, followed by FY2024 revenue of $709M and refinancing into 2030 Senior Notes. Through 2025, Q1–Q3 results highlighted fluctuating segment performance, steady liquidity near $58–65M, and sequential EBITDA improvement into Q3. Today’s Q4/FY2025 report, with lower full-year revenue but stronger Q4 margins, fits this pattern of operational progress against a challenging backdrop.
Key Terms
adjusted ebitda financial
adjusted ebitda margin financial
asset-based revolving credit facility financial
net working capital financial
senior secured notes financial
warrants financial
at-the-market offering program financial
leverage ratio financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Full Year 2025 Financial Highlights
- Revenue of
$637 million - Net loss of
$(77) million $(4.12) - Adjusted EBITDA of
$76 million - Adjusted EBITDA margin of
12% - Total liquidity of
$56 million $6 million $50 million
Fourth Quarter 2025 Financial Highlights
- Revenue of
$157 million - Net loss of
$(15) million $(0.78) - Adjusted EBITDA of
$23 million 14% , an increase of7% and13% over the third quarter, respectively
See "Non-GAAP Financial Measures" at the end of this release for a discussion of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income (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, "KLX delivered a very strong finish to 2025. The fourth quarter was our most profitable of the year, and both Adjusted EBITDA and Adjusted EBITDA margin were at their 2025 highs, driven by a more muted fourth quarter revenue decline, typical year-end accrual unwinds and incremental revenue in our natural gas portfolio. Throughout 2025, we continued to optimize our corporate cost structure and thoughtfully invested in our product lines, while leaning into gas-weighted asset allocation as we realigned certain PSLs and benefited from capacity rationalization in the industry.
"Our focus on cost discipline, strategic capital deployment and the preservation of our talented workforce, allowed us to grow earnings in the back half of the year in spite of persistent commodity price volatility and softer activity in certain basins. Operationally, the Northeast/Mid-Con segment was the standout in the quarter. Despite typical winter weather and year-end budget dynamics, that segment held revenue essentially flat sequentially and again expanded margins, driven by robust demand in our gas-directed work. Our dry gas exposure continued to grow as a share of the portfolio, and gas-levered revenue has steadily been marching back toward prior cycle peaks.
"We expect the first quarter to be impacted by seasonality and winter storm Fern, which led to the loss of approximately four to five working days in many districts. However, as the year progresses, we should return to the stronger run-rate we delivered in the second half of 2025," concluded Baker.
Fourth Quarter 2025 Financial Results
Revenue for the fourth quarter of 2025 totaled
Net loss for the fourth quarter of 2025 was
Fourth Quarter 2025 Segment Results
The Company reports revenue, operating income (loss) 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 as Corporate and other. Segment results are reported after inter-segment eliminations.
- Rocky Mountains: Revenue, operating income and Adjusted EBITDA for the Rocky Mountains segment was
$46.3 million $0.8 million $6.9 million 8.9% decrease over the third quarter of 2025 largely due to winter holiday seasonality and budget exhaustion, which affected all of our regional completion and intervention offerings, including coiled tubing, frac rentals and tech services. Segment operating income and Adjusted EBITDA decreased55.6% and14.8% , respectively, as a function of the seasonal decrease in activity, which is expected to correct as we exit the first quarter of 2026. - Southwest: Revenue, operating loss and Adjusted EBITDA for the Southwest segment, which includes the Permian and
South Texas , was$50.9 million $(1.6) million $6.8 million 10.1% decrease over the third quarter of 2025 largely due to annual seasonality due to budget exhaustion and winter holiday breaks, which affected most product service lines in the region, including frac rental, tech services and coiled tubing. Segment operating loss and Adjusted EBITDA improved52.9% and33.3% , respectively, due largely to a shift in revenue mix and reduced overhead, including headcount and vehicle fleet. - Northeast/Mid-Con: Revenue, operating income and Adjusted EBITDA for the Northeast/Mid-Con segment was
$59.6 million $6.5 million $15.1 million 0.5% increase over the third quarter of 2025 driven by increased activity in the Northeast, offset by a seasonal decrease in coiled tubing and frac rental. Segment operating income decreased1.5% and Adjusted EBITDA increased4.1% , as a result of slightly higher one-time costs and depreciation and amortization. - Corporate and other: Operating loss and Adjusted EBITDA loss for Corporate and other were
$(7.9) million $(6.3) million
The following is a tabular summary of revenue, operating income (loss) and Adjusted EBITDA (loss) for the fourth quarter ended December 31, 2025, the third quarter ended September 30, 2025 and the fourth quarter ended December 31, 2024 ($ in millions).
Three Months Ended | ||||||
December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||
Revenue: | ||||||
Rocky Mountains | $ 46.3 | $ 50.8 | $ 54.0 | |||
Southwest | 50.9 | 56.6 | 61.4 | |||
Northeast/Mid-Con | 59.6 | 59.3 | 50.1 | |||
Total revenue | $ 156.8 | $ 166.7 | $ 165.5 | |||
Three Months Ended | ||||||
December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||
Operating (loss) income: | ||||||
Rocky Mountains | $ 0.8 | $ 1.8 | $ 4.7 | |||
Southwest | (1.6) | (3.4) | 1.1 | |||
Northeast/Mid-Con | 6.5 | 6.6 | 0.3 | |||
Corporate and other | (7.9) | (8.0) | (11.1) | |||
Total operating (loss) income | $ (2.2) | $ (3.0) | $ (5.0) | |||
Three Months Ended | ||||||
December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||
Adjusted EBITDA (loss) | ||||||
Rocky Mountains | $ 6.9 | $ 8.1 | $ 11.8 | |||
Southwest | 6.8 | 5.1 | 9.6 | |||
Northeast/Mid-Con | 15.1 | 14.5 | 9.8 | |||
Segment total | 28.8 | 27.7 | 31.2 | |||
Corporate and other | (6.3) | (6.6) | (8.5) | |||
Total Adjusted EBITDA(1) | $ 22.5 | $ 21.1 | $ 22.7 | |||
(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
Total debt outstanding as of December 31, 2025 was
Net working capital as of December 31, 2025 was
Other Financial Information
Capital expenditures were
Indenture Amendment and Issuance of Warrants
On March 6, 2026, we entered into an amendment (the "First Amendment to the Indenture") to the indenture dated March 12, 2025 relating to our 2030 Senior Notes, to provide financial covenant relief, including (i) extending and resetting the step-down schedule for the maximum total net leverage ratio covenant, (ii) a temporary holiday to exclude capital lease obligations from the leverage ratio calculation for certain testing periods, and (iii) clarifying that proceeds from our at-the-market offering program may be applied as an equity cure. In connection with the entry into the First Amendment to the Indenture, on March 6, 2026 and March 11, 2026, we issued to our noteholders, based on their pro rata ownership of principal amount of the 2030 Senior Notes, warrants to purchase, in aggregate, up to 803,712 shares of our common stock at an exercise price of
Conference Call Information
KLX will conduct its fourth quarter 2025 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. 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 March 26, 2026, and may be accessed by dialing 1-201-612-7415 and using passcode 13758819#. 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 | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Revenues | $ 156.8 | $ 166.7 | $ 165.5 | $ 636.6 | $ 709.3 | |||||||||||||
Costs and expenses: | ||||||||||||||||||
Cost of sales | 121.5 | 130.5 | 127.4 | 501.5 | 549.7 | |||||||||||||
Depreciation and amortization | 23.7 | 23.2 | 25.1 | 95.2 | 94.0 | |||||||||||||
Selling, general and administrative | 13.3 | 15.6 | 17.6 | 68.5 | 79.6 | |||||||||||||
Research and development costs | 0.5 | 0.4 | 0.4 | 1.7 | 1.4 | |||||||||||||
Impairment and other charges | — | — | — | — | 0.1 | |||||||||||||
Operating loss | (2.2) | (3.0) | (5.0) | (30.3) | (15.5) | |||||||||||||
Non-operating expense: | ||||||||||||||||||
Interest income | (0.0) | (0.0) | (0.5) | (0.4) | (2.5) | |||||||||||||
Interest expense | 12.6 | 11.1 | 10.2 | 45.2 | 39.4 | |||||||||||||
Loss on debt extinguishment | — | — | — | 1.2 | — | |||||||||||||
Loss before income tax | (14.8) | (14.1) | (14.7) | (76.3) | (52.4) | |||||||||||||
Income tax expense | 0.2 | 0.2 | — | 0.8 | 0.6 | |||||||||||||
Net loss | $ (15.0) | $ (14.3) | $ (14.7) | $ (77.1) | $ (53.0) | |||||||||||||
Net loss per common share: | ||||||||||||||||||
Basic | $ (0.78) | $ (0.74) | $ (0.90) | $ (4.12) | $ (3.27) | |||||||||||||
Diluted | $ (0.78) | $ (0.74) | $ (0.90) | $ (4.12) | $ (3.27) | |||||||||||||
Weighted average common shares: | ||||||||||||||||||
Basic | 19.2 | 19.2 | 16.3 | 18.7 | 16.2 | |||||||||||||
Diluted | 19.2 | 19.2 | 16.3 | 18.7 | 16.2 | |||||||||||||
KLX Energy Services Holdings, Inc. | ||||||
Condensed Consolidated Balance Sheets | ||||||
(In millions of | ||||||
(Unaudited) | ||||||
As of December 31 | ||||||
2025 | 2024 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 5.7 | $ 91.6 | ||||
Accounts receivable–trade, net of allowance of | 102.7 | 96.9 | ||||
Inventories, net | 30.7 | 31.0 | ||||
Prepaid expenses and other current assets | 10.8 | 13.5 | ||||
Total current assets | 149.9 | 233.0 | ||||
Property and equipment, net(1) | 161.1 | 197.1 | ||||
Operating lease assets | 22.3 | 19.6 | ||||
Intangible assets, net | 1.1 | 1.5 | ||||
Other assets | 5.9 | 5.1 | ||||
Total assets | $ 340.3 | $ 456.3 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ 68.7 | $ 74.4 | ||||
Accrued interest | 0.4 | 4.5 | ||||
Accrued liabilities | 26.0 | 41.3 | ||||
Current portion of long-term debt | 4.4 | — | ||||
Current portion of operating lease liabilities | 7.1 | 6.9 | ||||
Current portion of finance lease liabilities | 19.6 | 13.0 | ||||
Total current liabilities | 126.2 | 140.1 | ||||
Long-term debt | 253.9 | 285.1 | ||||
Long-term operating lease liabilities | 15.9 | 13.5 | ||||
Long-term finance lease liabilities | 17.4 | 26.4 | ||||
Other non-current liabilities | 1.1 | 1.7 | ||||
Commitments, contingencies and off-balance sheet arrangements | ||||||
Stockholders' equity: | ||||||
Common Stock, | 0.2 | 0.2 | ||||
Additional paid-in capital | 571.3 | 557.5 | ||||
Treasury stock, at cost, 0.5 shares and 0.5 shares | (6.2) | (5.8) | ||||
Accumulated deficit | (639.5) | (562.4) | ||||
Total stockholders' deficit | (74.2) | (10.5) | ||||
Total liabilities and stockholders' deficit | $ 340.3 | $ 456.3 | ||||
(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, Net Debt, Consolidated Net Loss Margin and Segment Operating Income (Loss) Margin 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 earnings (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.
We define Consolidated net loss margin as the quotient of consolidated net loss and total revenue. We define Segment operating income (loss) margin as the quotient of segment operating income (loss) and segment revenue. We believe that Consolidated net loss margin and Segment operating income (loss) margin provide useful information to investors to understand and evaluate core operating performance and trends across fiscal periods.
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 | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Consolidated net loss | $ (15.0) | $ (14.3) | $ (14.7) | $ (77.1) | $ (53.0) | |||||||||||||
Income tax expense | 0.2 | 0.2 | — | 0.8 | 0.6 | |||||||||||||
Interest expense, net | 12.6 | 11.1 | 9.7 | 44.8 | 36.9 | |||||||||||||
Loss on debt extinguishment | — | — | — | 1.2 | — | |||||||||||||
Operating loss | (2.2) | (3.0) | (5.0) | (30.3) | (15.5) | |||||||||||||
Impairment and other charges (1) | — | — | — | — | 0.1 | |||||||||||||
One-time net costs, excluding impairment and other charges (1) | 0.5 | 0.3 | 1.6 | 8.6 | 7.1 | |||||||||||||
Adjusted operating loss | (1.7) | (2.7) | (3.4) | (21.7) | (8.3) | |||||||||||||
Depreciation and amortization | 23.7 | 23.2 | 25.1 | 95.2 | 94.0 | |||||||||||||
Non-cash compensation | 0.5 | 0.6 | 1.0 | 2.6 | 3.9 | |||||||||||||
Adjusted EBITDA | $ 22.5 | $ 21.1 | $ 22.7 | $ 76.1 | $ 89.6 | |||||||||||||
*Previously announced quarterly numbers may not sum to the year-end total due to rounding. |
(1) The one-time costs during the fourth quarter of 2025 relate to |
KLX Energy Services Holdings, Inc. | ||||||||||||||||||
Consolidated Net Loss Margin(1) | ||||||||||||||||||
(In millions of | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Consolidated net loss | $ (15.0) | $ (14.3) | $ (14.7) | $ (77.1) | $ (53.0) | |||||||||||||
Revenue | 156.8 | 166.7 | 165.5 | 636.6 | 709.3 | |||||||||||||
Consolidated net loss margin percentage | (9.6) % | (8.6) % | (8.9) % | (12.1) % | (7.5) % | |||||||||||||
(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 | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Adjusted EBITDA | $ 22.5 | $ 21.1 | $ 22.7 | $ 76.1 | $ 89.6 | |||||||||||||
Revenue | 156.8 | 166.7 | 165.5 | 636.6 | 709.3 | |||||||||||||
Adjusted EBITDA Margin Percentage | 14.3 % | 12.7 % | 13.7 % | 12.0 % | 12.6 % | |||||||||||||
(1) Adjusted EBITDA Margin is defined as the quotient of Adjusted EBITDA and total revenue. Adjusted EBITDA is operating income (loss) excluding one-time costs (as defined above), depreciation and amortization expense, non-cash compensation expense and non-cash asset impairment expense. |
Reconciliation of Rocky Mountains Operating Income to Adjusted EBITDA | ||||||||||||||||||
(In millions of | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Rocky Mountains operating income | $ 0.8 | $ 1.8 | $ 4.7 | $ 5.7 | $ 23.8 | |||||||||||||
One-time costs (1) | — | 0.1 | — | 0.6 | 0.1 | |||||||||||||
Adjusted operating income | 0.8 | 1.9 | 4.7 | 6.3 | 23.9 | |||||||||||||
Depreciation and amortization expense | 6.1 | 6.1 | 7.1 | 25.5 | 27.3 | |||||||||||||
Non-cash compensation | 0.0 | 0.1 | 0.0 | 0.2 | 0.0 | |||||||||||||
Rocky Mountains Adjusted EBITDA | $ 6.9 | $ 8.1 | $ 11.8 | $ 32.0 | $ 51.2 | |||||||||||||
(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. |
Reconciliation of Southwest Operating (Loss) Income to Adjusted EBITDA | ||||||||||||||||||
(In millions of | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Southwest operating (loss) income | $ (1.6) | $ (3.4) | $ 1.1 | $ (3.5) | $ 3.7 | |||||||||||||
One-time costs (1) | 0.2 | 0.1 | 0.3 | 1.0 | 0.9 | |||||||||||||
Adjusted operating (loss) income | (1.4) | (3.3) | 1.4 | (2.5) | 4.6 | |||||||||||||
Depreciation and amortization expense | 8.2 | 8.4 | 8.2 | 33.3 | 30.8 | |||||||||||||
Non-cash compensation | 0.0 | 0.0 | 0.0 | 0.2 | 0.0 | |||||||||||||
Southwest Adjusted EBITDA | $ 6.8 | $ 5.1 | $ 9.6 | $ 31.0 | $ 35.4 | |||||||||||||
(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. |
Reconciliation of Northeast/Mid-Con Operating Income to Adjusted EBITDA | ||||||||||||||||||
(In millions of | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Northeast/Mid-Con operating income | $ 6.5 | $ 6.6 | $ 0.3 | $ 3.6 | $ 2.3 | |||||||||||||
One-time costs (1) | 0.1 | (0.4) | 0.1 | 1.7 | 0.6 | |||||||||||||
Adjusted operating income | 6.6 | 6.2 | 0.4 | 5.3 | 2.9 | |||||||||||||
Depreciation and amortization expense | 8.5 | 8.3 | 9.3 | 34.1 | 34.1 | |||||||||||||
Non-cash compensation | 0.0 | 0.0 | 0.1 | 0.1 | 0.3 | |||||||||||||
Northeast/Mid-Con Adjusted EBITDA | $ 15.1 | $ 14.5 | $ 9.8 | $ 39.5 | $ 37.3 | |||||||||||||
(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. |
Reconciliation of Corporate and Other Operating Loss to Adjusted EBITDA Loss | ||||||||||||||||||
(In millions of | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Corporate and other operating loss | $ (7.9) | $ (8.0) | $ (11.1) | $ (36.1) | $ (45.3) | |||||||||||||
Impairment and other charges | — | — | — | — | 0.1 | |||||||||||||
One-time costs, excluding impairment and other charges (1) | 0.2 | 0.5 | 1.2 | 5.3 | 5.5 | |||||||||||||
Adjusted operating loss | (7.7) | (7.5) | (9.9) | (30.8) | (39.7) | |||||||||||||
Depreciation and amortization expense | 0.9 | 0.4 | 0.5 | 2.3 | 1.8 | |||||||||||||
Non-cash compensation | 0.5 | 0.5 | 0.9 | 2.1 | 3.6 | |||||||||||||
Corporate and other Adjusted EBITDA loss | $ (6.3) | $ (6.6) | $ (8.5) | $ (26.4) | $ (34.3) | |||||||||||||
(1) One-time costs are defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA table above. For purposes of segment reconciliation, impairment and other charges are included to reconcile to segment adjusted operating loss. |
KLX Energy Services Holdings, Inc. | ||||||||||||||||||
Segment Operating Income Margin(1) | ||||||||||||||||||
(In millions of | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Rocky Mountains | ||||||||||||||||||
Operating income | $ 0.8 | $ 1.8 | $ 4.7 | $ 5.7 | $ 23.8 | |||||||||||||
Revenue | 46.3 | 50.8 | 54.0 | 199.0 | 228.9 | |||||||||||||
Segment operating income margin percentage | 1.7 % | 3.5 % | 8.7 % | 2.9 % | 10.4 % | |||||||||||||
Southwest | ||||||||||||||||||
Operating (loss) income | (1.6) | (3.4) | 1.1 | (3.5) | 3.7 | |||||||||||||
Revenue | 50.9 | 56.6 | 61.4 | 231.6 | 269.3 | |||||||||||||
Segment operating (loss) income margin percentage | (3.1) % | (6.0) % | 1.8 % | (1.5) % | 1.4 % | |||||||||||||
Northeast/Mid-Con | ||||||||||||||||||
Operating income | 6.5 | 6.6 | 0.3 | 3.6 | 2.3 | |||||||||||||
Revenue | 59.6 | 59.3 | 50.1 | 206.0 | 211.1 | |||||||||||||
Segment operating income margin percentage | 10.9 % | 11.1 % | 0.6 % | 1.7 % | 1.1 % | |||||||||||||
(1) Segment operating income margin is defined as the quotient of segment operating income and segment revenue. |
KLX Energy Services Holdings, Inc. | ||||||||||||||||||
Segment Adjusted EBITDA Margin(1) | ||||||||||||||||||
(In millions of | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Rocky Mountains | ||||||||||||||||||
Adjusted EBITDA | $ 6.9 | $ 8.1 | $ 11.8 | $ 32.0 | $ 51.2 | |||||||||||||
Revenue | 46.3 | 50.8 | 54.0 | 199.0 | 228.9 | |||||||||||||
Adjusted EBITDA Margin Percentage | 14.9 % | 15.9 % | 21.9 % | 16.1 % | 22.4 % | |||||||||||||
Southwest | ||||||||||||||||||
Adjusted EBITDA | 6.8 | 5.1 | 9.6 | 31.0 | 35.4 | |||||||||||||
Revenue | 50.9 | 56.6 | 61.4 | 231.6 | 269.3 | |||||||||||||
Adjusted EBITDA Margin Percentage | 13.4 % | 9.0 % | 15.6 % | 13.4 % | 13.1 % | |||||||||||||
Northeast/Mid-Con | ||||||||||||||||||
Adjusted EBITDA | 15.1 | 14.5 | 9.8 | 39.5 | 37.3 | |||||||||||||
Revenue | 59.6 | 59.3 | 50.1 | 206.0 | 211.1 | |||||||||||||
Adjusted EBITDA Margin Percentage | 25.3 % | 24.5 % | 19.6 % | 19.2 % | 17.7 % | |||||||||||||
(1) Segment Adjusted EBITDA Margin is defined as the quotient of Segment Adjusted EBITDA and total segment revenue. Segment Adjusted EBITDA is segment operating income (loss) 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 | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Consolidated net loss | $ (15.0) | $ (14.3) | $ (14.7) | $ (77.1) | $ (53.0) | |||||||||||||
Impairment and other charges | — | — | — | — | 0.1 | |||||||||||||
One-time costs(1) | 0.5 | 0.3 | 1.6 | 8.6 | 7.1 | |||||||||||||
Adjusted net loss | $ (14.5) | $ (14.0) | $ (13.1) | $ (68.5) | $ (45.8) | |||||||||||||
Diluted weighted average common shares | 19.2 | 19.2 | 16.3 | 18.7 | 16.2 | |||||||||||||
Adjusted Diluted Loss per share(2) | $ (0.76) | $ (0.73) | $ (0.80) | $ (3.66) | $ (2.83) | |||||||||||||
*Previously announced quarterly numbers may not sum to the year-end total due to rounding. |
(1) The one-time costs during the fourth quarter of 2025 relate to |
(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 Operating Activities to Free Cash Flow | ||||||||||||||||||
(In millions of | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December | September | December | December | December | ||||||||||||||
Net cash flow provided by operating activities | $ 12.5 | $ 13.5 | $ 26.0 | $ 7.5 | $ 54.2 | |||||||||||||
Capital expenditures | (9.4) | (12.0) | (15.3) | (49.1) | (65.1) | |||||||||||||
Proceeds from sale of property and equipment and other | 5.6 | 4.2 | 4.8 | 16.2 | 14.0 | |||||||||||||
Levered Free Cash Flow | 8.7 | 5.7 | 15.5 | (25.4) | 3.1 | |||||||||||||
Add: Cash interest expense, net | 6.7 | 5.1 | 9.7 | 23.4 | 36.9 | |||||||||||||
Unlevered Free Cash Flow | $ 15.4 | $ 10.8 | $ 25.2 | $ (2.0) | $ 40.0 | |||||||||||||
KLX Energy Services Holdings, Inc. | ||||||||||
Reconciliation of Current Assets and Current Liabilities to Net Working Capital | ||||||||||
(In millions of | ||||||||||
(Unaudited) | ||||||||||
As of | ||||||||||
December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||||||
Current assets | $ 149.9 | $ 164.2 | $ 233.0 | |||||||
Less: Cash | 5.7 | 8.4 | 91.6 | |||||||
Net current assets | 144.2 | 155.8 | 141.4 | |||||||
Current liabilities | 126.2 | 137.2 | 140.1 | |||||||
Less: Current portion of long-term debt | 4.4 | 4.5 | — | |||||||
Less: Accrued interest | 0.4 | 1.2 | 4.5 | |||||||
Less: Operating lease obligations | 7.1 | 6.6 | 6.9 | |||||||
Less: Finance lease obligations | 19.6 | 19.2 | 13.0 | |||||||
Net current liabilities | 94.7 | 105.7 | 115.7 | |||||||
Net working capital | $ 49.5 | $ 50.1 | $ 25.7 | |||||||
KLX Energy Services Holdings, Inc. | ||||||||||
Reconciliation of Net Debt(1) | ||||||||||
(In millions of | ||||||||||
(Unaudited) | ||||||||||
As of | ||||||||||
December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||||||
Total Debt | $ 258.3 | $ 259.2 | $ 285.1 | |||||||
Cash | 5.7 | 8.4 | 91.6 | |||||||
Net Debt | $ 252.6 | $ 250.8 | $ 193.5 | |||||||
(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-fourth-quarter-and-full-year-2025-results-302711439.html
SOURCE KLX Energy Services Holdings, Inc.