KLX ENERGY SERVICES HOLDINGS, INC. REPORTS SECOND QUARTER 2026 RESULTS
Rhea-AI Summary
KLX Energy Services (Nasdaq: KLXE) reported second quarter 2026 revenue of $167.3 million, up 15.6% from first quarter 2026. Net loss narrowed to $8.4 million (basic and diluted loss per share of $0.41) from a $24.0 million loss in the prior quarter.
Adjusted EBITDA was $18.7 million versus $11.1 million in first quarter 2026, lifting Adjusted EBITDA margin to 11.2% from 7.7%. KLX closed the Wolf Pack Rentals acquisition on June 2, 2026, recording a $6.5 million bargain purchase gain; Wolf Pack contributed $3.4 million June revenue, implying a $41 million annual run-rate and an updated synergy estimate of about $2.5 million.
Total liquidity at June 30, 2026 was $53.3 million, including $7.9 million of cash and $45.4 million of revolver availability. Management guided third quarter 2026 revenue to $176–$188 million, with a midpoint of $182 million, and expects further margin expansion as activity increases.
Positive
- Revenue $167.3 million, up 15.6% sequentially in Q2 2026
- Adjusted EBITDA $18.7 million, up 68% QoQ; margin expanded to 11.2%
- Net loss improved to $8.4 million from $24.0 million QoQ
- Wolf Pack acquisition closed; $6.5 million bargain purchase gain recorded
- Wolf Pack June revenue $3.4 million, implying $41 million annual run-rate and ~$2.5 million synergies
- Total liquidity $53.3 million at June 30, 2026, including $45.4 million revolver availability
Negative
- Continuing net loss of $8.4 million and net loss margin of approximately 5%
- Stockholders’ deficit widened to $102.4 million from $74.2 million at year-end 2025
- Total debt obligations (current and long-term) increased to over $320 million
- Corporate and other Adjusted EBITDA loss widened to $7.7 million from $6.5 million QoQ
- Northeast/Mid-Con revenue declined 1.0% sequentially despite improved profitability
- Interest expense remained high at $12.5 million for Q2 2026
News Explained
KLX identifies a previously announced
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 12 | 1Q26 earnings | Positive | +10.6% | Improved loss and EBITDA metrics accompanied higher second-quarter revenue guidance. |
| Mar 11 | 4Q25 earnings | Negative | -9.5% | Annual losses, debt, covenant relief and noteholder warrants accompanied full-year results. |
| Nov 05 | 3Q25 earnings | Positive | +6.3% | Revenue and EBITDA increased sequentially, while management projected fourth-quarter revenue softness. |
| Aug 06 | 2Q25 earnings | Neutral | -5.6% | Revenue, loss and EBITDA improved sequentially, but segment performance remained mixed. |
| May 08 | 1Q25 earnings | Negative | -17.2% | Revenue declined and the company reported a substantial net loss despite margin improvement. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings events had an average 24-hour move of -3.06%, with both positive and negative reactions recorded.
Key Terms
adjusted ebitda financial
non-gaap financial measures financial
bargain purchase gain financial
asset-based revolving credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Financial and Operational Highlights
- Revenue of
$167 million 16% increase over first quarter 2026 - Net loss of
$(8) million $(0.41) 65% and67% over first quarter 2026, respectively - Adjusted EBITDA of
$19 million 68% increase over first quarter 2026 - Net loss margin of (5)%, an improvement of
70% over first quarter 2026 - Adjusted EBITDA margin of
11% , a46% increase over first quarter 2026 - Total liquidity of
$53 million $8 million - On June 2, 2026, closed the acquisition of Wolf Pack Rentals, LLC (the "Wolf Pack Acquisition") and recorded a related bargain purchase gain of
$6.5 million
See "Non-GAAP Financial Measures" at the end of this release for a discussion of Adjusted EBITDA, Adjusted EBITDA margin, 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, "Our second quarter results were in line with our expectations. Revenue was
"Wolf Pack contributed
"Looking ahead to the third quarter, we expect revenue in the range of
Second Quarter 2026 Financial Results
Revenue for the second quarter of 2026 totaled
Net loss for the second quarter of 2026 was
Second 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.
- Rocky Mountains: Revenue, operating income and Adjusted EBITDA for the Rocky Mountains segment was
$50.8 million $0.3 million $6.3 million 31.6% sequential increase over the first quarter of 2026, driven by coiled tubing, tech services and wireline. Segment operating income increased sequentially and segment Adjusted EBITDA increased200.0% sequentially. This quarter-over-quarter improvement in income and margin was a function of higher utilization in the second quarter of 2026 as compared to the first quarter of 2026. - Southwest: Revenue, operating income and Adjusted EBITDA for the Southwest segment, which includes the Permian and
South Texas , was$64.5 million $0.1 million $7.6 million 20.3% sequential increase over the first quarter of 2026, driven by coiled tubing, directional drilling and accommodations. Segment operating income increased sequentially and segment Adjusted EBITDA increased65.2% sequentially due to higher utilization in the second quarter of 2026 as compared to the first quarter of 2026. - Northeast/Mid-Con: Revenue, operating income and Adjusted EBITDA for the Northeast/Mid-Con segment was
$52.0 million $5.1 million $12.5 million 1.0% sequential decrease over the first quarter of 2026, driven by a decrease in flowback, offset by increases in directional drilling and accommodations. Segment operating income increased by70.0% and segment Adjusted EBITDA increased14.7% as compared to the first quarter of 2026 due to improved utilization and decreased white space. - Corporate and other: Operating loss and Adjusted EBITDA loss for the Corporate and other segment were
$(3.4) million $(7.7) million $6.5
The following is a tabular summary of revenue, operating income (loss) and Adjusted EBITDA (loss) for the second quarter ended June 30, 2026, the first quarter ended March 31, 2026 and the second quarter ended June 30, 2025 ($ in millions).
Three Months Ended | ||||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||
Revenue: | ||||||
Rocky Mountains | $ 50.8 | $ 38.6 | $ 54.1 | |||
Southwest | 64.5 | 53.6 | 58.8 | |||
Northeast/Mid-Con | 52.0 | 52.5 | 46.1 | |||
Total revenue | $ 167.3 | $ 144.7 | $ 159.0 | |||
Three Months Ended | ||||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||
Operating income (loss): | ||||||
Rocky Mountains | $ 0.3 | $ (3.8) | $ 3.3 | |||
Southwest | 0.1 | (3.4) | (1.7) | |||
Northeast/Mid-Con | 5.1 | 3.0 | (1.3) | |||
Corporate and other | (3.4) | (7.9) | (9.0) | |||
Total operating income (loss) | $ 2.1 | $ (12.1) | $ (8.7) | |||
Three Months Ended | ||||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||
Adjusted EBITDA (loss) | ||||||
Rocky Mountains | $ 6.3 | $ 2.1 | $ 10.4 | |||
Southwest | 7.6 | 4.6 | 7.2 | |||
Northeast/Mid-Con | 12.5 | 10.9 | 7.2 | |||
Segment total | 26.4 | 17.6 | 24.8 | |||
Corporate and other | (7.7) | (6.5) | (6.3) | |||
Total Adjusted EBITDA(1) | $ 18.7 | $ 11.1 | $ 18.5 | |||
(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 June 30, 2026, cash and cash equivalents totaled
Net Working Capital as of June 30, 2026 was
Other Financial Information
Capital expenditures were
As of June 30, 2026, we had
Conference Call Information
KLX will conduct its second quarter 2026 conference call, which can be accessed via dial-in or webcast, on Tuesday, August 11, 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 August 25, 2026, and may be accessed by dialing 1-201-612-7415 and using passcode 13761897#. 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. Management intends to discuss the previously announced
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 the United States. The Company delivers mission critical oilfield services focused on drilling, completion, production, and intervention activities for technically demanding wells from over 60 service and support facilities located throughout the United States. KLX's complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair and maintenance capabilities. More information is available at www.klx.com.
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 Ukraine and its continuing effects on global trade; the ongoing conflict and tensions in the Middle East, including the conflict with Iran; supply chain issues; general economic, financial and political conditions, including market volatility and the impact of the imposition of increased, new and retaliatory tariffs; and other risks and uncertainties listed in our filings with the U.S. Securities and Exchange Commission, including our Current Reports on Form 8-K that we file from time to time, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law.
KLX Energy Services Holdings, Inc. Condensed Consolidated Statements of Operations (In millions of (Unaudited) | |||||
Three Months Ended | |||||
June 30, 2026 | March 31, 2026 | June 30, 2025 | |||
Revenues | $ 167.3 | $ 144.7 | $ 159.0 | ||
Costs and expenses: | |||||
Cost of sales | 130.9 | 119.1 | 125.6 | ||
Depreciation and amortization | 20.8 | 21.9 | 23.7 | ||
Selling, general and administrative | 19.0 | 15.4 | 18.0 | ||
Research and development costs | 0.5 | 0.4 | 0.4 | ||
Impairment and other charges | 0.5 | — | — | ||
Bargain purchase gain | (6.5) | — | — | ||
Operating income (loss) | 2.1 | (12.1) | (8.7) | ||
Non-operating expense: | |||||
Interest income | (0.0) | (0.0) | (0.0) | ||
Interest expense | 12.5 | 11.7 | 11.0 | ||
Gain on debt extinguishment | (0.3) | — | — | ||
Net loss before income tax | (10.1) | (23.8) | (19.7) | ||
Income tax (benefit) expense | (1.7) | 0.2 | 0.2 | ||
Net loss | $ (8.4) | $ (24.0) | $ (19.9) | ||
Net loss per common share: | |||||
Basic | $ (0.41) | $ (1.23) | $ (1.04) | ||
Diluted | $ (0.41) | $ (1.23) | $ (1.04) | ||
Weighted average common shares: | |||||
Basic | 20.5 | 19.5 | 19.2 | ||
Diluted | 20.5 | 19.5 | 19.2 | ||
KLX Energy Services Holdings, Inc. Condensed Consolidated Balance Sheets (In millions of (Unaudited) | |||
June 30, 2026 | December 31, 2025 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 7.9 | $ 5.7 | |
Accounts receivable–trade, net of allowance for credit losses of | 121.9 | 102.7 | |
Inventories, net | 32.0 | 30.7 | |
Prepaid expenses and other current assets | 17.1 | 10.8 | |
Total current assets | 178.9 | 149.9 | |
Property and equipment, net(1) | 164.8 | 161.1 | |
Operating lease assets | 21.7 | 22.3 | |
Intangible assets, net | 0.9 | 1.1 | |
Other assets | 5.6 | 5.9 | |
Total assets | $ 371.9 | $ 340.3 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 77.3 | $ 68.7 | |
Accrued interest | 0.5 | 0.4 | |
Accrued liabilities | 47.7 | 26.0 | |
Current portion of long-term debt | 4.6 | 4.4 | |
Current portion of operating lease liabilities | 7.5 | 7.1 | |
Current portion of finance lease liabilities | 14.0 | 19.6 | |
Total current liabilities | 151.6 | 126.2 | |
Long-term debt | 284.3 | 253.9 | |
Long-term operating lease liabilities | 15.3 | 15.9 | |
Long-term finance lease liabilities | 17.3 | 17.4 | |
Other non-current liabilities | 5.8 | 1.1 | |
Commitments, contingencies and off-balance sheet arrangements | |||
Stockholders' equity: | |||
Common stock, | 0.2 | 0.2 | |
Additional paid-in capital | 575.7 | 571.3 | |
Treasury stock, at cost, 0.6 shares and 0.5 shares | (6.4) | (6.2) | |
Accumulated deficit | (671.9) | (639.5) | |
Total stockholders' deficit | (102.4) | (74.2) | |
Total liabilities and stockholders' deficit | $ 371.9 | $ 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 loss before interest, taxes, depreciation and amortization, further adjusted for (i) goodwill and/or 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 loss 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 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.
We define Adjusted Net Loss as consolidated net loss adjusted for (i) goodwill and/or 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 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. 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 current portion of long-term debt, accrued interest, 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 and restricted cash. 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 | |||||
June 30, | March 31, | June 30, | |||
Consolidated net loss | $ (8.4) | $ (24.0) | $ (19.9) | ||
Income tax (benefit) expense | (1.7) | 0.2 | 0.2 | ||
Interest expense, net | 12.5 | 11.7 | 11.0 | ||
Gain on debt extinguishment | (0.3) | — | — | ||
Operating income (loss) | 2.1 | (12.1) | (8.7) | ||
Bargain purchase gain | (6.5) | — | — | ||
Impairment and other charges | 0.5 | — | — | ||
One-time net costs (1) | 1.2 | 1.0 | 2.9 | ||
Adjusted operating loss | (2.7) | (11.1) | (5.8) | ||
Depreciation and amortization | 20.8 | 21.9 | 23.7 | ||
Non-cash compensation | 0.6 | 0.3 | 0.6 | ||
Adjusted EBITDA | $ 18.7 | $ 11.1 | $ 18.5 | ||
*Previously announced quarterly numbers may not sum to the year-end total due to rounding. | |||||
(1) The one-time costs during the second 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 | |||||
June 30, | March 31, | June 30, | |||
Consolidated net loss | $ (8.4) | $ (24.0) | $ (19.9) | ||
Revenue | 167.3 | 144.7 | 159.0 | ||
Consolidated net loss margin percentage | (5.0) % | (16.6) % | (12.5) % | ||
(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 | |||||
June 30, | March 31, | June 30, | |||
Adjusted EBITDA | $ 18.7 | $ 11.1 | $ 18.5 | ||
Revenue | 167.3 | 144.7 | 159.0 | ||
Adjusted EBITDA Margin Percentage | 11.2 % | 7.7 % | 11.6 % | ||
(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 Income (Loss) to Adjusted EBITDA (In millions of (Unaudited) | |||||
Three Months Ended | |||||
June 30, | March 31, | June 30, | |||
Rocky Mountains operating income (loss) | $ 0.3 | $ (3.8) | $ 3.3 | ||
One-time costs (1) | 0.5 | — | 0.5 | ||
Adjusted operating income (loss) | 0.8 | (3.8) | 3.8 | ||
Depreciation and amortization expense | 5.4 | 5.9 | 6.5 | ||
Non-cash compensation | 0.1 | 0.0 | 0.1 | ||
Rocky Mountains Adjusted EBITDA | $ 6.3 | $ 2.1 | $ 10.4 | ||
(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. |
KLX Energy Services Holdings, Inc Reconciliation of Southwest Operating Income (Loss) to Adjusted EBITDA (In millions of (Unaudited) | |||||
Three Months Ended | |||||
June 30, | March 31, | June 30, | |||
Southwest operating income (loss) | $ 0.1 | $ (3.4) | $ (1.7) | ||
One-time costs (1) | — | 0.1 | 0.5 | ||
Adjusted operating income (loss) | 0.1 | (3.3) | (1.2) | ||
Depreciation and amortization expense | 7.5 | 7.9 | 8.4 | ||
Non-cash compensation | 0.0 | 0.0 | 0.0 | ||
Southwest Adjusted EBITDA | $ 7.6 | $ 4.6 | $ 7.2 | ||
(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. |
KLX Energy Services Holdings, Inc Reconciliation of Northeast/Mid-Con Operating Loss to Adjusted EBITDA (In millions of (Unaudited) | |||||
Three Months Ended | |||||
June 30, | March 31, | June 30, | |||
Northeast/Mid-Con operating income (loss) | $ 5.1 | $ 3.0 | $ (1.3) | ||
One-time costs (1) | 0.2 | — | 0.1 | ||
Adjusted operating income (loss) | 5.3 | 3.0 | (1.2) | ||
Depreciation and amortization expense | 7.2 | 7.9 | 8.4 | ||
Non-cash compensation | 0.0 | 0.0 | 0.0 | ||
Northeast/Mid-Con Adjusted EBITDA | $ 12.5 | $ 10.9 | $ 7.2 | ||
(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. |
KLX Energy Services Holdings, Inc. Reconciliation of Corporate and Other Operating Loss to Adjusted EBITDA Loss (In millions of (Unaudited) | |||||
Three Months Ended | |||||
June 30, | March 31, | June 30, | |||
Corporate and other operating loss | $ (3.4) | $ (7.9) | $ (9.0) | ||
Bargain purchase gain | (6.5) | — | — | ||
One-time costs (1) | 1.0 | 0.9 | 1.8 | ||
Adjusted operating loss | (8.9) | (7.0) | (7.2) | ||
Depreciation and amortization expense | 0.7 | 0.2 | 0.4 | ||
Non-cash compensation | 0.5 | 0.3 | 0.5 | ||
Corporate and other Adjusted EBITDA loss | $ (7.7) | $ (6.5) | $ (6.3) | ||
(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 Income (Loss) Margin(1) (In millions of (Unaudited) | |||||
Three Months Ended | |||||
June 30, | March 31, | June 30, | |||
Rocky Mountains | |||||
Operating income (loss) | $ 0.3 | $ (3.8) | $ 3.3 | ||
Revenue | 50.8 | 38.6 | 54.1 | ||
Segment operating income (loss) margin percentage | 0.6 % | (9.8) % | 6.1 % | ||
Southwest | |||||
Operating income (loss) | 0.1 | (3.4) | (1.7) | ||
Revenue | 64.5 | 53.6 | 58.8 | ||
Segment operating income (loss) margin percentage | 0.2 % | (6.3) % | (2.9) % | ||
Northeast/Mid-Con | |||||
Operating income (loss) | 5.1 | 3.0 | (1.3) | ||
Revenue | 52.0 | 52.5 | 46.1 | ||
Segment operating income (loss) margin percentage | 9.8 % | 5.7 % | (2.8) % | ||
(1) Segment operating income (loss) margin is defined as the quotient of segment operating income (loss) and segment revenue. |
KLX Energy Services Holdings, Inc. Segment Adjusted EBITDA Margin(1) (In millions of (Unaudited) | |||||
Three Months Ended | |||||
June 30, | March 31, | June 30, | |||
Rocky Mountains | |||||
Adjusted EBITDA | $ 6.3 | $ 2.1 | $ 10.4 | ||
Revenue | 50.8 | 38.6 | 54.1 | ||
Adjusted EBITDA Margin Percentage | 12.4 % | 5.4 % | 19.2 % | ||
Southwest | |||||
Adjusted EBITDA | 7.6 | 4.6 | 7.2 | ||
Revenue | 64.5 | 53.6 | 58.8 | ||
Adjusted EBITDA Margin Percentage | 11.8 % | 8.6 % | 12.2 % | ||
Northeast/Mid-Con | |||||
Adjusted EBITDA | 12.5 | 10.9 | 7.2 | ||
Revenue | 52.0 | 52.5 | 46.1 | ||
Adjusted EBITDA Margin Percentage | 24.0 % | 20.8 % | 15.6 % | ||
(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 | |||||
June 30, | March 31, | June 30, | |||
Consolidated net loss | $ (8.4) | $ (24.0) | $ (19.9) | ||
Bargain purchase gain | (6.5) | — | — | ||
Impairment and other charges | 0.5 | — | — | ||
One-time costs(1) | 1.2 | 1.0 | 2.9 | ||
Adjusted Net Loss | $ (13.2) | $ (23.0) | $ (17.0) | ||
Diluted weighted average common shares | 20.5 | 19.5 | 19.2 | ||
Adjusted Diluted Loss per share(2) | $ (0.64) | $ (1.18) | $ (0.88) | ||
*Previously announced quarterly numbers may not sum to the year-end total due to rounding. |
(1) The one-time costs during the second 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) | |||||
Three Months Ended | |||||
June 30, | March 31, | June 30, | |||
Net cash flow provided by operating activities | $ 10.5 | $ 0.3 | $ 19.1 | ||
Capital expenditures | (8.6) | (8.7) | (12.7) | ||
Proceeds from sale of property and equipment | 2.2 | 3.4 | 1.6 | ||
Levered Free Cash Flow(1) | 4.1 | (5.0) | 8.0 | ||
Add: Cash interest expense, net | 2.5 | 3.6 | 3.9 | ||
Unlevered Free Cash Flow | $ 6.6 | $ (1.4) | $ 11.9 | ||
(1) For the three months ended June 30, 2026, excludes the sources and uses of cash related to the Wolf Pack Acquisition |
KLX Energy Services Holdings, Inc. Reconciliation of Current Assets and Current Liabilities to Net Working Capital (In millions of (Unaudited) | |||||
As of | |||||
June 30, 2026 | March 31, 2026 | December 31, 2025 | |||
Current assets | $ 178.9 | $ 154.1 | $ 149.9 | ||
Less: Cash and cash equivalents and restricted cash | 7.9 | 5.6 | 5.7 | ||
Net current assets | 171.0 | 148.5 | 144.2 | ||
Current liabilities | 151.6 | 123.0 | 126.2 | ||
Less: Current portion of long-term debt | 4.6 | 4.5 | 4.4 | ||
Less: Accrued interest | 0.5 | 0.4 | 0.4 | ||
Less: Operating lease obligations | 7.5 | 7.4 | 7.1 | ||
Less: Finance lease obligations | 14.0 | 16.6 | 19.6 | ||
Net current liabilities | 125.0 | 94.1 | 94.7 | ||
Net Working Capital | $ 46.0 | $ 54.4 | $ 49.5 | ||
KLX Energy Services Holdings, Inc. Reconciliation of Net Debt(1) (In millions of (Unaudited) | |||||
As of | |||||
June 30, 2026 | March 31, 2026 | December 31, 2025 | |||
Total Debt | $ 288.9 | $ 275.8 | $ 258.3 | ||
Cash and cash equivalents and restricted cash | 7.9 | 5.6 | 5.7 | ||
Net Debt | $ 281.0 | $ 270.2 | $ 252.6 | ||
(1) Net Debt is defined as total debt less cash and cash equivalents and restricted cash. |
Contacts: KLX Energy Services Holdings, Inc.
Geoffrey C. Stanford, SVP, Interim CFO & CAO
832-930-8066
IR@klx.com
Dennard Lascar Investor Relations
Ken Dennard / Natalie Hairston
713-529-6600
KLXE@dennardlascar.com
View original content:https://www.prnewswire.com/news-releases/klx-energy-services-holdings-inc-reports-second-quarter-2026-results-302847482.html
SOURCE KLX Energy Services Holdings, Inc.