KLX ENERGY SERVICES HOLDINGS, INC. REPORTS THIRD QUARTER 2025 RESULTS

Rhea-AI Summary

KLX Energy Services (Nasdaq: KLXE) reported third quarter 2025 results: revenue $166.7M (up 5% sequentially), net loss $(14.3)M (diluted loss per share $(0.74)), and Adjusted EBITDA $21.1M (up 14% sequentially) with an Adjusted EBITDA margin of 13%. Total liquidity was $65.2M including $8.3M cash and $56.9M ABL availability. Segment performance was mixed: Northeast/Mid-Con revenue +29% QoQ and Adjusted EBITDA +101% QoQ, while Rocky Mountains and Southwest saw sequential declines in revenue and Adjusted EBITDA (Rocky Mountains Adjusted EBITDA -22% QoQ; Southwest -29% QoQ). Capital expenditures were $12.0M in Q3 and net capex was $7.8M. Management expects a mid-single-digit revenue decline in Q4 2025 with stable Adjusted EBITDA margins.

Positive

• Revenue +5% sequential to $166.7M
• Adjusted EBITDA +14% sequential to $21.1M
• Northeast/Mid-Con revenue +29% sequential
• Total liquidity $65.2M including $8.3M cash

Negative

• Net loss of $(14.3)M in Q3 2025
• Rocky Mountains Adjusted EBITDA down 22% sequentially
• Southwest Adjusted EBITDA down 29% sequentially

Insights

Senior energy financial analyst

Revenue and Adjusted EBITDA improved sequentially, but the company remains unprofitable with modest liquidity.

KLX delivered sequential revenue growth to $166.7 million and an improved Adjusted EBITDA of $21.1 million (a 14% sequential increase), driven by stronger completion activity in the Northeast/Mid-Con where revenue rose to $59.3 million and segment Adjusted EBITDA doubled to $14.5 million.

Despite operational gains, the company reported a third quarter net loss of $(14.3) million and Consolidated Net Loss Margin of (9)%, while total liquidity stood at $65.2 million including $8.3 million cash and $56.9 million ABL availability. Key risks include continued demand weakness referenced for drilling and completions in some regions and reduced utilization trends in the Rocky Mountains and Southwest.

Monitor near-term indicators: sequential revenue guidance for Q4 with an expected mid-single-digit decline from Q3, stability of Adjusted EBITDA margin, and liquidity evolution reported on the next quarterly release and on the November 6, 2025 conference call where management will discuss drivers and outlook for the remainder of the year.

HOUSTON, Nov. 5, 2025 /PRNewswire/ -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX", the "Company", "we", "us" or "our") today reported financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Financial and Operational Highlights

• Revenue of $167 million, a 5% increase over second quarter 2025
• Net loss of $(14) million, diluted loss per share of $(0.74) and Consolidated Net Loss Margin of (9)%
• Adjusted EBITDA of $21 million, a 14% increase over second quarter 2025
• Adjusted EBITDA margin of 13%, a 9% increase over second quarter 2025
• Total liquidity of $65 million as of September 30, 2025, consisting of approximately $8 million of cash and cash equivalents, and approximately $57 million of available borrowing capacity under the asset-based revolving credit facility

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, Consolidated Net Loss Margin and Segment Operating Income (Loss) Margin and their reconciliations to the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We have not provided reconciliations of our future expectations as to Adjusted EBITDA or Adjusted EBITDA margin as such reconciliations are not available without unreasonable efforts.

Chris Baker, KLX President and Chief Executive Officer, stated, "Our third quarter represented the strongest quarter of the year, overcoming continued market headwinds, including commodity price volatility and weaker OFS demand across the drilling, completion and production environment. Sequentially, revenue grew 5% and Adjusted EBITDA grew 14%, despite the average US land rig count declining 6% and the average frac spread count declining 12% from the second quarter.

"Performance during the quarter was underpinned by strategically allocating assets across our broad geographic footprint, focusing on field execution and efficiencies, and tight cost controls all while adapting to regional differences in activity," added Baker. "Our completion-oriented product lines, notably in our Mid-Con/Northeast region, contributed meaningfully to this quarter's top-line strength. By improving asset and crew utilization, KLX once again has demonstrated the ability to capture incremental activity across key basins. 

"Looking forward, we anticipate typical seasonality and customer budget exhaustion translating to a slight moderation in activity during the fourth quarter. We expect a mid-single-digit revenue decline from the third quarter to the fourth quarter, indicating a less pronounced contraction than in past years. Importantly, we expect continued stable Adjusted EBITDA margins, supported by new project awards from key accounts, regional activity mix and ongoing cost discipline," concluded Baker.

Third Quarter 2025 Financial Results

Revenue for the third quarter of 2025 totaled $166.7 million, an increase of 5% compared to the second quarter of 2025 revenue of $159.0 million. The increase in revenue reflects a seasonal market activity increase. On a product line basis, drilling, completion, production and intervention services contributed approximately 15%, 60%, 16% and 9%, respectively, to revenue for the third quarter of 2025.

Net loss for the third quarter of 2025 was $(14.3) million, compared to the second quarter of 2025 net loss of $(19.9) million. Adjusted net loss for the third quarter of 2025 was $(14.0) million, compared to the second quarter of 2025 adjusted net loss of $(17.0) million. Adjusted EBITDA for the third quarter of 2025 was $21.1 million, compared to the second quarter of 2025 Adjusted EBITDA of $18.5 million. Adjusted EBITDA margin for the third quarter of 2025 was 13%, compared to the second quarter of 2025 Adjusted EBITDA margin of 12%.

Third Quarter 2025 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, $1.8 million and $8.1 million, respectively, for the third quarter of 2025. Third quarter revenue represents a 6% sequential decrease over the second quarter of 2025, driven by tech services, frac rental and coiled tubing. Segment operating income decreased sequentially and segment Adjusted EBITDA decreased 22% sequentially. This quarter-over-quarter decrease in income and margin was a function of lower utilization in the third quarter of 2025 as compared to the second quarter of 2025.
• Southwest: Revenue, operating loss and Adjusted EBITDA for the Southwest segment, which includes the Permian and South Texas, was $56.6 million, $(3.4) million and $5.1 million, respectively, for the third quarter of 2025. Third quarter revenue represents a 4% sequential decrease over the second quarter of 2025, driven by rentals, flowback and directional drilling. Segment operating loss decreased sequentially and Adjusted EBITDA decreased sequentially 29% due to mix shift, increased white space and lower pricing.
• Northeast/Mid-Con: Revenue, operating income and Adjusted EBITDA for the Northeast/Mid-Con segment was $59.3 million, $6.6 million and $14.5 million, respectively, for the third quarter of 2025. Third quarter revenue represents a 29% sequential increase over the second quarter of 2025 due to improved KLX completions utilization and increased regional gas-focused activity. Segment operating income increased by 608% and segment Adjusted EBITDA increased 101% as compared to the second quarter of 2025 due to improved utilization and decreased white space.
• Corporate and other: Operating loss and Adjusted EBITDA loss for the Corporate and other segment were $(8.0) million and $(6.6) million, respectively, for the third quarter of 2025. Corporate operating loss decreased due to a decrease in selling, general and administrative expenses in the third quarter of 2025 as compared to the second quarter of 2025 driven by reduced overhead, lower third-party costs, and recovery of a legal claim.

The following is a tabular summary of revenue, operating (loss) income and Adjusted EBITDA (loss) for the third quarter ended September 30, 2025, the second quarter ended June 30, 2025 and the third quarter ended September 30, 2024 ($ in millions).

		Three Months Ended
		September 30, 2025		June 30, 2025		September 30, 2024
Revenue:
Rocky Mountains		$                                50.8		$                                54.1		$                                67.9
Southwest		56.6		58.8		68.6
Northeast/Mid-Con		59.3		46.1		52.4
Total revenue		$                              166.7		$                              159.0		$                              188.9
		Three Months Ended
		September 30, 2025		June 30, 2025		September 30, 2024
Operating (loss) income:
Rocky Mountains		$                                  1.8		$                                  3.3		$                                  9.7
Southwest		(3.4)		(1.7)		0.7
Northeast/Mid-Con		6.6		(1.3)		2.0
Corporate and other		(8.0)		(9.0)		(11.3)
Total operating (loss) income		$                                (3.0)		$                                (8.7)		$                                  1.1
		Three Months Ended
		September 30, 2025		June 30, 2025		September 30, 2024
Adjusted EBITDA (loss)
Rocky Mountains		$                                  8.1		$                                10.4		$                                16.6
Southwest		5.1		7.2		8.7
Northeast/Mid-Con		14.5		7.2		10.9
Segment total		27.7		24.8		36.2
Corporate and other		(6.6)		(6.3)		(8.4)
Total Adjusted EBITDA(1)		$                                21.1		$                                18.5		$                                27.8

(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 September 30, 2025, cash and cash equivalents totaled $8.3 million and the Company had availability of $56.9 million on the ABL Facility August borrowing base certificate, including availability on an undrawn FILO facility, resulting in a total liquidity position of $65.2 million.

Net Working Capital as of September 30, 2025 was $50.1 million, a 9% increase from June 30, 2025 driven by a 5% sequential increase in revenue and a reduction in accrued liabilities. We expect to operate with a lower cash balance than in prior periods due to the flexibility provided by the new ABL Facility, and we continue to expect to improve our liquidity as we navigate the remainder of the year.

Other Financial Information

Capital expenditures were $12.0 million during the third quarter of 2025, a decrease of $(0.7) million or 6% compared to the second quarter of 2025. Capital expenditures net of asset sales and other proceeds were $7.8 million during the third quarter of 2025, a decrease of $(3.3) million or 30% compared to capital expenditures net of asset sales of $11.1 in the second quarter of 2025. Capital spending during the third quarter was driven primarily by maintenance capital expenditures across our segments.

Conference Call Information

KLX will conduct its third quarter 2025 conference call, which can be accessed via dial-in or webcast, on Thursday, November 6, 2025 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 November 20, 2025, and may be accessed by dialing 1-201-612-7415 and using passcode 13756620#. 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 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; 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.

Contacts:	KLX Energy Services Holdings, Inc.
	Keefer M. Lehner, EVP & CFO
	832-930-8066
	IR@klx.com
	Dennard Lascar Investor Relations
	Ken Dennard / Natalie Hairston
	713-529-6600
	KLXE@dennardlascar.com

 

KLX Energy Services Holdings, Inc. Condensed Consolidated Statements of Operations (In millions of U.S. dollars and shares, except per share data) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Revenues	$                               166.7		$                               159.0		$                               188.9
Costs and expenses:
Cost of sales	130.5		125.6		142.3
Depreciation and amortization	23.2		23.7		23.9
Selling, general and administrative	15.6		18.0		21.2
Research and development costs	0.4		0.4		0.4
Operating (loss) income	(3.0)		(8.7)		1.1
Non-operating expense:
Interest income	(0.0)		(0.0)		(0.7)
Interest expense	11.1		11.0		9.8
Net loss before income tax	(14.1)		(19.7)		(8.0)
Income tax expense	0.2		0.2		0.2
Net loss	$                               (14.3)		$                               (19.9)		$                                 (8.2)
Net loss per common share:
Basic	$                               (0.74)		$                               (1.04)		$                               (0.51)
Diluted	$                               (0.74)		$                               (1.04)		$                               (0.51)
Weighted average common shares:
Basic	19.2		19.2		16.2
Diluted	19.2		19.2		16.2

 

KLX Energy Services Holdings, Inc. Condensed Consolidated Balance Sheets (In millions of U.S. dollars and shares, except per share data) (Unaudited)
	September 30, 2025		December 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$                               8.3		$                             91.6
Restricted cash(1)	0.1		—
Accounts receivable–trade, net of allowance of $0.8 and $4.2	110.6		96.9
Inventories, net	32.7		31.0
Prepaid expenses and other current assets	12.5		13.5
Total current assets	164.2		233.0
Property and equipment, net(2)	167.9		197.1
Operating lease assets	18.4		19.6
Intangible assets, net	1.2		1.5
Other assets	6.5		5.1
Total assets	$                          358.2		$                          456.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$                             71.2		$                             74.4
Accrued interest	1.2		4.5
Accrued liabilities	34.5		41.3
Current portion of long-term debt	4.5		—
Current portion of operating lease obligations	6.6		6.9
Current portion of finance lease obligations	19.2		13.0
Total current liabilities	137.2		140.1
Long-term debt	254.7		285.1
Long-term operating lease obligations	12.3		13.5
Long-term finance lease obligations	14.4		26.4
Other non-current liabilities	0.8		1.7
Commitments, contingencies and off-balance sheet arrangements
Stockholders' equity:
Common stock, $0.01 par value; 110.0 authorized; 18.4 and 17.5 issued	0.2		0.2
Additional paid-in capital	569.3		557.5
Treasury stock, at cost, 0.5 shares and 0.5 shares	(6.2)		(5.8)
Accumulated deficit	(624.5)		(562.4)
Total stockholders' deficit	(61.2)		(10.5)
Total liabilities and stockholders' deficit	$                          358.2		$                          456.3

(1)	Restricted cash on the balance sheet is largely tied to cash collateralized letters of credit as the Company shifts to its current ABL Facility, and as of the date of this news release, none of the restricted cash remains restricted.
(2)	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 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 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 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 and restricted cash. 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 U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Consolidated net loss	$           (14.3)		$           (19.9)		$             (8.2)
Income tax expense	0.2		0.2		0.2
Interest expense, net	11.1		11.0		9.1
Operating (loss) income	(3.0)		(8.7)		1.1
One-time net costs (1)	0.3		2.9		1.8
Adjusted operating (loss) income	(2.7)		(5.8)		2.9
Depreciation and amortization	23.2		23.7		23.9
Non-cash compensation	0.6		0.6		1.0
Adjusted EBITDA	$             21.1		$             18.5		$             27.8

*Previously announced quarterly numbers may not sum to the year-end total due to rounding.

(1) The one-time costs during the third quarter of 2025 relate mainly to legal costs, operational costs and other.

 

KLX Energy Services Holdings, Inc. Consolidated Net Loss Margin(1) (In millions of U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Consolidated net loss	$       (14.3)		$       (19.9)		$         (8.2)
Revenue	166.7		159.0		188.9
Consolidated net loss margin percentage	(8.6) %		(12.5) %		(4.3) %

(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 U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Adjusted EBITDA	$         21.1		$         18.5		$         27.8
Revenue	166.7		159.0		188.9
Adjusted EBITDA Margin Percentage	12.7 %		11.6 %		14.7 %

(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 to Adjusted EBITDA (In millions of U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Rocky Mountains operating income	$               1.8		$               3.3		$               9.7
One-time costs (1)	0.1		0.5		—
Adjusted operating income	1.9		3.8		9.7
Depreciation and amortization expense	6.1		6.5		6.9
Non-cash compensation	0.1		0.1		—
Rocky Mountains Adjusted EBITDA	$               8.1		$             10.4		$             16.6

(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 U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Southwest operating (loss) income	$             (3.4)		$             (1.7)		$               0.7
One-time costs (1)	0.1		0.5		0.2
Adjusted operating (loss) income	(3.3)		(1.2)		0.9
Depreciation and amortization expense	8.4		8.4		7.8
Southwest Adjusted EBITDA	$               5.1		$               7.2		$               8.7

(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 U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Northeast/Mid-Con operating income (loss)	$               6.6		$             (1.3)		$               2.0
One-time costs (1)	(0.4)		0.1		—
Adjusted operating income (loss)	6.2		(1.2)		2.0
Depreciation and amortization expense	8.3		8.4		8.9
Northeast/Mid-Con Adjusted EBITDA	$             14.5		$               7.2		$             10.9

(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 U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Corporate and other operating loss	$             (8.0)		$             (9.0)		$           (11.3)
Impairment and other charges	—		—		—
One-time costs (1)	0.5		1.8		1.6
Adjusted operating loss	(7.5)		(7.2)		(9.7)
Depreciation and a mortization expense	0.4		0.4		0.3
Non-cash compensation	0.5		0.5		1.0
Corporate and other Adjusted EBITDA loss	$             (6.6)		$             (6.3)		$             (8.4)

(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. Segment Operating Income (Loss) Margin(1) (In millions of U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Rocky Mountains
Operating income	$           1.8		$           3.3		$           9.7
Revenue	50.8		54.1		67.9
Segment operating income margin percentage	3.5 %		6.1 %		14.3 %
Southwest
Operating (loss) income	$         (3.4)		$         (1.7)		$           0.7
Revenue	56.6		58.8		68.6
Segment operating (loss) income margin percentage	(6.0) %		(2.9) %		1.0 %
Northeast/Mid-Con
Operating income (loss)	$           6.6		$         (1.3)		$           2.0
Revenue	59.3		46.1		52.4
Segment operating income (loss) margin percentage	11.1 %		(2.8) %		3.8 %

(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 U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Rocky Mountains
Adjusted EBITDA	$           8.1		$         10.4		$         16.6
Revenue	50.8		54.1		67.9
Adjusted EBITDA Margin Percentage	15.9 %		19.2 %		24.4 %
Southwest
Adjusted EBITDA	$           5.1		$           7.2		$           8.7
Revenue	56.6		58.8		68.6
Adjusted EBITDA Margin Percentage	9.0 %		12.2 %		12.7 %
Northeast/Mid-Con
Adjusted EBITDA	$         14.5		$           7.2		$         10.9
Revenue	59.3		46.1		52.4
Adjusted EBITDA Margin Percentage	24.5 %		15.6 %		20.8 %

(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 U.S. dollars and shares, except per share amounts) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Consolidated net loss	$           (14.3)		$           (19.9)		$             (8.2)
One-time costs(1)	0.3		2.9		1.8
Adjusted Net Loss	$           (14.0)		$           (17.0)		$             (6.4)
Diluted weighted average common shares	19.2		19.2		16.2
Adjusted Diluted Loss per share(2)	$           (0.73)		$           (0.88)		$           (0.40)

*Previously announced quarterly numbers may not sum to the year-end total due to rounding.

(1) The one-time costs during the third quarter of 2025 relate mainly to legal costs, operational 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 U.S. dollars) (Unaudited)
	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Net cash flow provided by operating activities	$               13.5		$               19.1		$               16.8
Capital expenditures	(12.0)		(12.7)		(21.0)
Proceeds from sale of property and equipment and other proceeds	4.2		1.6		2.6
Levered Free Cash Flow	5.7		8.0		(1.6)
Add: Cash interest expense, net	5.1		3.9		9.1
Unlevered Free Cash Flow	$               10.8		$               11.9		$                 7.5

               

KLX Energy Services Holdings, Inc. Reconciliation of Current Assets and Current Liabilities to Net Working Capital (In millions of U.S. dollars) (Unaudited)
	As of
	September 30, 2025		June 30, 2025		December 31, 2024
Current assets	$                               164.2		$                               172.7		$                               233.0
Less: Cash and cash equivalents and restricted cash	8.4		17.3		91.6
Net current assets	155.8		155.4		141.4
Current liabilities	137.2		139.1		140.1
Less: Current portion of long-term debt	4.5		4.5		—
Less: Accrued interest	1.2		0.4		4.5
Less: Operating lease obligations	6.6		7.0		6.9
Less: Finance lease obligations	19.2		17.7		13.0
Net current liabilities	105.7		109.5		115.7
Net Working Capital	$                                 50.1		$                                 45.9		$                                 25.7

 

KLX Energy Services Holdings, Inc. Reconciliation of Net Debt(1) (In millions of U.S. dollars) (Unaudited)
	As of
	September 30, 2025		June 30, 2025		December 31, 2024
Total Debt	$                               259.2		$                               258.7		$                               285.1
Cash and cash equivalents and restricted cash	8.4		17.3		91.6
Net Debt	$                               250.8		$                               241.4		$                               193.5

(1) Net Debt is defined as total debt less cash and cash equivalents and restricted cash.

 

View original content:https://www.prnewswire.com/news-releases/klx-energy-services-holdings-inc-reports-third-quarter-2025-results-302606203.html

SOURCE KLX Energy Services Holdings, Inc.

FAQ

What were KLXE Q3 2025 revenue and net loss figures?

KLXE reported Q3 2025 revenue of $166.7M and a net loss of $(14.3)M.

How did KLXE adjusted EBITDA and margin perform in Q3 2025?

KLXE posted Adjusted EBITDA of $21.1M and an Adjusted EBITDA margin of 13%, a 14% sequential EBITDA gain.

What liquidity did KLXE report as of September 30, 2025?

KLXE reported $65.2M total liquidity, consisting of $8.3M cash and $56.9M ABL availability.

Which KLXE region showed the strongest Q3 2025 growth?

The Northeast/Mid-Con region led growth with revenue up 29% sequentially and Adjusted EBITDA up 101% sequentially.

What does KLXE expect for Q4 2025 revenue and margins?

Management expects a mid-single-digit revenue decline Q3 to Q4 2025 and anticipates stable Adjusted EBITDA margins.

How much did KLXE spend on capital expenditures in Q3 2025?

KLXE reported $12.0M of capital expenditures in Q3 2025 and $7.8M net of asset sales and proceeds.