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KLX Energy Services Holdings, Inc. Q3 2025 Financial Results

KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) released its financial report for the third quarter ending September 30, 2025, unveiling significant insights into its operational performance amidst challenging market dynamics.

Financial Overview

The company's revenue for Q3 was reported at $167 million, representing a 5% increase from the previous quarter. However, KLX also noted a net loss of $14 million, translating to a diluted loss per share of $(0.74) and a consolidated net loss margin of (9%). This loss decreased from a net loss of $(19.9 million) in Q2 2025, reflecting operational improvements despite ongoing pressures within the commodity market.

Adjusting for certain costs, KLX reported an Adjusted EBITDA of $21 million, which is a 14% increase from the preceding quarter. The adjusted EBITDA margin saw a rise to 13%, up by 9% compared to the last quarter’s performance. The financial highlights underscore KLX's ongoing efforts to stabilize and improve its financial positioning in a volatile marketplace.

As of September 30, 2025, KLX's total liquidity stood at $65 million, which includes approximately $8 million in cash and cash equivalents and about $57 million available through its asset-based revolving credit facility. This strong liquidity position is critical as the company navigates through fluctuating market conditions and strives to maintain operational efficiency.

Strategic Resilience

Chris Baker, President and CEO of KLX, articulated that the third quarter was their strongest for the year in terms of growth and adaptability. He highlighted the strategic allocation of assets across KLX’s geographic footprint and emphasized the importance of focusing on field execution and cost efficiency. Despite a drop in average U.S. land rig counts and frac spread counts by 6% and 12% respectively, KLX has managed to secure increased activity by optimizing its resources.

The growth was particularly evident in the company's completion-oriented product lines, especially within the Mid-Con/Northeast region, which showed marked improvement. Baker stated, “By enhancing asset and crew utilization, KLX has demonstrated its ability to capture additional activities across key basins.” He noted that while the company anticipates a modest decline in activity for the fourth quarter due to seasonal effects and exhaustion of customer budgets, stable adjusted EBITDA margins are expected to continue due to new project awards and diligent cost management.

Detailed Segment Analysis

KLX reports financial performance across three primary geographic segments: Rocky Mountains, Southwest, and Northeast/Mid-Con. In the Rocky Mountains segment, revenue decreased by 6% sequentially to $50.8 million, driven by tech services and frac rentals. The segment reported a decline in both operating income and Adjusted EBITDA, reflecting lower utilization.

In contrast, the Northeast/Mid-Con segment showed a 29% increase in revenue to $59.3 million, earning $6.6 million in operating income. This highlighted the effectiveness of KLX’s completion services, marking a 101% increase in Adjusted EBITDA within this segment. The Southwest segment, however, encountered challenges, reflecting a sequential 4% revenue decrease due to pressures on rentals and pricing, resulting in an operating loss.

Future Outlook

Looking ahead, KLX anticipates that typical seasonal changes and customer budget exhaustion could moderate activity levels in the fourth quarter. The company estimates a mid-single-digit revenue decline from Q3 to Q4. Despite this potential downturn, KLX remains optimistic about maintaining stable margins and securing new projects as they navigate the changing landscape.

KLX Energy Services remains committed to positioning itself as a resilient provider of oilfield services, leveraging its broad geographic coverage and specialized offerings to meet evolving industry demands in the U.S. market.

For more detailed information, KLX is set to discuss its Q3 2025 results further during its conference call on November 6, 2025.