#USA #Houston #Oilfield Services #KLX Energy #KLXE

KLX Energy Services Reports Strong Second Quarter Results Amid Market Challenges

On August 6, 2025, KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) announced its financial results for the second quarter of 2025, marking a notable uptick in revenue despite facing operational challenges. The company reported revenues amounting to $159 million, representing a 3% increase from the previous quarter. Interestingly, this uptick occurred even in a tight market characterized by a 7.3% drop in the US land rig count sequentially. Despite these promising figures, the company still faced a net loss of $20 million, translating to a diluted loss per share of $1.04.

Nonetheless, KLX demonstrated impressive operational resilience, posting an Adjusted EBITDA of $19 million, which is a significant 34% increase over the first quarter of 2025. The Adjusted EBITDA margin surged to 12%, reflecting a 30% improvement from the previous quarter. The total liquidity available to KLX stood at $65 million, comprising of around $17 million in cash and cash equivalents and $49 million in borrowing capacity under its asset-based revolving credit facility (ABL).

KLX’s President and CEO, Chris Baker, attributed this growth to the strategic execution of operational initiatives aimed at cost management, asset rotation, and optimizing pricing strategies. Baker stated, “Our solid second quarter revenue and Adjusted EBITDA results grew as we forecasted. We believe KLX’s strategic positioning, operational excellence, and improved financial flexibility position us to effectively manage the ongoing volatility in our markets.”

Operational Highlights and Segment Performance

In a detailed breakdown of operational outcomes, KLX reported segment-wise performance that exhibited varied results. The Rocky Mountains segment achieved revenues of $54.1 million, which reflects a 13.2% increase due to enhanced activity in coiled tubing, pressure pumping, and tech services. The Southwest segment, however, saw a drop in revenue to $58.8 million, a decrease of 9.8% driven largely by reduced activity in the Permian Basin. Conversely, the Northeast/Mid-Con segment recorded revenues of $46.1 million, marking a 12.4% increase owing to improved completions utilization and heightened regional natural gas activities.

The company’s detailed operational results underscore its capacity to adapt and navigate fluctuations in market demand. Despite reporting an operating loss of $8.7 million for the quarter, KLX managed to achieve a 24.8 million total Adjusted EBITDA, driven by better operational performance across multiple geographical segments. The substantial improvement in Adjusted EBITDA margins was notable as the Rocky Mountains segment displayed an impressive Adjusted EBITDA margin of 19.2%, indicating a strong operational footing.

Despite navigating challenges such as decreased activity in significant regions like the Permian Basin, the overall financial performance presents a picture of a company successfully leveraging operational efficiencies. Baker indicated that the company anticipates the subsequent third quarter to be strong, estimating a sequential revenue increase in a low to mid-single-digit percentage range, alongside continued margin expansion.

On the whole, KLX's strategic approach and commitment to optimizing its services amidst an evolving market landscape reveal a proactive and resilient operational ethos.

For more in-depth information, KLX Energy Services will host a conference call on Thursday, August 7, 2025, at 10:00 a.m. Eastern Time to discuss its latest financial results where further insights can be obtained. For the latest updates or queries, stakeholders are encouraged to visit KLX’s investor relations website.

KLX Energy Services Holdings, Inc. continues to fortify its role as a significant provider of diversified oilfield services to leading oil and natural gas exploration companies, underscoring its strategic positioning in the energy sector.