Klx Energy Services Holdings Stock Earnings Reports

KLX reported Q1 2026 revenue of $145 million (near the low end of guidance) and adjusted EBITDA of $11.1 million (≈8% margin), reflecting typical Q1 seasonality, customer schedule disruptions and ~4–5 days of weather-related downtime from winter storm Fern. Management called Q1 the expected low point for 2026. Segment performance was mixed: Northeast/Mid‑Con led growth with revenue +28% YoY and adjusted EBITDA of $10.9 million (≈21% margin), driven by gas-directed activity (Haynesville and other gas basins). Rockies and Southwest were softer from winter seasonality and softer Permian activity, though management expects sequential improvement in all PSLs in Q2. KLX guided Q2 revenue of $162–$172 million (midpoint $167M), expecting sequential margin expansion and higher revenue-per-rig (above $310k, depending on rig count). Q1 net loss was about $24 million (−$1.23/share). SG&A fell ~29% YoY to $15.4M reflecting prior cost actions; CapEx was $8.7M (net ~$5.3M) and full-year gross CapEx is tracking below prior ~$40M guidance with a midyear refinement expected. Operating cash flow was ~$0.3M; unlevered FCF −$1.4M; levered FCF −$5M. Balance sheet: total debt ~$275.8M and liquidity ~$48M ($6M cash + ~$42M undrawn ABL). Interest payment policy: management PIKed interest 100% in March and expects to PIK 100% of interest for Q2 and Q3 2026, then 50/50 cash/PIK in Q4 (subject to change). Management emphasized a constructive but volatile macro backdrop (Middle East conflict, commodity volatility), confidence in gas‑weighted basin exposure, and expectations for a stronger second half of 2026 driven by larger operators (DUC activity) and a rebound from smaller independents/private operators. Key risks noted: commodity price volatility, seasonality, working capital volatility in Q1, and execution/people constraints in any rapid market ramp.