Klx Energy Services Holdings Stock Earnings Reports

KLX Energy Services reported Q3 2025 revenue of $167 million (up 5% sequentially, down 12% year-over-year) and adjusted EBITDA of $21 million (up 14% sequentially), with adjusted EBITDA margin improving ~100 bps sequentially to ~13%. Performance was driven by a strong Northeast Mid‑Con (29% revenue growth q/q) where completion-focused product lines, accommodations and flowback rebounded; Southwest and Rockies were softer due to lower Permian activity and episodic completion schedules. Management highlighted operational discipline, asset reallocation across a diversified footprint, and tight cost control (adjusted SG&A down ~30% y/y excluding one-offs). Balance sheet: ~$65M liquidity (cash $8.3M, $56.9M revolver availability), total debt $259.2M, in compliance with covenants; Q3 included $6M PIK interest but recent election was 100% cash interest. CapEx was $12M in Q3 ($7.8M net of sales); full-year gross CapEx guidance $43–48M, net $30–35M. Outlook: management expects a mid‑single-digit revenue decline Q3→Q4 (less pronounced seasonality than prior years) with stable adjusted EBITDA margins due to cost controls, improved fleet turnover and typical year‑end accrual dynamics. They see potential upside into 2026 as natural gas demand (LNG) ramps, and emphasize improved operating efficiency, portfolio flexibility, and preparedness to capture market recovery. Free cash flow should strengthen in Q4 due to working capital unwind and lower CapEx; management will continue to evaluate PIK vs. cash interest decisions and pursue asset sales to support liquidity.