KLX Energy Services Q2 2025 Results: Revenue Falls Short of Estimates, EPS Misses by 56.7%

KLX Energy Services reported Q2 2025 revenue of $159 million, below estimates, and a diluted loss per share of $(1.04), significantly lower than expected. The Rocky Mountains segment saw a 13.2% revenue increase, while the Southwest segment declined 9.8%. Despite a net loss of $(19.9) million, adjusted EBITDA improved 34% to $18.5 million. The company faces challenges, including a declining US land rig count and decreased activity in key regions.

KLX Energy Services (KLXE) reported its Q2 2025 financial results, showing a mixed performance with revenue falling short of expectations and a significant increase in net loss. The company reported a revenue of $159 million, which was below the Zacks Consensus Estimate of $162.1 million [1]. The diluted loss per share came in at $1.04, significantly lower than the expected loss of $0.62 per share [1]. Despite the challenging results, the company achieved a 34% increase in Adjusted EBITDA, reaching $18.5 million [3].

The company's performance varied across its geographical segments. The Rocky Mountains segment saw a 13.2% increase in revenue, while the Southwest segment experienced a 9.8% decline in revenue due to decreased activity in the Permian basin [3]. The Northeast/Mid-Con segment showed positive growth with a 12.4% increase in revenue [3].

KLX Energy Services faces several challenges, including a declining US land rig count and decreased activity in key regions. The company aims to reduce operational costs by 10% and achieve positive EBITDA by Q4 2025 [2]. The CEO, John Miller, cited rising supply chain costs and fluctuating demand for energy services as major challenges [2]. Despite the current headwinds, the company remains optimistic about its long-term growth prospects.

Investors should keep an eye on the company's earnings outlook and the industry's overall performance. The Zacks Rank for KLX Energy Services is currently #3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [1].

References:
[1] https://finance.yahoo.com/news/klx-energy-services-klxe-reports-223002239.html
[2] https://www.ainvest.com/news/klx-energy-services-2025-q2-earnings-wider-net-loss-148-8-2508/
[3] https://www.tipranks.com/news/company-announcements/klx-energy-services-reports-q2-2025-financial-results-2