KLX Q2 revenue down 7.7% YoY to $410.6mln.

• Klx Company reports Q2 2025 financial results. • Digital data not specifically mentioned in the provided article. • Forward-looking statements caution investors about future performance.

Klx Energy Services (NASDAQ: KLXE), a leading provider of oilfield services and technology, reported its Q2 2025 financial results on August 6, 2025. The company's revenue reached $159 million, up 3.2% sequentially from Q1 2025, despite a notable 7.3% decline in the U.S. land rig count. However, compared to the prior-year period, revenue dropped by 11.8%.

Adjusted EBITDA, a non-GAAP measure of profit before interest, taxes, depreciation, and amortization, was $18.5 million, with a margin of 11.6%. This represents a 3.4 percentage point decrease from Q2 2024 but a notable improvement from Q1. Levered free cash flow was $8 million, down from $10.2 million in Q2 2024.

The company's operational recovery was evident in the improved cost discipline and continued focus on cash generation and debt reduction. The balance sheet also benefited from a decline in net debt to $241.4 million as of June 30, 2025.

Segment-wise, the Rockies contributed $54.1 million in revenue, up $5 million from Q1, while the Southwest saw a $6.4 million decrease. The Northeast/Mid-Continent segment saw a $5.1 million increase. Completions services accounted for 56% of revenue, followed by drilling (16%) and production & intervention (28%).

Management attributed the margin recovery to increased asset use and tighter cost controls in the Rockies and Northeast/Mid-Continent, partly offset by softness in the Southwest. The company continues to emphasize its technology pipeline and customer diversification.

Looking ahead, KLX Energy Services expects another low to mid-single digit percentage revenue increase in Q3 2025, with continued expansion of adjusted EBITDA margin. The company's future performance will be influenced by sector demand trends, particularly U.S. land rig counts and activity in key basins like the Permian Southwest.

[1] https://www.nasdaq.com/articles/klx-energy-services-posts-3-sales-gain