KLX Energy Services Reports 3% Revenue Growth in Q2 2025

KLX Energy Services reported Q2 2025 revenue of $159 million, a 3.2% increase from Q1 but an 11.8% decline from the prior-year period. Adjusted EBITDA was $18.5 million with a margin of 11.6%. The company's revenue was driven by improved utilization in the Rockies and Northeast/Mid-Continent regions, despite a 7.3% decline in U.S. land rig count. KLX Energy Services continues to focus on technology innovation, customer diversification, and operational flexibility to remain competitive in the oilfield services industry.

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, marking a 3.2% sequential increase from Q1 2025 but an 11.8% year-over-year (YoY) decline from the prior-year period [1]. Despite a notable 7.3% decrease in the U.S. land rig count, revenue was driven by improved utilization in the Rockies and Northeast/Mid-Continent regions.

Adjusted EBITDA, a non-GAAP measure of profit before interest, taxes, depreciation, and amortization, was $18.5 million, with a margin of 11.6% [1]. 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 [1].

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%) [1].

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 [1].

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].

References:
[1] https://www.ainvest.com/news/klx-q2-revenue-7-7-yoy-410-6mln-2508/
[2] https://www.nasdaq.com/articles/klx-energy-services-posts-3-sales-gain
[3] https://www.aol.com/finance/klx-energy-services-posts-3-202733199.html