KLXE Q2 Earnings Miss Estimates, Revenue Down 11.5%

KLX Energy Services reported a Q2 loss of $0.88 per share, missing revenue estimates by 2.75%. The company has underperformed the market this year, with shares down 64.5%. The Zacks Rank is #3 (Hold), indicating the stock is expected to perform in line with the market in the near future.

KLX Energy Services Holdings Inc. (KLXE) reported a net loss of $19.9 million for the second quarter ended June 30, 2025, with a loss of $0.88 per share. This compares to a net loss of $27.9 million in the first quarter of 2025. Revenue for the quarter was $159 million, a 3.2% increase from the first quarter, but missed estimates by 2.75% [2].

The company's adjusted EBITDA was $18.5 million, up 34% from the first quarter. Adjusted EBITDA margin improved to 11.6% from 9.0% in the first quarter [2]. Total liquidity stood at $65 million, with $17 million in cash and cash equivalents, and $48.7 million in available borrowing capacity under the asset-based revolving credit facility [2].

Chris Baker, KLX President and Chief Executive Officer, stated, "Our solid 2025 second quarter revenue and Adjusted EBITDA results grew as we forecasted. Second quarter revenue was up 3.2% and Adjusted EBITDA margin increased by 260 basis points sequentially over the 2025 first quarter, despite the US land rig count being down (7.3)% sequentially. We continued to focus on the execution of our operational initiatives, including cost management, asset rotation, holding the line on pricing, and leaning into higher-margin work as spot activity remains soft. In the second quarter we saw significant strength and sequential improvement across our completions and production portfolios. Based on current schedules and several green shoots in our gassy basins, we expect the third quarter to be the strongest quarter of the year. We are again targeting a sequential quarterly revenue increase of low to mid-single digits on a percentage basis, with continued margin expansion. We believe KLX's strategic positioning, operational excellence, and improved financial flexibility position us to effectively manage the ongoing volatility in our markets," concluded Baker [2].

KLX shares have underperformed the market this year, with shares down 64.5%. The Zacks Rank is #3 (Hold), indicating 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-q2-earnings-212359598.html
[2] https://www.prnewswire.com/news-releases/klx-energy-services-holdings-inc-reports-second-quarter-2025-results-302523588.html