Full Year 2025 Financial Highlights
Revenue of $637 million
Net loss of $(77) million, net loss margin of (12)% and diluted loss per share of $(4.12)
Adjusted EBITDA of $76 million
Adjusted EBITDA margin of 12%
Total liquidity of $56 million as of December 31, 2025, consisting of approximately $6 million of cash and cash equivalents, and approximately $50 million of available borrowing capacity under the asset-based revolving credit facility
Fourth Quarter 2025 Financial Highlights
Revenue of $157 million
Net loss of $(15) million, net loss margin of (10)% and diluted loss per share of $(0.78)
Adjusted EBITDA of $23 million and Adjusted EBITDA margin of 14%, an increase of 7% and 13% over the third quarter, respectively
See "Non-GAAP Financial Measures" at the end of this release for a discussion of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income (Loss), Adjusted Net Loss, Adjusted Diluted Loss per share, Unlevered and Levered Free Cash Flow, Net Working Capital, Net Debt and their reconciliations to the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We have not provided reconciliations of our future expectations as to Adjusted EBITDA or Adjusted EBITDA margin as such reconciliations are not available without unreasonable efforts.
Chris Baker, KLX President and Chief Executive Officer, stated, "KLX delivered a very strong finish to 2025. The fourth quarter was our most profitable of the year, and both Adjusted EBITDA and Adjusted EBITDA margin were at their 2025 highs, driven by a more muted fourth quarter revenue decline, typical year-end accrual unwinds and incremental revenue in our natural gas portfolio. Throughout 2025, we continued to optimize our corporate cost structure and thoughtfully invested in our product lines, while leaning into gas-weighted asset allocation as we realigned certain PSLs and benefited from capacity rationalization in the industry.
"Our focus on cost discipline, strategic capital deployment and the preservation of our talented workforce, allowed us to grow earnings in the back half of the year in spite of persistent commodity price volatility and softer activity in certain basins. Operationally, the Northeast/Mid-Con segment was the standout in the quarter. Despite typical winter weather and year-end budget dynamics, that segment held revenue essentially flat sequentially and again expanded margins, driven by robust demand in our gas-directed work. Our dry gas exposure continued to grow as a share of the portfolio, and gas-levered revenue has steadily been marching back toward prior cycle peaks.
"We expect the first quarter to be impacted by seasonality and winter storm Fern, which led to the loss of approximately four to five working days in many districts. However, as the year progresses, we should return to the stronger run-rate we delivered in the second half of 2025," concluded Baker.
Fourth Quarter 2025 Financial Results
Revenue for the fourth quarter of 2025 totaled $156.8 million, a decrease of 5.9% compared to third quarter revenue of $166.7 million. The decrease in revenue reflects a decrease in activity in addition to the expected seasonal decline in the fourth quarter. On a product line basis, drilling, completion, production and intervention services contributed approximately 18%, 58%, 16% and 8%, respectively, to revenues for the fourth quarter 2025.
Net loss for the fourth quarter of 2025 was $(15.0) million, compared to fourth quarter of 2024 net loss of $(14.7) million. Adjusted net loss for the fourth quarter of 2025 was $(14.5) million, compared to fourth quarter of 2024 adjusted net loss of $(13.1) million. Adjusted EBITDA for the fourth quarter of 2025 was $22.5 million, compared to fourth quarter of 2024 Adjusted EBITDA of $22.7 million. Adjusted EBITDA margin for the fourth quarter of 2025 was 14.3%, compared to fourth quarter of 2024 Adjusted EBITDA margin of 13.7%.
Fourth Quarter 2025 Segment Results
The Company reports revenue, operating income (loss) and Adjusted EBITDA through three geographic business segments: Rocky Mountains, Southwest and Northeast/Mid-Con. The Company reports operating activities not attributable to an individual geographic business segment as Corporate and other. Segment results are reported after inter-segment eliminations.
Rocky Mountains: Revenue, operating income and Adjusted EBITDA for the Rocky Mountains segment was $46.3 million, $0.8 million and $6.9 million, respectively, for the fourth quarter of 2025. Fourth quarter revenue represents a 8.9% decrease over the third quarter of 2025 largely due to winter holiday seasonality and budget exhaustion, which affected all of our regional completion and intervention offerings, including coiled tubing, frac rentals and tech services. Segment operating income and Adjusted EBITDA decreased 55.6% and 14.8%, respectively, as a function of the seasonal decrease in activity, which is expected to correct as we exit the first quarter of 2026.
Southwest: Revenue, operating loss and Adjusted EBITDA for the Southwest segment, which includes the Permian and South Texas, was $50.9 million, $(1.6) million and $6.8 million, respectively, for the fourth quarter of 2025. Fourth quarter revenue represents a 10.1% decrease over the third quarter of 2025 largely due to annual seasonality due to budget exhaustion and winter holiday breaks, which affected most product service lines in the region, including frac rental, tech services and coiled tubing. Segment operating loss and Adjusted EBITDA improved 52.9% and 33.3%, respectively, due largely to a shift in revenue mix and reduced overhead, including headcount and vehicle fleet.
Northeast/Mid-Con: Revenue, operating income and Adjusted EBITDA for the Northeast/Mid-Con segment was $59.6 million, $6.5 million and $15.1 million, respectively, for the fourth quarter of 2025. Fourth quarter revenue represents a 0.5% increase over the third quarter of 2025 driven by increased activity in the Northeast, offset by a seasonal decrease in coiled tubing and frac rental. Segment operating income decreased 1.5% and Adjusted EBITDA increased 4.1%, as a result of slightly higher one-time costs and depreciation and amortization.
Corporate and other: Operating loss and Adjusted EBITDA loss for Corporate and other were $(7.9) million and $(6.3) million, respectively, for the fourth quarter of 2025. Segment operating loss and Adjusted EBITDA loss remained largely in line with prior quarter.
The following is a tabular summary of revenue, operating income (loss) and Adjusted EBITDA (loss) for the fourth quarter ended December 31, 2025, the third quarter ended September 30, 2025 and the fourth quarter ended December 31, 2024 ($ in millions).
Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
Revenue:
Rocky Mountains
$ 46.3
$ 50.8
$ 54.0
Southwest
50.9
56.6
61.4
Northeast/Mid-Con
59.6
59.3
50.1
Total revenue
$ 156.8
$ 166.7
$ 165.5
Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
Operating (loss) income:
Rocky Mountains
$ 0.8
$ 1.8
$ 4.7
Southwest
(1.6)
(3.4)
1.1
Northeast/Mid-Con
6.5
6.6
0.3
Corporate and other
(7.9)
(8.0)
(11.1)
Total operating (loss) income
$ (2.2)
$ (3.0)
$ (5.0)
Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
Adjusted EBITDA (loss)
Rocky Mountains
$ 6.9
$ 8.1
$ 11.8
Southwest
6.8
5.1
9.6
Northeast/Mid-Con
15.1
14.5
9.8
Segment total
28.8
27.7
31.2
Corporate and other
(6.3)
(6.6)
(8.5)
Total Adjusted EBITDA(1)
$ 22.5
$ 21.1
$ 22.7
(1)
Excludes one-time costs, as defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA table below, non-cash compensation expense and non-cash asset impairment expense.
Balance Sheet and Liquidity
Total debt outstanding as of December 31, 2025 was $258.3 million. As of December 31, 2025, cash and cash equivalents totaled $5.7 million. Available liquidity as of December 31, 2025 was $56.3 million, including availability of $50.6 million on the December 2025 asset-based revolving credit facility (the "ABL Facility") borrowing base certificate. The senior secured notes (the "2030 Senior Notes") bear interest at a variable annual rate, which as of December 31, 2025 was approximately 12.3%. Accrued interest as of December 31, 2025 was $0.0 million for the 2030 Senior Notes and $0.4 million related to the ABL Facility.
Net working capital as of December 31, 2025 was $49.5 million, a 93% increase from December 31, 2024, driven by a decrease in days payable outstanding and an increase in days sales outstanding.
Other Financial Information
Capital expenditures were $9.4 million during the fourth quarter of 2025. Fourth quarter capital expenditures decreased by $2.6 million or 21.7% compared to capital expenditures of $12.0 million in the third quarter of 2025. Capital spending during the fourth quarter was driven primarily by maintenance capital expenditures across our segments.
Indenture Amendment and Issuance of Warrants
On March 6, 2026, we entered into an amendment (the "First Amendment to the Indenture") to the indenture dated March 12, 2025 relating to our 2030 Senior Notes, to provide financial covenant relief, including (i) extending and resetting the step-down schedule for the maximum total net leverage ratio covenant, (ii) a temporary holiday to exclude capital lease obligations from the leverage ratio calculation for certain testing periods, and (iii) clarifying that proceeds from our at-the-market offering program may be applied as an equity cure. In connection with the entry into the First Amendment to the Indenture, on March 6, 2026 and March 11, 2026, we issued to our noteholders, based on their pro rata ownership of principal amount of the 2030 Senior Notes, warrants to purchase, in aggregate, up to 803,712 shares of our common stock at an exercise price of $0.01 per share, subject to adjustment (the "Warrants"). The Warrants expire five years from their respective date of issuance. Other than the issuance date and the expiration date, the terms of the Warrants are consistent with the warrants issued in March 2025 in connection with our issuance of the 2030 Senior Notes.
Conference Call Information
KLX will conduct its fourth quarter 2025 conference call, which can be accessed via dial-in or webcast, on Thursday, March 12, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) by dialing 1-201-389-0867 and asking for the KLX conference call at least 10 minutes prior to the start time, or by logging onto the webcast at https://investor.klx.com/events-and-presentations/events. For those who cannot listen to the live call, a replay will be available through March 26, 2026, and may be accessed by dialing 1-201-612-7415 and using passcode 13758819#. Also, an archive of the webcast will be available shortly after the call at https://investor.klx.com/events-and-presentations/events for 90 days. Please submit any questions for management prior to the call via email to [email protected].
About KLX Energy Services Holdings, Inc.
KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States. The Company delivers mission critical oilfield services focused on drilling, completion, production, and intervention activities for technically demanding wells from over 60 service and support facilities located throughout the United States. KLX's complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair and maintenance capabilities. More information is available at www.klx.com.
Forward-Looking Statements and Cautionary Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information to investors. This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) includes forward-looking statements that reflect our current expectations and projections about our future results, performance and prospects. Forward-looking statements include all statements that are not historical in nature and are not current facts. When used in this news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein), the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," "could," "will" or the negative of these terms or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events with respect to, among other things: our operating cash flows; the availability of capital and our liquidity; our future revenue, income and operating performance; our ability to sustain and improve our utilization, revenue and margins; our ability to maintain acceptable pricing for our services; future capital expenditures; our ability to finance equipment, working capital and capital expenditures; our ability to execute our long-term growth strategy and to integrate our acquisitions; our ability to successfully develop our research and technology capabilities and implement technological developments and enhancements; and the timing and success of strategic initiatives and special projects.
Forward-looking statements are not assurances of future performance and actual results could differ materially from our historical experience and our present expectations or projections. These forward-looking statements are based on management's current expectations and beliefs, forecasts for our existing operations, experience, expectations and perception of historical trends, current conditions, anticipated future developments and their effect on us and other factors believed to be appropriate. Although management believes the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Our forward-looking statements involve significant risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks associated with the following: a decline in demand for our services, including due to overcapacity and other competitive factors affecting our industry; the cyclical nature and volatility of the oil and gas industry, which impacts the level of exploration, production and development activity and spending patterns by oil and natural gas exploration and production companies; a decline in, or substantial volatility of, crude oil and gas commodity prices, which generally leads to decreased spending by our customers and negatively impacts drilling, completion and production activity; inflation; changes in interest rates; the ongoing war in Ukraine and its continuing effects on global trade; the ongoing conflict and tensions in the Middle East; supply chain issues; general economic, financial and political conditions, including market volatility and the impact of imposition of increased, new and retaliatory tariffs; and other risks and uncertainties listed in our filings with the U.S. Securities and Exchange Commission, including our Current Reports on Form 8-K that we file from time to time, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law.
KLX Energy Services Holdings, Inc.
Condensed Consolidated Statements of Operations
(In millions of U.S. dollars and shares, except per share data)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Revenues
$ 156.8
$ 166.7
$ 165.5
$ 636.6
$ 709.3
Costs and expenses:
Cost of sales
121.5
130.5
127.4
501.5
549.7
Depreciation and amortization
23.7
23.2
25.1
95.2
94.0
Selling, general and administrative
13.3
15.6
17.6
68.5
79.6
Research and development costs
0.5
0.4
0.4
1.7
1.4
Impairment and other charges
—
—
—
—
0.1
Operating loss
(2.2)
(3.0)
(5.0)
(30.3)
(15.5)
Non-operating expense:
Interest income
(0.0)
(0.0)
(0.5)
(0.4)
(2.5)
Interest expense
12.6
11.1
10.2
45.2
39.4
Loss on debt extinguishment
—
—
—
1.2
—
Loss before income tax
(14.8)
(14.1)
(14.7)
(76.3)
(52.4)
Income tax expense
0.2
0.2
—
0.8
0.6
Net loss
$ (15.0)
$ (14.3)
$ (14.7)
$ (77.1)
$ (53.0)
Net loss per common share:
Basic
$ (0.78)
$ (0.74)
$ (0.90)
$ (4.12)
$ (3.27)
Diluted
$ (0.78)
$ (0.74)
$ (0.90)
$ (4.12)
$ (3.27)
Weighted average common shares:
Basic
19.2
19.2
16.3
18.7
