Aug 10, 2026, 4:21 PM ETEnergy

KLX Energy Services Holdings, Inc. — Second Quarter 2026 Earnings Summary

KLXEKLX ENERGY SERVICES HOLDINGS INC

Financial Performance

Revenue totaled $167.3 million, a 15.6% increase from $144.7 million in the first quarter of 2026.
Net loss was $(8.4) million, an improvement from $(24.0) million in the first quarter of 2026; diluted loss per share was $(0.41), up 67% from $(1.23).
Adjusted EBITDA was $18.7 million, a 68% increase from $11.1 million in the first quarter of 2026.
Adjusted EBITDA margin was 11.2%, up from 7.7% in the first quarter of 2026.
Net loss margin was (5.0)%, an improvement from (16.6)%.
Total liquidity was $53.3 million, consisting of $7.9 million in cash and cash equivalents and $45.4 million available under the asset-based revolving credit facility.
Net Working Capital was $46.0 million, a 15% decrease from $54.4 million as of March 31, 2026.
Total debt was $288.9 million, resulting in Net Debt of $281.0 million as of June 30, 2026.
Capital expenditures were $8.6 million, a 1% decrease from $8.7 million in the first quarter of 2026.
Levered Free Cash Flow was $4.1 million, compared to $(5.0) million in the first quarter of 2026.
Unlevered Free Cash Flow was $6.6 million, compared to $(1.4) million in the first quarter of 2026.

Third quarter 2026 revenue is expected to range from $176 million to $188 million, with a midpoint of $182 million ($15 million higher than Q2).
Excluding Wolf Pack, the midpoint implies mid-single-digit sequential growth in the base business for Q3.
Management expects margins to continue increasing as activity builds, driving better fixed cost absorption.
The company expects to operate with a lower cash balance than in prior years due to the flexibility of the new ABL Facility and a strategy to minimize interest expense.
An additional working capital build is expected to support an anticipated increase in activity in the third quarter of 2026.

Revenue Mix: Completion services contributed 52%, drilling 23%, production 16%, and intervention services 9%.
Rocky Mountains: Revenue was $50.8 million (up 31.6% sequentially), driven by coiled tubing, tech services, and wireline; Adjusted EBITDA was $6.3 million (up 200.0% sequentially).
Southwest: Revenue was $64.5 million (up 20.3% sequentially), driven by coiled tubing, directional drilling, and accommodations; Adjusted EBITDA was $7.6 million (up 65.2% sequentially).
Northeast/Mid-Con: Revenue was $52.0 million (down 1.0% sequentially), driven by a decrease in flowback offset by increases in directional drilling and accommodations; Adjusted EBITDA was $12.5 million (up 14.7% sequentially).
Corporate and Other: Operating loss was $(3.4) million and Adjusted EBITDA loss was $(7.7) million; the operating loss decrease was driven by a $6.5 million bargain purchase gain from the Wolf Pack Acquisition.
Wolf Pack Acquisition: Closed on June 2, 2026; contributed $3.4 million in revenue during June, implying a current annual revenue run-rate of $41 million.
Base Business Growth: Excluding Wolf Pack, the base business grew more than 13% sequentially, outpacing the 5.8% increase in U.S. Land Rig Count.
Synergies: Full-year synergy estimates for the Wolf Pack Acquisition have increased to approximately $2.5 million.

U.S. Land Rig Count increased 5.8% sequentially.
Broader market expectations for activity are for flat performance, while KLX's base business is projected to grow mid-single-digits sequentially.
The company reports steady demand and solid execution across its portfolio.

Net Working Capital decreased 15% sequentially, driven by additional liabilities from the Wolf Pack Acquisition and timing of payrolls.
Adjusted EBITDA loss for the Corporate and other segment increased slightly to include higher fixed costs in the current quarter.
Forward-looking statements note risks including declines in demand, cyclical nature of the oil and gas industry, volatility in commodity prices, inflation, interest rate changes, geopolitical conflicts, supply chain issues, and economic conditions.

CEO Chris Baker stated results were "in line with our expectations."
Baker noted revenue was "essentially at the midpoint of our guidance."
Management described the integration of Wolf Pack as "swift and seamless" with numerous cross-selling opportunities realized.
The tone indicates confidence in the base business outperforming broader market activity expectations.

The company recorded a $6.5 million bargain purchase gain related to the Wolf Pack Acquisition.
Management intends to discuss the previously announced $125 million backstopped rights offering during the second quarter 2026 conference call.
$1.0 million of assets held for sale related to one facility and other equipment were reported as of June 30, 2026.
A conference call is scheduled for August 11, 2026, at 10:00 a.m. Eastern Time.