KLXE · KLX Energy Services Holdings, Inc.

KLX Energy Services reported first quarter 2026 results with revenue of $144.7 million, a 6% decline from $154.0 million in the prior year quarter, despite a 12% drop in average U.S. rig count, reflecting resilience in pricing or market share amid challenging conditions. The net loss narrowed to $24.0 million from $27.9 million year-over-year, though Adjusted EBITDA fell to $11.1 million (7.7% margin) from $13.8 million (9.0%), pressured by lower activity. Segment performance was mixed: Northeast/Mid-Con drove growth with revenue up 28% to $52.5 million and Adjusted EBITDA surging to $10.9 million on increased gas-focused activity, offsetting declines in Rocky Mountains (revenue down 19.2% to $38.6 million, Adjusted EBITDA down 68.7% to $2.1 million due to lower product activity) and Southwest (revenue down 17.8% to $53.6 million amid Permian slowdown, Adjusted EBITDA down 60.7% to $4.6 million from higher operating costs). Product line mix showed completion at 54% of revenue, followed by drilling (20%), production (16%), and intervention (10%). CEO Chris Baker attributed the lower-end revenue to winter storm Fern and over $5 million in customer delays pushed to Q2, while noting a volatile but constructive macro environment from commodity price bands, Middle East conflict, and Permian stabilization. Guidance signals recovery with Q2 revenue forecasted at $162-172 million (midpoint $167 million, 5% above Q2 2025 and $22 million above Q1 2026), expecting growth across all segments, product lines, and improved Adjusted EBITDA margins from higher activity and overhead absorption. Balance sheet shows $47.7 million liquidity (cash $5.6 million, ABL availability $36.3 million plus $5.8 million FILO), with Net Working Capital at $54.4 million up 10% from year-end due to higher DSO and lower accruals. Capex of $8.7 million focused on maintenance supports operational continuity.