Revenue and EBITDA Growth
KLX reported Q2 2025 revenue of $159 million, up 3% from Q1, and adjusted EBITDA of $19 million, up 34% from Q1. Adjusted EBITDA margin improved by 260 basis points to 12%.
Strong Performance in Rockies and Northeast/Mid-Con Segments
Revenue increased meaningfully in the Rockies to 34% from 31% in Q1, and in the Northeast/Mid-Con to 29% from 27%. Adjusted EBITDA in the Rockies increased 55% sequentially.
Improvement in Cost Structure and SG&A Expenses
Total SG&A expense for Q2 was $18 million. Adjusted SG&A expense was $15.1 million, a 12% reduction from prior year Q2 and an 8% reduction from Q1 2025.
Increased Liquidity and Reduced Debt
KLX ended Q2 with approximately $65 million in liquidity, a 13% increase from Q1. Total debt decreased by 1% compared to Q1 levels.
Opportunities in Gas Basins
KLX saw a 25% increase in dry gas revenue quarter-over-quarter, indicating strong potential in gas-focused basins like Haynesville and the Northeast.