KLX Energy Services Holdings (KLXE) AI Stock Analysis

• Market Cap: $55.27M
• Dividend Yield: N/A
• Average Volume (3M): 92.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: -12.57%
• EPS Growth: -45.75%
• Country: US
• Employees: 1,726
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.76
• Shares Outstanding: 19,529,045
• 10 Day Avg. Volume: 73,934
• 30 Day Avg. Volume: 92,206
• PEG Ratio: -0.02
• Price to Book (P/B): -0.48
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.85
• Enterprise Value/Market Cap: 6.57
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 9.10
• Enterprise Value/Ebitda: 5.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -3.12
• Revenue Forecast (FY): $644.80M

• Rating: 45 Neutral
• Price Target: $2.50 ▲(19.62% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by weak financial performance (recent losses, negative free cash flow, and a highly leveraged/negative-equity balance sheet). Technicals are mildly supportive with price above key moving averages, while valuation support is limited due to a negative P/E and no dividend data. Earnings call commentary is mixed: operational improvements and disciplined capex are offset by near-term softness and leverage/covenant risk.

Positive Factors

Quarterly margin expansion

Sustained improvement to adjusted EBITDA and a 14% Q4 margin indicates the company can extract better operating leverage and control costs across its service lines. If maintained, healthier margins support cash flow resilience and buffer through seasonality and cyclical demand swings over the next 2–6 months.

Gas‑focused market positioning

Growing exposure to gas‑led basins and a strong Northeast/Mid‑Con margin profile (high single‑digit/low double‑digit EBITDA margins) provide structural demand diversification from oil‑directed basins. This positions the firm to benefit from regional gas activity cycles and structural demand resilience over coming months.

Improved cash generation and capex discipline

Recent quarter cash flow improvement and lower, maintenance‑weighted capex guidance indicate management is prioritizing free cash generation and fleet maintenance over growth spending. That discipline helps shore up liquidity and reduces refinancing pressure given the firm’s leveraged position across the next several quarters.

Negative Factors

Highly leveraged balance sheet

Material absolute debt levels and negative equity reduce financial flexibility and increase refinancing and covenant risk. Over the next 2–6 months this limits the company’s ability to invest behind demand recovery or withstand further cash flow volatility without dilutive or costly capital solutions.

Deteriorating free cash flow trend

A multi‑year slide from positive to negative free cash flow undermines self‑funding of operations and debt service. Persistent negative FCF increases reliance on credit lines, PIK interest, or asset sales, raising solvency risk and constraining strategic optionality across the intermediate term.

Revenue declines and recurring net losses

Consecutive annual revenue declines and recent net losses signal underlying demand or pricing pressure and limit operating leverage benefits. Continued top‑line contraction makes margin recovery harder and heightens the probability that liquidity and covenant pressures persist absent sustained revenue stabilization.

KLX Energy Services Holdings Business Overview & Revenue Model

Company Description

KLX Energy Services Holdings, Inc. provides drilling, completions, production, and well intervention services and products to the onshore oil and gas producing regions of the United States. The company operates through three segments: Southwest, Rocky Mountains, and Northeast/Mid-Con. It provides directional drilling services; and downhole navigational and rental tools businesses and support services, including well planning, site supervision, accommodation rentals, and other drilling rentals. The company also offers coiled tubing and nitrogen services; pressure control products and services; wellhead and hydraulic fracturing rental products and services; flowback and testing services; and wireline services. In addition, it offers toe sleeves; wet shoe cementing bypass subs; composite plugs; dissolvable plugs; liner hangers; stage cementing tools, inflatables, float and casing equipment; retrievable completion tools; cementing products and services; thru-tubing technologies and services; rig assist snubbing services; and acidizing and pressure pumping services. Further, the company provides production services comprising maintenance-related intervention services; production blow out presenters; mechanical wireline services; slick line services; hydro-testing services; premium tubulars; and other specialized production tools. It also provides intervention services consisting of technicians and equipment that are focused on providing customers engineered solutions to downhole complications. The company offers a range of technical services, and related tools and equipment to companies engaged in the exploration and development of North American onshore conventional and unconventional oil and natural gas reserves. KLX Energy Services Holdings, Inc. was incorporated in 2018 and is headquartered in Houston, Texas.

How the Company Makes Money

KLXE makes money primarily by delivering oilfield services and renting/selling specialized equipment required for well completion, intervention, and production operations. Revenue is generally earned on a per-job, per-day, or per-tool basis depending on the service line and customer contract structure. Key revenue drivers typically include (1) activity levels and spending by exploration and production (E&P) customers (e.g., completion and workover intensity), (2) pricing for service crews and equipment rentals, and (3) utilization of the company’s tool fleet and field personnel. The company’s earnings are therefore influenced by U.S. onshore oil and gas capital expenditure cycles, commodity-price-driven customer budgets, and the company’s ability to maintain high equipment utilization, control operating costs, and execute jobs safely and efficiently. Specific material partnerships: null.

KLX Energy Services Holdings Financial Statement Overview

Summary

Weak fundamentals: revenue declined in 2024 and 2025 with sizable net losses, free cash flow turned negative in 2024 and worsened in 2025, and the balance sheet is highly leveraged with negative equity (limited cushion alongside ongoing losses).

Income Statement

Profitability has deteriorated meaningfully after a strong 2023. Revenue fell in 2024 and again in 2025 (annual), and the company swung from a small profit in 2023 to sizable net losses in 2024 and deeper losses in 2025. Gross margin remains positive (~21–24% in 2022–2025), but operating performance has been volatile (EBIT positive in 2023, negative in 2024, positive again in 2025) and net margins are still materially negative in the last two years—suggesting the cost structure below gross profit (interest, depreciation/amortization, or other expenses) is weighing on bottom-line results.

Balance Sheet

The balance sheet is the key weak point. Debt stays high (~$318M–$365M from 2023–2025) while equity is negative in 2024 and 2025, indicating an over-levered capital structure and limited balance-sheet cushion. Total assets have also declined from 2023 to 2025, and the negative equity makes leverage metrics unfavorable and raises refinancing/financial-flexibility risk, especially alongside ongoing net losses.

Cash Flow

Cash generation has been inconsistent. Operating cash flow was strong in 2023 and positive in 2024, but it dropped sharply to a small positive level in 2025 (annual). Free cash flow was solidly positive in 2023, then turned negative in 2024 and became more negative in 2025, indicating elevated spending and/or weaker cash earnings versus prior years. While the business can generate cash in better conditions, the recent reversal to negative free cash flow reduces flexibility given the leveraged balance sheet.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	636.60M	709.30M	888.40M	781.60M	436.10M
Gross Profit	39.90M	159.60M	215.90M	160.30M	-6.40M
EBITDA	64.90M	81.00M	131.50M	89.30M	-10.20M
Net Income	-77.10M	-53.00M	19.20M	-3.10M	-93.80M
Balance Sheet
Total Assets	340.30M	456.30M	539.80M	465.90M	387.70M
Cash, Cash Equivalents and Short-Term Investments	5.70M	91.60M	112.50M	57.40M	28.00M
Total Debt	318.30M	344.90M	365.40M	350.90M	336.90M
Total Liabilities	413.40M	466.80M	501.00M	481.70M	439.10M
Stockholders Equity	-74.20M	-10.50M	38.80M	-15.80M	-51.40M
Cash Flow
Free Cash Flow	-41.60M	-10.90M	58.50M	-19.90M	-66.60M
Operating Cash Flow	7.50M	54.20M	115.60M	15.70M	-55.60M
Investing Cash Flow	-32.90M	-51.10M	-39.70M	-18.70M	4.50M
Financing Cash Flow	-60.50M	-24.00M	-20.80M	32.40M	32.00M

KLX Energy Services Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLXE, the sentiment is Positive. The current price of 2.09 is below the 20-day moving average (MA) of 2.65, below the 50-day MA of 2.49, and above the 200-day MA of 2.01, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 52.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KLXE.

KLX Energy Services Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	79 Outperform	$175.79M	4.31	21.91%	―	16.61%	-72.29%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SND	59 Neutral	$177.64M	116.13	0.57%	―	18.98%	―
DTI	49 Neutral	$129.13M	17.71	-3.08%	―	7.46%	-165.76%
KLXE	45 Neutral	$55.27M	-0.60	148.20%	―	-12.57%	-45.75%
DWSN	45 Neutral	$152.13M	-11.83	-19.72%	―	-22.31%	39.11%

KLX Energy Services Holdings Corporate Events

KLX Energy Services Highlights Q4 Margin Improvement Amid Slowdown

KLX Energy Services reported 2025 full-year revenue of $637 million and a net loss of $77 million, alongside adjusted EBITDA of $76 million and a 12% adjusted EBITDA margin, while ending the year with $56 million of liquidity as of December 31, 2025. For the fourth quarter of 2025, announced on March 11, 2026, revenue slipped to $156.8 million due to typical seasonal slowdowns, but adjusted EBITDA margin improved to 14.3%, with management citing cost discipline, strategic capital deployment and growing gas-focused activity—particularly in the Northeast/Mid-Con segment—as key drivers, even as winter weather and budget exhaustion weighed on activity in other regions.

The most recent analyst rating on (KLXE) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on KLX Energy Services Holdings stock, see the KLXE Stock Forecast page.