Strong Revenue and EBITDA Growth
KLX Energy Services reported a 5% increase in revenue to $167 million and a 14% rise in adjusted EBITDA to $21 million from Q2 2025, surpassing prior guidance.
Northeast Mid-Con Segment Success
The Northeast Mid-Con segment saw a remarkable 29% increase in revenue quarter-over-quarter, significantly contributing to the company's overall performance. Adjusted EBITDA for this segment surged by 101%.
Operational Efficiency
Adjusted EBITDA margin improved by 100 basis points sequentially to 13%, highlighting the company's focus on field execution, efficiency, and cost control.
Improved Cost Structure
SG&A expenses decreased by 30% from the same period last year and improved 18% sequentially, reflecting successful cost structure initiatives.
Positive Free Cash Flow
The company reported $11 million in unlevered free cash flow for Q3 and expects strong free cash flow in Q4 due to working capital trends and asset sales.