Improved Adjusted EBITDA Margin
KLX Energy Services reported an improved adjusted EBITDA margin in Q1 2025, increasing by 208 basis points over last year's first quarter despite revenue and rig count being down 12% and 5%, respectively.
Southwest Segment Performance
The Southwest segment posted its strongest quarterly results since Q3 2023, with revenue increasing by 6% sequentially and adjusted EBITDA up 22%.
Successful Refinancing and Increased Financial Flexibility
KLX Energy Services successfully refinanced, reducing notes outstanding and increasing flexibility, including the ability to pay interest in kind, which was utilized in early April.
Strong Customer Relationships and Strategic Initiatives
The company continues to expand its market leadership position across its rentals and tech services PSLs, with the development of a Gen 2 version of the Oracle SRT tool.