KLX Energy Services Holdings (KLXE) AI Stock Analysis

• Market Cap: $28.18M
• Dividend Yield: N/A
• Average Volume (3M): 92.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• 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): -0.73
• Shares Outstanding: 17,838,125
• 10 Day Avg. Volume: 73,934
• 30 Day Avg. Volume: 92,206
• PEG Ratio: <0.01
• Price to Book (P/B): -7.68
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -7.40
• Enterprise Value/Market Cap: 12.07
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 5.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-11.24% Downside)

KLX Energy Services Holdings faces significant financial challenges, with high leverage and negative equity being major concerns. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio. While the earnings call provided some positive insights, particularly in revenue and EBITDA growth, ongoing market headwinds and segment-specific challenges remain. The overall score reflects these substantial risks.

Positive Factors

Revenue Growth

The revenue growth indicates a positive trend in business performance, driven by strong execution in key segments, which can enhance market position.

Operational Efficiency

Improved operational efficiency reflects effective cost management and execution, which can lead to sustainable margin improvements over time.

Positive Free Cash Flow

Generating positive free cash flow strengthens financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Negative Factors

Declining Revenue in Key Segments

Revenue declines in key segments like the Rockies can signal challenges in maintaining market share and could impact overall growth prospects.

High Financial Leverage

High financial leverage increases financial risk and can limit the company's ability to invest in growth or weather economic downturns.

Negative Revenue Growth

Ongoing negative revenue growth indicates potential market challenges and could hinder long-term profitability and competitive positioning.

KLX Energy Services Holdings Business Overview & Revenue Model

Company Description

KLX Energy Services Holdings, Inc. (KLXE) is a leading provider of integrated energy services to the oil and gas industry, focusing primarily on the exploration and production sectors. The company offers a wide range of services including well construction and completion, production enhancement, and maintenance services. KLXE operates through its various segments, which encompass pressure pumping, logistics, and other complementary services designed to optimize the performance of oil and gas operations.

How the Company Makes Money

KLX Energy Services generates revenue primarily through the provision of its specialized services to oil and gas companies. The company's revenue model is centered on service contracts, where it charges clients for the execution of well services, pressure pumping, and logistical support. Key revenue streams include pressure pumping services, which involve hydraulic fracturing for well stimulation; logistical services that ensure timely delivery of equipment and materials; and well maintenance services. Additionally, KLXE benefits from strategic partnerships with major oil and gas operators, which enhance its market reach and enable it to secure long-term contracts. Factors contributing to its earnings include fluctuating oil prices, demand for energy services, and the overall economic environment of the energy sector.

KLX Energy Services Holdings Financial Statement Overview

Summary

KLX Energy Services Holdings is facing financial challenges across all verticals. The income statement shows declining revenue and persistent losses. The balance sheet is burdened with high leverage and negative equity, raising concerns about financial stability. Cash flow issues further exacerbate the situation, with negative free cash flow growth and limited cash generation. Overall, the company needs to address these financial weaknesses to improve its financial health.

Income Statement

KLX Energy Services Holdings has faced declining revenue with a negative growth rate of -3.33% in the TTM period. The company struggles with profitability, evidenced by a negative net profit margin of -11.89% and an EBIT margin of -5.21%. The gross profit margin stands at 17.70%, indicating some ability to cover direct costs, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -5.16 in the TTM period, indicating more debt than equity. The negative stockholders' equity suggests financial instability. Return on equity is positive at 2.12%, but this is due to the negative equity base, which is not a healthy sign.

Cash Flow

Cash flow analysis shows challenges with a negative free cash flow growth rate of -13.27% in the TTM period. The operating cash flow to net income ratio is 0.15, indicating limited cash generation relative to net losses. The free cash flow to net income ratio is -1.62, reflecting cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	645.20M	709.30M	888.40M	781.60M	436.10M	276.80M
Gross Profit	114.20M	159.60M	215.90M	160.30M	-6.40M	-38.00M
EBITDA	63.10M	81.00M	131.50M	89.30M	-10.20M	-242.10M
Net Income	-76.70M	-53.00M	19.20M	-3.10M	-93.80M	-332.20M
Balance Sheet
Total Assets	358.20M	456.30M	539.80M	465.90M	387.70M	362.70M
Cash, Cash Equivalents and Short-Term Investments	8.30M	91.60M	112.50M	57.40M	28.00M	47.10M
Total Debt	311.70M	344.90M	365.40M	350.90M	336.90M	250.20M
Total Liabilities	418.60M	466.80M	501.00M	481.70M	439.10M	330.60M
Stockholders Equity	-60.40M	-10.50M	38.80M	-15.80M	-51.40M	32.10M
Cash Flow
Free Cash Flow	-34.00M	-10.90M	58.50M	-19.90M	-66.60M	-77.10M
Operating Cash Flow	21.00M	54.20M	115.60M	15.70M	-55.60M	-64.90M
Investing Cash Flow	-39.60M	-51.10M	-39.70M	-18.70M	4.50M	-11.90M
Financing Cash Flow	-55.70M	-24.00M	-20.80M	32.40M	32.00M	400.00K

KLX Energy Services Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLXE, the sentiment is Neutral. The current price of 1.69 is above the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.73, and below the 200-day MA of 2.06, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 13.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	$101.13M	8.55	11.89%	―	16.61%	-72.29%
SND	70 Outperform	$147.61M	39.37	1.61%	―	18.98%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DTI	53 Neutral	$95.74M	-15.88	-5.18%	―	7.46%	-165.76%
DWSN	44 Neutral	$51.23M	-15.90	-19.81%	―	-22.31%	39.11%
KLXE	44 Neutral	$28.18M	-0.39	―	―	-12.57%	-45.75%
NINE	39 Underperform	$14.74M	―	―	―	2.59%	16.02%

KLX Energy Services Holdings Corporate Events

KLX Energy Services Reports Q3 2025 Financial Results

KLX Energy Services Holdings presented its Q3 2025 financial results, reporting a last twelve months (LTM) revenue of $645 million, a net loss of $77 million, and an adjusted EBITDA of $76 million. The company emphasizes its role as a critical service provider in the oil and gas industry, highlighting its diversified business model and experienced leadership team, which positions it to handle the most technically demanding wells.

KLX Energy Services Reports Q3 2025 Financial Results

KLX Energy Services Holdings reported its third-quarter 2025 financial results, showing a 5% increase in revenue to $167 million and a 14% rise in Adjusted EBITDA to $21 million compared to the second quarter of 2025. Despite a net loss of $14 million, the company demonstrated resilience against market headwinds by improving asset and crew utilization, particularly in the Mid-Con/Northeast region. The company anticipates a slight moderation in activity in the fourth quarter due to typical seasonality and customer budget exhaustion, with a mid-single-digit revenue decline expected.