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KLX Energy Services Holdings Inc (KLXE)
NASDAQ:KLXE
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KLX Energy Services Holdings
(NASDAQ:KLXE)
Rating:42Neutral
Price Target:
$2.00
▲( 6.38% Upside)
KLX Energy Services Holdings (KLXE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.00M
Dividend YieldN/A
Average Volume (3M)162.20K
Price to Earnings (P/E)―
Beta (1Y)1.47
Revenue Growth-16.38%
EPS Growth-359.80%
CountryUS
Employees1,726
SectorEnergy
Sector Strength45
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-1.27
Shares Outstanding17,553,934
10 Day Avg. Volume156,339
30 Day Avg. Volume162,201
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)-1.30
Price to Sales (P/S)0.00
P/FCF Ratio-0.95
Enterprise Value/Market Cap10.28
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit2.49
Enterprise Value/Ebitda1.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
KLX Energy Services Holdings Business Overview & Revenue Model
Company DescriptionKLX Energy Services Holdings, Inc. (KLXE) is a leading provider of mission-critical oilfield services focused on the completion, intervention, and production segments of the oil and gas industry. The company operates across multiple basins in the United States, offering a comprehensive portfolio of products and services, including pressure control, wireline, coiled tubing, and fluid management, to enhance the operational efficiency of its clients.
How the Company Makes MoneyKLX Energy Services Holdings generates revenue primarily through the provision of specialized oilfield services to exploration and production (E&P) companies. The company earns income by charging fees for its services, which include pressure pumping, wireline services, and coiled tubing, as well as rental and sale of related equipment. KLXE's diverse service offerings are designed to optimize the productivity and safety of oil and gas wells throughout their lifecycle. Additionally, the company's strategic location in key U.S. oil basins and its ability to deliver integrated solutions contribute significantly to its earnings. Partnerships with major E&P firms and a strong focus on customer service further bolster KLXE's revenue streams.
KLX Energy Services Holdings Financial Statement Overview
Summary
KLX Energy Services Holdings faces significant financial challenges, including declining revenues and profitability, high leverage, and negative equity. Despite positive operational cash flow, the company struggles with negative free cash flow and profitability issues, indicating potential financial instability.Income Statement
The company exhibits declining revenue with a decrease from $888.4M to $688.6M in TTM, a significant drop from the previous year. The gross profit margin is 19.75% in TTM, showing a decline from 22.5% in the previous year. Net profit margin is negative at -8.52% in TTM, indicating ongoing profitability challenges. The EBIT and EBITDA margins also show weak profitability with TTM figures at 0.84% and 11.43% respectively.45
Neutral
Balance Sheet
KLXE's balance sheet shows notable weaknesses with negative stockholders' equity standing at -$26.6M in TTM, indicating potential financial distress. The debt-to-equity ratio is not calculable due to negative equity, but the company's high total debt of $316.7M suggests significant leverage. The equity ratio is also negative, further highlighting financial instability.30
Negative
Cash Flow
The company's cash flow statement reveals a concerning free cash flow of -$39.2M in TTM, though operating cash flow remains positive at $27.4M. The free cash flow to net income ratio is unfavorable due to negative net income. These factors imply cash generation struggles, although operating cash flow provides some cushion.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 688.60M | 709.30M | 888.40M | 781.60M | 436.10M | 276.80M | Gross Profit |
| 136.00M | 159.60M | 215.90M | 160.30M | -6.40M | -38.00M | EBIT |
| 5.80M | -15.50M | 56.90M | 32.50M | -61.10M | -301.10M | EBITDA |
| 78.70M | 81.00M | 131.50M | 89.30M | -10.20M | -242.10M | Net Income Common Stockholders |
| -58.70M | -53.00M | 19.20M | -3.10M | -93.80M | -332.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 39.60M | 91.60M | 112.50M | 57.40M | 28.00M | 47.10M | Total Assets |
| 515.90M | 456.30M | 539.80M | 465.90M | 387.70M | 362.70M | Total Debt |
| 353.50M | 344.90M | 365.40M | 350.90M | 336.90M | 250.20M | Net Debt |
| 313.90M | 253.30M | 252.90M | 293.50M | 308.90M | 203.10M | Total Liabilities |
| 488.40M | 466.80M | 501.00M | 481.70M | 439.10M | 330.60M | Stockholders Equity |
| 27.50M | -10.50M | 38.80M | -15.80M | -51.40M | 32.10M |
| Cash Flow | Free Cash Flow | ||||
| -39.20M | -10.90M | 58.50M | -19.90M | -66.60M | -77.10M | Operating Cash Flow |
| 27.40M | 54.20M | 115.60M | 15.70M | -55.60M | -64.90M | Investing Cash Flow |
| -51.10M | -51.10M | -39.70M | -18.70M | 4.50M | -11.90M | Financing Cash Flow |
| -38.50M | -24.00M | -20.80M | 32.40M | 32.00M | 400.00K |
KLX Energy Services Holdings Technical Analysis
Negative
1.88
Price Trends
2.46
Negative
3.76
Negative
4.69
Negative
Market Momentum
-0.13
Negative
41.45
Neutral
17.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLXE, the sentiment is Negative. The current price of 1.88 is below the 20-day moving average (MA) of 2.06, below the 50-day MA of 2.46, and below the 200-day MA of 4.69, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 41.45 is Neutral, neither overbought nor oversold. The STOCH value of 17.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KLXE.
KLX Energy Services Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $78.64M | 9.62 | 8.71% | ― | 18.03% | -39.52% | |
64 Neutral | $93.61M | 26.47 | -1.66% | ― | 8.19% | -110.61% | |
57 Neutral | $7.06B | 3.04 | -3.49% | 5.80% | 0.53% | -50.39% | |
49 Neutral | $40.28M | ― | -39.40% | ― | -40.77% | -14.13% | |
47 Neutral | $81.11M | 28.65 | -9.09% | ― | -0.94% | -353.00% | |
42 Neutral | $33.00M | ― | -375.26% | ― | -16.38% | -359.80% | |
42 Neutral | $22.06M | ― | 73.91% | ― | -4.38% | -3.77% |
* Energy Sector Average
Performance Comparison
KLXE
KLX Energy Services Holdings
1.88
-3.43
-64.60%
DWSN
Dawson Geophysical Company
1.30
-0.70
-35.00%
SND
Smart Sand
1.84
-0.27
-12.80%
NCSM
Ncs Multistage Holdings
30.95
12.81
70.62%
NINE
Nine Energy Service
0.52
-1.15
-68.86%
DTI
Drilling Tools International
2.63
-3.34
-55.95%
KLX Energy Services Holdings Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -19.31%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted improvements in adjusted EBITDA margins and successful refinancing efforts, indicating positive steps in financial flexibility and strategic initiatives. However, these were tempered by significant revenue declines, seasonal challenges, and market volatility, creating a balanced outlook.Q1-2025 Updates
Positive Updates
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.
Negative Updates
Revenue Decline and Seasonal Challenges
Q1 2025 revenue was $154 million, a 7% sequential decline and 12% lower than Q1 2024, attributed to seasonality and a meaningfully lower rig count environment.
Operational Issues in Northeast/Mid-Con Segment
The Northeast/Mid-Con segment experienced an 18% sequential decrease in revenue due to unforeseen operational issues driving material downtime for one of the frac fleets.
Market Volatility and Uncertainty
The macro environment remains volatile due to factors like OPEC+ production increases and U.S. tariff policy, impacting customer activity plans and cost structure.
Cash Flow and Liquidity Challenges
Cash declined over $60 million from year-end, mainly due to refinancing costs, working capital normalization, and seasonality, with a significant impact on liquidity.
Company Guidance
During the KLX Energy Services 2025 First Quarter Earnings Conference Call, management provided guidance indicating that despite a challenging macro environment, the company achieved an improved adjusted EBITDA margin of 9%, up from 7% in Q1 2024, even as revenue decreased 12% year-over-year to $154 million. The Southwest segment delivered robust results with a 22% increase in adjusted EBITDA, while the Rockies and Northeast/Mid-Con segments faced declines due to seasonality and operational issues. The company anticipates revenue growth in Q2, driven by the Southwest segment's continued strength and recovery in the Rockies and Mid-Con regions. Capital expenditures for 2025 are expected to be reduced to $40-50 million gross and $30-40 million net, focusing on higher-margin service lines. Management is also considering strategic M&A opportunities to enhance market position, emphasizing the flexibility provided by their new capital structure, which includes an option to pay interest in kind to preserve liquidity amid market volatility.KLX Energy Services Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
KLX Energy Services Holds 2025 Annual Stockholders Meeting
Neutral
May 9, 2025
KLX Energy Services Holdings, Inc. held its 2025 Annual Meeting of Stockholders on May 7, 2025, where several key proposals were voted upon. The meeting resulted in the election of three Class I Directors, but proposals to declassify the board, approve executive compensation, and eliminate supermajority voting requirements were not approved. However, the selection of Deloitte & Touche LLP as the independent registered public accounting firm was ratified.
Private Placements and FinancingStock BuybackFinancial Disclosures
KLX Energy Services Reports Q1 2025 Financial Results
Neutral
May 8, 2025
KLX Energy Services Holdings reported its first quarter 2025 financial results, showing a revenue of $154 million and a net loss of $28 million. Despite a decrease in revenue compared to the previous quarter, the company achieved a 15% increase in Adjusted EBITDA over the first quarter of 2024, reflecting effective cost controls. The company anticipates modest revenue growth and margin expansion in the coming quarters, despite industry caution due to economic trends and commodity price visibility. KLX completed refinancing efforts in March, enhancing financial flexibility and enabling potential share and debt buybacks, positioning the company to manage market volatility.
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
KLX Energy Services Reports 2024 Financial Results
Neutral
Mar 12, 2025
KLX Energy Services Holdings reported its financial results for the fourth quarter and full year of 2024, highlighting a revenue of $709 million and a net loss of $53 million for the year. Despite seasonal challenges, the company achieved an adjusted EBITDA margin improvement and successfully refinanced its senior secured notes, enhancing financial flexibility. The company anticipates stable or slightly increased revenue in 2025, driven by potential growth in gas-directed activities due to rising LNG export capacity.
Private Placements and FinancingBusiness Operations and Strategy
KLX Energy Services Secures $232M Refinancing Deal
Positive
Mar 12, 2025
On March 12, 2025, KLX Energy Services Holdings, Inc. announced the closing of a refinancing deal involving the issuance of approximately $232 million in senior secured notes due March 2030 and the establishment of a new $125 million ABL credit facility due March 2028. This strategic financial maneuver aims to enhance the company’s capital structure and support its operational capabilities, potentially strengthening its market position and providing flexibility for future investments.
Private Placements and FinancingBusiness Operations and Strategy
KLX Energy Services Plans Conditional Note Redemption
Neutral
Feb 28, 2025
On February 28, 2025, KLX Energy Services Holdings announced a conditional redemption of its 11.500% Senior Secured Notes due 2025, with plans to redeem all outstanding notes on March 30, 2025, contingent upon securing a debt financing transaction. This move is part of the company’s financial strategy to manage its debt obligations, potentially impacting its financial stability and stakeholder confidence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.