KLX Energy Services Holdings, Inc. (KLXE) Announces Fourth Quarter And Full Year 2024 Earnings Results

KLX Energy Services Holdings, Inc. (KLXE) today announced its financial results for the latest quarter, revealing a challenging period for the company. The company reported a quarterly revenue of $165.5 million, slightly below the estimated $166.2 million, resulting in a miss of $700,000. Additionally, KLXE posted a quarterly loss per share of $0.80, which was wider than the anticipated loss of $0.67, marking a miss of $0.13. These results highlight the hurdles KLXE faced during the quarter as it navigates a complex market environment.

Key Highlights:

• KLX Energy Services reported a full-year 2024 revenue of $709 million with a net loss of $53 million.
• Fourth-quarter 2024 revenue was $166 million, with an adjusted EBITDA of $23 million and a margin of 14%.
• The company successfully refinanced its 2025 senior secured notes and established a new ABL credit facility.
• KLX anticipates flat to slightly increased revenue for 2025, with an adjusted EBITDA margin between 13% to 15%.
• The company is monitoring opportunities in gas-directed activity driven by LNG export and datacenter/AI demand.
• Segment performance varied, with the Rocky Mountains, Southwest, and Northeast/Mid-Con regions experiencing revenue declines due to seasonal factors.

Summary:

KLX Energy Services Holdings, Inc. reported its financial results for the fourth quarter and full year of 2024, highlighting a revenue of $709 million for the year and a net loss of $53 million. The fourth quarter saw a revenue of $166 million, with an adjusted EBITDA of $23 million and a margin of 14%. Despite seasonal headwinds, the company managed to improve its adjusted EBITDA margin by 187 basis points compared to the previous year. Chris Baker, President and CEO, emphasized the company’s focus on cost controls and the consistency in its market-leading tech services, rentals, and coiled tubing businesses, which have contributed to improved profitability. Baker also noted the potential for increased gas-directed activity driven by LNG export and datacenter/AI demand, which could support and lift OFS pricing and utilization across all basins.

Looking ahead to 2025, KLX expects annual revenue to be flat to slightly up, with an adjusted EBITDA margin ranging between 13% to 15%. The company successfully completed its refinancing efforts, providing increased financial flexibility. Baker expressed confidence in KLX’s strategic positioning, operational excellence, and financial resilience, which he believes will enable the company to capitalize on emerging opportunities and deliver sustainable value to shareholders. The company is closely monitoring the evolving energy landscape and is prepared to navigate the challenges and opportunities it presents.

KLX Energy Services Holdings, Inc. (KLXE) has experienced a tumultuous year in terms of stock price performance, with a significant decline of 38.72% over the past year. The recent one-week uptick of 6.87% offers a glimmer of hope, but it is overshadowed by the broader downward trend, including a 7.01% drop over the past month and a 12.43% decrease over the last three months. Fundamentally, the company is grappling with challenges, as evidenced by its negative price-to-earnings ratio of -1.60, indicating unprofitability. The net profit margin stands at -6.56%, further highlighting the financial struggles. Despite these hurdles, KLXE has managed a revenue growth of 6.33% over the past two years, suggesting some operational resilience. However, the return on invested capital is a concerning -3.54%, pointing to inefficiencies in generating returns from investments. Overall, while there are pockets of positive performance, KLXE faces significant headwinds that are reflected in its stock price trajectory.

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.