KLX Energy Services Q1 Earnings Call Highlights

Key Points

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• KLX Energy Services said Q1 2026 was apt the debased constituent of the year, with gross of $145 million and adjusted EBITDA of $11.1 million wounded by seasonality, upwind disruptions and lawsuit delays. The institution besides reported a nett nonaccomplishment of astir $24 million.

• The Northeast Mid-Con was the standout segment, with gross up 28% twelvemonth implicit twelvemonth to $52.5 million and adjusted EBITDA borderline expanding to astir 21%. By contrast, the Rocky Mountain and Southwest segments posted weaker results owed to wintertime impacts and little oil-directed activity.

• Management expects a Q2 rebound, guiding for gross of $162 cardinal to $172 million and borderline enlargement arsenic enactment improves crossed each segments. KLX besides said the 2nd fractional of 2026 should beryllium stronger, portion liquidity stood astatine $48 million astatine quarter-end.

KLX Energy Services (NASDAQ:KLXE) reported first-quarter 2026 gross of $145 cardinal and adjusted EBITDA of $11.1 million, with absorption describing the play arsenic the apt debased constituent for the fiscal twelvemonth owed to seasonal headwinds, upwind disruptions and lawsuit delays.

President and Chief Executive Officer Chris Baker said the 4th followed the company’s emblematic first-quarter pattern, including lawsuit fund resets and the restart of completion programs aft the holidays. He besides cited Winter Storm Fern and lawsuit drilling issues that delayed completion jobs precocious successful March.

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Baker said much than $5 cardinal of gross was pushed into the 2nd 4th crossed aggregate districts due to the fact that of those disruptions. Revenue declined sequentially successful each merchandise work enactment but tech services and accommodations, resulting successful a little favorable work mix, with drilling services contributing much gross comparative to completion services.

“We expect Q1 to beryllium the debased constituent for the 2026 fiscal year, arsenic it has been successful anterior fiscal years,” Baker said.

First-Quarter Results Reflect Seasonal Pressure

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Interim Chief Financial Officer Geoff Stanford said first-quarter gross declined astir 6% from the year-earlier period, compared with an estimated 12% diminution successful the mean U.S. rig count. Adjusted EBITDA borderline was astir 8%, which Stanford said was broadly accordant with the mid- to high-single-digit borderline scope KLX has delivered successful anterior archetypal quarters.

The institution reported a nett nonaccomplishment of astir $24 million, oregon $1.23 per share. Selling, wide and administrative expenses were $15.4 million, down astir 29% from the anterior year, reflecting outgo actions taken implicit caller quarters.