KLX Energy Services Q1 revenue falls on weather, customer delays; sees growth in Q2

Overview

• U.S. oilfield services provider's Q1 revenue declined 6% yr/yr amid weather and customer delays

• Adjusted EBITDA for Q1 fell to $11.1 mln, with net loss widening to $23 mln

• Company expects Q2 revenue to increase in all segments, forecasting a 5% yr/yr rise

Outlook

• KLX forecasts Q2 2026 revenue of $162 mln to $172 mln, midpoint $167 mln, for 5% increase

• Company expects revenue to increase in all three segments and nearly every service line in Q2

• KLX expects Adjusted EBITDA margin to expand sequentially, driven by higher activity and better overhead absorption

Result Drivers

• WEATHER AND CUSTOMER DELAYS - Co said winter storm Fern and customer delays in late March pushed over $5 mln of revenue into Q2

• REGIONAL ACTIVITY VARIATION - Lower activity in Rocky Mountains and Southwest segments drove revenue declines, while Northeast/Mid-Con saw increased gas-focused activity

• INCREASED OPERATING COSTS - Higher operating costs in the Southwest segment contributed to lower profitability

Company press release: ID:nPn2bGjZha

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for KLX Energy Services Holdings Inc is $4.00, about 9.6% above its May 11 closing price of $3.65

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