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KLX Energy Services Holdings (KLXE) AI Stock Analysis
KLX Energy Services Holdings
(NASDAQ:KLXE)
The overall score of 44 reflects a company in a precarious financial position with a weak stock trend, offset by recent strategic actions. The most significant factors are the severely strained balance sheet with negative equity and the persistent unprofitability, which create substantial risk. Positive developments, including a major deleveraging equity offering, strong Q2 operational momentum, and a board refresh, provide a counterbalance and prevent a lower score, but have yet to be reflected in the company's financial statements or stock price.
KLX Energy Services Holdings (KLXE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $106.73M
- Dividend Yield
- ―
- Average Volume (3M)
- 663.91K
- Price to Earnings (P/E)
- -0.3
- Beta (1Y)
- 1.19
- Revenue Growth
- -4.78%
- EPS Growth
- 22.13%
- Country
- US
- Employees
- 1,548
- Sector
- Energy
- Sector Strength
- 65
- Industry
- Oil & Gas Equipment & Services
KLX Energy Services Holdings Business Overview & Revenue Model
Company Description
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, Rock...
How the Company Makes Money
KLXE makes money by charging oil and gas operators (and, in some cases, other service providers acting as prime contractors) for specialty oilfield services and for the rental and use of related tools and equipment deployed on customer wells. Its rev...
KLX Energy Services Holdings Earnings Call Summary
The call presented meaningful operational improvement: strong sequential revenue growth (15.6%), a 68% sequential increase in adjusted EBITDA, successful acquisition and integration of WolfPack with raised synergy targets, positive free cash flow and proactive balance sheet actions (a $125M backstopped rights offering intended to reduce leverage to ~2.7x and lower interest expense). Offsetting these positives are an ongoing net loss (operating loss excluding nonrecurring gain), high absolute debt levels with recent use of PIK interest that added to principal, near-term liquidity pressure expected in Q3 due to working capital, a challenging pricing environment limiting reactivation and CapEx economics, and some regional softness (Haynesville, North Dakota completions) along with corporate cost increases. Overall, improvements and strategic initiatives were balanced by significant leverage and market/mix headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For Q3 management guided revenue of $176 million to $188 million (midpoint $182M, about $15M above Q2’s $167.3M), which—excluding a full quarter of WolfPack—implies mid‑single‑digit sequential growth in the base business and revenue growth across all segments with continued margin expansion from better fixed‑cost absorption; WolfPack will contribute a full quarter (it added $3.4M in June, implying a ~$41M annual run rate vs. $38M in FY‑2025 and expected ~$2.5M of annual synergies). They expect Q3 to be the near‑term liquidity trough as working capital builds; Q2 ended with $288.9M total debt, $53.3M total liquidity ($7.9M cash, $45.4M ABL), and $46.0M net working capital. On financing, Q2 interest totaled ~$12.4M (≈$2.5M cash paid, ≈$8.2M PIK), management elected 100% PIK in Q2 and expects to do so in Q3 (targeting a 50/50 cash/PIK mix in Q4), and the backstopped $125M equity rights offering (at least $94M deleveraging) would cut pro forma net leverage to ~2.7x, reduce interest expense by roughly $11M–$14M/year and, together with an ~$8.2M annual coiled‑tubing lease roll‑off, improve the company’s free‑cash‑flow profile by roughly $20M.
KLX Energy Services Holdings Financial Statement Overview
Summary
Financial performance is weak. The income statement shows persistent net losses and declining revenue, though TTM gross margins are improving. The balance sheet is severely strained with negative equity and high leverage, posing solvency risks. Positive operating cash flow is a lone bright spot, but free cash flow remains negative, indicating poor overall financial health.
Income Statement
25NegativeBalance Sheet
15Very NegativeCash Flow
30Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 635.60M | 636.60M | 709.30M | 888.40M | 781.60M | 436.10M |
| Gross Profit | 64.80M | 39.90M | 65.60M | 143.10M | 103.50M | -6.40M |
| EBITDA | 74.80M | 64.10M | 81.00M | 131.50M | 89.30M | -10.20M |
| Net Income | -61.70M | -77.10M | -53.00M | 19.20M | -3.10M | -93.80M |
Balance Sheet | ||||||
| Total Assets | 371.90M | 340.30M | 456.30M | 539.80M | 465.90M | 387.70M |
| Cash, Cash Equivalents and Short-Term Investments | 7.90M | 5.70M | 91.60M | 112.50M | 57.40M | 28.00M |
| Total Debt | 343.00M | 318.30M | 344.90M | 365.40M | 350.90M | 336.90M |
| Total Liabilities | 474.30M | 414.50M | 466.80M | 501.00M | 481.70M | 439.10M |
| Stockholders Equity | -102.40M | -74.20M | -10.50M | 38.80M | -15.80M | -51.40M |
Cash Flow | ||||||
| Free Cash Flow | -1.90M | -41.60M | -10.90M | 58.50M | -19.90M | -66.60M |
| Operating Cash Flow | 36.80M | 7.50M | 54.20M | 115.60M | 15.70M | -55.60M |
| Investing Cash Flow | -36.80M | -32.90M | -51.10M | -39.70M | -18.70M | 4.50M |
| Financing Cash Flow | -9.40M | -60.50M | -24.00M | -20.80M | 32.40M | 32.00M |
KLX Energy Services Holdings Technical Analysis
Price Trends
Market Momentum
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 1.04 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.39, and below the 200-day MA of 2.31, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 27.97 is Positive, neither overbought nor oversold. The STOCH value of 24.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KLXE.
KLX Energy Services Holdings Risk Analysis
KLX Energy Services Holdings disclosed 57 risk factors in its most recent earnings report. KLX Energy Services Holdings reported the most risks in the "Finance & Corporate" category.
- Finance & Corporate17
- Tech & Innovation7
- Legal & Regulatory11
- Production12
- Ability to Sell5
- Macro & Political5
Latest Risks Added
3 New RisksKLX Energy Services Holdings Peers Comparison
Overall Rating
SND83Outperform
NINE55Neutral
DWSN53Neutral- KLXE44Neutral
DTI42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SND | 83Outperform | $205.21M | 17.09 | 4.41% | 7.58% | 26.53% | 1135.48% |
| Sector * | 65Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
| NINE | 55Neutral | $109.37M | 1.14 | 514.81% | ― | -7.15% | ― |
| DWSN | 53Neutral | $56.83M | 14.00 | 19.56% | ― | 86.31% | ― |
| KLXE | 44Neutral | $117.30M | -0.32 | 73.91% | ― | -4.78% | 22.13% |
| DTI | 42Neutral | $56.63M | -18.29 | -2.49% | ― | -5.48% | 32.73% |
* Energy Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KLXE | Klx Energy Services Holdings | 1.01 | -0.73 | -41.95% | |
| DWSN | Dawson Geophysical | 1.71 | -0.30 | -14.93% | |
| SND | Smart Sand Inc | 4.62 | 2.60 | 128.60% | |
| NINE | Nine Energy Service, Inc. | 7.40 | -0.80 | -9.76% | |
| DTI | Drilling Tools International Corp. | 1.48 | -0.71 | -32.42% |
KLX Energy Services Holdings Corporate Events
KLX Energy Services Refreshes Board with New Directors
PositiveOn October 29, 2026, KLX Energy Services announced the appointment of Franklin S. Edmonds, Jr. and E. Dirk Hallen as independent directors to its Board, succeeding John Collins and Tom McCaffrey, who resigned after guiding the company through the Cov...
KLX Energy Services Completes Equity Offering and Exchange
PositiveOn September 29, 2026, KLX Energy Services completed a subscription rights offering that expired on September 23 and a related Backstop Exchange, issuing 24,975,001 common shares at $1.49 per share for gross proceeds of $37.2 million. The company pla...
KLX Energy Updates Q3 Guidance and Equity Offering Outcome
PositiveKLX Energy Services Holdings on Sept. 25, 2026, tightened its third-quarter 2026 revenue guidance to $180 million–$185 million, implying about 9% sequential growth over the second quarter. The company also projected an adjusted EBITDA margin of...
KLX Energy Adopts Short-Term Stockholder Rights Plan
NeutralOn September 23, 2026, KLX Energy Services’ board adopted a limited-duration stockholder rights plan, effective immediately and running until September 23, 2027, and declared a dividend of one preferred share purchase right for each common shar...
KLX Energy Nears Expiration of Backstopped Rights Offering
NeutralOn September 18, 2026, KLX Energy Services announced it is approaching the September 23, 2026 expiration of its $125 million backstopped rights offering, under which each subscription right allows holders to buy 3.885 shares at $1.49, subject to a 9....
KLX Energy Services Launches Transferable Rights Offering
PositiveOn August 24, 2026, KLX Energy Services Holdings launched a transferable subscription rights offering for holders of its common stock and certain warrants as of the August 21, 2026 record date, allowing each eligible holder to buy 3.885 shares at $1....
KLX Energy Finalizes Wolf Pack Rentals Asset Acquisition
NeutralOn June 2, 2026, KLX Energy Services Holdings completed the $16.9 million acquisition of certain assets of Wolf Pack Rentals, LLC, funded through an upfront cash payment and two deferred installments, with final price subject to customary post-closin...
KLX Energy Services Announces $125 Million Rights Offering
NeutralOn August 10, 2026, KLX Energy Services announced that its board had approved a $125 million rights offering for common stock, backstopped by holders of its senior secured floating rate notes due 2030 for up to $94 million. The rights, expected to tr...
KLX Energy Services Posts Strong Q2 Growth and Synergies
PositiveKLX Energy Services reported second-quarter 2026 revenue of $167.3 million, up 15.6% from the first quarter, driven by seasonal activity and broad-based strength in completion and drilling services. The company narrowed its net loss to $8.4 million w...
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.
Date of analysis: Oct 30, 2026