KLX Energy Services Holdings AI Stock Analysis
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KLX Energy Services Holdings (KLXE) AI Stock Analysis
KLX Energy Services Holdings
(NASDAQ:KLXE)
KLXE scores low primarily due to high balance-sheet risk (minimal equity cushion vs sizable debt) and continued net losses with inconsistent free cash flow, despite improving revenue and operating cash flow. Technicals also weigh on the score given a clear downtrend (price below all key DMAs and negative MACD), even though momentum is oversold. The earnings call provides a partial offset through stronger margins, deleveraging progress, and constructive Q4 outlook, while valuation offers limited support because earnings are negative and no dividend yield is provided.
KLX Energy Services Holdings (KLXE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $121.57M
- Dividend Yield
- ―
- Average Volume (3M)
- 601.75K
- Price to Earnings (P/E)
- -0.4
- Beta (1Y)
- 0.92
- Revenue Growth
- 1.43%
- EPS Growth
- 27.80%
- 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 was predominantly positive. KLX reported revenue and adjusted EBITDA above or in line with guidance, broad-based sequential growth, stronger margins, substantial deleveraging, improved liquidity, progress integrating Wolf Pack, and a more favorable outlook for free cash flow and strategic flexibility. These positives were tempered by a reported net loss, negative unlevered free cash flow, higher working capital and capital expenditures, uneven market conditions, weak gas activity, persistent pricing challenges, seasonal variability, and remaining integration work.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For the fourth quarter, KLX expects revenue of $172 million to $184 million; at the midpoint, that represents approximately 14% growth from the prior year period and a reduced sequential seasonal decline relative to the third quarter, with customer schedules, weather, and holiday activity creating some variability across product lines and geographic mix. The company expects the typical fourth quarter seasonal slowdown to be less severe this year than in recent years, expects gas-directed activity to continue to fluctuate, and expects some working capital to be released as activity moderates in the fourth quarter. KLX remains on track to achieve the previously targeted $2.5 million of annual fixed cost synergies, while the annual interest savings and maturity of its legacy coiled tubing leases improve free cash flow on a 2027 basis by approximately $20 million; adjusted breakeven EBITDA from a free cash flow perspective is expected to be somewhere in the upper $60 million, low $70 million range.
KLX Energy Services Holdings Financial Statement Overview
Summary
Operations are improving (TTM revenue ~3.0x YoY; positive operating cash flow ~$30M; EBITDA margin ~11.2%), but the company remains loss-making (negative EBIT, ~-9.6% net margin). Balance-sheet risk is the primary drag: very high leverage vs a minimal equity base (TTM debt ~$236M vs equity ~$0.4M) and historically negative equity elevate refinancing/down-cycle risk, while free cash flow is still negative in TTM (~-$9.3M) and has been volatile.
Income Statement
42NeutralBalance Sheet
28NegativeCash Flow
45Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 654.50M | 636.60M | 709.30M | 888.40M | 781.60M | 436.10M |
| Gross Profit | 93.70M | 39.90M | 65.60M | 143.10M | 103.50M | -6.40M |
| EBITDA | 73.60M | 64.10M | 81.00M | 131.50M | 89.30M | -10.20M |
| Net Income | -62.90M | -77.10M | -53.00M | 19.20M | -3.10M | -93.80M |
Balance Sheet | ||||||
| Total Assets | 366.20M | 340.30M | 456.30M | 539.80M | 465.90M | 387.70M |
| Cash, Cash Equivalents and Short-Term Investments | 5.00M | 5.70M | 91.60M | 112.50M | 57.40M | 28.00M |
| Total Debt | 235.90M | 318.30M | 344.90M | 365.40M | 350.90M | 336.90M |
| Total Liabilities | 365.80M | 414.50M | 466.80M | 501.00M | 481.70M | 439.10M |
| Stockholders Equity | 400.00K | -74.20M | -10.50M | 38.80M | -15.80M | -51.40M |
Cash Flow | ||||||
| Free Cash Flow | -9.30M | -41.60M | -10.90M | 58.50M | -19.90M | -66.60M |
| Operating Cash Flow | 30.00M | 7.50M | 54.20M | 115.60M | 15.70M | -55.60M |
| Investing Cash Flow | -39.80M | -32.90M | -51.10M | -39.70M | -18.70M | 4.50M |
| Financing Cash Flow | 6.40M | -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 Neutral. The current price of 1.15 is above the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.32, and below the 200-day MA of 2.26, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 71.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
SND71Outperform
DWSN53Neutral
NINE49Neutral
DTI46Neutral- KLXE44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SND | 71Outperform | $172.56M | 11.22 | 6.64% | 7.80% | 21.17% | 298.52% |
| Sector * | 65Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
| DWSN | 53Neutral | $51.55M | 12.94 | 19.56% | ― | 86.31% | ― |
| NINE | 49Neutral | $101.28M | 1.15 | 112.83% | ― | -4.41% | ― |
| DTI | 46Neutral | $52.22M | -12.84 | -3.95% | ― | -3.59% | 24.66% |
| KLXE | 44Neutral | $118.40M | -0.37 | 92.40% | ― | 1.43% | 27.80% |
* Energy Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KLXE | Klx Energy Services Holdings | 1.15 | -0.48 | -29.49% | |
| DWSN | Dawson Geophysical | 1.58 | -0.43 | -21.39% | |
| SND | Smart Sand Inc | 4.49 | 2.16 | 92.46% | |
| NINE | Nine Energy Service, Inc. | 7.48 | -0.72 | -8.78% | |
| DTI | Drilling Tools International Corp. | 1.61 | -0.90 | -35.86% |
KLX Energy Services Holdings Corporate Events
KLX Energy Services Reports Pro Forma Results After Acquisition
NeutralKLX Energy Services Holdings, Inc., a Delaware corporation, reported unaudited pro forma results incorporating its acquisition of certain Wolf Pack Rentals assets. The acquisition closed on June 2, 2026, for a purchase price of $16.7, including $14.1...
KLX Energy Services Reports Strong Third-Quarter 2026 Results
PositiveKLX Energy Services Holdings, an energy-services provider operating through Rocky Mountains, Southwest and Northeast/Mid-Con segments, reported third-quarter 2026 results on November 5, 2026, for the period ended September 30. Revenue rose 10.9% sequ...
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 13%–1...
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 share outs...
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...
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: Nov 07, 2026