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KLX Energy Services Holdings
(NASDAQ:KLXE)
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Rating:50Neutral
Price Target:
$1.50
▲(0.00% Upside)
Action:Reiterated
Date:09/26/26
KLXE scores as a higher-risk, improving-operational-trend situation. The biggest constraint is financial strength—persistent losses alongside negative equity and high debt—offset partially by better cash from operations and earnings-call-driven improvement in EBITDA and guidance. Technicals remain bearish with the stock below key moving averages, while valuation is difficult to support given negative earnings; recent corporate updates on guidance and the rights offering modestly improve the outlook.
Positive Factors
Revenue and EBITDA Growth
The sharp sequential improvement in revenue and adjusted EBITDA indicates stronger activity, utilization, and fixed-cost absorption across the operating base. If sustained, this improvement can expand internal funding capacity and strengthen KLXE’s competitive position over the next several quarters.
Negative Factors
Highly Constrained Balance Sheet
Negative equity and elevated debt leave KLXE with limited financial flexibility and a narrow margin for operating setbacks. The capital structure can constrain investment, increase refinancing sensitivity, and keep interest obligations elevated even if field activity improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and EBITDA Growth
The sharp sequential improvement in revenue and adjusted EBITDA indicates stronger activity, utilization, and fixed-cost absorption across the operating base. If sustained, this improvement can expand internal funding capacity and strengthen KLXE’s competitive position over the next several quarters.
Read all positive factors
KLX Energy Services Holdings (KLXE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$157.02M
Dividend YieldN/A
Average Volume (3M)602.57K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth-4.78%
EPS Growth22.13%
CountryUS
Employees1,548
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-3.16
Shares Outstanding104,679,306
10 Day Avg. Volume775,358
30 Day Avg. Volume602,570
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-0.48
Price to Sales (P/S)0.06
P/FCF Ratio-0.85
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-3.13
Revenue Forecast (FY)$665.80M
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, R...
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 ...
KLX Energy Services Holdings Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Revenue Growth
Q2 revenue of $167.3M, up $22.6M or 15.6% sequentially from Q1 and ~5% year-over-year versus Q2 2025; revenue was essentially at the midpoint of guidance.
Negative Updates
Continued Net Loss
Net loss of $8.0M ($0.41 per share) in Q2, though improved from a $24.0M loss ($1.23 per share) in Q1; operating loss (excluding the $6.5M nonrecurring bargain purchase gain) was approximately $4.4M.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 revenue of $167.3M, up $22.6M or 15.6% sequentially from Q1 and ~5% year-over-year versus Q2 2025; revenue was essentially at the midpoint of guidance.
Read all positive 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
Income Statement
33
Negative
Balance Sheet
18
Very Negative
Cash Flow
41
Neutral
| 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 | 54.00M | 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
Negative
1.50
Price Trends
1.76
Negative
2.35
Negative
2.39
Negative
Market Momentum
-0.08
Negative
35.76
Neutral
14.30
Positive
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 1.5 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.76, and below the 200-day MA of 2.39, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 35.76 is Neutral, neither overbought nor oversold. The STOCH value of 14.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KLXE.
KLX Energy Services Holdings Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $215.39M | 18.76 | 4.41% | 6.90% | 26.53% | 1135.48% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
50 Neutral | $157.02M | -0.47 | 73.91% | ― | -4.78% | 22.13% | |
50 Neutral | $127.50M | 1.38 | 514.81% | ― | -7.15% | ― | |
49 Neutral | $85.74M | -30.16 | -2.49% | ― | -5.48% | 32.73% | |
47 Neutral | $95.65M | 24.32 | 19.56% | 19.05% | 86.31% | ― |
* Energy Sector Average
KLXE
KLX Energy Services Holdings
1.61
-0.40
-20.06%
DWSN
Dawson Geophysical Company
2.89
1.06
57.92%
SND
Smart Sand
5.23
3.21
158.78%
NINE
Nine Energy Service, Inc.
8.60
0.40
4.88%
DTI
Drilling Tools International
2.45
0.10
4.26%
KLX Energy Services Holdings Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
KLX Energy Updates Q3 Guidance and Equity Offering Outcome
Positive
Sep 25, 2026
KLX 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...
Business Operations and StrategyRegulatory Filings and Compliance
KLX Energy Adopts Short-Term Stockholder Rights Plan
Neutral
Sep 23, 2026
On 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 s...
Business Operations and StrategyPrivate Placements and Financing
KLX Energy Nears Expiration of Backstopped Rights Offering
Neutral
Sep 18, 2026
On 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...
Business Operations and StrategyPrivate Placements and Financing
KLX Energy Services Launches Transferable Rights Offering
Positive
Aug 24, 2026
On 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 ...
Financial DisclosuresM&A Transactions
KLX Energy Finalizes Wolf Pack Rentals Asset Acquisition
Neutral
Aug 21, 2026
On 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-clo...
Business Operations and StrategyPrivate Placements and Financing
KLX Energy Services Announces $125 Million Rights Offering
Neutral
Aug 10, 2026
On 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...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
KLX Energy Services Posts Strong Q2 Growth and Synergies
Positive
Aug 10, 2026
KLX 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 millio...
Business Operations and StrategyFinancial Disclosures
KLX Energy Updates Investors on 2026 Financial Outlook
Neutral
Jun 30, 2026
KLX Energy Services Holdings, Inc. is a leading U.S. onshore oilfield services provider focused on value-added, technologically differentiated offerings for drilling, completion, intervention and production activities on technically demanding well...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.