KLX ENERGY SERVICES HOLDINGS, INC. REPORTS SECOND QUARTER 2026 RESULTS

KLX Energy Services Holdings, Inc. (Nasdaq: KLXE ) ("KLX", the "Company", "we", "us" or "our") today reported financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial and Operational Highlights Revenue of $167 million, a 16% increase over first quarter 2026 Net loss of $(8) million and diluted loss per share of $(0.41), improved 65% and 67% over first quarter 2026, respectively Adjusted EBITDA of $19 million, a 68% increase over first quarter 2026 Net loss margin of (5)%, an improvement of 70% over first quarter 2026 Adjusted EBITDA margin of 11%, a 46% increase over first quarter 2026 Total liquidity of $53 million, consisting of approximately $8 million of cash and cash equivalents On June 2, 2026, closed the acquisition of Wolf Pack Rentals, LLC (the "Wolf Pack Acquisition") and recorded a related bargain purchase gain of $6.5 million See "Non-GAAP Financial Measures" at the end of this release for a discussion of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Loss, Adjusted Diluted Loss per share, Unlevered and Levered Free Cash Flow, Net Working Capital, Net Debt and their reconciliations to the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We have not provided reconciliations of our future expectations as to Adjusted EBITDA or Adjusted EBITDA margin as such reconciliations are not available without unreasonable efforts.

Chris Baker, KLX President and Chief Executive Officer, stated, "Our second quarter results were in line with our expectations. Revenue was $167 million, essentially at the midpoint of our guidance and up $23 million, or 16%, from the first quarter, inclusive of one month of contribution from the Wolf Pack Acquisition. Adjusted EBITDA was $19 million, up 68% sequentially, with margins improving to 11%. That step-up was driven by higher activity levels and better absorption of our cost structure, and Adjusted EBITDA also tracked with what we expected coming into the quarter.

"Wolf Pack contributed $3.4 million of revenue in June, implying a current annual revenue run-rate of $41 million, comparing favorably to their full year 2025 result. Integration has proceeded swiftly and seamlessly to date with numerous cross-selling opportunities driven by the combined team being realized. Our full-year synergy estimate has now increased to approximately $2.5 million. Excluding Wolf Pack, the base business grew more than 13% sequentially, outpacing the 5.8% increase in U.S. Land Rig Count, which reflects steady demand and solid execution across the portfolio led by sequential revenue growth in coiled tubing, directional drilling, technical services and accommodations.

"Looking ahead to the third quarter, we expect revenue in the range of $176 to $188 million, with a midpoint of $182 million, which is $15 million higher than the second quarter. Excluding Wolf Pack from both periods, the midpoint implies mid-single-digit sequential growth in the base business at a time when broader expectations are for flat activity. We expect margins to continue to increase as activity builds, driving better fixed cost absorption," concluded Baker.

Revenue for the second quarter of 2026 totaled $167.3 million, an increase of 15.6% compared to the first quarter of 2026 revenue of $144.7 million. The increase in revenue reflects a seasonal market activity increase. On a product line basis, completion, drilling, production and intervention services contributed approximately 52%, 23%, 16% and 9%, respectively, to revenue for the second quarter of 2026. Net loss for the second quarter of 2026 was $(8.4) million, compared to the first quarter of 2026 net loss of $(24.0) million. Adjusted net loss for the second quarter of 2026 was $(13.2) million, compared to the first quarter of 2026 adjusted net loss of $(23.0) million. Adjus...