KLX Energy Services (KLXE) investor relations material

Executive summary

• Q3 2025 was the strongest quarter of the year, with revenue of $167 million (up 5% sequentially) and Adjusted EBITDA of $21.1 million (up 14% from Q2), despite industry headwinds and declining rig counts.

• Revenue declined 11.8% year-over-year, reflecting lower activity and pricing across most segments.

• Net loss for Q3 2025 was $14.3 million, an improvement from Q2 but higher than the prior year.

• Outperformance was driven by a 29% revenue increase in the Northeast/Mid-Con segment, offsetting softness in the Rockies and Southwest.

• Operational efficiency, cost controls, and strategic asset allocation enabled margin expansion and industry outperformance.

Financial highlights

• Q3 2025 revenue was $166.7 million, up 5% sequentially but down 12% year-over-year.

• Adjusted EBITDA margin improved to 13% from 11.6% in Q2.

• SG&A expenses for Q3 2025 were $14.8 million, down 30% year-over-year and 18% sequentially.

• Net working capital at quarter-end was $50.1 million; DSO at 61 days, DPO at 50 days.

• Liquidity stood at $65 million, including $8.3 million cash and $56.9 million revolver availability.

Outlook and guidance

• Q4 2025 is expected to see a mid-single-digit revenue decline due to seasonality and budget exhaustion, but with stable Adjusted EBITDA margins supported by cost discipline and new project awards.

• Management anticipates continued cautious capital allocation by customers due to commodity price volatility and global economic uncertainty.

• Expects to benefit from rising natural gas demand and new LNG export capacity.

• 2026 outlook includes profitable growth, margin strength, and readiness for market rebound.

• The company expects to fund operations for at least the next twelve months with current cash, credit facility availability, and cash flows.