Fri, May 9, 9:14 PM (13 days ago)
**KLX Energy Services Holdings, Inc. (KLXE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $154.0 million, down 11.8% YoY due to decreased activity and pricing. - **Operating Loss:** $17.7 million, wider than the $13.1 million loss in Q1 2024. - **Net Loss:** $27.9 million, compared to $22.2 million in Q1 2024. - **Profit Margins:** Cost of sales was 80.4% of revenues, down from 82.4% in Q1 2024. - **Cash Flow:** Negative operating cash flow of $37.6 million, compared to $10.8 million in Q1 2024. - **Earnings Changes:** Net loss per share was $1.62, compared to $1.38 in Q1 2024. **Segment Performance:** - **Rocky Mountains:** Revenue up 4.8%, operating loss narrowed. - **Southwest:** Revenue down 6.1%, operating income positive. - **Northeast/Mid-Con:** Revenue down 31.3%, significant operating loss. **Trends and Uncertainties:** - **Oil Prices:** Volatile, with WTI up 1.4% QoQ but down 15% in early April. - **Rig Count:** Flat QoQ at 592. - **Future Outlook:** Cautious capital allocation expected due to volatile commodity prices and economic uncertainty. **Future Operations Impact:** - **Refinancing:** Completed in March 2025, reducing interest burden. - **Capital Expenditures:** Expected to be $40.0-$50.0 million for 2025. - **Liquidity:** $58.1 million in total liquidity as of March 31, 2025. **Key Metrics:** - **Adjusted EBITDA:** Not explicitly stated but implied by operating loss and revenue trends. - **Adjusted EBITDA Margin:** Not explicitly stated but can be inferred from operating loss and revenue. **Risk Factors:** - **Economic Conditions:** Market volatility, inflation, and government policies. - **Commodity Prices:** Fluctuations in oil and natural gas prices. - **Operational Risks:** Dependence on customer activity and market demand. **Management's Discussion:** - Focus on cost control, operational efficiency, and strategic acquisitions. - Continued investment in technology and equipment to enhance service offerings. - Cautious approach to growth, prioritizing returns and financial flexibility.