KLX Energy Services Holdings, Inc. reported fourth‑quarter 2025 results that included $156.8 million in revenue, a 5.9% sequential decline from the $166.7 million earned in Q3 2025. The company posted a net loss of $15.0 million, slightly larger than the $14.0‑$14.3 million loss recorded in Q3 2025. Adjusted EBITDA rose to $22.5 million, up from $21.1 million in the prior quarter, and the adjusted EBITDA margin expanded to 14.3%, a 1.3‑percentage‑point increase over the 13.0% margin in Q3 2025. Non‑GAAP earnings per share were a loss of $0.76, beating the consensus estimate of $0.82 by $0.06.
Segment performance highlighted the Northeast/Mid‑Con region as the strongest contributor, generating $59.6 million in revenue and $15.1 million in adjusted EBITDA. The Rocky Mountains and Southwest segments delivered $6.9 million and $6.8 million in adjusted EBITDA, respectively. The mix shift toward higher‑margin completion services and a focus on gas‑directed work helped offset the revenue decline, while cost‑control initiatives maintained profitability.
"Another solid year for KLX despite a choppy market," said President and CEO Chris Baker. "The fourth quarter delivered our strongest profitability of the year with adjusted EBITDA and adjusted EBITDA margin both at 2025 highs. We focus on higher‑margin, technically differentiated work, lean into cost discipline and are very intentional and diligent about where we strategically deploy capital and people." Interim CFO Geoffrey Stanford added, "We generated revenues of approximately $157 million, which was in line with our Q4 guidance. As expected, revenues decreased due to seasonality and budget exhaustion. We generated approximately $23 million of adjusted EBITDA, our highest quarterly adjusted EBITDA of the year and an adjusted EBITDA margin of about 14%, also the high for 2025. The first quarter will be impacted by seasonality and winter storm Fern, which led to the loss of approximately four to five working days in many districts. However, as the year progresses, we should return to the stronger run‑rate we delivered in the second half of 2025."
Management maintained its guidance for the first quarter of 2026 and the full year, signaling confidence in a rebound in the second half of the year. The company emphasized that seasonality and weather will temper early‑year revenue, but it expects to regain the stronger run‑rate seen in the latter half of 2025.
Following the release, the market reacted with a modest after‑hours decline of about 1.7%. Investors weighed the EPS beat against the revenue miss and the continued net loss, noting that while margin expansion is encouraging, the company’s profitability remains constrained by seasonal demand and budget exhaustion.
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