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Jun 30, 2023

KLX Energy Services Q2 2023 Earnings Report

KLX Energy Services reported second quarter results, driven by regional and product service line diversification, resulting in higher adjusted EBITDA, adjusted EBITDA margin, and free cash flow.

Key Takeaways

KLX Energy Services Holdings, Inc. reported a revenue of $234.0 million. Net income was $11.4 million, with adjusted EBITDA reaching $39.7 million. The company generated $47.3 million in levered free cash flow and reduced net debt sequentially by 17%.

Revenue of $234.0 million.

Net income of $11.4 million, net income margin of 4.9%, diluted earnings per share of $0.71.

Adjusted EBITDA of $39.7 million, increased 4% sequentially.

Cash balance of $82.1 million, increased $42.5 million sequentially and $50.6 million compared to Q2 2022.

Total Revenue
$234M
Previous year: $184M
+26.9%
EPS
$0.81
Previous year: -$0.67
-220.9%
Gross Profit
$60.7M
Previous year: $33.5M
+81.2%
Cash and Equivalents
$82.1M
Previous year: $31.5M
+160.6%
Free Cash Flow
$47.3M
Previous year: -$16.2M
-392.0%
Total Assets
$527M
Previous year: $415M
+26.7%

KLX Energy Services

KLX Energy Services

KLX Energy Services Revenue by Segment

Forward Guidance

The Company is deferring capital projects and lowering full year capital spending guidance to approximately $45 to $55 million from $60 to $70 million. The below summary of Company guidance is current as of the time provided and subject to change.

Positive Outlook

  • Third quarter 2023 revenue of $215 million to $230 million
  • Third quarter 2023 adjusted EBITDA margin of 14% to 16%
  • Full year 2023 revenue range of $900 million to $950 million
  • Full year 2023 adjusted EBITDA margin of 15% to 17%

Revenue & Expenses

Visualization of income flow from segment revenue to net income