KLX Energy Services Q3 2024 Earnings Report
Key Takeaways
KLX Energy Services Holdings, Inc. reported revenue of $189 million for the third quarter of 2024. The company faced continued market volatility and customer consolidation, but still generated the third-highest level of quarterly revenue per average US-operated land rig since the KLX-QES merger in 2020. Net loss for the quarter was $(8) million, with an adjusted EBITDA of $28 million.
Revenue for the third quarter of 2024 totaled $189 million.
Net loss for the third quarter of 2024 was $(8) million, with a diluted loss per share of $(0.51).
Adjusted EBITDA for the third quarter of 2024 was $28 million.
The company's cash balance was $83 million, with total debt and net debt of $285 million and $203 million, respectively.
KLX Energy Services
KLX Energy Services
KLX Energy Services Revenue by Segment
Forward Guidance
KLX anticipates a sequential revenue decline of 10% to 14% in the fourth quarter of 2024, similar to 2023, due to seasonality, customer budget exhaustion, and the timing of holidays.
Positive Outlook
- Constructive discussions with customers on 2025 drilling, completion and production programs.
- Indication of incremental positive momentum for 2025 with new and existing customers.
- Cautious optimism for 2025 budgeting.
- Leading presence in extended reach laterals.
- Leading presence in completion technologies, and production and intervention services should continue to yield differentiated performance.
Challenges Ahead
- Seasonality
- Anticipated customer budget exhaustion
- Upcoming calendar that includes the Christmas and New Year’s holidays in the middle of the work week.
- Expect a fourth quarter 2024 sequential revenue decline of 10% to 14%, similar to 2023.
- Continued market volatility
Revenue & Expenses
Visualization of income flow from segment revenue to net income