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KLX Energy Services
🇺🇸 NASDAQ:KLXE
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Dec 31, 2023

KLX Energy Services Q4 2023 Earnings Report

KLX Energy Services Holdings, Inc. reported a net loss for Q4 2023, but annual revenue, Adjusted EBITDA, and free cash flow reached record levels.

Key Takeaways

KLX Energy Services Holdings, Inc. reported Q4 2023 financial results, including revenue of $194 million and a net loss of $(9) million. Despite the quarterly loss, the company achieved record annual revenue, Adjusted EBITDA, and free cash flow for the full year 2023.

Revenue for the fourth quarter of 2023 totaled $194 million, a decrease of 12.0% compared to the third quarter.

Net loss for the fourth quarter of 2023 was $(9) million, compared to fourth quarter 2022 net income of $13.2 million.

Adjusted EBITDA for the fourth quarter of 2023 was $23.0 million, compared to fourth quarter 2022 Adjusted EBITDA of $37.3 million.

Adjusted EBITDA margin for the fourth quarter of 2023 was 11.8%, compared to fourth quarter 2022 Adjusted EBITDA margin of 16.7%.

Total Revenue
$194M
Previous year: $223M
-13.0%
EPS
-$0.54
Previous year: $1.06
-150.9%
Adjusted EBITDA
$23M
Previous year: $37.3M
-38.3%
Gross Profit
$22.2M
Previous year: $56.7M
-60.8%
Cash and Equivalents
$113M
Previous year: $57.4M
+96.0%
Free Cash Flow
$25.8M
Previous year: $2.3M
+1021.7%
Total Assets
$540M
Previous year: $466M
+15.9%

KLX Energy Services

KLX Energy Services

KLX Energy Services Revenue by Segment

Forward Guidance

The company expects the first quarter results to be negatively impacted by normalized seasonality, the Polar Vortex in January and safety standdowns for two separate customers due to non-KLX safety incidents. Based on current schedules, KLX expects to exit the first quarter on a strong monthly run-rate and to approach 2023 levels of quarterly revenue and Adjusted EBITDA in the second quarter and beyond.

Positive Outlook

  • Expect to exit the first quarter on a strong monthly run-rate
  • Approach 2023 levels of quarterly revenue in the second quarter and beyond
  • Approach 2023 levels of Adjusted EBITDA in the second quarter and beyond
  • Forward natural gas strip is highly constructive into 2025 and 2026 due to the much-anticipated incremental LNG offtake demand
  • Global LNG demand is expected to double over the next two years and we believe this increase will drive incremental natural gas-directed activity that will ultimately lift and support service pricing and utilization across all basins

Challenges Ahead

  • First quarter results to be negatively impacted by normalized seasonality
  • First quarter results to be negatively impacted by the Polar Vortex in January
  • First quarter results to be negatively impacted by safety standdowns for two separate customers due to non-KLX safety incidents

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View KLX Energy Services