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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%.
KLX Energy Services
KLX Energy Services
KLX Energy Services Revenue by Segment
Revenue by Segment
Rocky Mountains Revenue
CapyFin.comSouthwest Revenue
CapyFin.comNortheast/Mid-Con Revenue
CapyFin.com 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