KLX Energy Services Narrows Losses as Revenue Climbs in Second Quarter

CEO Chris Baker noted that the company’s performance aligned with internal projections, as adjusted EBITDA reached $19 million—a 68% jump from the first quarter. The acquisition of Wolf Pack Rentals, finalized in June, contributed $3.4 million in revenue during its first month under the KLX umbrella. Excluding this acquisition, the core business grew by more than 13%, effectively outperforming the 5.8% rise in the U.S. land rig count.

Financial health improved through better cost absorption and operational efficiency, with segment performance showing strength in the Rocky Mountains and Southwest regions. Despite a slight dip in the Northeast/Mid-Con segment, higher utilization rates pushed company-wide adjusted EBITDA margins to 11%. Looking to the third quarter, management anticipates further growth, projecting revenue between $176 million and $188 million as the firm continues to prioritize fixed-cost management and capitalize on cross-selling opportunities across its portfolio.