KLX Energy Services Narrows Third Quarter Revenue Outlook

CEO Chris Baker cited strong internal financial performance during the current quarter as the primary driver for the adjusted outlook. Alongside the revenue adjustment, the company anticipates an Adjusted EBITDA margin of 13% to 14%, marking a 200 basis point improvement compared to the previous quarter. Baker noted that the business is benefiting from a full quarter of contributions from the Wolf Pack acquisition and remains on schedule to hit a $2.5 million annual synergy target.

The company also confirmed the conclusion of its $125 million equity rights offering. Management views this capital maneuver as a pivotal step in its broader strategy to reduce leverage and clear the path for future organic and inorganic growth. KLX plans to provide a more comprehensive breakdown of its financial position and operational results during its scheduled earnings call in November.