NASDAQ$KLXE

KLX Energy Services Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

KLX Energy Services reported second quarter results, driven by regional and product service line diversification, resulting in higher adjusted EBITDA, adjusted EBITDA margin, and free cash flow.

KLX Energy Services Holdings, Inc. reported a revenue of $234.0 million. Net income was $11.4 million, with adjusted EBITDA reaching $39.7 million. The company generated $47.3 million in levered free cash flow and reduced net debt sequentially by 17%.

  • Revenue of $234.0 million.
  • Net income of $11.4 million, net income margin of 4.9%, diluted earnings per share of $0.71.
  • Adjusted EBITDA of $39.7 million, increased 4% sequentially.
  • Cash balance of $82.1 million, increased $42.5 million sequentially and $50.6 million compared to Q2 2022.

Headline financials

Total Revenue

$234M

Previous: $184M+26.9%
EPS (adj)

$0.81

Previous: -$0.67+220.9%
Adjusted EBITDA Margin

17.0%

No prior period
Capital Expenditures

-$16.2M

Previous: -$7.8M-107.7%
Free Cash Flow

-$4.8M

Previous: -$15.3M+68.6%
Net Income

$11.4M

Previous: -$7.5M+252.0%
Operating Income

$19.6M

Previous: $1.4M+1300.0%
Gross Profit

$60.7M

Previous: $33.5M+81.2%
Cash & Equivalents

$82.1M

Previous: $31.5M+160.6%
Total Assets

$527M

Previous: $415M+26.7%
Stock-Based Comp

$800K

Previous: $800K+0.0%

Revenue & EPS history

KLX Energy Services · Revenue · Quarterly

$234M

Q2 2023+26.9%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

KLX Energy Services · $234M total across 3 segments · Q2 2023

  • Southwest
    $86.3M+43.8%
  • Northeast/Mid-Con
    $81.3M+14.0%
  • Rocky Mountains
    $66.4M+25.0%

Forward guidance

The Company is deferring capital projects and lowering full year capital spending guidance to approximately $45 to $55 million from $60 to $70 million. The below summary of Company guidance is current as of the time provided and subject to change.

Tailwinds

  • Third quarter 2023 revenue of $215 million to $230 million
  • Third quarter 2023 adjusted EBITDA margin of 14% to 16%
  • Full year 2023 revenue range of $900 million to $950 million
  • Full year 2023 adjusted EBITDA margin of 15% to 17%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-2.4%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-7.6%

Avg return

30 days after

39%

13 / 33 earnings

Positive

+28.4%

Q1 2020

Best reaction

-27.4%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.4%-2.3%-26.4%
Q4 2025-9.2%-12.0%+35.6%
Q3 2025-8.3%-11.7%-15.7%
Q1 2025-15.0%-4.3%-14.6%
Q4 2024-6.0%-7.8%-54.2%
Q3 2024-5.8%-2.4%+33.7%
Q2 2024+5.6%+5.6%+8.0%
Q1 2024-9.7%-16.5%-29.5%
Q4 2023-1.7%-8.9%-19.8%
Q3 2023-6.6%-6.1%-12.3%
Q2 2023+7.5%+2.3%+1.0%
Q1 2023+12.0%+8.5%-4.9%
Q4 2022+7.6%-6.6%-15.1%
Q3 2022-5.3%-3.1%-23.9%
Q2 2022+15.0%+10.8%+16.1%
Q1 2022-5.3%-23.1%+25.0%
Q4 2021-8.7%-25.8%-45.2%
Q3 2021-11.4%-22.8%+6.9%
Q2 2021+0.5%-11.6%-22.0%
Q1 2021-22.0%-28.9%-34.7%
Q4 2020-26.2%-43.0%-13.9%
Q3 2020+6.5%-4.0%-6.5%
Q2 2020-14.8%-15.2%-47.2%
Q1 2020+28.4%+66.7%+3.4%
Q4 2019-27.4%-19.0%-37.4%
Q3 2019+4.7%+31.8%+4.2%
Q2 2019-10.3%-6.3%-12.0%
Q1 2019-9.2%-9.2%-16.5%
Q1 2017-5.3%-2.0%+5.6%
Q4 2017-5.3%-2.0%+5.6%
Q4 2018+4.4%-0.6%+14.0%
Q3 2018+27.4%+26.0%+22.9%
Q2 2018+5.4%+5.6%+18.2%

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