NASDAQ$KLXE

KLX Energy Services Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported second quarter 2024 results with revenue increase and improved profitability.

KLX Energy Services Holdings, Inc. reported a 3.1% sequential increase in revenue to $180.2 million. Adjusted EBITDA improved by 125% to $27.0 million, and Adjusted EBITDA margin grew to 15.0%. The company enacted approximately $16 million of annualized cost reductions and experienced a rebound in higher-margin production and intervention activity.

  • Revenue increased 3.1% sequentially to $180.2 million.
  • Adjusted EBITDA improved sequentially by 125% to $27.0 million.
  • Adjusted EBITDA margin grew 118% to 15.0%.
  • Enacted approximately $16 million of annualized cost reductions.

Headline financials

Total Revenue

$180M

Previous: $234M-23.0%
EPS

-$0.49

Previous: $0.81-160.5%
Adjusted EBITDA

$27M

No prior period
Adjusted EBITDA Margin

15.0%

Previous: 17.0%-11.8%
Net Loss Margin

-4.0%

No prior period
Net Working Capital

$42.2M

No prior period
Capital Expenditures

$15.3M

No prior period
Free Cash Flow

-$23.3M

Previous: -$4.8M-385.4%
Net Income

-$8M

Previous: $11.4M-170.2%
Operating Income

$1.4M

Previous: $19.6M-92.9%
Gross Profit

$44.2M

Previous: $60.7M-27.2%
Cash & Equivalents

$86.9M

Previous: $82.1M+5.8%
Total Assets

$491M

Previous: $527M-6.7%
R&D Expense

$300K

No prior period
Stock-Based Comp

$1M

Previous: $800K+25.0%

Revenue & EPS history

KLX Energy Services · Revenue · Quarterly

$180M

Q2 2024-23%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

KLX Energy Services · $221M total across 3 segments · Q3 2023

  • Southwest
    $77.8M+13.6%
  • Rocky Mountains
    $77M+15.8%
  • Northeast/Mid-Con
    $65.8M-24.0%

Forward guidance

KLX reaffirms its third quarter 2024 guidance for revenue to be flat to slightly up relative to the second quarter, with similar Adjusted EBITDA margins to the second quarter.

Tailwinds

  • Third quarter 2024 revenue expected to be flat to slightly up relative to the second quarter.
  • Third quarter 2024 Adjusted EBITDA margins expected to be similar to the second quarter.
  • Leading presence in extended reach laterals.
  • Leading presence in completion technologies.
  • Leading presence in production and intervention services.

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 2024

Historical avgQ2 2024

-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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