NASDAQ$KLXE

KLX Energy Services Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported financial results for the third quarter ended September 30, 2024.

KLX Energy Services Holdings, Inc. reported revenue of $189 million for the third quarter of 2024. The company faced continued market volatility and customer consolidation, but still generated the third-highest level of quarterly revenue per average US-operated land rig since the KLX-QES merger in 2020. Net loss for the quarter was $(8) million, with an adjusted EBITDA of $28 million.

  • Revenue for the third quarter of 2024 totaled $189 million.
  • Net loss for the third quarter of 2024 was $(8) million, with a diluted loss per share of $(0.51).
  • Adjusted EBITDA for the third quarter of 2024 was $28 million.
  • The company's cash balance was $83 million, with total debt and net debt of $285 million and $203 million, respectively.

Headline financials

Total Revenue

$189M

Previous: $221M-14.4%
EPS

-$0.51

Previous: $0.51-200.0%
Adjusted EBITDA

$27.8M

No prior period
Adjusted EBITDA Margin

14.7%

Previous: 16.6%-11.4%
Net Loss Margin

-4.0%

No prior period
Capital Expenditures

-$21M

Previous: -$17.8M-18.0%
Free Cash Flow

-$29.2M

Previous: -$10.2M-186.3%
Net Income

-$8.2M

Previous: $7.6M-207.9%
Operating Income

$1.1M

Previous: $16.4M-93.3%
Gross Profit

$46.6M

Previous: $54.4M-14.3%
Cash & Equivalents

$82.7M

Previous: $90.4M-8.5%
Total Assets

$487M

Previous: $524M-7.2%
R&D Expense

$400K

Previous: $400K+0.0%
Stock-Based Comp

$1M

Previous: $800K+25.0%

Revenue & EPS history

KLX Energy Services · Revenue · Quarterly

$189M

Q3 2024-14.4%vs Q3 2023
Beat estimate in 6 of 14 quarters(43%)
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 anticipates a sequential revenue decline of 10% to 14% in the fourth quarter of 2024, similar to 2023, due to seasonality, customer budget exhaustion, and the timing of holidays.

Tailwinds

  • Constructive discussions with customers on 2025 drilling, completion and production programs.
  • Indication of incremental positive momentum for 2025 with new and existing customers.
  • Cautious optimism for 2025 budgeting.
  • Leading presence in extended reach laterals.
  • Leading presence in completion technologies, and production and intervention services should continue to yield differentiated performance.

Headwinds

  • Seasonality
  • Anticipated customer budget exhaustion
  • Upcoming calendar that includes the Christmas and New Year’s holidays in the middle of the work week.
  • Expect a fourth quarter 2024 sequential revenue decline of 10% to 14%, similar to 2023.
  • Continued market volatility

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 Q3 2024

Historical avgQ3 2024

-2.4%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-7.0%

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%
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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