KLX Energy Services Q3 earnings call highlights. KLX Energy Services (NASDAQ:KLXE) reported higher third-quarter revenue and adjusted earnings as a full quarter of contributions from its Wolf Pack acquisition and increased activity across its three operating regions helped offset a wider net loss. Revenue rose 11% from the second quarter to $186 million, exceeding the company's guidance, while adjusted EBITDA increased 33% to $25 million. Adjusted EBITDA margin expanded to 13.4% from 11.2%. President and CEO Chris Baker said the quarter demonstrated the company's earnings potential when activity, service mix and execution align. KLX also substantially completed the integration of Wolf Pack and closed a backstopped rights offering that reduced debt and raised new equity. Loss widens despite stronger operations. KLX reported a third-quarter net loss of $15 million, or 68 cents per share, compared with a loss of $8 million, or 41 cents per share, in the second quarter. Senior Vice President and Interim Chief Financial Officer Geoff Stanford said the comparison included a $4 million loss on debt extinguishment in the third quarter and a $6.5 million bargain purchase gain from Wolf Pack in the second quarter. On an adjusted basis, the net loss narrowed to $10.1 million, or 44 cents per share, from $13.2 million, or 64 cents per share, in the prior quarter. Adjusted operating income was $4 million, compared with an adjusted operating loss of $3 million. Revenue increased sequentially in all three operating segments. The Rocky Mountains region stood out, with revenue rising 15% to $59 million and adjusted EBITDA approximately doubling to $12.6 million, according to Baker. Stanford attributed the improvement to higher utilization. Southwest revenue increased 10% to $71 million, while Northeast MidCon revenue rose 8% to $56 million. Accommodations and technology services drove growth in both regions, supported by a full quarter of Wolf Pack contributions. Northeast MidCon adjusted EBITDA declined to $12 million from $13 million as improved results in the Northeast were offset by slightly lower utilization in the MidCon, Stanford said. Recapitalization cuts debt. The rights offering converted $88 million of debt to equity and raised $37 million in new equity, Baker said. Total debt fell to $188 million at September 30 from $289 million at the end of the second quarter, while liquidity rose to $78 million. KLX's trailing 12-month net leverage ratio declined to 2.5 times from 3.9 times at June 30. Baker also cited a roughly two-times ratio based on third-quarter run-rate adjusted EBITDA, excluding capital leases. The company ended the quarter with 105.7 million shares outstanding. Stanford said the third-quarter weighted average share count of 22.7 million reflected the newly issued shares for only the final two days of the quarter; fourth-quarter per-share results will reflect them for the full period. Cash flow from operating activities fell to $7 million from $11 million in the second quarter, primarily because of a working capital and accounts receivable build. KLX expects some working capital to be released as activity moderates in the fourth quarter, Stanford said. Baker said the recapitalization reduced annual interest costs by approximately $12 million. The expiration of five large coiled tubing unit leases, with the final payment due in November, is expected to provide another $8.2 million in annualized cash savings. Seasonal slowdown expected to ease. For the fourth quarter, KLX forecast revenue of $172 million to $184 million. Baker said the midpoint represents roughly 14% growth from the prior-year period and a smaller sequential seasonal decline than in recent years. Baker described the broader market recovery as uneven. He said the average U.S. land rig count rose to 575 in the third quarter from 538 in the second, but operators remain selective with spending. Gas-directed activity remains uncertain, with a recent decline in the Haynesville rig count and deferred completion work, he said. During the question-and-answer session, Baker said KLX had been able to raise prices selectively for differentiated technology and services, as well as in certain niche regional markets. Pricing remained more difficult in fragmented service lines with heavy competition and fewer technological differentiators, he said. KLX's year-end priorities include protecting margins, managing costs and completing the remaining Wolf Pack integration work. The company remains on track to achieve its previously targeted $2.5 million in annual fixed-cost synergies, Baker said. Looking ahead, Baker said the improved balance sheet gives KLX more flexibility to pursue growth and evaluate acquisitions, while continuing to reduce leverage through free cash flow. He estimated that adjusted EBITDA needed to break even on free cash flow in 2027 would be in the upper $60 million to low $70 million range, depending on capital spending, working capital and seasonal factors. About KLX Energy Services (NASDAQ:KLXE). KLX Energy Services Holdings, Inc provides technical oilfield services and equipment to exploration and production companies operating primarily in the United States. The company supports onshore drilling, completion and production activities, helping customers construct, maintain and optimize oil and natural gas wells. Its service portfolio includes well-intervention and completion services such as coiled tubing, wireline, pressure pumping, stimulation, snubbing, well testing and related technical services.

KLX Energy Services announces appointment of Franklin S. Edmonds, Jr. And E. Dirk Hallen to board of Directors. Oct 29, 2026, 16:50 ET HOUSTON, Oct. 29, 2026 /PRNewswire/ - KLX Energy Services Holdings, Inc. (NASDAQ: KLXE) ("KLX" or the "Company") today announced the appointment of Franklin S. Edmonds, Jr. and E. Dirk Hallen to its Board of Directors (the "Board") as independent directors, effective October 29, 2026. They succeed John Collins and Tom McCaffrey who have resigned from the Board. Messrs. Edmonds and Hallen will both serve on the Board's Nominating and Governance Committee. Additionally, Mr. Edmonds will serve on the Audit Committee and Mr. Hallen will serve on the Compensation Committee. "We are pleased to welcome Frank and Dirk to the KLX Board," said Chris Baker, President and Chief Executive Officer of KLX. "Frank's extensive background in investments, capital allocation and corporate governance, together with Dirk's substantial oilfield services, operational and strategic experience, will bring valuable and complementary perspectives to the Board as we continue to execute our business strategy and enhance long-term value for our shareholders." Mr. Baker added, "On behalf of the Board and the Company, I thank John Collins and Tom McCaffrey for their many years of dedicated service and leadership. Their contributions have helped guide the Company during a challenging transition through the Covid era and a transformational capital rebalancing, and we are grateful for the lasting impact they have made. We wish them both continued success in their future endeavors." Franklin S. Edmonds, Jr. Franklin S. Edmonds, Jr. brings more than three decades of experience across public and private investments, capital markets, corporate governance and strategic oversight. He served as an independent director and member of the Strategic Review Committee of Atkore Inc. (NYSE: ATKR) before its sale to Prysmian S.p.A in October 2026. He serves as a board member and investor in a number of privately held businesses and real estate ventures. From 2013 to 2019, Mr. Edmonds was as Co-Managing Partner and Head of Research at Panning Capital Management. He previously served as a Partner at King Street Capital, where he was one of five partners, served on the firm's Global Investment Committee and managed its global research team. Earlier in his career, he held investment positions with Oak Hill Advisors and Lehman Brothers. Mr. Edmonds currently serves on the board of the University of Virginia Investment Management Company, as Chair of the Jefferson Scholars Foundation and as a board member of the University of Virginia's Darden Graduate School of Business. He earned J.D. and M.B.A. degrees from the University of Virginia School of Law and the Darden Graduate School of Business and a Bachelor of Arts degree in American Studies from the University of Virginia. E. Dirk Hallen E. Dirk Hallen has more than 12 years of experience in completions-focused oilfield services, spanning frac sand, proppant logistics and pressure pumping, along with a background in strategy consulting, corporate transactions and business transformation. From 2024 to 2026, Mr. Hallen served as Chief Executive Officer and a director of HC Minerals, which was spun out of Hi-Crush Inc. to hold their Northern White sand and rail logistics platform before the assets were sold to Iron Oak Energy in 2025. From 2020 to 2024, he was Chief Executive Officer and a director of Hi-Crush Inc., an integrated provider of frac sand and logistics services for North American oil and gas completions. Mr. Hallen was tasked with leading Hi-Crush following its emergence from bankruptcy in 2020, focusing on reducing costs, driving operational excellence, improving safety performance, and accelerating growth. That turnaround culminated in the 2024 sale of the majority of the company's assets to Atlas Energy Solutions. As Hi-Crush's designee, he also served on the board of PropX, a provider of last-mile containerized proppant delivery solutions, through its sale to Liberty Energy in 2021. Previously, Mr. Hallen co-founded Pronghorn Logistics, a provider of outsourced frac sand supply-chain services to E&P operators, and served as its Chief Executive Officer from 2017 until Hi-Crush acquired it in 2019. Prior to that, he held senior roles at RockPile Energy Services, an oilfield services provider acquired by Keane Group in 2017. Earlier in his career, he was a management consultant in the energy practice of Booz & Company. Mr. Hallen holds an M.B.A. from the McCombs School of Business at The University of Texas at Austin and a B.S. from California Polytechnic State University, San Luis Obispo. About KLX Energy Services KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States. The Company delivers mission critical oilfield services focused on drilling, completion, production, and intervention activities for technically demanding wells from over 60 service and support facilities located throughout the United States. KLX's complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair and maintenance capabilities. More information is available at www.klx.com. Forward Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. Actual results may differ materially from those expressed or implied by these forward-looking statements as a result of various risks and uncertainties. Readers are encouraged to review the Company's filings with the Securities and Exchange Commission for a discussion of factors that could affect future results. Contacts: KLX Energy Services Geoffrey C. Stanford, SVP, Interim CFO & CAO 832-930-8066 [email protected] Dennard Lascar Investor Relations Ken Dennard / Natalie Hairston (713) 529-6600 [email protected] SOURCE KLX Energy Services Holdings, Inc.