KLX Energy Services Holdings, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2025, with total revenues of $636.6 million, a decrease of 10.2% from $709.3 million in 2024. The decline was attributed to reduced demand for services, with decreased weighted average prices contributing approximately 16% and decreased volumes accounting for 84% of the revenue drop. The company's operating loss widened to $30.3 million from a loss of $15.5 million in the previous year, primarily due to lower activity levels and fixed cost deleveraging. The net loss for the year was $77.1 million, compared to a net loss of $53.0 million in 2024.
In terms of operational metrics, KLX Energy Services experienced a decrease in revenues across all three geographic segments: Rocky Mountains, Southwest, and Northeast/Mid-Con. The Rocky Mountains segment saw a revenue decline of 13.1%, while the Southwest segment's revenue fell by 14.0%. The Northeast/Mid-Con segment's revenue decreased by 2.4%. The company’s market share in the U.S. onshore drilling market also declined to 3.9% from 4.9% in the previous year, reflecting the overall downturn in drilling activity.
Strategically, KLX Energy Services completed the acquisition of Greene's Energy Group, LLC in March 2023, which was aimed at enhancing its service offerings in wellhead protection, flowback, and well testing services. The integration of Greene's has been completed, and the company continues to focus on expanding its product and service capabilities. The company also reported a significant increase in its employee headcount, reaching approximately 1,548 employees as of December 31, 2025, with 88% engaged in operations.
Looking ahead, KLX Energy Services anticipates continued volatility in oil and natural gas prices, which may impact customer spending and demand for services. The company is focused on maintaining liquidity and managing its capital expenditures, with plans to invest approximately $40 million in capital expenditures for 2026. The company’s financial position remains under scrutiny due to its substantial debt, totaling $258.3 million as of December 31, 2025, which includes $36.0 million under its 2028 ABL Facility and $222.3 million in 2030 Senior Notes. The company is actively exploring options for refinancing its debt and improving its capital structure in light of ongoing market conditions.
About KLX Energy Services Holdings, Inc.
KLX Energy Services provides diversified oilfield services including drilling support, well completion, production, and intervention solutions across major U.S. onshore basins. Its offerings include directional drilling, hydraulic fracturing, wireline, pressure control, and well testing, supported by proprietary tools and innovative technologies. Serving primarily independent oil and gas companies, the company emphasizes safety, technical expertise, and tailored engineered solutions in a cyclical, highly competitive energy industry.
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