KLX Energy Services Holdings, Inc. reported a revenue of $154.0 million for the first quarter of 2025, a decrease of 11.8% compared to $174.7 million in the same period of 2024. The decline in revenue was primarily attributed to reduced activity levels and lower demand for services, with a significant portion of the decrease stemming from lower weighted average volumes. The company's operating loss widened to $17.7 million from a loss of $13.1 million year-over-year, while the net loss increased to $27.9 million, compared to a net loss of $22.2 million in the prior year.
In terms of operational performance, KLX Energy's Rocky Mountains segment saw a revenue increase of 4.8%, driven by higher volumes, while the Southwest and Northeast/Mid-Con segments experienced declines of 6.1% and 31.3%, respectively. The cost of sales decreased to 80.4% of revenues from 82.4% in the previous year, reflecting improved cost management. Selling, general, and administrative expenses remained stable at $21.6 million, but as a percentage of revenue, they increased due to lower overall sales.
Strategically, KLX Energy has been active in refining its capital structure. The company completed a refinancing of its long-term debt on March 12, 2025, which included the issuance of approximately $232.2 million in new senior secured notes due in 2030. This refinancing was part of a broader effort to reduce interest burdens and improve liquidity. As of March 31, 2025, KLX Energy had $14.6 million in cash and cash equivalents, with an additional $43.5 million available under its new asset-based revolving credit facility.
The company continues to focus on maintaining a strong liquidity position while pursuing growth opportunities through strategic acquisitions. KLX Energy operates over 60 service facilities across major U.S. shale basins, and it aims to leverage its geographic footprint to respond to increasing demand for oilfield services. Looking ahead, KLX Energy anticipates that market conditions will remain volatile, impacting customer spending and operational activity levels. The company plans to manage its capital expenditures prudently while seeking to enhance its service offerings and operational efficiencies.
About KLX Energy Services Holdings, Inc.
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