In This Article:
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Q4 Revenue: $166 million, a 12% sequential decrease and a 15% decrease year-over-year.
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Q4 Adjusted EBITDA: $22.7 million, down 18% sequentially, with a margin of 13.7%.
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Full Year 2024 Revenue: $709 million.
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Full Year 2024 Adjusted EBITDA: $90 million, with a margin of approximately 13%.
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Q4 SG&A Expense: $17.6 million, down 17% sequentially and 11% year-over-year.
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Full Year 2024 SG&A Expense: $79.6 million, an 8% decrease from 2023.
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Liquidity Position: $112 million, including $92 million in cash.
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Q4 Capital Expenditures: $15.3 million, a 27% decrease from Q3.
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Full Year 2024 Net CapEx: Approximately $51 million.
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Segment Revenue Breakdown: Southwest: $61.4 million, Rockies: $54 million, Northeast/Mid-Con: $50.1 million for Q4 2024.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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KLX Energy Services Holdings Inc (NASDAQ:KLXE) successfully refinanced its 2025 notes and ABL, extending maturities to 2030 and 2028, respectively, which positions the company well for future strategic execution.
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The company reported Q4 revenue of $166 million, achieving the midpoint of its guidance, with margins above prior guidance, demonstrating strong operational performance.
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KLXE achieved significant margin improvement in Q4 2024 compared to the previous year, despite a decline in revenue and rig count, highlighting effective cost controls and strategic focus.
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The company maintained a strong safety record in 2024, with TRIR and LTIR well below industry averages, supported by AI-driven fleet management, which enhances operational excellence.
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KLXE expanded its market share with key customers in 2024, driven by a leading customer base and recent wins, setting a positive trend for continued growth in 2025.
Negative Points
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Q4 2024 revenue decreased by 12% sequentially and 15% year-over-year, reflecting challenges in maintaining growth amidst market volatility.
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The company's Rockies segment experienced a 20% sequential revenue decrease in Q4 2024 due to seasonal factors, impacting overall financial performance.
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KLXE's Q4 2024 adjusted EBITDA was down 18% sequentially, indicating pressure on profitability despite operational improvements.
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The Northeast/Mid-Con segment saw an 85% sequential decrease in operating income in Q4 2024, driven by decreased completion activity and budget exhaustion.
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KLXE anticipates softness in Q1 2025 relative to Q4 2024 due to weather impacts and unexpected white space in the completions calendar, posing short-term challenges.