KLX Energy Services Holdings, Inc. Q1 FY26 Results

First quarter revenue was $145 million, within our estimated revenue range albeit at the lower end primarily due to winter storm Fern and customer delays in the last two weeks of March that pushed over $5 million of revenue into the second quarter of 2026 across multiple districts. “From a macro standpoint, we continue to operate in a highly volatile but constructive environment. By all accounts this is the largest energy shock in history,” continued Baker. “Commodity prices continue to be volatile and trade in a wide yet constructive band for activity due to the ongoing Middle East conflict and macro-economic news. We are discussing customer reactions and expected incremental activity in real time, particularly in the Permian and other oil-weighted basins. “Looking forward, we continue to see good traction with our larger, blue-chip operators, who are increasingly demanding certified, higher-specification equipment — an area where KLX is well positioned. We are forecasting second quarter 2026 revenue of $162 to $172 million, with a midpoint of $167 million, 5% higher than the second quarter of 2025, and $22 million higher than the first quarter of 2026. We expect solid contributions from the Northeast/Mid-Con and a seasonal rebound in the Rockies, with Southwest gradually improving off of current levels as Permian activity stabilizes. In short, we expect revenue to increase in all three segments, as well as nearly every product service line, in the second quarter of 2026. The mix of Drilling vs. Completion vs. Production & Intervention services will still lean unfavorable on a historical basis but is trending back to normal. We expect Adjusted EBITDA margin to expand sequentially, driven by higher activity and better overhead absorption,” concluded Baker.