KLX Energy Services Holdings, Inc. (Nasdaq ticker: KLXE, hereinafter referred to as “KLX”, “the Company”, “we”) announced on Friday that it has updated its revenue guidance range for the third quarter of 2026, and provided the profit margin range for the third quarter as of September 30, 2026.

2026 Third Quarter Guidance Update

• Revenue for the third quarter of 2026 is expected to be between $180 million and $185 million, representing a 9% increase compared to the second quarter of 2026 on a quarter-on-quarter basis.
• It is expected that the profit margin of Adjusted EBITDA in the third quarter of 2026 will be in the range of 13% to 14%, which represents an increase of about 200 basis points compared to the second quarter of 2026 on a quarter-on-quarter basis.

KLX, President and CEO, Chris Baker stated: "Based on our current quarterly internal financial data, we are very satisfied with the performance so far in the third quarter. Taking into account current internal forecasts, we have revised our revenue guidance for the third quarter to between $180 million and $185 million. Calculated based on the mid-point of the revised range, we expect revenue to grow by approximately 9% compared to the second quarter of 2026."

"We expect Adjusted EBITDA to increase by approximately 30% compared to the median of the guidance range from the previous quarter, and the profit margin of Adjusted EBITDA to improve by about 200 basis points on a quarter-on-quarter basis."

"We have also benefited from the contribution of a full quarter brought about by the acquisition of Wolf Pack, and we are still on track to achieve the annual synergies target of $2.5 million announced in August. These updates for the third quarter further strengthen our confidence in the business's profit trajectory and support the strategic actions we are taking for the next phase of growth of KLX."

Finally, the subscription period for the company's $125 million equity rights issue has concluded, and we are proud to have achieved our company's goals. This represents a transformative step in the company's deleveraging strategy and also enables KLX to pursue both organic and inorganic growth. We sincerely thank our shareholders and creditors for their trust in the company, as well as the broad participation of the investor community, including existing and new shareholders, creditors, the board of directors, management, and employees.

Regarding KLX Energy Services Holdings, Inc.

KLX is a growth-oriented, diversified oilfield services provider that serves leading onshore oil and gas exploration and production companies engaged in conventional and unconventional operations in the major active basins of the United States. The company provides critical oilfield services for wells with high technical requirements, focusing on drilling, completion, production, and intervention activities, with a service network covering more than 60 service and support facilities across the United States. KLX's complementary proprietary products and professional services are supported by technically skilled employees as well as extensive internal manufacturing, maintenance, and repair capabilities. For more information, please refer to www.klx.com.

Forward-looking Statements and Risk Warnings

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements in order to encourage companies to provide investors with such information. This press release contains forward-looking statements that reflect the company's current expectations and forecasts regarding future results, performance, and prospects. Forward-looking statements include any statements that are not historical in nature and are not current facts. In this press release (as well as in any oral statements made regarding the subject matter of this press release, including the conference call announced herein), the use of words such as "believes," "expects," "plans," "intends," "anticipates," "estimates," "predicts," "potential," "continues," "may," "perhaps," "should," "be able to," "will," or their negative forms, or similar expressions, is intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words.

These forward-looking statements are based on the company's current expectations and assumptions regarding future events, as well as information available to date, and include but are not limited to: operating cash flows; availability and liquidity of capital; future revenues, income, and operating performance; the ability to maintain and improve utilization rates, revenues, and profit margins; the ability to maintain acceptable service pricing; future capital expenditures; the ability to finance for equipment, working capital, and capital expenditures; the ability to implement long-term growth strategies and integrate acquisitions; the ability to successfully develop research and technical capabilities and to implement technological advancements and improvements; as well as the timing and success of strategic initiatives and special projects.

Forward-looking statements cannot guarantee future performance, and actual results may differ significantly from the company's historical experience as well as current expectations or forecasts. These forward-looking statements are based on management's current expectations and judgments, existing business projections, experience, expectations and understanding of historical trends, current circumstances, anticipated future developments and their impact on the company, as well as other factors deemed appropriate by management. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable at the time they are made, there is no guarantee that these assumptions will be accurate, or that any of these expectations will be realized (in whole or in part). The company's forward-looking statements involve significant risks, uncertainties, and contingent factors, most of which are difficult to predict and many of which are beyond the company's control.

Known important factors that may lead to significant differences between actual results and forward-looking statements include, but are not limited to: current market conditions; whether the issuance of subscription rights and related Backstop Exchange will meet delivery requirements; a decline in demand for the company's services, including due to overcapacity and other competitive factors affecting the industry; the cyclical nature and volatility of the oil and gas industry, which can affect levels of exploration, production, and development activities as well as the spending patterns of oil and gas exploration and production companies; declines or significant fluctuations in crude oil and natural gas commodity prices, which typically result in reduced customer spending and have a negative impact on drilling, completion, and production activities; inflation; changes in interest rates; the ongoing war in Ukraine and its continuous impact on global trade; ongoing conflicts and tensions in the Middle East, including those with Iran; supply chain issues; general economic, financial, and political conditions, including market fluctuations and the effects of new, increased, and retaliatory tariffs; as well as other risks and uncertainties listed in the company's filings with the U.S. Securities and Exchange Commission, including the company's periodic 8-K reports, 10-Q quarterly reports, and 10-K annual reports. Readers are reminded not to rely excessively on forward-looking statements, which are only valid as of the date of this press release. Except as required by law, the company assumes no obligation to publicly update or revise any forward-looking statements due to new information, future events, or other reasons after such statements are made.

Information on Guideline Updates

The company plans to provide detailed operational and financial updates during the third-quarter earnings conference call in November 2026. The financial quarter closing procedures as of September 30, 2026, have not yet been completed. The update ranges mentioned in this press release merely reflect management's estimates as of the date of this press release, based on information available at that time, and are not a comprehensive statement of the company's financial results for the three months ending September 30, 2026. Once the complete unaudited financial statements are available, these ranges should not be considered a substitute for them, nor should they be regarded as the company or management's representation of the actual financial results for the same period. The aforementioned ranges constitute forward-looking statements and may change. The company's actual financial results may differ from these estimates, and such differences could be significant. Therefore, reliance on these ranges should not be excessive.

Non-GAAP Financial Indicators

This press release contains Adjusted EBITDA, Adjusted EBITDA, and margin. The aforementioned indicators are all "non-financial indicators" as defined by the Securities Exchange Act of 1934 Regulation G. Since it is not possible to obtain the relevant reconciliation information without making unreasonable efforts, the company has not provided forecasts for future Adjusted EBITDA or Adjusted EBITDA margin.

Adjusted EBITDA is a supplementary non-GAAP financial indicator that is used by management as well as external users of financial statements, such as industry analysts, investors, lenders, and rating agencies. Adjusted EBITDA is not a net income or cash flow indicator calculated according to GAAP. The company defines Adjusted EBITDA as net income (loss) before taxes, interest, depreciation, and amortization, and further adjusts for the following items: (i) impairment charges for goodwill and/or long-term assets; (ii) equity incentive expenses; (iii) restructuring expenses; (iv) transaction and integration costs related to acquisitions; (v) costs related to the COVID-19 pandemic; and (vi) other expenses or expenditures that the company believes do not reflect the ongoing performance of the business. Adjusted EBITDA is used to calculate the company's leverage ratio and is consistent with the terms of the company's ABL financing arrangements.

The company believes that Adjusted EBITDA is helpful for more effectively evaluating operational performance and for comparing operating results across different periods without considering the method of financing or capital structure. When calculating Adjusted EBITDA, the company excluded the aforementioned items because these amounts can vary significantly between companies due to differences in accounting methods, book values of assets, capital structure, and the manner in which assets were acquired. Adjusted EBITDA should not be regarded as a substitute for net profit under GAAP, nor should it be considered a more meaningful indicator than net profit, nor an indicator of the company's operational performance or liquidity. Some items excluded from Adjusted EBITDA are significant for understanding and evaluating the company's financial performance, such as cost of capital and tax structure, as well as the historical cost of depreciable assets, which are not part of Adjusted EBITDA. The company's calculation of Adjusted EBITDA may not be comparable to similar indicators used by other companies.