KLX Energy Services Holdings, Inc.KLXE

KLX Energy Services Holdings, Inc. Segments Disclosure

10-KFiled Mar 12, 20263 min read
Segment Reporting
The Company is organized on a geographic basis. The Company’s reportable segments, which are also its operating segments, are comprised of the Southwest Region (the Permian Basin and the Eagle Ford Shale), the Rocky Mountains Region (the Bakken, Williston, DJ, Uinta, Powder River, Piceance and Niobrara basins) and the Northeast/Mid-Con Region (the Marcellus and Utica Shale as well as the Mid-Continent STACK and SCOOP and Haynesville Shale). The Company’s segments report operating results and capital or acquisition funding requests to the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer. The CODM evaluates each segment’s performance based on segment operating income (loss) relative to budget and historical results. These evaluations are used to allocate resources and determine capital expenditures and management compensation for each segment. Accordingly, the Company has three reportable segments.

The following tables present revenues, significant expenses and operating income (loss) by reportable segment:
Year Ended
December 31, 2025
Rocky
Mountains		SouthwestNortheast
/Mid-Con		EliminationsTotal
Revenues$199.2 $232.5 $206.3 $(1.4)$636.6 
Less
   Cost of sales154.2 188.1 157.5 (1.4)
   Depreciation and amortization25.5 33.4 34.1 
   Selling, general and administrative(1)
7.5 12.1 6.0 
   Other segment items6.3 2.4 5.1 
Segment operating income (loss)$5.7 $(3.5)$3.6 $— $5.8 
Reconciliation of profit or loss (segment profit/(loss))
Unallocated corporate expenses(2)
(36.1)
Interest income0.4 
Interest expense(45.2)
Loss on debt extinguishment(1.2)
Loss before income tax$(76.3)
    
(1) Note that the Selling, general and administrative line item in the Consolidated Statement of Operations contains the Other segment items line item here, less the Research and development costs line item.
(2) For the twelve months ended December 31, 2025, these consist of $3.2 of cost of sales, $2.3 of depreciation and amortization, $28.9 of selling, general and administrative, and $1.7 of other segment items.
Year Ended
December 31, 2024
Rocky
Mountains		SouthwestNortheast
/Mid-Con		EliminationsTotal
Revenues$229.1 $270.7 $211.6 $(2.1)$709.3 
Less
   Cost of sales164.6 218.4 164.9 (2.1)
   Depreciation and amortization27.3 30.8 34.1 
   Selling, general and administrative(1)
7.7 12.7 6.6 
   Other segment items5.9 4.8 3.8 
Segment operating income$23.6 $4.0 $2.2 $— $29.8 
Reconciliation of profit or loss (segment profit/(loss))
Unallocated corporate expenses(2)
(45.3)
Interest income2.5 
Interest expense(39.4)
Loss before income tax$(52.4)
(1) Note that the Selling, general and administrative line item in the Consolidated Statement of Operations contains the Other segment items line item here, less the Research and development costs line item.
(2) For the twelve months ended December 31, 2024, these consist of $4.0 of cost of sales, $1.8 of depreciation and amortization, $38.0 of selling, general and administrative, and $1.5 of other segment items.

Other segment items include research and development costs, allocations and other expenses.

The following tables present revenues by service offering by reportable segment:
Year Ended
December 31, 2025
Rocky
Mountains		SouthwestNortheast
/Mid-Con		EliminationsTotal
Drilling$23.0 $43.8 $45.5 $(1.4)$110.9 
Completion107.6 121.9 127.0 356.5 
Production 50.3 41.7 15.3 107.3 
Intervention 18.3 25.1 18.5 61.9 
Total revenues$199.2 $232.5 $206.3 $(1.4)$636.6 

December 31, 2024
Rocky
Mountains		SouthwestNortheast
/Mid-Con		EliminationsTotal
Drilling$24.6 $76.3 $57.3 $(2.1)$156.1 
Completion123.8 125.6 123.3 372.7 
Production 58.2 37.9 14.6 110.7 
Intervention 22.5 30.9 16.4 69.8 
Total revenues$229.1 $270.7 $211.6 $(2.1)$709.3 

The following table presents total assets by segment:
December 31, 2025December 31, 2024
Rocky Mountains$103.0 $114.0 
Southwest139.2 152.3 
Northeast/Mid-Con92.4 98.4 
   Total334.6 364.7 
Unallocated corporate assets5.7 91.6 
   Total assets$340.3 $456.3 

The following table presents capital expenditures by reportable segment:
Year Ended
December 31, 2025December 31, 2024
Rocky Mountains$9.7 $14.5 
Southwest15.7 24.1 
Northeast/Mid-Con23.1 26.1 
Unallocated corporate capital expenditures0.6 0.4 
   Total capital expenditures$49.1 $65.1 
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Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 13, 2025
2023Mar 8, 2024
2022Mar 9, 2023
2021Apr 28, 2021
2020Mar 24, 2020
2019Mar 21, 2019

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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