KLX Energy Services Holdings, Inc. (KLXE) is crashing due to tariff impact and global oil prices

From Yahoo Finance: 2025-04-09 14:46:00

The energy industry, especially oilfield services, is struggling due to a 25% tariff on steel and aluminum, increasing costs by 4% for drilling. Global oil prices have dropped, with the US oil industry needing prices between $61 and $70 per barrel to be profitable, but WTI prices are at $57 due to the trade war.

Morningstar has reduced fair value estimates on the three biggest oilfield services companies after President Trump’s tariff announcements, with a revenue drop of 2-3% expected. Each dollar lost translates to an operating profit loss between $1.25 and $1.35, leading to a crash in energy service stocks.

KLX Energy Services Holdings, Inc. (KLXE) is crashing this week, with a share price decline of 46.83% between April 1 and April 8. The company provides over 100 oilfield services, tools, technologies, and equipment, making it vulnerable in the ongoing global trade war in the energy services industry.

KLXE ranks first in the list of energy stocks that lost the most this week, with disappointing Q4 2024 results affecting investor confidence. The company reported an EPS of -$0.9, missing estimates, and revenue fell by 14.7% YoY. Insider selling of stock has also contributed to the decline, highlighting the bearish sentiment in the energy services sector.



Read more at Yahoo Finance: Why KLX Energy Services Holdings, Inc. (KLXE) is Crashing This Week