Helmerich & Payne (NYSE: HP) swings to Q2 loss but cuts $400M debt
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Helmerich & Payne, Inc. reported fiscal second-quarter 2026 consolidated revenue of $932 million and a net loss of $59 million, or $(0.59) per share, including a $26 million non-cash impairment. Adjusted loss was $38 million, or $(0.38) per share, and adjusted EBITDA reached $178 million.
North America Solutions delivered operating income of $111 million and direct margin of $215 million, about $17,628 per day on 136 active rigs. International Solutions posted an operating loss of roughly $100 million with direct margin of about $11.5 million, reflecting Middle East conflict impacts, while Offshore Solutions earned operating income of about $14 million and direct margin near $27 million.
The company completed the sale of Utica Square with after-tax proceeds above its $100 million target, retired a term loan, reducing post-acquisition debt by $400 million, and returned roughly $25 million to shareholders through dividends. Management highlighted growing FlexRobotics™ deployment, a five-year bp contract renewal in the Caspian Sea that could exceed $1 billion if all options are exercised, and issued guidance calling for North America Solutions direct margin of $230–$240 million and 137–143 average rigs in the third quarter of fiscal 2026.
Positive
- Debt reduction and portfolio rationalization: After-tax proceeds from the Utica Square sale exceeded the $100 million divestiture target, enabling retirement of the term loan ahead of schedule and reducing post-acquisition debt by $400 million, which strengthens the balance sheet.
- Long-term offshore revenue visibility: The Offshore Solutions segment secured a bp operations and maintenance contract renewal in the Caspian Sea with a firm five-year term and three one-year options; if all options are exercised, contract revenue could exceed $1 billion.
- Resilient North America performance and technology rollout: North America Solutions delivered operating income of $111 million and direct margin of $215 million on 136 active rigs, while management advanced FlexRobotics™ Technology deployment to additional rigs to meet growing customer demand.
Negative
- Continued net losses and impairments: The company reported a fiscal Q2 2026 net loss of $59 million, or $(0.59) per share, including a non-cash impairment charge of $26 million, and an adjusted net loss of $38 million, indicating profitability pressure.
- Weak international performance amid geopolitical risk: International Solutions recorded an operating loss of approximately $100 million and direct margin of about $11.5 million, significantly worse than the prior quarter, primarily due to conflict-related impacts in the Middle East.
- Sequential earnings softness: Consolidated adjusted EBITDA of roughly $178 million in fiscal Q2 2026 was lower than the $230 million level in the prior quarter, reflecting higher costs and weaker contributions from non-U.S. operations.
Insights
Quarter shows solid U.S. land performance but weak international results and continued losses.
Helmerich & Payne generated Q2 fiscal 2026 revenue of $932 million but posted a net loss of $59 million due to $26 million in impairment and other select items. Adjusted loss was $38 million, and adjusted EBITDA was $178 million, down from $230 million the prior quarter.
North America Solutions remained the profit engine, with operating income of $111 million, direct margin of $215 million, and about 136 active rigs. International Solutions was the main drag, recording a roughly $100 million operating loss and only $11.5 million in direct margin, driven largely by Middle East conflict effects and higher operating expenses.
Strategically, the company de-levered by retiring a term loan and reducing post-acquisition debt by $400 million, after Utica Square sale proceeds exceeded $100 million. Offshore secured a bp contract renewal in the Caspian Sea that could top $1 billion over its term. Guidance for Q3 fiscal 2026 anticipates North America Solutions direct margin of $230–$240 million and 137–143 average rigs, suggesting modest sequential improvement despite international uncertainty.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenue: $932 million
Q2 2026 Net loss: $59 million ( $(0.59) per share )
Adjusted net loss: $38.2 million ( $(0.38) per share )
+5 more
8 metrics
Q2 2026 Revenue
$932 million
Consolidated operating revenues for quarter ended March 31, 2026
Q2 2026 Net loss
$59 million ( $(0.59) per share )
Net loss attributable to Helmerich & Payne, Inc. for quarter
Adjusted net loss
$38.2 million ( $(0.38) per share )
Q2 2026 adjusted net loss excluding select items
Adjusted EBITDA
$177.9 million
Q2 2026 consolidated adjusted EBITDA (non-GAAP)
North America Solutions direct margin
$215.2 million
Q2 2026 segment direct margin with 136 average active rigs
International Solutions operating loss
$99.6 million
Q2 2026 operating loss driven by Middle East conflict impacts
Debt reduction
$400 million
Post-acquisition debt reduced by retiring term loan after Utica Square sale
FY 2026 Capex guidance
$270–$310 million
Guided gross capital expenditures for fiscal 2026
Key Terms
Adjusted EBITDA, direct margin, asset impairment charges, non-GAAP, +2 more
6 terms
Adjusted EBITDA financial
"Consolidated adjusted EBITDA(2) totaled $178 million."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
direct margin financial
"North America Solutions (NAS) reported operating income of $111 million and maintained industry‑leading performance with direct margin(3) of $215 million"
Direct margin measures the profit left from sales after subtracting the costs that can be traced directly to producing those goods or services — for example raw materials, production labor, and shipping. Think of it as the money remaining from the price a customer pays once the immediate costs of making and delivering the item are covered; investors use it to see how efficiently a company turns sales into cash before overhead and other indirect expenses.
asset impairment charges financial
"Asset impairment charges | 26,101 | | | 103,086"
Asset impairment charges happen when a company realizes that the value of something it owns, like equipment or property, has dropped significantly and is now worth less than its current book value. This is important because it shows the company needs to write down the asset's value on its financial records, which can affect its profits and overall financial health.
non-GAAP financial
"Adjusted net income, which is considered a non-GAAP metric, is defined as net income (loss), excluding the impact of 'select items'"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
revenue days financial
"Revenue days 3 | 12,208 | | 13,126"
select items financial
"Select items are considered non-GAAP metrics and are included as a supplemental disclosure"
Earnings Snapshot
Revenue: $932 million · Guidance included
Q2 fiscal 2026
Revenue
$932 million
Net income (loss)
$(59) million; $(0.59) per share
Adjusted net loss
$(38.2) million; $(0.38) per share
Adjusted EBITDA
$177.9 million
Guidance
For Q3 2026, North America Solutions direct margin is guided to $230–$240 million with 137–143 average rigs; FY 2026 capex is forecast at $270–$310 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices and zip code)
(918 ) 742-5531
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 6, 2026, Helmerich & Payne, Inc. issued a press release announcing its financial results for its second fiscal quarter ended March 31, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K. This information is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
| Exhibit Number | DESCRIPTION | ||||
| 99.1 | Helmerich & Payne, Inc. earnings release dated May 6, 2026. | ||||
| 104 | Cover page Interactive Data File - the cover page XBRL tags are embedded within the inline XBRL document. | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HELMERICH & PAYNE, INC. | |||||||||||
| By: | /s/ William H. Gault | ||||||||||
| Name: | William H. Gault | ||||||||||
| Title: Date: | Corporate Secretary May 6, 2026 | ||||||||||
Exhibit 99.1 | |||||
NEWS RELEASE
May 6, 2026
HELMERICH & PAYNE, INC. ANNOUNCES FISCAL SECOND QUARTER RESULTS
Operating and Financial Highlights for the Quarter Ended March 31, 2026
•H&P announced consolidated revenue of $932 million, reflecting solid performance despite a dynamic macro environment.
•Consolidated net loss of $(59) million, or $(0.59) per share, which includes the impact of a non-cash impairment charge of $26 million. Adjusted for this and other non-recurring one-time items, adjusted earnings(1) were $(38) million, or $(0.38) per share.
•Consolidated adjusted EBITDA(2) totaled $178 million.
•Expanding deployment of FlexRobotics™ Technology to support growing customer demand.
•North America Solutions (NAS) reported operating income of $111 million and maintained industry‑leading performance with direct margin(3) of $215 million, or $17,628 on a per day basis. The activity outlook continues to strengthen, with clear signs of ongoing improvement.
•International Solutions reported an operating loss of approximately $(100) million and delivered approximately $11.5 million in direct margin(3), maintaining operational continuity despite the conflict in the Middle East.
•Offshore reported operating income of approximately $14 million and generated direct margin(3) of $27 million, exceeding guidance midpoint expectations.
•In early April the Company completed the sale of Utica Square, with after-tax proceeds exceeding the $100 million divestiture target.
•Retired the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and making significant progress toward deleveraging goals.
•Approximately $25 million was returned to shareholders through the Company’s ongoing dividend program.
Helmerich & Payne | 222 N. Detroit Ave. | Suite 1100
Tulsa, OK 74120 | 918.588.5190 | helmerichpayne.com
Page 2
News Release
May 6, 2026
Management Commentary
“H&P delivered solid operational performance during the second quarter, reflecting the resilience of our core business and the disciplined execution of our teams,” said President and CEO Trey Adams.
“Regarding the conflict in the Middle East, our primary focus has been on the safety and security of our people in the region. I am pleased to report that our teams have remained focused and safe. We continue to closely monitor developments in the region and despite a fluid environment, our team has done an exceptional job in maintaining continuity of operations, including the planned reactivation of rigs in the region, supported by strong local leadership and the dedication of our people in the region.”
“Turning our attention to the current macro environment, the Middle East conflict has exposed the fragility of the energy complex, and we believe has fundamentally changed the outlook for oil and gas within a matter of months.”
“As a result, customer sentiment in our North America Solutions segment continues to show signs of improvement and we remain optimistic that current crude prices will translate into higher activity. Additionally, we are very encouraged to be advancing the rollout of our FlexRobotics™ Technology to four additional rigs.” Adams said.
“The uptick in Middle East activity that was underway prior to the conflict is now less well defined. Despite that uncertainty, we continue to have constructive dialogue with our partners in the region and remain optimistic that more rigs could go back to work this year.”
“Our Offshore Solutions segment continues to demonstrate its strategic value, supported by long‑term contracts that provide earnings stability through market cycles. We are seeing strong momentum in multi‑year extensions, highlighted by a recent five‑year renewal with bp in the Caspian Sea,” he said.
Senior Vice President and CFO Kevin Vann added, “We were also pleased to announce the closing of the sale of Utica Square, with after‑tax proceeds exceeding our previously communicated $100 million divestiture target. This enabled the retirement of the remaining term‑loan balance, ahead of schedule. This transaction accelerates deleveraging plans and sharpens our focus on core drilling solutions. Our next priority is addressing the $350 million bond maturing in calendar 2027, supported by strong free cash flow generation and the improving North American market environment.”
Adams concluded, “As Kevin Vann prepares to depart the organization, I want to express that it has been an honor to work with him. The stability provided during the KCA Deutag transaction, as well as his substantial contributions to our financial function and balance sheet, have been invaluable. Everyone at H&P sincerely appreciates your service and extends their best wishes for your retirement.
“I am excited to work with Todd Scruggs on navigating the company through this next chapter, energized by the opportunities ahead and the strength of the team advancing our strategy. With a customer‑centric focus, technology leadership and accelerating Western and Eastern Hemisphere growth, we are well positioned to deliver durable, long‑term value for all stakeholders.”
Page 3
News Release
May 6, 2026
Operating Segment Results for the Second Quarter of Fiscal Year 2026
North America Solutions: Realized operating income of $111 million, compared with $36 million in the previous quarter, which included a $98 million one-time impairment. Direct margin(3) was $215 million, versus $239 million previously, and on a per-day basis averaged approximately $17,628 with 136 rigs active for the second fiscal quarter. These results demonstrate the durability of our fleet and our continued ability to generate leading margins through the cycle.
We continued to see meaningful commercial momentum across the U.S. land market, with several new contracts and extensions across multiple basins. Combined with the expanded deployment of FlexRoboticsTM, these developments underscore the strength of our offering and the opportunities ahead.
International Solutions: Recorded an operating loss of approximately $(100) million, compared with a loss of approximately $(55) million in the prior quarter. Excluding the $26 million one-time impairment, the operating loss was $74 million. Direct margin(3) totaled approximately $11.5 million, down from roughly $29 million last quarter. This was primarily led by the impacts of the conflict in the Middle East. Specifically during the quarter, we were able to utilize our in-house engineering and aftermarket capabilities to reactivate the rigs in Saudi Arabia, leveraging in-country equipment and circumventing supply chain constraints. This move enhances returns and importantly avoided delays for our customers. However, it did lead to more costs being classified as OPEX, which had an impact on our direct margins(3).
Across our international portfolio, commercial activity was strong. In Argentina, we secured a mix of new contracts and extensions, while in Oman, a series of contract extensions reinforces our position in the region. Collectively, these wins demonstrate the depth of our global relationships and the durability of our commercial pipeline.
Offshore Solutions: Reported operating income of approximately $14 million, compared with $16 million in the previous quarter, which included a $2 million one-time impairment. Direct margin(3) exceeded the midpoint of guidance at approximately $27 million versus $31 million last quarter, demonstrating the segment’s ability to generate stable cash flow.
During the quarter, H&P was awarded a long-term offshore operations and maintenance contract renewal by bp in the Caspian Sea, offshore Azerbaijan. The contract renewal has a firm duration of five years, with three one-year extension options. If all option periods are exercised, the contract revenue could exceed $1 billion.
Select Items (4) Included in Net Loss per Diluted Share
Second quarter of fiscal year 2026 net loss of $(0.59) per diluted share included a net impact of $(0.21) per share in after-tax gains and losses comprised of the following:
•$0.11 of non-cash after-tax gain related to investment securities
•$(0.01) of after-tax loss related to International asset abandonment
•$(0.02) of after-tax loss related to acquisition transaction and integration costs
•$(0.03) of after-tax loss related to restructuring charges
•$(0.03) of non-cash after-tax loss related to the change in actuarial assumptions on estimated liabilities
•$(0.23) of non-cash after-tax loss related to impairment
First quarter of fiscal year 2026 net loss of $(0.98) per diluted share included a net impact of $(0.83) per share in after-tax losses comprised of the following:
•$0.01 of non-cash after-tax gain related to the change in actuarial assumptions on estimated liabilities
•$0.01 of non-cash after-tax gain related to investment securities
•$(0.02) of after-tax loss related to restructuring charges
•$(0.03) of after-tax loss related to transaction and integration costs
•$(0.80) of non-cash after-tax loss related to impairment
Page 4
News Release
May 6, 2026
Operational Outlook for the Third Quarter of Fiscal Year 2026
The guidance below represents our expectations as of the date of this release.
| Guidance | 3Q’26 | FY’26 | ||||||
North America Solutions | ||||||||
Direct Margin ($M)3 | $230 - $240 | |||||||
| Average Rigs | 137 - 143 | 138 - 144 | ||||||
International Solutions | ||||||||
Direct Margin ($M)3 | $12 - $32 | |||||||
Average Rigs5 | 58 – 68 | 58 – 68 | ||||||
Offshore Solutions | ||||||||
Direct Margin ($M)3 | $24 - $28 | $100 - $115 | ||||||
| Average Rigs / Mgmt. Cont. | 30 - 35 | 30 - 35 | ||||||
| Other | ||||||||
Direct Margin ($M)3 | $0 - $3 | |||||||
| Guidance | FY'26 | ||||
| Gross Capital Expenditures ($M) | $270 - $310 | ||||
| Depreciation | ~$700 | ||||
| Research and Development | ~$28 | ||||
| Selling, General & Administrative | $265 - $285 | ||||
| Cash Taxes | $125 - $150 | ||||
| Interest Expense | ~$100 | ||||
Page 5
News Release
May 6, 2026
Conference Call
A conference call will be held at 11 a.m. (ET), Thursday, May 7, 2026, , with Trey Adams, President and CEO, Kevin Vann, Senior Vice President and CFO, and other management team members to discuss the Company’s second quarter fiscal year 2026 results. Dial-in information for the conference call is (800)-715-9871 for domestic callers or (646)-307-1963 for international callers. The call access code is 86079. Participants can listen to the live webcast of the conference call and access the accompanying earnings presentation by visiting our website at www.hpinc.com. Navigate to the “Investors” section, click on “News and Events – Events & Presentations,” and select the event to access the webcast and materials.
About Helmerich & Payne, Inc.
Founded in 1920, Helmerich & Payne, Inc. (H&P) (NYSE: HP) is committed to delivering industry leading levels of drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for its customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies. As of May 6, 2026, H&P's fleet includes 202 land rigs in the United States, 130 international land rigs and 4 offshore platform rigs, plus operating 30 offshore labor contracts. For more information, see H&P online at www.hpinc.com.
Forward-Looking Statements
This release includes “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and such statements are based on current expectations and assumptions that are subject to risks and uncertainties. All statements other than statements of historical facts included in this release, including, without limitation, outlook for fiscal 2026, the Company’s business strategy, future financial position, operations outlook, future cash flow, future use of generated cash flow, dividend amounts and timing, amounts of any future dividends, investments, active rig count projections, projected costs and plans, objectives of management for future operations, contract terms, financing and funding, debt reduction plans, capex spending and budgets, outlook for domestic and international markets, future commodity prices, and future customer activity and relationships are forward-looking statements. For information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections and other disclosures in the Company’s SEC filings, including but not limited to its annual report on Form 10‑K and quarterly reports on Form 10‑Q. As a result of these factors, Helmerich & Payne, Inc.’s actual results may differ materially from those indicated or implied by such forward-looking statements. Investors are cautioned not to put undue reliance on such statements. We undertake no duty to publicly update or revise any forward-looking statements, whether as a result of new information, changes in internal estimates, expectations or otherwise, except as required under applicable securities laws.
Helmerich & Payne uses its Investor Relations website as a channel of distribution for material company information. Such information is routinely posted and accessible on its Investor Relations website at www.hpinc.com. Information on our website is not part of this release.
Note Regarding Trademarks. Helmerich & Payne, Inc. owns or has rights to the use of trademarks, service marks and trade names that it uses in conjunction with the operation of its business. Some of the trademarks that appear in this release or otherwise used by H&P include FlexRig and FlexRobotics, which may be registered or trademarked in the United States and other jurisdictions.
(1) Adjusted net income, which is considered a non-GAAP metric, is defined as net income (loss), excluding the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. Adjusted net income is included as supplemental disclosure as management uses it to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define adjusted net income the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies. See Non-GAAP Measurements for a reconciliation of net income (loss) to adjusted net income.
(2) Adjusted EBITDA is considered to be a non-GAAP metric. Adjusted EBITDA is defined as net income (loss) before taxes, depreciation and amortization, gains and losses on asset sales, other income and expense - which includes interest income and interest expense, and excludes the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. Adjusted EBITDA is included as supplemental disclosure as management uses it to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful to information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define Adjusted EBITDA the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies. See Non-GAAP Measurements for a reconciliation of net income to Adjusted EBITDA.
(3) Direct margin, which is considered a non-GAAP metric, is defined as operating revenues (less reimbursements) less direct operating expenses (less reimbursements) and is included as a supplemental disclosure. We believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time. See Non-GAAP Measurements for a reconciliation of segment operating income (loss) to direct margin. Expected direct margin for the first quarter of fiscal 2026 is provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future items and adjustments, which could be significant, we are unable to provide a reconciliation of expected direct margin to the most comparable GAAP measure without unreasonable effort.
(4) Select items are considered non-GAAP metrics and are included as a supplemental disclosure as the Company believes identifying and excluding select items is useful in assessing and understanding current operational performance, especially in making comparisons over time involving previous and subsequent periods and/or forecasting future periods results. Select items are excluded as they are deemed to be outside the Company's core business operations. See Non-GAAP Measurements.
(5) Does not include 21 rigs that have either suspended operations or have been notified to suspend operations in Saudi Arabia
Contact: Kris Nicol
Vice President of Investor Relations
investor.relations@hpinc.com
Page 7
News Release
May 6, 2026
| HELMERICH & PAYNE, INC. | |||||||||||||||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| (in thousands, except per share amounts) | March 31, | December 31, | March 31, | March 31, | March 31, | ||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| OPERATING REVENUES | |||||||||||||||||||||||||||||
| Drilling services | $ | 906,426 | $ | 981,125 | $ | 1,012,394 | $ | 1,887,551 | $ | 1,687,007 | |||||||||||||||||||
| Other | 25,936 | 35,901 | 3,645 | 61,837 | 6,334 | ||||||||||||||||||||||||
| 932,362 | 1,017,026 | 1,016,039 | 1,949,388 | 1,693,341 | |||||||||||||||||||||||||
| OPERATING COSTS AND EXPENSES | |||||||||||||||||||||||||||||
| Drilling services operating expenses, excluding depreciation and amortization | 661,180 | 682,780 | 701,657 | 1,343,960 | 1,112,573 | ||||||||||||||||||||||||
| Other operating expenses | 24,799 | 31,260 | 3,485 | 56,059 | 4,641 | ||||||||||||||||||||||||
| Depreciation and amortization | 180,734 | 181,919 | 157,657 | 362,653 | 256,737 | ||||||||||||||||||||||||
| Research and development | 7,016 | 6,646 | 9,421 | 13,662 | 18,781 | ||||||||||||||||||||||||
| Selling, general and administrative | 71,080 | 70,444 | 80,802 | 141,524 | 143,901 | ||||||||||||||||||||||||
| Acquisition transaction and integration costs | 2,738 | 3,405 | 29,867 | 6,143 | 40,402 | ||||||||||||||||||||||||
| Asset impairment charges | 26,101 | 103,086 | 1,844 | 129,187 | 1,844 | ||||||||||||||||||||||||
| Restructuring charges | 2,882 | 1,591 | — | 4,473 | — | ||||||||||||||||||||||||
| Gain on reimbursement of drilling equipment | (5,943) | (6,120) | (9,973) | (12,063) | (19,376) | ||||||||||||||||||||||||
| Other (gain) loss on sale of assets | (1,305) | 1,926 | (884) | 621 | 789 | ||||||||||||||||||||||||
| 969,282 | 1,076,937 | 973,876 | 2,046,219 | 1,560,292 | |||||||||||||||||||||||||
| OPERATING INCOME (LOSS) | (36,920) | (59,911) | 42,163 | (96,831) | 133,049 | ||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||
| Interest and dividend income | 2,155 | 2,758 | 7,257 | 4,913 | 28,998 | ||||||||||||||||||||||||
| Interest expense | (25,814) | (25,607) | (28,338) | (51,421) | (50,636) | ||||||||||||||||||||||||
| Gain on investment securities | 14,391 | 929 | 27,788 | 15,320 | 14,421 | ||||||||||||||||||||||||
| Foreign currency exchange gain (loss) | 2,952 | 27 | (6,018) | 2,979 | (6,921) | ||||||||||||||||||||||||
| Other | (3,327) | (1,926) | 1,596 | (5,253) | 1,956 | ||||||||||||||||||||||||
| (9,643) | (23,819) | 2,285 | (33,462) | (12,182) | |||||||||||||||||||||||||
| Income (loss) before income taxes | (46,563) | (83,730) | 44,448 | (130,293) | 120,867 | ||||||||||||||||||||||||
| Income tax expense | 9,298 | 11,201 | 41,462 | 20,499 | 63,109 | ||||||||||||||||||||||||
| NET INCOME (LOSS) | (55,861) | (94,931) | 2,986 | (150,792) | 57,758 | ||||||||||||||||||||||||
| Net income attributable to non-controlling interest | 2,748 | 1,775 | 1,332 | 4,523 | 1,332 | ||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO HELMERICH & PAYNE, INC. | $ | (58,609) | $ | (96,706) | $ | 1,654 | $ | (155,315) | $ | 56,426 | |||||||||||||||||||
| Earnings (loss) per share attributable to Helmerich & Payne, Inc: | |||||||||||||||||||||||||||||
| Basic | $ | (0.59) | $ | (0.98) | $ | 0.01 | $ | (1.57) | $ | 0.56 | |||||||||||||||||||
| Diluted | $ | (0.59) | $ | (0.98) | $ | 0.01 | $ | (1.57) | $ | 0.56 | |||||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||||||||
| Basic | 99,878 | 99,544 | 99,360 | 99,709 | 99,111 | ||||||||||||||||||||||||
| Diluted | 99,878 | 99,544 | 99,381 | 99,709 | 99,128 | ||||||||||||||||||||||||
Page 8
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May 6, 2026
| HELMERICH & PAYNE, INC. | |||||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| March 31, | September 30, | ||||||||||
| (in thousands except share data and share amounts) | 2026 | 2025 | |||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 177,196 | $ | 196,848 | |||||||
| Restricted cash | 25,521 | 27,412 | |||||||||
| Short-term investments | 21,951 | 21,496 | |||||||||
Accounts receivable, net of allowance of $19,823 and $19,647, respectively | 810,613 | 782,644 | |||||||||
| Inventories of materials and supplies, net | 330,542 | 324,326 | |||||||||
| Prepaid expenses and other, net | 82,357 | 97,518 | |||||||||
| Assets held-for-sale | 24,506 | 15,231 | |||||||||
| Total current assets | 1,472,686 | 1,465,475 | |||||||||
| Investments, net | 85,611 | 68,198 | |||||||||
| Property, plant and equipment, net | 3,977,180 | 4,313,074 | |||||||||
| Other Noncurrent Assets: | |||||||||||
| Goodwill | 183,795 | 182,854 | |||||||||
| Intangible assets, net | 444,059 | 485,540 | |||||||||
| Operating lease right-of-use assets | 111,801 | 123,598 | |||||||||
| Other assets, net | 61,135 | 66,999 | |||||||||
| Total other noncurrent assets | 800,790 | 858,991 | |||||||||
| Total assets | $ | 6,336,267 | $ | 6,705,738 | |||||||
| LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 177,213 | $ | 217,923 | |||||||
| Dividends payable | 25,421 | 25,199 | |||||||||
| Accrued liabilities | 514,422 | 564,855 | |||||||||
| Current portion of long-term debt, net | 146,257 | 6,859 | |||||||||
| Total current liabilities | 863,313 | 814,836 | |||||||||
| Noncurrent Liabilities: | |||||||||||
| Long-term debt, net | 1,856,176 | 2,057,084 | |||||||||
| Deferred income taxes | 617,911 | 624,000 | |||||||||
| Retirement benefit obligation | 99,790 | 109,864 | |||||||||
| Other | 269,220 | 270,616 | |||||||||
| Total noncurrent liabilities | 2,843,097 | 3,061,564 | |||||||||
| Shareholders' Equity: | |||||||||||
Common stock, 0.10 par value, 160,000,000 shares authorized, 112,222,865 shares issued as of March 31, 2026 and September 30, 2025, and 99,917,504 and 99,446,577 shares outstanding as of March 31, 2026 and September 30, 2025, respectively | 11,222 | 11,222 | |||||||||
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | — | — | |||||||||
| Additional paid-in capital | 506,523 | 513,050 | |||||||||
| Retained earnings | 2,412,788 | 2,619,090 | |||||||||
| Accumulated other comprehensive income | 43,496 | 44,964 | |||||||||
Treasury stock, at cost, 12,305,361 shares and 12,776,288 shares as of March 31, 2026 and September 30, 2025, respectively | (445,250) | (463,536) | |||||||||
| Non-controlling interest | 101,078 | 104,548 | |||||||||
| Total shareholders’ equity | 2,629,857 | 2,829,338 | |||||||||
| Total liabilities and shareholders' equity | $ | 6,336,267 | $ | 6,705,738 | |||||||
Page 9
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May 6, 2026
| HELMERICH & PAYNE, INC. | |||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| Six Months Ended March 31, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net income (loss) | $ | (150,792) | $ | 57,758 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 362,653 | 256,737 | |||||||||
| Asset impairment charge | 129,187 | 1,844 | |||||||||
| Amortization of debt discount and debt issuance costs | 2,527 | 3,462 | |||||||||
| Stock-based compensation | 19,674 | 14,949 | |||||||||
| Gain on investment securities | (15,320) | (14,421) | |||||||||
| Gain on reimbursement of drilling equipment | (12,063) | (19,376) | |||||||||
| Other loss on sale of assets | 621 | 789 | |||||||||
| Deferred income tax | (5,989) | (34,313) | |||||||||
| Other | (3,729) | 1,951 | |||||||||
| Changes in assets and liabilities | (107,761) | (54,976) | |||||||||
| Net cash provided by operating activities | 219,008 | 214,404 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Capital expenditures | (130,425) | (265,234) | |||||||||
| Purchase of short-term investments | (35,168) | (102,510) | |||||||||
| Purchase of long-term investments | (1,038) | (1,461) | |||||||||
| Payment for acquisition of business, net of cash acquired | — | (1,838,852) | |||||||||
| Proceeds from sale of short-term investments | 33,192 | 364,078 | |||||||||
Insurance proceeds from involuntary conversion | — | 2,366 | |||||||||
| Proceeds from asset sales | 21,803 | 26,090 | |||||||||
| Other | (686) | — | |||||||||
| Net cash used in investing activities | (112,322) | (1,815,523) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Dividends paid | (50,659) | (50,328) | |||||||||
| Distributions to non-controlling interests | (7,842) | — | |||||||||
| Proceeds from debt issuance | — | 400,000 | |||||||||
| Debt issuance costs | — | (2,629) | |||||||||
| Payments for employee taxes on net settlement of equity awards | (6,151) | (10,607) | |||||||||
| Payments on unsecured long-term debt | (60,000) | (25,000) | |||||||||
| Other | (3,430) | (329) | |||||||||
| Net cash provided by (used in) financing activities | (128,082) | 311,107 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (471) | 6,406 | |||||||||
| Net decrease in cash, cash equivalents and restricted cash | (21,867) | (1,283,606) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 225,900 | 1,528,660 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 204,033 | $ | 245,054 | |||||||
Page 10
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May 6, 2026
| HELMERICH & PAYNE, INC. | |||||||||||||||||||||||||||||
| SEGMENT REPORTING | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |||||||||||||||||||||||||
| (in thousands, except operating statistics) | 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| NORTH AMERICA SOLUTIONS | |||||||||||||||||||||||||||||
| Operating revenues | $ | 517,245 | $ | 563,938 | $ | 599,694 | $ | 1,081,183 | $ | 1,197,839 | |||||||||||||||||||
| Direct operating expenses | 302,038 | 325,133 | 334,073 | 627,171 | 666,420 | ||||||||||||||||||||||||
| Depreciation and amortization | 82,955 | 84,244 | 87,151 | 167,199 | 175,487 | ||||||||||||||||||||||||
| Research and development | 7,115 | 6,408 | 9,502 | 13,523 | 18,943 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 13,401 | 14,022 | 15,484 | 27,423 | 31,294 | ||||||||||||||||||||||||
| Acquisition transaction and integration costs | — | — | 34 | — | 34 | ||||||||||||||||||||||||
| Asset impairment charges | — | 97,922 | 1,507 | 97,922 | 1,507 | ||||||||||||||||||||||||
| Restructuring charges | 402 | — | — | 402 | — | ||||||||||||||||||||||||
| Segment operating income | $ | 111,334 | $ | 36,209 | $ | 151,943 | $ | 147,543 | $ | 304,154 | |||||||||||||||||||
Financial Data and Other Operating Statistics1: | |||||||||||||||||||||||||||||
Direct margin (Non-GAAP)2 | $ | 215,207 | $ | 238,805 | $ | 265,621 | $ | 454,012 | $ | 531,419 | |||||||||||||||||||
Revenue days3 | 12,208 | 13,126 | 13,416 | 25,334 | 27,123 | ||||||||||||||||||||||||
Average active rigs4 | 136 | 143 | 149 | 139 | 149 | ||||||||||||||||||||||||
Number of active rigs at the end of period5 | 137 | 139 | 150 | 137 | 150 | ||||||||||||||||||||||||
| Number of available rigs at the end of period | 203 | 203 | 224 | 203 | 224 | ||||||||||||||||||||||||
| Reimbursements of "out-of-pocket" expenses | $ | 60,401 | $ | 72,797 | $ | 77,607 | $ | 133,198 | $ | 146,034 | |||||||||||||||||||
| INTERNATIONAL SOLUTIONS | |||||||||||||||||||||||||||||
| Operating revenues | 218,321 | $ | 234,288 | $ | 247,909 | $ | 452,609 | $ | 295,389 | ||||||||||||||||||||
| Direct operating expenses | 206,826 | 205,573 | 220,983 | 412,399 | 275,411 | ||||||||||||||||||||||||
| Depreciation and amortization | 79,257 | 78,121 | 57,153 | 157,378 | 61,981 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 4,249 | 4,145 | 4,546 | 8,394 | 7,254 | ||||||||||||||||||||||||
| Acquisition transaction and integration costs | 1,198 | 436 | 210 | 1,634 | 210 | ||||||||||||||||||||||||
| Asset impairment charges | 26,101 | — | — | 26,101 | — | ||||||||||||||||||||||||
| Restructuring charges | 302 | 1,318 | — | 1,620 | — | ||||||||||||||||||||||||
| Segment operating loss | $ | (99,612) | $ | (55,305) | $ | (34,983) | $ | (154,917) | $ | (49,467) | |||||||||||||||||||
Financial Data and Other Operating Statistics1: | |||||||||||||||||||||||||||||
Direct margin (Non-GAAP)2 | $ | 11,495 | $ | 28,715 | $ | 26,926 | $ | 40,210 | $ | 19,978 | |||||||||||||||||||
Revenue days3 | 5,492 | 5,444 | 6,198 | 10,936 | 7,887 | ||||||||||||||||||||||||
Average active rigs4 | 61 | 59 | 69 | 60 | 43 | ||||||||||||||||||||||||
Number of active rigs at the end of period5 | 64 | 59 | 76 | 64 | 76 | ||||||||||||||||||||||||
| Number of available rigs at the end of period | 130 | 131 | 153 | 130 | 153 | ||||||||||||||||||||||||
| Reimbursements of "out-of-pocket" expenses | $ | 12,785 | $ | 11,768 | $ | 8,470 | $ | 24,553 | $ | 10,589 | |||||||||||||||||||
| OFFSHORE SOLUTIONS | |||||||||||||||||||||||||||||
| Operating revenues | $ | 171,378 | $ | 188,282 | $ | 149,080 | $ | 359,660 | $ | 178,290 | |||||||||||||||||||
| Direct operating expenses | 144,495 | 157,280 | 122,904 | 301,775 | 145,565 | ||||||||||||||||||||||||
| Depreciation and amortization | 9,862 | 10,820 | 7,777 | 20,682 | 9,757 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 2,654 | 1,044 | 964 | 3,698 | 2,028 | ||||||||||||||||||||||||
| Acquisition transaction and integration costs | 352 | 573 | 60 | 925 | 60 | ||||||||||||||||||||||||
| Asset impairment charges | — | 2,128 | — | 2,128 | — | ||||||||||||||||||||||||
| Segment operating income | $ | 14,015 | $ | 16,437 | $ | 17,375 | $ | 30,452 | $ | 20,880 | |||||||||||||||||||
Financial Data and Other Operating Statistics1: | |||||||||||||||||||||||||||||
Direct margin (Non-GAAP)2 | $ | 26,883 | $ | 31,002 | $ | 26,176 | $ | 57,885 | $ | 32,725 | |||||||||||||||||||
Revenue days3 | 270 | 276 | 270 | 546 | 546 | ||||||||||||||||||||||||
Average active rigs4 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||||||||
Number of active rigs at the end of period5 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||||||||
| Number of available rigs at the end of period | 4 | 4 | 7 | 4 | 7 | ||||||||||||||||||||||||
| Reimbursements of "out-of-pocket" expenses | $ | 27,575 | $ | 39,664 | $ | 26,936 | $ | 67,239 | $ | 34,161 | |||||||||||||||||||
(1)These operating metrics and financial data, including average active rigs, are provided to allow investors to analyze the various components of segment financial results in terms of activity, utilization and other key results. Management uses these metrics to analyze historical segment financial results and as the key inputs for forecasting and budgeting segment financial results.
(2)Direct margin, which is considered a non-GAAP metric, is defined as operating revenues less direct operating expenses and is included as a supplemental disclosure because we believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time. See — Non-GAAP Measurements below for a reconciliation of segment operating income (loss) to direct margin.
(3)Defined as the number of contractual days for owned and leased rigs with recognized revenue during the period.
(4)Active rigs generate revenue for the Company; accordingly, 'average active rigs' represents the average number of rigs generating revenue during the applicable time period. This metric is calculated by dividing revenue days by total days in the applicable period (i.e. 90 days for the three months ended March 31, 2026 and March 31, 2025, 92 days for the three months ended December 31, 2025 and 182 days for the six months ended March 31, 2026 and March 31, 2025)
(5)Defined Defined as the number of rigs generating revenue at the applicable end date of the time period.
Page 11
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Segment operating income (loss) for all segments is a non-GAAP financial measure of the Company’s performance, as it excludes gain on reimbursement of drilling equipment, other gain (loss) on sale of assets, corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction and integration costs, corporate asset impairment charges, and corporate restructuring charges. The Company considers segment operating income (loss) to be an important supplemental measure of operating performance for presenting trends in the Company’s core businesses. This measure is used by the Company to facilitate period-to-period comparisons in operating performance of the Company’s reportable segments in the aggregate by eliminating items that affect comparability between periods. The Company believes that segment operating income (loss) is useful to investors because it provides a means to evaluate the operating performance of the segments and the Company on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income (loss) has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect the Company’s operating performance in future periods.
The following table reconciles operating income (loss) per the information above to income (loss) before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |||||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| Operating income (loss) | |||||||||||||||||||||||||||||
| North America Solutions | $ | 111,334 | $ | 36,209 | $ | 151,943 | $ | 147,543 | $ | 304,154 | |||||||||||||||||||
| International Solutions | (99,612) | (55,305) | (34,983) | (154,917) | (49,467) | ||||||||||||||||||||||||
| Offshore Solutions | 14,015 | 16,437 | 17,375 | 30,452 | 20,880 | ||||||||||||||||||||||||
| Other | (7,397) | (1,223) | (1,375) | (8,620) | (601) | ||||||||||||||||||||||||
| Eliminations | (2,507) | (795) | (8,463) | (3,302) | (8,361) | ||||||||||||||||||||||||
| Segment operating income (loss) | 15,833 | (4,677) | 124,497 | 11,156 | 266,605 | ||||||||||||||||||||||||
| Gain on reimbursement of drilling equipment | 5,943 | 6,120 | 9,973 | 12,063 | 19,376 | ||||||||||||||||||||||||
| Other gain (loss) on sale of assets | 1,305 | (1,926) | 884 | (621) | (789) | ||||||||||||||||||||||||
Corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction and integration costs, corporate asset impairment charges, and corporate restructuring charges | (60,001) | (59,428) | (93,191) | (119,429) | (152,143) | ||||||||||||||||||||||||
| Operating income (loss) | (36,920) | (59,911) | 42,163 | (96,831) | 133,049 | ||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||
| Interest and dividend income | 2,155 | 2,758 | 7,257 | 4,913 | 28,998 | ||||||||||||||||||||||||
| Interest expense | (25,814) | (25,607) | (28,338) | (51,421) | (50,636) | ||||||||||||||||||||||||
| Gain on investment securities | 14,391 | 929 | 27,788 | 15,320 | 14,421 | ||||||||||||||||||||||||
| Foreign currency exchange gain (loss) | 2,952 | 27 | (6,018) | 2,979 | (6,921) | ||||||||||||||||||||||||
| Other | (3,327) | (1,926) | 1,596 | (5,253) | 1,956 | ||||||||||||||||||||||||
| Total other income (expense) | (9,643) | (23,819) | 2,285 | (33,462) | (12,182) | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (46,563) | $ | (83,730) | $ | 44,448 | $ | (130,293) | $ | 120,867 | |||||||||||||||||||
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May 6, 2026
NON-GAAP MEASUREMENTS
NON-GAAP RECONCILIATION OF SELECT ITEMS AND ADJUSTED NET LOSS(**)
Three Months Ended March 31, 2026 | |||||||||||||||||||||||
| (in thousands, except per share data) | Pretax | Tax Impact | Net | EPS | |||||||||||||||||||
| Net loss (GAAP basis) | $ | (58,609) | $ | (0.59) | |||||||||||||||||||
| (-) Gain on investment security | 14,391 | 3,267 | 11,124 | 0.11 | |||||||||||||||||||
| (-) International asset abandonment | (1,000) | — | (1,000) | (0.01) | |||||||||||||||||||
| (-) Acquisition transaction and integration costs | (2,738) | (300) | (2,438) | (0.02) | |||||||||||||||||||
| (-) Restructuring charges | (2,882) | (256) | (2,626) | (0.03) | |||||||||||||||||||
| (-) Changes in actuarial assumptions on estimated liabilities | (3,669) | (834) | (2,835) | (0.03) | |||||||||||||||||||
| (-) Impairment expense | (26,101) | (3,498) | (22,603) | (0.23) | |||||||||||||||||||
| Adjusted net loss | $ | (38,231) | $ | (0.38) | |||||||||||||||||||
Three Months Ended December 31, 2025 | |||||||||||||||||||||||
| (in thousands, except per share data) | Pretax | Tax Impact | Net | EPS | |||||||||||||||||||
| Net loss (GAAP basis) | $ | (96,706) | $ | (0.98) | |||||||||||||||||||
| (-) Changes in actuarial assumptions on estimated liabilities | 1,607 | 365 | 1,242 | 0.01 | |||||||||||||||||||
| (-) Gain on investment security | 929 | 211 | 718 | 0.01 | |||||||||||||||||||
| (-) Restructuring charges | (1,591) | — | (1,591) | (0.02) | |||||||||||||||||||
| (-) Acquisition transaction and integration costs | (3,405) | (386) | (3,019) | (0.03) | |||||||||||||||||||
| (-) Impairment expense | (103,086) | (23,401) | (79,685) | (0.80) | |||||||||||||||||||
| Adjusted net loss | $ | (14,371) | $ | (0.15) | |||||||||||||||||||
(**)The Company believes identifying and excluding select items is useful in assessing and understanding current operational performance, especially in making comparisons over time involving previous and subsequent periods and/or forecasting future period results. Select items are excluded as they are deemed to be outside of the Company's core business operations.
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May 6, 2026
NON-GAAP RECONCILIATION OF DIRECT MARGIN
Direct margin is considered a non-GAAP metric. We define "direct margin" as operating revenues (less reimbursements) less direct operating expenses (less reimbursements). Direct margin is included as a supplemental disclosure because we believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time. Direct margin is not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures.
The following table reconciles direct margin to segment operating income (loss), which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to direct margin.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |||||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| NORTH AMERICA SOLUTIONS | |||||||||||||||||||||||||||||
| Segment operating income | $ | 111,334 | $ | 36,209 | $ | 151,943 | $ | 147,543 | $ | 304,154 | |||||||||||||||||||
| Add back: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 82,955 | 84,244 | 87,151 | 167,199 | 175,487 | ||||||||||||||||||||||||
| Research and development | 7,115 | 6,408 | 9,502 | 13,523 | 18,943 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 13,401 | 14,022 | 15,484 | 27,423 | 31,294 | ||||||||||||||||||||||||
| Acquisition transaction and integration costs | — | — | 34 | — | 34 | ||||||||||||||||||||||||
| Asset impairment charge | — | 97,922 | 1,507 | 97,922 | 1,507 | ||||||||||||||||||||||||
| Restructuring charges | 402 | — | — | 402 | — | ||||||||||||||||||||||||
| Direct margin (Non-GAAP) | $ | 215,207 | $ | 238,805 | $ | 265,621 | $ | 454,012 | $ | 531,419 | |||||||||||||||||||
| INTERNATIONAL SOLUTIONS | |||||||||||||||||||||||||||||
| Segment operating loss | $ | (99,612) | $ | (55,305) | $ | (34,983) | $ | (154,917) | $ | (49,467) | |||||||||||||||||||
| Add back: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 79,257 | 78,121 | 57,153 | 157,378 | 61,981 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 4,249 | 4,145 | 4,546 | 8,394 | 7,254 | ||||||||||||||||||||||||
| Acquisition transaction and integration costs | 1,198 | 436 | 210 | 1,634 | 210 | ||||||||||||||||||||||||
| Asset impairment charge | 26,101 | — | — | 26,101 | — | ||||||||||||||||||||||||
| Restructuring charges | 302 | 1,318 | — | 1,620 | — | ||||||||||||||||||||||||
| Direct margin (Non-GAAP) | $ | 11,495 | $ | 28,715 | $ | 26,926 | $ | 40,210 | $ | 19,978 | |||||||||||||||||||
| OFFSHORE SOLUTIONS | |||||||||||||||||||||||||||||
| Segment operating income | $ | 14,015 | $ | 16,437 | $ | 17,375 | $ | 30,452 | $ | 20,880 | |||||||||||||||||||
| Add back: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 9,862 | 10,820 | 7,777 | 20,682 | 9,757 | ||||||||||||||||||||||||
| Selling, general and administrative expense | 2,654 | 1,044 | 964 | 3,698 | 2,028 | ||||||||||||||||||||||||
| Acquisition transaction and integration costs | 352 | 573 | 60 | 925 | 60 | ||||||||||||||||||||||||
| Asset impairment charges | — | 2,128 | — | 2,128 | — | ||||||||||||||||||||||||
| Direct margin (Non-GAAP) | $ | 26,883 | $ | 31,002 | $ | 26,176 | $ | 57,885 | $ | 32,725 | |||||||||||||||||||
Page 14
News Release
May 6, 2026
NON-GAAP RECONCILIATION OF ADJUSTED EBITDA
Adjusted EBITDA and 'Select Items' are considered to be non-GAAP metrics. Adjusted EBITDA is defined as net income (loss) before taxes, depreciation and amortization, gains and losses on asset sales, other income and expense - which includes interest income and interest expense, and excludes the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. These metrics are included as supplemental disclosures as management uses them to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful to information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define Adjusted EBITDA the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies.
The following table reconciles adjusted EBITDA to net income (loss), which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to direct margin.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |||||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| Net income (loss) attributable to Helmerich and Payne, Inc. | $ | (58,609) | $ | (96,706) | $ | 1,654 | $ | (155,315) | $ | 56,426 | |||||||||||||||||||
| Add back: | |||||||||||||||||||||||||||||
| Net income attributable to non-controlling interest | 2,748 | 1,775 | 1,332 | 4,523 | 1,332 | ||||||||||||||||||||||||
| Income tax expense | 9,298 | 11,201 | 41,462 | 20,499 | 63,109 | ||||||||||||||||||||||||
| Other (income) expense | |||||||||||||||||||||||||||||
| Interest and dividend income | (2,155) | (2,758) | (7,257) | (4,913) | (28,998) | ||||||||||||||||||||||||
| Interest expense | 25,814 | 25,607 | 28,338 | 51,421 | 50,636 | ||||||||||||||||||||||||
| Gain on investment securities | (14,391) | (929) | (27,788) | (15,320) | (14,421) | ||||||||||||||||||||||||
| Foreign currency exchange (gain) loss | (2,952) | (27) | 6,018 | (2,979) | 6,921 | ||||||||||||||||||||||||
| Other | 3,327 | 1,926 | (1,596) | 5,253 | (1,956) | ||||||||||||||||||||||||
| Depreciation and amortization | 180,734 | 181,919 | 157,657 | 362,653 | 256,737 | ||||||||||||||||||||||||
| Acquisition transaction and integration costs | 2,738 | 3,405 | 29,867 | 6,143 | 40,402 | ||||||||||||||||||||||||
| Asset impairment charges | 26,101 | 103,086 | 1,844 | 129,187 | 1,844 | ||||||||||||||||||||||||
| Restructuring charges | 2,882 | 1,591 | — | 4,473 | — | ||||||||||||||||||||||||
| Other (gain) loss on sale of assets | (1,305) | 1,926 | (884) | 621 | 789 | ||||||||||||||||||||||||
| Excluding Select Items (Non-GAAP) | |||||||||||||||||||||||||||||
| Change in actuarial assumptions on estimated liabilities | 3,669 | (1,607) | 10,857 | 2,062 | 10,857 | ||||||||||||||||||||||||
| Gains related to an insurance claim | — | — | — | — | (2,366) | ||||||||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 177,899 | $ | 230,409 | $ | 241,504 | $ | 408,308 | $ | 441,312 | |||||||||||||||||||
FAQ
How did Helmerich & Payne (HP) perform financially in Q2 fiscal 2026?
Helmerich & Payne generated $932 million in consolidated revenue and reported a net loss of $59 million, or $(0.59) per share. Adjusted earnings showed a smaller loss of $38 million, or $(0.38) per share, with adjusted EBITDA of $178 million.
What drove Helmerich & Payne’s North America Solutions results in Q2 2026?
North America Solutions delivered operating income of $111 million and direct margin of $215 million, about $17,628 per day on 136 active rigs. Management cited strong commercial momentum, new contracts and extensions, and continued deployment of FlexRobotics™ Technology across the U.S. land fleet.
Why was Helmerich & Payne’s International Solutions segment unprofitable?
International Solutions posted an operating loss of about $100 million and direct margin near $11.5 million. The company attributed this mainly to impacts from the conflict in the Middle East, including higher operating expenses as rigs were reactivated using in-country resources to avoid customer delays.
What are Helmerich & Payne’s key guidance metrics for Q3 fiscal 2026?
For Q3 fiscal 2026, Helmerich & Payne expects North America Solutions direct margin of $230–$240 million and average rigs of 137–143. International Solutions direct margin is projected at $12–$32 million, while Offshore Solutions direct margin is guided to $24–$28 million.
How is Helmerich & Payne managing debt and capital allocation in 2026?
After selling Utica Square with after-tax proceeds above $100 million, the company retired its term loan early, reducing post-acquisition debt by $400 million. It also returned roughly $25 million to shareholders through dividends and guided fiscal 2026 capital expenditures to $270–$310 million.
What is the significance of Helmerich & Payne’s new bp offshore contract?
In Offshore Solutions, Helmerich & Payne secured a five-year operations and maintenance contract renewal with bp in the Caspian Sea, plus three one-year extension options. If all option periods are exercised, total contract revenue could exceed $1 billion, supporting multi-year earnings stability.