Helmerich Payne 2025 Q3 Earnings Net Loss Widens Sharply

Helmerich & Payne reported its fiscal 2025 Q3 earnings, showing a significant swing from profit to a net loss. The results missed expectations, with a substantial deterioration in net income. The company adjusted its guidance and outlined plans for debt reduction and cost savings.

Revenue
Helmerich & Payne's total revenue for fiscal 2025 Q3 rose by 49.3% to $1.04 billion, compared to $695.14 million in the same period in 2024. This increase was primarily driven by strong performance in the North America Solutions segment. The segment reported operating income of $158 million, up from $152 million in the previous quarter. Direct margins in North America were particularly robust, reaching $266 million for the quarter. The International Solutions segment, however, reported a significant operating loss of $167 million, primarily due to the full impact of the KCA Deutag acquisition and a goodwill impairment charge of $128 million. Meanwhile, the Offshore Solutions segment contributed operating income of $9 million, though this was a decline from $17 million in the prior quarter.

Earnings/Net Income
Helmerich & Payne swung to a net loss of $-161.90 million in 2025 Q3, a 282.6% deterioration from the net income of $88.69 million in 2024 Q3. On a per-share basis, the company reported a loss of $1.64 per share, a stark contrast to the profit of $0.89 per share in the prior year period. The net loss included the impact of a non-cash goodwill impairment charge of $173 million from the KCA Deutag acquisition. Adjusted for this and other non-recurring items, earnings were $0.22 per share.

Price Action
The stock price of Helmerich & Payne has experienced a decline across various timeframes. During the latest trading day, the stock price edged down 2.50%. Over the most recent full trading week, it dropped 1.42%, and on a month-to-date basis, it has seen a more pronounced decline of 7.47%.

Post Earnings Price Action Review
A strategy of buying Helmerich & Payne shares after its revenue increase quarter-over-quarter on the financial report release date and holding for 30 days has underperformed significantly. Over the past three years, this strategy yielded a return of -65.76%, vastly underperforming the benchmark return of 51.69%. The strategy had a maximum drawdown of 0.00%, indicating no significant losses during the holding period, but the overall compound annual growth rate (CAGR) was -30.41%, and the Sharpe ratio was -0.64, suggesting that the strategy carried moderate risk but delivered negative returns.

CEO Commentary
President and CEO John Lindsay expressed optimism about the company's fiscal third-quarter results, highlighting strong direct margins across all segments and the team’s collaborative customer solutions. He emphasized the North America Solutions segment’s market-leading performance and sustainable returns, while noting a slight expected decline in activity during Q4. Lindsay underscored the company’s global positioning, particularly in Saudi Arabia, and confidence in future growth driven by operational scale, innovation, and advanced technology. CFO Kevin Vann noted progress in cost reduction initiatives and highlighted the financial strength supporting operations and dividends.

Guidance
The company provided updated guidance for its fourth quarter. The North America Solutions segment is expected to have direct margin between $230–$250 million with an average of 138–144 contracted rigs. For the International Solutions segment, direct margin is projected to be between $22–$32 million with an average of 62–66 operating rigs. The Offshore Solutions segment is expected to achieve direct margin between $22–$30 million with an average of 30–35 management contracts and platform rigs. The company also expects to repay $200 million of its $400 million term loan by the end of calendar 2025, up from the previous guidance of $175 million.

Additional News
Helmerich & Payne recently announced significant progress in integrating the KCA Deutag acquisition, including a $50 million reduction in combined cost structures. The company has also repaid $120 million on its $400 million term loan and plans to return $25 million to shareholders through its ongoing dividend program. These actions reflect the company's commitment to deleveraging and improving shareholder returns. Additionally, Helmerich & Payne has completed the integration of all eight FlexRigs in Saudi Arabia, marking an important milestone in its unconventional drilling expansion in the region.