Helmerich Payne 2025 Q4 Earnings 65.5% Reduction in Net Loss Amid Revenue Decline

Helmerich & Payne reported Q4 2025 earnings on Nov 17, 2025, with revenue declining 1.5% to $990.21 million. While the company narrowly missed adjusted EPS estimates (-$0.01 vs. $0.26 expected), it reduced its net loss by 65.5% to $-55.81 million. Guidance for 2026 emphasized capital efficiency and debt reduction, aligning with CEO John Lindsay’s focus on operational discipline and global expansion.

Revenue

Helmerich & Payne’s total revenue fell 1.5% year-over-year to $990.21 million in Q4 2025, reflecting broader industry headwinds. The North America Solutions (NAS) segment generated $572.27 million in operating revenues, a 7.4% decline from the prior year, while the International Solutions segment reported $241.23 million, a 430.6% year-over-year increase. Offshore Solutions saw a dramatic surge, with $180.33 million in operating revenues, up 554.7% year-over-year. Drilling services revenue totaled $990.21 million, slightly below the $1.01 billion reported in Q4 2024.

Earnings/Net Income

The company narrowed its net loss to $-55.81 million in Q4 2025, a 65.5% improvement from $-161.90 million in Q4 2024. Adjusted earnings per share (EPS) turned to a loss of $-0.01, missing the $0.26 consensus estimate. Despite the EPS shortfall, the significant reduction in net loss underscores progress in cost management and operational efficiency.

Post-Earnings Price Action Review

Helmerich & Payne’s stock price experienced mixed performance following the earnings release. Shares plummeted 9.6% in after-hours trading after the company reported an unexpected quarterly loss, overshadowing a $1.01 billion revenue beat. However, the stock rebounded with a 19.42% month-to-date gain by Nov 17, 2025, reflecting investor optimism about the company’s long-term strategic initiatives. The CEO highlighted fiscal 2025 as a transformative year, citing operational milestones such as expanding the global drilling footprint to over 200 rigs and integrating KCA Deutag.

CEO Commentary

CEO John Lindsay emphasized fiscal 2025 as a pivotal year, driven by operational discipline and global expansion. Key achievements included surpassing $1 billion in direct margins for NAS, resuming seven rigs in Saudi Arabia by mid-2026, and achieving record $35 million direct margins in offshore operations. Lindsay expressed confidence in 2026 growth, focusing on technological innovation, safety, and customer-centric strategies to drive long-term shareholder value.

Guidance

Helmerich & Payne outlined $280–320 million in 2026 capital expenditures, including $40–60 million for NAS upgrades and $230–250 million for global rig maintenance. The company plans to repay its $400 million term loan by Q3 2026 and achieve $100–115 million in offshore direct margins. CFO Kevin Vann noted $210 million in term loan repayments by October 2025, exceeding prior expectations, and emphasized free cash flow generation and debt reduction as priorities.

Additional News

Helmerich & Payne announced a leadership restructuring in October 2025, promoting three executives to key roles, including a new Chief Technology Officer and two senior vice presidents. The company also reiterated its commitment to the KCA Deutag acquisition, which expanded its offshore capabilities and added $35 million in Q4 direct margins. Additionally, management highlighted $40 million in asset sales in 2026, including used drilling equipment and reimbursements for lost tubulars, to offset capital expenditures.