Helmerich Payne 2025 Q4 Earnings Narrowed Losses and Revenue Beat Expectations

Helmerich & Payne (HP) reported fiscal 2025 Q4 earnings on Nov 17, 2025, with revenue declining 1.5% to $990.21 million but beating estimates by $36.92M. The company narrowed its net loss by 65.5% to $-55.81 million and guided for $280–320M in 2026 capital expenditures, including $40–60M for NAS upgrades.

Revenue

Helmerich & Payne’s total revenue fell 1.5% to $990.21 million in 2025 Q4, compared to $1.01 billion in 2024 Q4. The North America Solutions (NAS) segment generated $572.27 million in operating revenues, slightly below the prior quarter’s $580.27 million but exceeding analyst estimates. International Solutions contributed $241.23 million, reflecting a 430.6% year-over-year increase, while Offshore Solutions surged to $180.33 million, up 554.7% year-over-year. The company’s drilling services revenue totaled $990.21 million, aligning with its asset-light strategy.

Earnings/Net Income

Helmerich & Payne narrowed its net loss to $-55.81 million in 2025 Q4, a 65.5% improvement from $-161.90 million in 2024 Q4. Adjusted earnings per share (EPS) were -$0.01, missing the $0.26 consensus estimate but outperforming the $1.64 loss per share in the prior year. The improvement was driven by cost reductions and operational efficiency, though non-recurring charges of $56 million offset gains.

Helmerich & Payne’s earnings performance shows mixed signals: while losses have significantly narrowed, the negative EPS underscores ongoing challenges in profitability.

Post-Earnings Price Action Review

Following the earnings release, Helmerich & Payne’s stock initially plunged 9.6% due to the unexpected loss, despite revenue outperforming estimates. Over the subsequent week, shares rebounded 2.91%, reflecting investor optimism about the company’s debt reduction plans and international expansion. Month-to-date, the stock surged 19.42%, indicating growing confidence in the company’s long-term value creation through technology and customer partnerships. Analysts attribute the volatility to mixed sentiment between short-term earnings misses and long-term strategic initiatives.

CEO Commentary

CEO John Lindsay highlighted fiscal 2025 achievements, including expanding the global drilling footprint to over 200 rigs and surpassing $1 billion in NAS direct margins. He emphasized NAS’s market-leading performance despite a declining industry rig count and outlined plans for seven rigs to resume operations in Saudi Arabia by mid-2026. Lindsay expressed optimism about international opportunities and Offshore Solutions’ record $35M in Q4 margins, underscoring the company’s focus on technology, safety, and customer-centric growth.

Guidance

For 2026, Helmerich & Payne expects gross capital expenditures of $280–320M, including $40–60M for NAS upgrades and $230–250M for global rig maintenance. The company aims to reduce its $400M term loan by repaying the full amount by Q3 2026. Operating guidance includes 132–148 average NAS rigs and 58–68 International Solutions rigs, with Offshore Solutions direct margins targeting $100–115M. General and administrative expenses are projected to decline by over $50M from 2025.

Additional News

Helmerich & Payne announced three key promotions in October 2025, restructuring leadership to strengthen operational and financial oversight. The company also accelerated its debt repayment, repaying $210M of its $400M term loan by October 2025, ahead of schedule. Additionally, HP finalized the integration of KCA Deutag, enhancing its international drilling capabilities and expanding its global rig fleet. These moves align with CEO John Lindsay’s strategy to leverage customer partnerships and technological innovation for long-term value creation.