Helmerich Payne 2025 Q4 Earnings Significant Loss Reduction Despite Revenue Dip

Helmerich & Payne (HP) reported mixed Q4 2025 results, with revenue declining 1.5% to $990.21 million but a 65.5% reduction in net loss. The company guided for 2026 capital expenditures of $280–$320 million and expects to repay $210 million in debt by Q3 2026. CEO John Lindsay highlighted operational progress and international expansion, while the stock surged 19.42% month-to-date despite a post-earnings selloff.

Revenue

Helmerich & Payne’s total revenue fell to $990.21 million in Q4 2025, a 1.5% decline from $1.01 billion in the prior year. North America Solutions (NAS) contributed $572.27 million in operating revenues, a 7.4% year-over-year drop, while Offshore Solutions surged to $180.33 million, up 554.7%, and International Solutions reached $241.23 million, a 430.6% increase. The company’s drilling services revenue totaled $990.21 million, slightly below the $1.01 billion reported in Q4 2024.

Earnings/Net Income

Helmerich & Payne narrowed its net loss to $-55.81 million in Q4 2025, a 65.5% improvement from $-161.90 million in Q4 2024. Earnings per share (EPS) improved to -$0.01 from -$1.64, reflecting a 99.4% reduction in per-share losses. The adjusted loss of $0.01 per share missed estimates of $0.26, driven by $56 million in non-recurring charges.

Price Action

The stock price of Helmerich & Payne edged down 0.90% during the latest trading day, gained 2.91% during the most recent full trading week, and surged 19.42% month-to-date. Post-earnings, shares fell 9.6% after the unexpected loss, contrasting with the strong monthly performance.

Post-Earnings Price Action Review

Helmerich & Payne’s stock exhibited mixed post-earnings sentiment, with a sharp 9.6% decline in after-hours trading following the surprise loss. However, the 19.42% month-to-date surge suggests resilience amid ongoing operational improvements. The stock’s volatility reflects investor uncertainty around the company’s ability to sustain profitability while balancing debt reduction and capital expenditures.

CEO Commentary

Helmerich & Payne CEO John Lindsay emphasized fiscal 2025 as a transformative year, with global drilling operations expanding to over 200 rigs and the acquisition of KCA Deutag to bolster international capabilities. He highlighted progress in Saudi Arabia, where seven rigs will resume operations by mid-2026, and expressed confidence in leveraging long-term customer relationships.

Guidance

For 2026, Helmerich & Payne expects $280–$320 million in capital expenditures, including $40–$60 million for NAS upgrades and $230–$250 million for fleet maintenance and Saudi Arabia reactivations. The company aims to repay $210 million in debt by Q3 2026 and $25 million in shareholder dividends. Operational targets include 132–148 NAS contracted rigs and $100–$115 million in Offshore direct margins.

Additional News

Helmerich & Payne announced leadership restructuring, promoting three executives to key roles effective October 1, 2025. The company also acquired KCA Deutag to strengthen its international drilling footprint. Additionally, it plans to distribute $25 million in shareholder dividends in 2026, reflecting confidence in long-term value creation.

Article Polishing

Helmerich & Payne’s 2025 Q4 earnings report underscores a strategic pivot toward cost optimization and international expansion. While revenue dipped slightly, the company’s ability to slash losses signals progress in navigating industry headwinds.

The CEO’s emphasis on operational efficiency and debt reduction aligns with 2026 guidance, which prioritizes capital discipline and margin expansion. With seven Saudi Arabia rigs set to resume operations, international growth remains a key focus.