Helmerich & Payne, Inc. Announces Fiscal Fourth Quarter and Fiscal 2025 Results and Provides Initial Fiscal Year 2026 Operating and Financial Guidance

TULSA, Okla.--( BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE: HP)

Operating and Financial Highlights for the Quarter Ended September 30, 2025

Select Operating and Financial Guidance for Fiscal Year 2026

Management Commentary

“Fiscal 2025 was a historic year for H&P, as we grew our global drilling footprint to over 200 operating rigs, surpassed over $1 billion of direct margins in our North American Solutions business, welcomed the talented team from KCA Deutag, and established new relationships with a diverse set of global customers,” commented CEO John Lindsay.

“In NAS, our strong customer partnerships and disciplined focus on sustainable economic returns continue to deliver market-leading results. Despite a decline in the industry’s overall rig count, NAS achieved another year of exceptional results, underscoring the effectiveness of our operations and sales teams to deliver win/win solutions with customers. Assuming current commodity prices, we continue to expect stable activity trends in the Lower 48 throughout 2026 and remain committed to financial discipline while continuing to deliver mutually beneficial outcomes with our customers.

“For our International Solutions segment, fiscal 2025 was particularly meaningful. We started operations for our eight FlexRigs in Saudi Arabia, completed the acquisition of KCA Deutag, and continued to grow our global presence, with operations now spanning six continents. With the right assets, people, customer relationships, and operating scale, we are well-positioned to capitalize on international opportunities,” Lindsay concluded. “As evidenced by our recent rig reactivations in Saudi Arabia and our numerous conversations with multiple national oil companies, international oil companies, and independents throughout the region, we’re confident our proven drilling solutions and technologies can deliver significant value to international clients.

“In our Offshore Solutions segment, the inclusion of the legacy KCAD operation added significant scale during fiscal 2025, and we realized record margins of nearly $35 million during the fourth quarter as we enjoyed the full benefit of increased rig utilization. We are optimistic about Offshore Solutions going forward, and believe there are numerous opportunities to expand our footprint in this capital efficient business.”

Senior Vice President and CFO Kevin Vann commented, "As we enter fiscal year 2026, our planned capital expenditures represent a meaningful reduction from H&P's fiscal year 2025 spend. We remain focused on generating strong free cash flow and accelerating debt reduction, as demonstrated by repayment of $210 million on the term loan through October, which was well ahead of schedule. We now expect to fully repay all $400 million by the end of the third fiscal quarter of 2026.

“We have made solid progress in streaming our cost structure and have a clear line of sight on further improvements,” Vann said. Our fiscal year 2026 General and Administrative expense guidance represents a decrease of over $50 million relative to proforma annualized 2025, and we expect to realize additional savings which will accrue directly to operating margins in our core businesses.”

Lindsay concluded, "While 2025 brought many achievements, I’m even more excited about the prospects and opportunities ahead. As we enter 2026, our industry-leading technology, performance-driven innovations, and expanding global scale position us to deliver even greater results. We are optimistic about the sector's long-term prospects and believe our global scale will allow our shareholders to benefit for decades to come. With a talented and dedicated workforce, an unwavering focus on safety, and a customer-centered approach, I am confident H&P is poised for continued success and long-term value creation for our shareholders.”

Operating Segment Results for the Fourth Quarter of Fiscal Year 2025

North America Solutions: Realized operating income of $118 million, compared to $158 million during the previous quarter. Direct margin (2) slightly exceeded the midpoint of guidance, totaling approximately $242 million compared to approximately $266 million during the previous quarter. On a per day basis, direct margin was approximately $18,620 with an average of 141 rigs running. Innovations such as our performance contracts continue to help NAS to deliver peer leading margins. During the quarter approximately 50% of the NAS active rigs utilized performance contracts.

International Solutions: This segment had operating loss of $(75) million, compared to a loss of approximately $(167) million during the previous quarter which included a one-time goodwill impairment of $(128) million. Direct margin (2) again exceeded the midpoint of guidance, totaling approximately $30 million compared to approximately $34 million during the previous quarter.

Offshore Solutions: Contributed operating income of approximately $20 million, compared to approximately $9 million during the previous quarter, representing an increase of $11 million. The increase in operating income was primarily attributable to increased rig utilization. Direct margin (2) exceeded the guidance range, realizing record margins of approximately $35 million compared to approximately $23 million during the previous quarter.

Select Items (4) Included in Net Income per Diluted Share

Fourth quarter of fiscal year 2025 net loss of $(0.58) per diluted share included a net impact $(0.57) per share in after-tax losses comprised of the following:

Third quarter of fiscal year 2025 net loss of $(1.64) per diluted share included a net impact $(1.86) per share in after-tax losses comprised of the following:

Operational Outlook for the First Quarter of Fiscal Year 2026

The below guidance represents our expectations as of the date of this release.

North America Solutions:

International Solutions:

Offshore Solutions:

Other:

Other Estimates for Fiscal Year 2026

Conference Call

A conference call will be held on Tuesday, November 18, 2025, at 11 a.m. (ET) with John Lindsay, CEO, Trey Adams, President, Kevin Vann, Senior Vice President and CFO, and other management team members to discuss the Company’s fourth quarter fiscal year 2025 results. Dial-in information for the conference call is (800)-245-3047 for domestic callers or (203)-518-9765 for international callers. The call access code is ‘Helmerich’. 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 November 17, 2025, H&P's fleet includes 203 land rigs in the United States, 137 international land rigs and 5 offshore platform rigs, plus operating approximately 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, statements regarding the anticipated benefits (including synergies and cash flow) of the acquisition and integration of KCA Deutag, the anticipated impact of the acquisition of KCA Deutag on the Company's business and future financial and operating results, the anticipated timing of expected synergies, cost savings and returns from the acquisition of KCA Deutag, 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, 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) 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.

(3) 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.

(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 27 rigs that have either suspended operations or have been notified to suspend operations in Saudi Arabia

Interim Financial Information

Prior to the three months ended March 31, 2025, foreign currency exchange gains and losses were presented in the operating costs and expense line items to which they relate, namely within Drilling services operating expenses, on our Consolidated Statements of Operations. To conform with the current period presentation, we reclassified amounts previously presented in separate line items within operating costs and expenses to the Foreign currency exchange loss line on our Consolidated Statements of Operations for the three months and fiscal year ending September 30, 2024. The impact of this change was not material to any period presented.

Prior to the fourth quarter of fiscal year 2025, revenues associated with our BENTEC™ manufacturing and engineering operations were presented within Drilling services revenue within our Consolidated Statements of Operations. These revenues were reclassified to Other revenue during the three months ended September 30, 2025. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Drilling services revenue to Other revenue on our Consolidated Statements of Operations for the three months ended June 30, 2025.

HELMERICH & PAYNE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Year Ended

(in thousands, except per share

amounts)

September 30,

June 30,

September 30,

2025

2024

2025

2024

OPERATING REVENUES

Drilling services

990,211

1,005,514

691,293

3,678,660

2,746,128

Other

21,537

35,410

2,500

67,353

10,479

1,011,748

1,040,924

693,793

3,746,013

2,756,607

OPERATING COSTS AND EXPENSES

Drilling services operating expenses, excluding depreciation and amortization

694,611

704,224

407,017

2,511,408

1,624,681

Other operating expenses

20,319

31,059

1,176

56,019

4,483

Depreciation and amortization

188,857

179,491

100,992

625,085

397,344

Research and development

7,567

7,777

8,850

34,125

40,955

Selling, general and administrative

77,645

65,506

66,920

287,052

244,883

Acquisition transaction costs

5,677

8,623

7,452

54,702

14,982

Asset impairment charges

18,928

173,258

—

194,030

—

Restructuring charges

7,450

4,681

—

12,131

—

Gain on reimbursement of drilling equipment

(7,249

)

(6,773

)

(8,622

)

(33,398

)

(33,309

)

Other (gain) loss on sale of assets

(595

)

1,347

2,421

1,541

5,139

1,013,210

1,169,193

586,206

3,742,695

2,299,158

OPERATING INCOME (LOSS)

(1,462

)

(128,269

)

107,587

3,318

457,449

Other income (expense)

Interest and dividend income

3,353

2,856

11,979

35,207

41,168

Interest expense

(27,972

)

(29,200

)

(16,124

)

(107,808

)

(29,093

)

Gain (loss) on investment securities

(36,461

)

(337

)

13,851

(22,377

)

13,953

Foreign currency exchange gain (loss)

6,455

(9,216

)

(1,041

)

(9,682

)

(5,550

)

Other

(5,985

)

31,258

102

27,229

3,093

(60,610

)

(4,639

)

8,767

(77,431

)

23,571

Income (loss) before income taxes

(62,072

)

(132,908

)

116,354

(74,113

)

481,020

Income tax expense (benefit)

(6,265

)

28,991

40,878

85,835

136,855

NET INCOME (LOSS)

(55,807

)

(161,899

)

75,476

(159,948

)

344,165

Net income attributable to non-controlling interest

1,556

859

—

3,747

—

NET INCOME (LOSS) ATTRIBUTABLE TO HELMERICH & PAYNE, INC.

(57,363

)

(162,758

)

75,476

(163,695

)

344,165

Basic earnings (loss) per common share

(0.58

)

(1.64

)

0.75

(1.66

)

3.43

Diluted earnings (loss) per common share

(0.58

)

(1.64

)

0.76

(1.66

)

3.43

Weighted average shares outstanding:

Basic

99,441

99,422

98,755

99,272

98,857

Diluted

99,441

99,422

98,995

99,272

99,067

HELMERICH & PAYNE, INC.

CONSOLIDATED BALANCE SHEETS

September 30,

(in thousands except share data and share amounts)

2025

2024

ASSETS

Current Assets:

Cash and cash equivalents

196,848

217,341

Restricted cash

27,412

68,902

Short-term investments

21,496

292,919

Accounts receivable, net of allowance of $19,647 and $2,977, respectively

782,644

418,604

Inventories of materials and supplies, net

324,326

117,884

Prepaid expenses and other, net

97,518

76,419

Assets held-for-sale

15,231

—

Total current assets

1,465,475

1,192,069

Investments, net

68,198

100,567

Property, plant and equipment, net

4,313,074

3,016,277

Other Noncurrent Assets:

Goodwill

182,854

45,653

Intangible assets, net

485,540

54,147

Operating lease right-of-use asset

123,598

67,076

Restricted cash

1,640

1,242,417

Other assets, net

65,359

63,692

Total other noncurrent assets

858,991

1,472,985

Total assets

6,705,738

5,781,898

LIABILITIES & SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

217,923

135,084

Dividends payable

25,199

25,024

Accrued liabilities

564,855

286,841

Current portion of long-term debt, net

6,859

—

Total current liabilities

814,836

446,949

Noncurrent Liabilities:

Long-term debt, net

2,057,084

1,782,182

Deferred income taxes

624,000

495,481

Retirement benefit obligation

109,864

6,524

Other

270,616

133,610

Total noncurrent liabilities

3,061,564

2,417,797

Shareholders' Equity:

Common stock, $0.10 par value, 160,000,000 shares authorized, 112,222,865 shares issued as of September 30, 2025 and 2024, and 99,446,577 and 98,755,412 shares outstanding as of September 30, 2025 and 2024, respectively

11,222

Preferred stock, no par value, 1,000,000 shares authorized, no shares issued

—

Additional paid-in capital

513,050

518,083

Retained earnings

2,619,090

2,883,590

Accumulated other comprehensive loss

44,964

(6,350

)

Treasury stock, at cost, 12,776,288 shares and 13,467,453 shares as of September 30, 2025 and 2024, respectively

(463,536

)

(489,393

)

Non-controlling interest

104,548

—

Total shareholders’ equity

2,829,338

2,917,152

Total liabilities and shareholders' equity

6,705,738

5,781,898

HELMERICH & PAYNE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended September 30,

(in thousands)

2025

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

(159,948

)

344,165

434,100

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

625,085

397,344

382,314

Asset impairment charges

194,030

—

12,097

Amortization of debt discount and debt issuance costs

6,069

10,560

1,079

Stock-based compensation

31,594

31,198

32,456

(Gain) loss on investment securities

22,377

(13,953

)

(11,299

)

Gain on reimbursement of drilling equipment

(33,398

)

(33,309

)

(48,173

)

Other loss on sale of assets

1,541

5,139

8,016

Deferred income tax benefit

(78,661

)

(23,191

)

(20,400

)

Other

14,039

5,132

8,979

Changes in assets and liabilities

(79,778

)

(38,422

)

34,513

Net cash provided by operating activities

542,950

684,663

833,682

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(426,373

)

(495,072

)

(395,460

)

Purchase of short-term investments

(117,057

)

(200,653

)

(180,993

)

Purchase of long-term investments

(3,296

)

(9,120

)

(20,748

)

Payment for acquisition of business, net of cash acquired

(1,836,072

)

—

Proceeds from sale of short-term investments

378,353

204,152

195,311

Proceeds from sale of long-term investments

31,990

—

Insurance proceeds from involuntary conversion

2,366

5,533

9,221

Proceeds from asset sales

45,776

46,412

70,085

Other

(1,029

)

(10,000

)

—

Net cash used in investing activities

(1,925,342

)

(458,748

)

(322,584

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Dividends paid

(100,735

)

(168,459

)

(201,456

)

Distributions to non-controlling interests

(15,380

)

—

Proceeds from debt issuance

400,000

1,247,629

—

Debt issuance costs

(2,629

)

(22,934

)

—

Payments for employee taxes on net settlement of equity awards

(10,836

)

(12,177

)

(14,410

)

Payment of contingent consideration from acquisition of business

—

(6,250

)

(250

)

Payments for early extinguishment of long-term debt

(200,000

)

—

Share repurchases

—

(51,302

)

(247,213

)

Other

(3,759

)

—

(540

)

Net cash provided by (used in) financing activities

66,661

986,507

(463,869

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

12,971

—

Net increase (decrease) in cash and cash equivalents and restricted cash

(1,302,760

)

1,212,422

47,229

Cash and cash equivalents and restricted cash, beginning of period

1,528,660

316,238

269,009

Cash and cash equivalents and restricted cash, end of period

225,900

1,528,660

316,238

SEGMENT REPORTING

Three Months Ended

Year Ended

September 30,

June 30,

September 30,

(in thousands, except operating statistics)

2025

2024

2025

2024

NORTH AMERICA SOLUTIONS

Operating revenues

572,274

592,214

618,285

2,362,327

2,445,946

Direct operating expenses

330,235

326,042

343,769

1,322,697

1,366,471

Depreciation and amortization

88,248

88,078

92,647

351,813

366,446

Research and development

7,580

7,617

8,975

34,140

41,293

Selling, general and administrative expense

25,781

10,972

17,301

68,047

61,113

Acquisition transaction costs

—

Asset impairment charges

—

1,507

—

Restructuring charges

2,272

1,849

—

4,121

—

Segment operating income

118,158

157,649

155,593

579,961

610,623

Financial Data and Other Operating Statistics 1:

Direct margin (Non-GAAP) 2

242,039

266,172

274,516

1,039,630

1,079,475

Revenue days 3

12,999

13,400

13,871

53,523

55,387

Average active rigs 4

141

147

151

147

151

Number of active rigs at the end of period 5

144

141

151

144

151

Number of available rigs at the end of period

223

224

228

223

228

Reimbursements of "out-of-pocket" expenses

71,289

73,268

76,148

290,591

294,375

INTERNATIONAL SOLUTIONS

Operating revenues

241,234

265,803

45,463

802,426

193,975

Direct operating expenses

211,716

231,695

44,010

718,822

169,033

Depreciation and amortization

90,102

66,734

3,314

218,817

10,863

Selling, general and administrative expense

4,964

5,014

2,093

17,232

9,427

Acquisition transaction costs

1,234

141

—

1,585

—

Asset impairment charges

4,368

128,352

—

132,720

—

Restructuring charges

4,565

380

—

4,945

—

Segment operating income (loss)

(75,715

)

(166,513

)

(3,954

)

(291,695

)

4,652

Financial Data and Other Operating Statistics 1:

Direct margin (Non-GAAP) 2

29,518

34,108

1,453

83,604

24,942

Revenue days 3

5,691

6,573

1,336

19,985

4,614

Average active rigs 4

Number of active rigs at the end of period 5

Number of available rigs at the end of period

137

Reimbursements of "out-of-pocket" expenses

12,720

10,736

1,065

34,045

8,482

OFFSHORE GULF OF MEXICO

Operating revenues

180,327

161,777

27,545

520,394

106,207

Direct operating expenses

145,566

139,004

20,468

430,135

82,668

Depreciation and amortization

10,023

12,681

1,723

32,461

7,530

Selling, general and administrative expense

1,297

1,294

1,079

4,619

3,594

Acquisition transaction costs

2,911

—

2,971

—

Restructuring charges

237

—

266

—

Segment operating income

20,293

8,769

4,275

49,942

12,415

Financial Data and Other Operating Statistics 1:

Direct margin (Non-GAAP) 2

34,761

22,773

7,077

90,259

23,539

Revenue days 3

276

273

276

1,095

1,111

Average active rigs 4

Number of active rigs at the end of period 5

Number of available rigs at the end of period

Reimbursements of "out-of-pocket" expenses

29,458

23,043

7,287

86,662

31,717

(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 during the reporting period in which revenue was recognized from Company owned rigs. This metric excludes revenue days associated with leased rigs.

(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. 92 days for the three months ended September 30, 2025 and 2024, 91 days for the three months ended June 30, 2025, 365 days for the year ended September 30, 2025 and 366 days for the year ended September 30, 2024).

(5)

Defined as the number of contractual days for owned and leased rigs with recognized revenue for during the period.

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 loss on sale of assets, corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transactions 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 before income taxes as reported on the Consolidated Statements of Operations:

Three Months Ended

Year Ended

September 30,

June 30,

September 30,

(in thousands)

2025

2024

2025

2024

Operating income (loss)

North America Solutions

118,158

157,649

155,593

579,961

610,623

International Solutions

(75,715

)

(166,513

)

(3,954

)

(291,695

)

4,652

Offshore Gulf of Mexico

20,293

8,769

4,275

49,942

12,415

Other

(32,792

)

(70,004

)

714

(103,397

)

(1,359

)

Eliminations

(1,752

)

6,114

2,315

(3,999

)

1,261

Segment operating income (loss)

28,192

(63,985

)

158,943

230,812

627,592

Gain on reimbursement of drilling equipment

7,249

6,773

8,622

33,398

33,309

Other gain (loss) on sale of assets

595

(1,347

)

(2,421

)

(1,541

)

(5,139

)

Corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction costs, corporate asset impairment charges, and corporate restructuring charges

(37,498

)

(69,710

)

(57,557

)

(259,351

)

(198,313

)

Operating income (loss)

(1,462

)

(128,269

)

107,587

3,318

457,449

Other income (expense):

Interest and dividend income

3,353

2,856

11,979

35,207

41,168

Interest expense

(27,972

)

(29,200

)

(16,124

)

(107,808

)

(29,093

)

Gain (loss) on investment securities

(36,461

)

(337

)

13,851

(22,377

)

13,953

Foreign currency exchange gain (loss)

6,455

(9,216

)

(1,041

)

(9,682

)

(5,550

)

Other

(5,985

)

31,258

102

27,229

3,093

Total other income (expense)

(60,610

)

(4,639

)

8,767

(77,431

)

23,571

Income (loss) before income taxes

(62,072

)

(132,908

)

116,354

(74,113

)

481,020

SUPPLEMENTARY STATISTICAL INFORMATION

Unaudited

U.S. LAND RIG COUNTS & MARKETABLE FLEET STATISTICS

November 17,

September 30,

June 30,

Q4FY25

2025

Average (2)

U.S. Land Operations

Term Contract Rigs

Spot Contract Rigs

Total Contracted Rigs

143

144

141

Idle or Other Rigs

Total Marketable Fleet

203

223

224

223

International Solutions

Total Contracted Rigs (1)

Idle or Other Rigs

Total Marketable Fleet

137

Offshore Solutions

Total Platform Rigs

Idle or Other Rigs

Total Fleet

Total Management Contracts

(1)

Includes 27 rigs, 27 rigs, and 26 rigs as November 17, 2025, September 30, 2025, and June 30, 2025, respectively that are contracted but not earning revenue.

(2)

Average active rigs represent 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).

NON-GAAP MEASUREMENTS

NON-GAAP RECONCILIATION OF SELECT ITEMS AND ADJUSTED NET INCOME(**)

Three Months Ended September 30, 2025

(in thousands, except per share data)

Pretax

Tax

Net

EPS

Net income (GAAP basis)

(57,363

)

(0.58

)

(-) Changes in actuarial assumptions on estimated liabilities

3,864

877

2,987

0.03

(-) Acquisition transaction costs

(5,677

)

(680

)

(4,997

)

(0.05

)

(-) Restructuring charges

(7,450

)

(595

)

(6,855

)

(0.07

)

(-) Credit loss expense associated with long-term note receivable

(9,878

)

(2,242

)

(7,636

)

(0.08

)

(-) Impairment expense

(11,450

)

—

(11,450

)

(0.12

)

(-) Loss on investment securities

(36,461

)

(8,277

)

(28,184

)

(0.28

)

Adjusted net income

(1,228

)

(0.01

)

Three Months Ended June 30, 2025

(in thousands, except per share data)

Pretax

Tax

Net

EPS

Net income (GAAP basis)

(162,758

)

(1.64

)

(-) Legal settlement

27,500

6,242

21,258

0.21

(-) Restructuring charges

(4,681

)

(1,063

)

(3,618

)

(0.04

)

(-) Acquisition transaction costs

(8,623

)

(1,957

)

(6,666

)

(0.07

)

(-) Changes in actuarial assumptions on estimated liabilities

(28,932

)

(6,568

)

(22,364

)

(0.22

)

(-) Goodwill impairment

(173,258

)

—

(173,258

)

(1.74

)

Adjusted net income

21,890

0.22

(**)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.

NON-GAAP RECONCILIATION OF DIRECT MARGIN

Direct margin is considered a non-GAAP metric. We define "direct margin" as operating revenues less direct operating expenses. 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

Year Ended

September 30,

June 30,

September 30,

(in thousands)

2025

2024

2025

2024

NORTH AMERICA SOLUTIONS

Segment operating income

118,158

157,649

155,593

579,961

610,623

Add back:

Depreciation and amortization

88,248

88,078

92,647

351,813

366,446

Research and development

7,580

7,617

8,975

34,140

41,293

Selling, general and administrative expense

25,781

10,972

17,301

68,047

61,113

Acquisition transaction costs

—

Asset impairment charge

—

1,507

—

Restructuring charges

2,272

1,849

—

4,121

—

Direct margin (Non-GAAP)

242,039

266,172

274,516

1,039,630

1,079,475

INTERNATIONAL SOLUTIONS

Segment operating income (loss)

(75,715

)

(166,513

)

(3,954

)

(291,695

)

4,652

Add back:

Depreciation and amortization

90,102

66,734

3,314

218,817

10,863

Selling, general and administrative expense

4,964

5,014

2,093

17,232

9,427

Acquisition transaction costs

1,234

141

—

1,585

—

Asset impairment charge

4,368

128,352

—

132,720

—

Restructuring charges

4,565

380

—

4,945

—

Direct margin (Non-GAAP)

29,518

34,108

1,453

83,604

24,942

OFFSHORE SOLUTIONS

Segment operating income

20,293

8,769

4,275

49,942

12,415

Add back:

Depreciation and amortization

10,023

12,681

1,723

32,461

7,530

Selling, general and administrative expense

1,297

1,294

1,079

4,619

3,594

Acquisition transaction costs

2,911

—

2,971

—

Restructuring charges

237

—

266

—

Direct margin (Non-GAAP)

34,761

22,773

7,077

90,259

23,539

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.

Three Months Ended

Year Ended

September 30,

June 30,

September 30,

(in thousands)

2025

2024

2025

2024

Net income (loss) attributable to Helmerich and Payne, Inc.

(57,363

)

(162,758

)

75,476

(163,695

)

344,165

Add back:

Net income attributable to non-controlling interest

1,556

859

—

3,747

—

Income tax expense (benefit)

(6,265

)

28,991

40,878

85,835

136,855

Other (income) expense

Interest and dividend income

(3,353

)

(2,856

)

(11,979

)

(35,207

)

(41,168

)

Interest expense

27,972

29,200

16,124

107,808

29,093

(Gain) loss on investment securities

36,461

337

(13,851

)

22,377

(13,953

)

Foreign currency exchange (gain) loss

(6,455

)

9,216

1,041

9,682

5,550

Other

5,985

(31,258

)

(102

)

(27,229

)

(3,093

)

Depreciation and amortization

188,857

179,491

100,992

625,085

397,344

Acquisition transaction costs

5,677

8,623

7,452

54,702

14,982

Asset impairment charges

18,928

173,258

—

194,030

—

Restructuring charges

7,450

4,681

—

12,131

—

Other (gain) loss on sale of assets

(595

)

1,347

2,421

1,541

5,139

Excluding Select Items (Non-GAAP)

Research and development costs associated with an asset acquisition

—

3,840

Gains related to an insurance claim

—

(2,366

)

—

Credit loss expense associated with long-term note receivable

9,878

—

9,878

—

Change in actuarial assumptions on estimated liabilities

(3,864

)

28,932

—

35,925

—

Adjusted EBITDA (Non-GAAP)

224,869

268,063

218,452

934,244

878,754