Helmerich & Payne Q4 Earnings Miss Estimates, Revenues Beat

Helmerich & Payne, Inc. HP reported a fourth-quarter fiscal 2025 adjusted net loss of 1 cent per share, which substantially missed the Zacks Consensus Estimate of adjusted net income of 26 cents.  Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 76 cents. This was due to a weakness in the company's International Solutions segment, along with the impact of non-recurring one-time charges of $56 million.

Operating revenues of $1 billion beat the Zacks Consensus Estimate of $976 million. Sales from Drilling Services beat the consensus mark by 3.2%. Moreover, the figure increased 45.8% from the year-ago quarter’s level.

Helmerich & Payne, Inc. Price, Consensus and EPS Surprise

Helmerich & Payne, Inc. price-consensus-eps-surprise-chart | Helmerich & Payne, Inc. Quote

The company distributed approximately $25 million to its shareholders as part of its ongoing dividend program.

As of the end of October, HP repaid $210 million on its existing $400 million term loan, up from prior expectations of $200 million by the end of calendar year 2025. The company now expects to repay the entire term loan by the end of the third quarter of fiscal 2026.

HP’s Q4 Segmental Performance

North America Solutions: Operating revenues of $572.3 million were down 7.4% year over year on lower activity levels, with 141 average active rigs. The top line beat our projection of $541 million.

Operating profit totaled $118.2 million compared with $155.6 million in the prior-year period. However, the reported figure beat our estimate of $99.3 million.

International Solutions: Operating revenues of $241.2 million increased 430.6% from the year-ago quarter’s level of $45.5 million. Moreover, the top line beat our projection of $240.8 million.

Operating loss reached $75.7 million, compared unfavorably with the prior-year period loss of $3.9 million. The figure also compared unfavorably with our projected loss of $45.8 million.

Offshore Solutions: Revenues of $180.3 million increased 554.7% from the year-ago quarter’s level of $27.5 million. Additionally, the top line beat our projection of $154.7 million.

Operating profit totaled $20.3 million compared with $4.3 million in the year-ago quarter.  The figure beat our estimate of $19.8 million.

HP’s Financial Position

In the reported quarter, this Zacks Rank #3 (hold) company spent $426.4 million on capital programs. As of Sept. 30, 2025, HP had $196.8 million in cash and cash equivalents, while the long-term debt totaled $2.1 billion (debt-to-capitalization of 42.1%).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HP’s Guidance for FY26

The company anticipates gross capital expenditures of $280-$320 million in fiscal 2026, with $40-$60 million directed toward North America Solutions operations to support customer-driven upgrades that preserve its industry-leading technical capabilities. It plans to allocate $230-$250 million toward maintenance and reactivation across its global drilling fleet, including capital tied to recently announced rig reactivations in Saudi Arabia, while the remaining spend will cover corporate and other needs. Capital outlays are expected to be weighted toward the first half of the fiscal year, and ongoing asset sales — including reimbursements for lost or damaged tubulars and sales of used drilling equipment — are projected to offset expenditures by about $40 million. Operating guidance for fiscal 2026 includes an average contracted rig count of 132-148 in North America Solutions, an operating rig count of 58-68 for International Solutions and Offshore direct margins of $100-$115 million with roughly 30-35 management contracts and platform rigs. Additionally, annual cost guidance reflects lower General and Administrative expenses — more than $50 million below pro forma fiscal 2025 levels — and a notable year-over-year reduction in cash taxes.

Important Earnings at a Glance

While we have discussed HP’s fourth-quarter results in detail, let us take a look at three other key reports in this space.

Canadian Natural Resources Limited CNQ reported third-quarter 2025 adjusted earnings per share of 62 cents, which beat the Zacks Consensus Estimate of 54 cents. However, the bottom line decreased from 71 cents in the year-ago quarter. The underperformance can be attributed to lower realized oil and natural gas liquid prices and rising expenses.

Total revenues of $6.9 billion rose from $6.5 billion in the prior-year period, fueled by increased production volumes. Additionally, the figure beat the Zacks Consensus Estimate of $6.7 billion.

As of Sept. 30, 2025, CNQ had cash and cash equivalents worth C$113 million and long-term debt of approximately C$16.4 billion, with a debt to capitalization of about 28.9%.

Permian Resources Corporation PR reported a third-quarter 2025 adjusted net income per share of 37 cents, which beat the Zacks Consensus Estimate of 30 cents. Additionally, the bottom line increased from the year-ago quarter’s reported figure of 35 cents. This outperformance was driven by a rise in production volumes and an increased natural gas realized price.

Meanwhile, Permian Resources’ oil and gas sales of $1.3 billion increased 8.7% from the year-ago quarter but missed the Zacks Consensus Estimate by $16 million.

As of Sept. 30, PR had $111.8 million in cash and cash equivalents. The company had a long-term debt of $3.5 billion, reflecting a debt-to-capitalization of 26.1%.

The Calgary-based integrated oil and gas company, Imperial Oil Limited IMO, reported third-quarter 2025 adjusted earnings per share of $1.57, which beat the Zacks Consensus Estimate of $1.44. However, the bottom line decreased from the year-ago quarter’s $1.71. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.8 billion missed the Zacks Consensus Estimate of $11.1 billion. The top line also decreased from the year-ago quarter’s level of $9.7 billion due to weak performance in both the Upstream and Downstream segments.

As of Sept. 30, Imperial Oil had cash and cash equivalents of C$1.9 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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