It has been about a month since the last earnings report for Helmerich & Payne (HP). Shares have added about 2.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Helmerich & Payne due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Helmerich & Payne Q4 Earnings Miss Estimates, Revenues Beat
Helmerich & Payne 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.
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.
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.
Financial Position
In the reported quarter, HP 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%).
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -34.83% due to these changes.
VGM Scores
Currently, Helmerich & Payne has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Helmerich & Payne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Helmerich & Payne, Inc. (HP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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