HP · Helmerich & Payne, Inc.

Helmerich & Payne's Q2 FY2026 results showed revenue resilience at $932 million amid a dynamic macro environment, but a GAAP net loss of $59 million or $(0.59) per share was driven by a $26 million non-cash impairment and other select items, yielding adjusted earnings of $(38) million or $(0.38) per share. Adjusted EBITDA held at $178 million, reflecting operational stability. Segment performance varied sharply: North America Solutions delivered $111 million operating income and $215 million direct margin ($17,628 per day across 136 rigs), bolstered by commercial momentum, new contracts, and FlexRobotics™ rollout. International Solutions posted a $(100) million operating loss (excluding impairment, $(74) million) with direct margin dropping to $11.5 million due to Middle East conflict impacts, though reactivation of Saudi rigs via in-house capabilities minimized delays. Offshore Solutions generated $14 million operating income and $27 million direct margin, exceeding guidance midpoint, supported by long-term contracts including a five-year bp renewal in the Caspian Sea potentially worth over $1 billion if extended.

Balance sheet actions advanced deleveraging: Utica Square sale yielded after-tax proceeds exceeding $100 million target, enabling early retirement of $400 million term loan. $25 million returned via dividends. Management highlighted NAS activity strengthening on improved customer sentiment and crude prices, while monitoring Middle East uncertainty but noting constructive dialogues. CFO Kevin Vann's upcoming retirement was acknowledged, with Todd Scruggs to lead finance amid focus on 2027 $350 million bond maturity via free cash flow.

Q3 guidance signals NAS margin expansion to $230-240 million (137-143 rigs), modest International recovery ($12-32 million), and Offshore stability ($24-28 million), with FY2026 capex at $270-310 million.