Helmerich & Payne, Inc. (HP): Results of Operations and Financial Condition
Helmerich & Payne, Inc. (HP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE August 5, 2026 HELMERICH & PAYNE, INC. ANNOUNCES FISCAL THIRD QUARTER RESULTS Operating and Financial Highlights for the Quarter Ended June 30, 2026 • H&P announced consolidated revenue of $1.035 billion, reflecting strong sequential growth and solid exe
How this was made
The 30-second read
Why it matters
Key disclosed items include consolidated revenue and earnings, adjusted EBITDA, segment operating income/loss and direct margins, rig deployment/reactivation activity, a four-year Norway offshore contract renewal supporting offshore backlog, and a dividend return to shareholders.
Market read
This is a company-specific earnings release with multiple fresh operating and backlog datapoints that can drive same-day positioning and near-term estimates.
What to watch
Net income includes a large gain from the sale of Utica Square (about $115M); traders may discount headline EPS and focus on adjusted losses, free cash flow, and the sustainability of direct margin expansion.
Helmerich & Payne announced consolidated revenue of $1.035 billion, consolidated net income attributable to Helmerich & Payne Inc. of $76 million, or $0.74 per share, and adjusted losses of $(10) million, or $(0.11) per share.
Strong sequential operating performance in North America Solutions, improving International Solutions direct margin, and $236 million of adjusted EBITDA were offset by an adjusted loss and an International Solutions operating loss. Reported GAAP net income included a gain of approximately $115 million related to the sale of Utica Square.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenueGAAP | $1.035 billion | – | – |
| Consolidated net income attributable to Helmerich & Payne Inc.GAAP | $76 million | – | – |
| Net income per diluted shareGAAP | $0.74 per share | – | – |
| Adjusted lossesnon-GAAP | $(10) million | – | – |
| Adjusted losses per sharenon-GAAP | $(0.11) per share | – | – |
| Consolidated adjusted EBITDAnon-GAAP | $236 million | – | – |
| North America Solutions operating incomeGAAP | $140 million | – | – |
| North America Solutions direct marginnon-GAAP | $241 million | – | – |
| North America Solutions direct margin per daynon-GAAP | $18,669 per day | – | – |
| North America Solutions active rigsother | 142 rigs | – | – |
| International Solutions operating lossGAAP | approximately $(54) million | – | – |
| International Solutions direct marginnon-GAAP | $31 million | – | – |
| International Solutions average rigs workingother | 65 rigs | – | – |
| Offshore Solutions operating incomeGAAP | approximately $17 million | – | – |
| Offshore Solutions direct marginnon-GAAP | $29 million | – | – |
| Offshore Solutions active rigsother | three active rigs | – | – |
| Offshore Solutions management contracts in operationother | 30 management contracts | – | – |
| Net impact of select items in net income per diluted shareGAAP | $0.85 per share in after-tax gains and losses | – | – |
| After-tax gain related to a real estate asset saleGAAP | $0.88 | – | – |
| After-tax gain related to involuntary conversionGAAP | $0.10 | – | – |
| Non-cash after-tax gain related to change in actuarial assumptions on estimated liabilitiesGAAP | $0.03 | – | – |
| Non-cash after-tax loss related to impairmentGAAP | $(0.01) | – | – |
| After-tax loss related to restructuring chargesGAAP | $(0.01) | – | – |
| After-tax loss related to acquisition transaction and integration costsGAAP | $(0.01) | – | – |
| Non-cash after-tax loss related to investment securitiesGAAP | $(0.13) | – | – |
| After-tax loss related to International asset abandonmentGAAP | $(0.01) | – | – |
| After-tax loss related to transaction and integration costsGAAP | $(0.02) | – | – |
| Non-cash after-tax loss related to change in actuarial assumptions on estimated liabilitiesGAAP | $(0.03) | – | – |
4Q’26 and FY’26 outlook
- Operating expensesSelling, General & Administrative $265 - $285
- Note4Q’26 North America Solutions Direct Margin ($M): $245 - $255
- Note4Q’26 North America Solutions Average Rigs: 145 - 151
- NoteFY’26 North America Solutions Average Rigs: 140 - 144
- Note4Q’26 International Solutions Direct Margin ($M): $25 - $45
- Note4Q’26 International Solutions Average Rigs: 60 – 70
- NoteFY’26 International Solutions Average Rigs: 60 – 66
- Note4Q’26 Offshore Solutions Direct Margin ($M): $26 - $30
- NoteFY’26 Offshore Solutions Direct Margin ($M): $113 - $117
- Note4Q’26 Offshore Solutions Average Rigs / Mgmt. Cont.: 30 - 35
- NoteFY’26 Offshore Solutions Average Rigs / Mgmt. Cont.: 30 - 35
- Note4Q’26 Other Direct Margin ($M): $0 - $5
- NoteFY'26 Gross Capital Expenditures ($M): $270 - $310
- NoteFY'26 Depreciation: ~$700
- NoteFY'26 Research and Development: ~$28
- NoteFY'26 Cash Taxes: $150 - $180
- NoteFY'26 Interest Expense: ~$100
Capital returns
- Approximately $25 million was returned to shareholders through the Company’s ongoing dividend program.
What drove it
- North America Solutions deployed 10 additional rigs in response to strong demand from private operators.
- North America Solutions daily margins grew by more than $1,000 sequentially.
- International Solutions direct margin improved significantly, with additional rigs returning to work in Argentina supported by development of the Vaca Muerta shale basin.
- H&P secured contracts for five additional rigs in Argentina, including three rigs to be exported from the U.S. later this year.
- Offshore Solutions direct margin was led by performance-related bonuses.
- H&P secured a four-year contract renewal for an operator in Norway, strengthening offshore backlog to $3.6 billion, including firm and optional contract periods.
Concerns
- International Solutions recorded an operating loss of approximately $(54) million.
- Management said near-term market conditions remain fluid, particularly in the Middle East.
- Second-quarter International Solutions operating loss of approximately $(100) million included a $26 million impairment.
- GAAP net income included a gain of approximately $115 million related to the sale of Utica Square.
- Adjusted losses were $(10) million, or $(0.11) per share.
What to watch
- 4Q’26 North America Solutions Direct Margin ($M) guidance of $245 - $255 and Average Rigs guidance of 145 - 151.
- 4Q’26 International Solutions Direct Margin ($M) guidance of $25 - $45 and Average Rigs guidance of 60 – 70.
- 4Q’26 Offshore Solutions Direct Margin ($M) guidance of $26 - $30 and Average Rigs / Mgmt. Cont. guidance of 30 - 35.
- Company-wide initiatives focused on increasing efficiency, reducing cost, simplifying the portfolio, and streamlining support functions.
- Rig reactivations in Saudi Arabia and continuity of operations across core operating countries.
- FY'26 Gross Capital Expenditures ($M) guidance of $270 - $310 and stated commitment to debt reduction, maintaining the base dividend, and disciplined investment.
Balance sheet and cash flow
- Management stated that the Company generated strong adjusted EBITDA and free cash flows.
- FY'26 Gross Capital Expenditures ($M): $270 - $310
- FY'26 Cash Taxes: $150 - $180
- FY'26 Interest Expense: ~$100
Analysis
H&P reported consolidated revenue of $1.035 billion and consolidated adjusted EBITDA of $236 million in the third quarter of fiscal year 2026. GAAP net income attributable to Helmerich & Payne Inc. was $76 million, or $0.74 per share, but included a gain of approximately $115 million related to the sale of Utica Square. Adjusted losses were $(10) million, or $(0.11) per share, making the distinction between reported GAAP earnings and adjusted profitability central to the quarter.
North America Solutions was the principal operating contributor. Operating income was $140 million versus $111 million in the previous quarter, while direct margin rose to $241 million from $215 million. Direct margin averaged $18,669 per day with 142 rigs active, and the company deployed 10 additional rigs in response to demand from private operators. Management attributed activity growth primarily to private and smaller independent operators and said current conditions supported strong utilization and solid margin performance.
International Solutions improved sequentially but remained loss-making. The segment recorded an operating loss of approximately $(54) million, compared with a loss of approximately $(100) million in the prior quarter, which included a $26 million impairment. Direct margin rose to $31 million from $11 million, with 65 average rigs working. Argentina was a key source of momentum, including contracts for five additional rigs, while management also cited ongoing reactivations in Saudi Arabia amid fluid near-term conditions in the Middle East. Offshore Solutions provided a steadier contribution, with operating income of approximately $17 million and direct margin of $29 million, led by performance-related bonuses.
The fourth-quarter outlook calls for North America Solutions direct margin of $245 - $255 and 145 - 151 average rigs, International Solutions direct margin of $25 - $45 and 60 – 70 average rigs, and Offshore Solutions direct margin of $26 - $30 with 30 - 35 average rigs / management contracts. FY'26 gross capital expenditures are guided to $270 - $310, while selling, general and administrative expense is guided to $265 - $285. Management is pursuing efficiency, cost reduction, portfolio simplification, and support-function streamlining initiatives intended to enhance margins, free cash flow generation, and deleveraging.
Capital allocation included approximately $25 million returned to shareholders through the ongoing dividend program. Management stated it remains committed to balancing debt reduction, maintaining its base dividend, and disciplined investment for growth. Investors should focus on whether the guided North America Solutions direct-margin range is achieved, whether International Solutions converts improved direct margin into profitability, the trajectory of Saudi Arabian operations, and execution against the stated cost and deleveraging initiatives.
Management, verbatim
H&P delivered strong financial and operational results during the quarter. We generated direct margins that exceeded the midpoint of guidance ranges in all segments as well as strong adjusted EBITDA and free cash flows.
Trey Adams, President and CEO
While near-term market conditions remain fluid, particularly in the Middle East, underlying trends across our portfolio continue to improve.
Trey Adams, President and CEO
In conjunction with our strong financial performance and improving market outlook, we are embarking on company-wide initiatives focused on increasing efficiency, reducing cost, simplifying our portfolio, and streamlining support functions.
Todd Scruggs, Senior Vice President and CFO
Not in the filing
stated, not guessed- Segment revenue for North America Solutions, International Solutions, and Offshore Solutions was not reported in the provided filing text.
- Prior-year revenue, prior-quarter revenue, and revenue growth rates were not reported.
- Consolidated gross margin was not reported.
- Consolidated operating income was not reported.
- Consolidated operating cash flow and free cash flow amounts were not reported.
- Cash, debt, net debt, and liquidity figures were not reported.
- Share repurchases and dividend per-share amount were not reported.
- Revenue, gross-margin, and tax-rate guidance were not reported.
- Prior outlook was not provided, so comparison of reported results with prior guidance is unavailable.
- North America Solutions and International Solutions FY’26 direct-margin guidance was not reported in the provided outlook table.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The 8-K includes Exhibit 99.1 with Helmerich & Payne’s fiscal third-quarter results for the quarter ended June 30, 2026, plus management commentary by CEO Trey Adams and CFO Todd Scruggs.
Ticker impact
Helmerich & Payne reported fiscal Q3 results with $1.035B revenue, $76M net income, and segment margin changes plus a Norway offshore contract renewal.
Bias to the upside on earnings-day reaction, with follow-through tied to whether investors focus on adjusted EBITDA/free cash flow and the offshore backlog strength.
The filing discloses multiple concrete, decision-relevant datapoints: consolidated revenue, net income per share, adjusted EBITDA, segment operating income/loss and direct margins, rig deployments, and a specific multi-year contract renewal that supports backlog visibility.
Market effects
Improving direct margins and contract/backlog commentary can reinforce sentiment toward oilfield services demand and super-spec rig utilization.
Middle East and international reactivation commentary (Saudi, Argentina Vaca Muerta) may influence regional risk perception for offshore and international drilling activity.
Energy security and ongoing investment themes are reiterated, but the actionable signal is company-specific backlog and margin performance.
Counterpoint
International Solutions still shows an operating loss (about $(54)M), so the consolidated strength may be partially offset by weaker international profitability and one-time items.
Key entities
- companyHelmerich & Payne, Inc.
Reported fiscal Q3 results and segment performance, including a Norway offshore contract renewal and shareholder dividend return.
- executiveTrey Adams
CEO quoted on quarter performance, market conditions, and outlook toward 2027.
- executiveTodd Scruggs
CFO quoted on efficiency initiatives, deleveraging, dividend balance, and investment discipline.
