NYSE$HP

Helmerich & Payne Inc · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Helmerich & Payne reported a decrease in net income and EPS for Q1 FY25, despite stable operating revenues.

Helmerich & Payne, Inc. reported a net income of $54.8 million and diluted EPS of $0.54 for the three months ended December 31, 2024. Operating revenues remained stable at $677.3 million. The company's financial performance was impacted by increased acquisition transaction costs and interest expenses, partially offset by higher average pricing levels in North America Solutions.

  • Net income decreased to $54.8 million from $95.2 million in the prior year, primarily due to higher acquisition transaction costs and interest expenses.
  • Diluted earnings per common share fell to $0.54 from $0.94 in the previous year.
  • Operating revenues remained consistent at $677.3 million, with drilling services contributing the majority.
  • The company incurred $10.5 million in acquisition transaction costs related to the KCA Deutag acquisition.

Headline financials

Total Revenue

$677M

Previous: $677M+0.0%
EPS (adj)

$0.55

Previous: $0.97-43.3%
NA revenue days

13.7K

No prior period
NA avg active rigs

149

No prior period
Intl revenue days

1.7K

No prior period
Intl avg active rigs

18

No prior period
Offshore revenue days

276

No prior period
Offshore avg active rigs

3

No prior period
Capital Expenditures

-$106M

Previous: -$136M+21.9%
Net Income

$54.8M

Previous: $95.2M-42.5%
Operating Income

$90M

Previous: $123M-27.1%
Gross Profit

$166M

Previous: $273M-39.1%
R&D Expense

$9.36M

Previous: $8.61M+8.7%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$677M

Q1 2025+0%vs Q1 2024
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $628M total across 2 segments · Q4 2023

  • North America Solutions
    $575M+4.1%
  • International Solutions
    $53.2M+25.5%

Forward guidance

The company expects stable rig activity and pricing levels in North America Solutions for fiscal year 2025. International Solutions and Offshore Gulf of Mexico segments are expected to see increased activity due to the KCA Deutag acquisition, despite some temporary suspensions.

Tailwinds

  • North America Solutions segment expects relatively stable rig activity and pricing levels for fiscal year 2025.
  • International Solutions segment's contracted rig count is expected to increase to approximately 89 rigs from 20 rigs as of December 31, 2024, due to the KCA Deutag acquisition.
  • Offshore Gulf of Mexico segment (to be renamed Offshore Solutions) is expected to increase its active management contract and rig count to approximately 37 from six.
  • Current expectations are for activity and pricing in the International Solutions and Offshore Gulf of Mexico (Offshore Solutions) reportable segments to remain relatively stable post the completion of the Acquisition.
  • The overall demand for super-spec rigs in the U.S. remains relatively strong, with idle capacity quickly reabsorbed into the market.

Headwinds

  • The suspension of operations for 12 acquired rigs in Saudi Arabia is expected to have an adverse impact on International Solutions segment's operating results during fiscal 2025.
  • There are no assurances that suspended rigs will re-commence operations on the anniversaries of the notices to suspend.
  • The company's ability to successfully conduct international operations is subject to numerous contingencies beyond management's control, including economic conditions, geopolitical developments, and currency fluctuations.
  • Future currency devaluations, foreign exchange restrictions, or other difficulties repatriating U.S. dollars from Argentina or elsewhere could have a material adverse impact.
  • The company's current backlog does not include anticipated contract renewals or expected performance bonuses, and contracts are subject to cancellation or modification.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-1.2%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-3.4%

Avg return

30 days after

43%

31 / 72 earnings

Positive

+12.8%

Q1 2024

Best reaction

-20.8%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.2%-1.7%-6.0%
Q1 2026-5.2%-6.0%-6.4%
Q4 2025-3.7%-3.2%+0.3%
Q2 2025-3.5%+0.6%-11.8%
Q1 2025-16.5%-17.9%-23.0%
Q4 2024-6.0%-6.8%-6.9%
Q3 2024+8.8%+3.8%-11.4%
Q2 2024-4.4%-3.5%-12.2%
Q1 2024+12.8%+5.0%+6.9%
Q4 2023-3.0%-0.7%-6.2%
Q3 2023+5.1%+5.4%-5.0%
Q2 2023-4.0%-5.0%-5.8%
Q1 2023-1.5%-7.8%-12.8%
Q4 2022-1.6%-3.2%-11.5%
Q3 2022+5.2%+7.4%+7.4%
Q2 2022+12.1%+6.6%+22.5%
Q1 2022+6.8%+14.2%+33.7%
Q4 2021-19.7%-23.8%-28.1%
Q3 2021-0.9%-4.7%-5.4%
Q2 2021-5.2%-0.5%+4.5%
Q1 2021+4.8%+3.5%+21.5%
Q4 2020+2.0%+22.5%+26.1%
Q3 2020-9.9%-12.9%-18.9%
Q2 2020-20.8%-19.9%-5.1%
Q1 2020+2.8%+5.2%-13.9%
Q4 2019+3.4%-2.1%+7.3%
Q3 2019-2.5%-5.1%-26.3%
Q2 2019-2.5%-7.3%-19.9%
Q1 2019+8.4%+7.9%+3.4%
Q4 2018+7.4%+4.3%+0.3%
Q3 2018+1.0%+6.4%+11.2%
Q2 2018-2.4%-4.5%-7.7%
Q1 2018+3.8%+1.9%-6.3%
Q4 2017+3.6%+3.9%+7.5%
Q3 2017-5.9%-10.7%-18.7%
Q2 2017-7.0%-10.0%-17.7%
Q1 2017-10.4%-12.3%-16.7%
Q4 2016+3.5%+5.4%+19.4%
Q3 2016-1.6%-2.0%-0.9%
Q2 2016-6.7%
Q1 2016+10.3%
Q4 2015-2.2%
Q3 2015-3.4%
Q2 2015+1.2%
Q1 2015-0.2%
Q4 2014-7.7%
Q3 2014-7.9%
Q2 2014-6.0%
Q1 2014+3.4%
Q4 2013+3.0%
Q3 2013-4.7%
Q2 2013-4.5%
Q1 2013+2.2%
Q4 2012+8.4%
Q3 2012+5.0%
Q2 2012-6.6%
Q1 2012+1.9%
Q4 2011-5.5%
Q3 2011-2.9%
Q2 2011+1.7%
Q1 2011+0.3%
Q4 2010+1.2%
Q3 2010-1.9%
Q2 2010-6.0%
Q1 2009-6.8%
Q1 2010+3.1%
Q4 2007-1.2%
Q2 2009-1.2%
Q4 2009-1.2%
Q3 2008+0.5%
Q4 2008+0.5%
Q3 2009+0.5%

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