Helmerich & Payne Reports $58.6 Million Net Loss in Second Quarter of Fiscal Year 2026

Helmerich & Payne, Inc. reported a net loss of $58.6 million, or $(0.59) per diluted share, for the second quarter of fiscal year 2026, a significant decline from a net income of $1.7 million, or $0.01 per diluted share, in the same period last year. The company's operating revenues decreased to $932.4 million from $1.0 billion year-over-year, primarily due to lower activity levels in its North America and International Solutions segments, despite an increase in the Offshore Solutions segment. The decline in revenues was accompanied by a rise in direct operating expenses, which totaled $661.2 million, down from $701.7 million in the prior year, reflecting reduced activity levels.

In terms of operational metrics, Helmerich & Payne's rig fleet consisted of 337 drilling rigs as of March 31, 2026, with 204 of these contracted. The company had 138 rigs under fixed-term contracts and 66 operating on a well-to-well basis, a slight decrease from 208 contracted rigs at the end of the previous fiscal year. The company also reported a backlog of $8.3 billion, up from $7.0 billion at the end of the previous fiscal year, driven by an extension of an offshore operations and maintenance contract.

The company undertook significant strategic changes, including the rebranding of its Kenera business unit to BENTEC™, which is expected to enhance its market presence. Additionally, Helmerich & Payne recorded non-cash impairment charges totaling $129.2 million during the six months ended March 31, 2026, primarily related to assets reclassified as held-for-sale. This included a $26.1 million impairment charge in the second quarter, reflecting adjustments to the fair value of certain assets.

Financially, Helmerich & Payne's total assets decreased to $6.34 billion from $6.71 billion at the end of the previous fiscal year, with total liabilities also declining to $3.71 billion from $3.89 billion. The company maintained a strong liquidity position with cash and cash equivalents of $177.2 million and short-term investments of $22.0 million as of March 31, 2026. Looking ahead, the company anticipates continued volatility in the oil and gas markets, influenced by geopolitical tensions and fluctuating commodity prices, but remains focused on leveraging its technological capabilities and operational efficiencies to navigate these challenges.