Helmerich & Payne, Inc. (H&P) reported a significant financial performance shift in its 2025 fiscal year, concluding on September 30, 2025. The company recorded consolidated operating revenues of $3.7 billion, a notable increase from $2.8 billion in the previous fiscal year, primarily driven by the acquisition of KCA Deutag, which contributed an additional $1.0 billion in revenue. However, H&P also faced a net loss of $163.7 million, or $1.66 per diluted share, compared to a profit of $344.2 million, or $3.43 per diluted share, in 2024. This loss was attributed to increased operating expenses, including direct operating costs that rose to $2.5 billion from $1.6 billion, largely due to the integration of KCA Deutag's operations.
The acquisition of KCA Deutag on January 16, 2025, marked a pivotal strategic development for H&P, costing approximately $2.0 billion. This included a share purchase price of $0.9 billion and $1.1 billion used to repay KCA Deutag's existing debt. The acquisition expanded H&P's global footprint, particularly in the Middle East, South America, Europe, and Northern Africa, enhancing its offshore capabilities and diversifying its customer base. Following the acquisition, H&P rebranded KCA Deutag's Kenera business unit to BENTEC™, aiming to leverage its established market recognition.
Operationally, H&P's drilling fleet comprised 367 rigs as of September 30, 2025, with 208 rigs under contract, an increase from 170 the previous year. The North America Solutions segment generated approximately 63% of total revenues, while the International Solutions segment saw a dramatic rise in revenue to $802.4 million from $194.0 million, reflecting the impact of the KCA Deutag acquisition. The Offshore Solutions segment also experienced growth, contributing $520.4 million to revenues, up from $106.2 million in 2024. The company reported a contract backlog of $7.0 billion, a significant increase from $1.5 billion in the prior year, indicating strong future revenue potential.
Despite the positive revenue growth, H&P faced challenges, including a goodwill impairment charge of $194.0 million, primarily related to the International Solutions and BENTEC™ reporting units. The company also incurred $54.7 million in acquisition transaction costs and restructuring charges of $12.1 million due to workforce reductions aimed at improving operational efficiency. As of September 30, 2025, H&P employed approximately 15,700 individuals, with 6,200 in the U.S. and 9,500 internationally, reflecting the expanded operations post-acquisition.
Looking ahead, H&P anticipates continued volatility in the oil and gas markets, influenced by geopolitical tensions and fluctuating commodity prices. The company expects to fulfill approximately 22.6% of its backlog in fiscal year 2026, with plans to resume operations for seven rigs in Saudi Arabia in early 2026. H&P's management remains focused on leveraging its enhanced operational scale and technological capabilities to navigate market challenges and capitalize on future opportunities.
About Helmerich & Payne, Inc.
Helmerich & Payne, Inc. provides drilling solutions and advanced technologies for oil and gas exploration, primarily focusing on land and offshore drilling segments. Its core offerings include high-performance AC drive rigs, drilling automation, and wellbore optimization services. Serving North American and international markets, the company emphasizes safety, operational efficiency, and technological innovation to deliver reliable, cost-effective drilling services to major oil companies and independents.
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