Helmerich & Payne (HP) investor relations material

Executive summary

• Q3 saw strong operating performance, with adjusted EBITDA of $268 million and direct margin of $266 million, supported by the KCAD acquisition and international expansion, including eight FlexRigs in Saudi Arabia.

• Net loss of $162.8 million for Q3 FY25, driven by $173 million in non-cash goodwill impairment charges related to the KCAD acquisition.

• Revenues rose to $1.04 billion, up 49% year-over-year, with contract backlog increasing to $7.3 billion post-acquisition.

• $50 million in cost synergies identified toward a $50–$75 million target, with workforce reduction and restructuring underway.

• $120 million of $400 million term loan repaid, with $200 million targeted by year-end 2025.

Financial highlights

• Q3 operating revenues were $1.04 billion, up from $697.7 million year-over-year.

• Adjusted EBITDA reached $268 million; adjusted EPS was $0.22; net loss attributable to shareholders was $162.8 million, impacted by goodwill impairment.

• Direct operating costs were $735 million; G&A expenses were $66 million, down $15 million sequentially.

• Direct margin: $266 million (North America), $34 million (International), $23 million (Offshore).

• Cash and short-term investments at quarter-end totaled $187 million, with an undrawn $950 million credit facility.

Outlook and guidance

• North America Solutions Q4 direct margin guidance: $230–$250 million, with average rig count of 138–144.

• International Solutions Q4 direct margin expected at $22–$32 million, with 62–66 contracted rigs.

• Offshore Solutions Q4 direct margin guidance: $22–$30 million, with 30–35 management contracts.

• Full-year 2025 CapEx forecast at $380–$395 million; depreciation at $595 million; cash taxes at $190–$220 million; Q4 interest expense at $25 million.

• Backlog of $7.3 billion as of June 30, 2025, with 27.8% expected to be fulfilled by fiscal 2026.