Helmerich & Payne (HP) Q1 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in North America, maintaining industry-leading margins and market share, especially in the Permian Basin.

• Completed the $2.0B acquisition of KCA Deutag in January 2025, expanding global scale, diversification, and contracted rig count in the Middle East from 11 to 65, and adding $5.5 billion in backlog.

• Maintained investment grade credit rating and strong liquidity position, with $1.2B available and $391 million in cash at quarter end.

• Focused on debt reduction, capital efficiency, and maintaining shareholder returns, including a $0.25 per share quarterly dividend.

• Customer partnerships and performance-based contracts continue to drive value and margin resilience through industry cycles.

Financial highlights

• Q1 2025 revenue was $677 million, nearly flat year-over-year and down from $693 million sequentially.

• Net income per diluted share was $0.54, down from $0.76 in the prior quarter and $0.94 year-over-year; adjusted EPS was $0.71 after select items.

• Adjusted EBITDA for Q1 FY25 was $199 million; cash flow from operations was $158 million.

• Q1 direct operating costs were $413 million, up from $409 million, mainly due to Saudi startup costs.

• Net capital expenditures for Q1 FY25 were $94.4 million, a 24% decrease year-over-year.

Outlook and guidance

• Q2 2025 North America Solutions direct margin expected between $240–260 million, with annualized direct margin projected at $1 billion.

• International Solutions Q2 margin guidance: legacy operations between a $7 million loss and $3 million gain; KCA Deutag legacy land operations expected to contribute $35–50 million.

• Offshore Gulf of Mexico Q2 margin expected between $6–8 million; KCA Deutag legacy offshore solutions to contribute $18–25 million.

• Full-year 2025 capital expenditures expected between $360–395 million; G&A expenses projected at $280 million.

• Cash tax guidance for 2025 raised to $190–240 million due to expanded international business.