Q1 2026 Helmerich and Payne Inc Earnings Call Transcript
Key Points
- Helmerich & Payne Inc (HP) reported an adjusted EBITDA of $230 million, exceeding expectations due to strong performance in North America Solutions, Offshore Solutions, and International Solutions segments.
- The company achieved significant margin improvement from its FlexRig fleet operating in the Jafurah gas field in Saudi Arabia.
- Helmerich & Payne Inc (HP) successfully deployed its Flex Robotics technology, enhancing rig safety and operational performance.
- The company made substantial progress in deleveraging, paying off $260 million of its $400 million term loan ahead of schedule.
- Helmerich & Payne Inc (HP) maintained a strong cash flow, generating $126 million in free cash flow during the quarter, supporting its dividend payments and debt reduction efforts.
- The company anticipates increased rig reactivation expenses in Saudi Arabia, which will impact margins in the second fiscal quarter.
- North America Solutions experienced a 4% decline in rig count, with expectations of continued softness in U.S. land activity levels.
- Helmerich & Payne Inc (HP) reported a net loss of $0.98 per diluted share, impacted by a non-cash impairment charge and unusual non-cash items totaling $103 million.
- The company faces challenges in maintaining its North American rig count and margins due to market conditions and pricing pressures.
- Offshore Solutions experienced a step down in margin rate due to typical seasonality and the roll-off of higher-margin rig management contracts in Angola.
Good day, everyone, and welcome to the Helmerich & Payne's fiscal first quarter earnings call. (Operator Instructions) Please note, this call is being recorded. It is now my pleasure to turn the conference over to Mr. Kris Nicol, Vice President of Investor Relations.
Welcome, everyone, to Helmerich & Payne's conference call and webcast for the first fiscal quarter of 2026. On today's call, John Lindsay, our CEO, will be joined by Trey Adams, President Mike Lennox, Executive Vice President of the Western Hemisphere and Kevin Vann, our Chief Financial Officer. Before we begin our prepared remarks, I'd like to remind everyone that this call will include forward-looking statements as defined under securities laws.
Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations will prove to be correct. Please refer to our filings with the SEC for a list of factors that may cause
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