Q3 2026 Helmerich and Payne Inc Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: $37.19 (+11.55%)

Transcript 8-K

Key Points

Positve

Helmerich & Payne Inc (HP) delivered strong financial and operational performance in Q3, with adjusted EBITDA of $236 million, exceeding the midpoint of guidance across all operating segments.
North America Solutions saw a strong rebound in activity, averaging 142 rigs with direct margins of $241 million, and achieved industry-leading margins of $18,700 per day, up over $1,000 sequentially.
The company successfully reactivated 10 rigs during the quarter and exited with 147 rigs running in the lower 48, demonstrating efficient and economical reactivation capabilities.
International Solutions showed significant sequential growth in direct margins, reaching $31 million, driven by strong performance in Latin America and easing conflict-related impacts in the Middle East.
Helmerich & Payne Inc (HP) is expanding its presence in high-growth markets like Argentina's Vaca Muerta, with plans to increase its rig count to 15 by next year, and has secured multiyear contracts for additional rigs.
The company is implementing enterprise optimization initiatives expected to reduce corporate costs by an annualized $40 million by the end of 2027, while maintaining a strong focus on debt repayment and balance sheet strength.

Negative

The ongoing Middle East conflict continues to create disruption, causing delays in rig reactivations in Saudi Arabia and suspension of operations in Iraq and Bahrain, impacting activity levels.
Helmerich & Payne Inc (HP) faces uncertainty in the Middle East, with the pace of rig reactivations slower than planned, and the company expects to maintain current activity levels rather than grow in the near term.
The company reported a net loss of $0.11 per share when excluding the gain from the sale of Utica Square and other select items, indicating underlying profitability challenges.
Commodity price volatility, driven by geopolitical tensions, has created a limited visibility environment, with prices initially retreating before rebounding, which could impact customer planning.
Capital expenditures were lighter than expected in Q3 due to timing shifts, and the company expects increased spending in Q4, which could affect near-term free cash flow generation.
The company faces higher cash tax payments, now expected to range between $150 million and $180 million, due to the tax impact of the Utica Square sale and stronger financial performance.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HP.N - Helmerich & Payne, Inc.
Q3 2026 Helmerich and Payne Inc Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Good day everyone, and welcome to the H&P fiscal 3rd quarter earnings call.

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