Helmerich & Payne (0J4G.L) reported QQ1 2025 results that show a flat-to-slightly expanding top line amid meaningful compression in profitability versus the prior year. Revenue totaled $677.3 million, essentially flat versus a year ago (+0.02%) but down 2.38% quarter-over-quarter. Gross profit was $166.4 million with a gross margin of 24.56%; however, operating income declined to $89.98 million (operating margin 13.29%), and net income came in at $54.77 million (net margin 8.09%), representing declines of roughly 42% YoY and 27% QoQ for earnings per share (EPS of $0.55, diluted $0.54).
HP generated robust operating cash flow of $158.36 million and free cash flow of $51.87 million for the quarter, supporting a strong liquidity profile. Cash and equivalents stood at $391.18 million, with total cash and short-term investments of about $526.50 million and net debt of approximately $1.39 billion. The balance sheet remains solid, with total assets of $5.82 billion and liabilities of $2.87 billion, yielding shareholder equity of about $2.95 billion. The company’s leverage is moderate (debt-to-capitalization ~37.7%), and the current and quick ratios (2.81x and 2.52x respectively) indicate solid short-term liquidity.
From a relative-value standpoint, HP trades at a modest earnings multiple (P/E ≈ 14.5x) and a price-to-book around 1.07x, with an Enterprise Value to EBITDA near 23.0x. The dividend yield is modest at ~0.8%, with a payout around 45.7% of earnings, signaling a balance between shareholder returns and reinvestment.
Looking ahead, the near-term driver set hinges on onshore activity levels and dayrates, as well as Gulf of Mexico activity. The absence of explicit forward guidance in the dataset necessitates reliance on industry dynamics and HP’s disclosed cash generation strength. Overall, HP remains a cash-generative operator with moderate leverage, positioned to navigate cyclical headwinds, but exposed to oilfield service cycle volatility.