Helmerich Payne Inc (0J4G.L) Q2 2025 Earnings Report

Helmerich & Payne (HP) reported QQ2 2025 revenue of USD 1.016 billion, up 47.7% year-over-year and 50.0% quarter-over-quarter, reflecting a rebound in drilling activity. However, the company posted a remarkably modest net income of USD 1.65 million and a net margin of 0.16%, underscoring the drag from heavy depreciation, acquisition-related investing, and ongoing capital expenditure. EBITDA stood at USD 230.4 million with an EBITDA margin of ~22.7%, indicating robust operating cash generation before financing and tax effects, but this did not translate into commensurate bottom-line profitability in the quarter. Free cash flow remained negative at USD -102.7 million, driven by substantial acquisitions and capital investments (~USD -158.7 million capex and a large net cash outflow from investing activities), while cash from operations contributed USD 56.0 million. The balance sheet shows a solid asset base (USD 7.24 billion total) with meaningful leverage (total debt USD 2.24 billion; net debt ~USD 2.07 billion) and liquidity metrics that comfortably cover near-term obligations (current ratio ~1.68, quick ratio ~1.32). The period’s performance underscores HP’s exposure to the drilling cycle and the strategic trade-off between pursuing fleet modernization and achieving near-term free cash flow expansion. Going forward, investors should monitor rig utilization and dayrates, capital allocation (acquisitions versus organic growth), and the pace of activity recovery across North America, offshore Gulf of Mexico, and international markets.