Helmerich & Payne (HP) posted USD 1.012 billion in revenue for Q4 2025 (ending 2025-09-30), up 45.8% year over year, reflecting stronger activity in North America Solutions, Offshore Gulf of Mexico, and International Solutions relative to the prior-year period. However, the quarter yielded a net loss of USD 57.4 million, with negative net income driven by a substantial negative other income/expenses line (USD -84.8 million) that more than offset the positive operating performance. The company reported operating income of USD 22.7 million and EBITDA of USD 154.8 million (margins of about 15.3%), indicating respectable underlying drilling operations, but non-operating charges and a non-cash depreciation/interest mix pressured reported profitability.
Balance-sheet and cash-flow indicators remained supportive despite the bottom-line miss. HP carried solid liquidity with a current ratio of 1.80 and a quick ratio of 1.40, and cash per share of USD 2.20. Operating cash flow per share stood at USD 2.08, with free cash flow per share of USD 1.44, underscoring the company’s ability to generate cash from operations even in a period of negative net income. The effective tax rate of about 10% and a debt ratio of roughly 0.1% to 0.24x debt-to-asset metrics suggest a very conservatively leveraged balance sheet, though working capital dynamics show a cash conversion cycle of approximately 80 days.
Looking ahead, the earnings environment appears contingent on rig activity recovery, commodity prices, and international drilling demand. The lack of transcript-based management commentary in the provided data limits insight into management’s near-term guidance. Nonetheless, the combination of solid operating cash generation and ultra-low leverage provides a degree of optionality for returning cash to shareholders or selectively investing to capitalize on improving activity in 2026, should end-market demand strengthen.