Helmerich & Payne, Inc. has recently released its 10-K report, providing a detailed insight into the company's financial performance and operations. The company, founded in 1920 and headquartered in Tulsa, Oklahoma, offers drilling solutions and technologies for oil and gas exploration and production companies. Helmerich & Payne operates through three segments: North America Solutions, Offshore Solutions, and International Solutions. As of September 30, 2025, the company's drilling rig fleet included a total of 367 rigs, with the North America Solutions segment operating 223 rigs, the International Solutions segment operating 137 rigs, and the Offshore Solutions segment operating seven offshore platform rigs.
The report also discusses the completion of the acquisition of KCA Deutag, a diverse global drilling company, for approximately $2.0 billion. The acquisition expanded Helmerich & Payne's operations, with the Offshore Solutions segment now including the results from the acquired KCA Deutag offshore management contract operations, and the International Solutions segment including the results from the acquired KCA Deutag land operations.
The report highlights the company's contract backlog, indicating a significant increase from $1.5 billion in 2024 to $7.0 billion in 2025, primarily due to the completion of the KCA Deutag acquisition. Approximately 22.6% of the total backlog as of September 30, 2025, is expected to be fulfilled in fiscal year 2026.
In terms of financial performance, Helmerich & Payne reported a loss of $163.7 million for the fiscal year ended September 30, 2025, compared to an income of $344.2 million for the fiscal year ended September 30, 2024. Consolidated operating revenues increased to $3.7 billion in fiscal year 2025 from $2.8 billion in fiscal year 2024, primarily driven by the completion of the KCA Deutag acquisition. Direct operating expenses, excluding depreciation and amortization, also increased to $2.5 billion in fiscal year 2025 from $1.6 billion in fiscal year 2024, again due to the acquisition.
The report also outlines a reduction in research and development expenses, from $41.0 million in fiscal year 2024 to $34.1 million in fiscal year 2025, attributed to an asset acquisition completed during the fiscal year ended September 30, 2024, along with reductions in project scope implemented as part of the company’s cost-reduction initiatives.
The market has reacted to these announcements by moving the company's shares 2.45% to a price of $26.74. Check out the company's full 10-K submission here.
