Helmerich & Payne, a drilling solutions and technologies provider for oil and gas exploration and production companies, has recently released its 10-K report. The company operates through North America Solutions, Offshore Solutions, and International Solutions segments. As of September 30, 2025, its drilling rig fleet included a total of 367 rigs, with 223 in North America Solutions, 137 in International Solutions, and seven in Offshore Solutions.
The company's contract backlog as of September 30, 2025, was $7.0 billion, a significant increase from $1.5 billion in 2024, primarily due to the completion of the Acquisition of KCA Deutag. This acquisition, completed on January 16, 2025, resulted in a loss of $163.7 million for the fiscal year ended September 30, 2025, compared to income of $344.2 million for the fiscal year ended September 30, 2024.
Operating revenues for the fiscal year 2025 were $3.7 billion, up from $2.8 billion in 2024, mainly due to the completion of the Acquisition. Direct operating expenses for 2025 were $2.5 billion, compared to $1.6 billion in 2024, largely driven by the Acquisition, resulting in an additional $789.7 million in direct operating expenses. Other operating expenses were $56.0 million in 2025, up from $4.5 million in 2024, primarily due to the completion of the Acquisition, resulting in an additional $51.3 million of costs associated with BENTEC™'s manufacturing and engineering operations.
Depreciation and amortization expenses were $625.1 million in 2025, up from $397.3 million in 2024, primarily due to the completion of the Acquisition, resulting in an additional $212.2 million in depreciation and amortization expenses. Research and development expenses decreased to $34.1 million in 2025 from $41.0 million in 2024, primarily due to an asset acquisition completed in the fiscal year ended September 30, 2024, along with reductions in project scope implemented as part of the company’s cost-reduction initiatives.
Selling, general and administrative expenses increased to $287.1 million in 2025 from $244.9 million in 2024, primarily due to the completion of the Acquisition, resulting in an additional $48.3 million in expenses. Additionally, the company recognized approximately $54.7 million in acquisition transaction costs during the fiscal year ended September 30, 2025, primarily related to third-party legal, advisory, and valuation services associated with the Acquisition. Following these announcements, the company's shares moved 2.45%, and are now trading at a price of $26.74. If you want to know more, read the company's complete 10-K report here.
