Helmerich & Payne, Inc. has recently released its 10-K report, providing a comprehensive overview of its operations and financial performance for the fiscal year ended September 30, 2025. The company, founded in 1920 and headquartered in Tulsa, Oklahoma, operates through three primary segments: North America Solutions, Offshore Solutions, and International Solutions. The North America Solutions segment operates primarily in Texas, while the Offshore Solutions segment has drilling operations in various international waters such as the North Sea, Norwegian Sea, Caspian Sea, and others. The International Solutions segment conducts drilling operations in several countries including Saudi Arabia, Argentina, Bahrain, Oman, Germany, and Kuwait. Helmerich & Payne focuses on developing, promoting, and commercializing technologies designed to enhance drilling operations, as well as wellbore quality and placement. The company also owns and operates commercial real estate properties, including a shopping center.
In its 10-K report, Helmerich & Payne discussed the completion of the acquisition of KCA Deutag, a diverse global drilling company, for approximately $2.0 billion. This acquisition has significantly impacted the company's financials and operations. As of September 30, 2025, the company's drilling rig fleet included a total of 367 drilling rigs, distributed across its operating segments. It reported 208 active contracted rigs, of which 131 were under a fixed-term contract and 77 were working well-to-well. The company's long-term strategy remains focused on innovation, technology, safety, operational excellence, and reliability, positioning it well to respond to market conditions and take advantage of future opportunities.
The report also highlighted the market outlook, emphasizing the impact of global energy market uncertainties, including U.S. government tariffs, OPEC+ decisions, and heightened geopolitical tensions in the Middle East. Helmerich & Payne acknowledged that these factors could potentially lead to reduced activity levels in fiscal year 2026 as operators evaluate activity levels commensurate with commodity prices. The company's revenues are primarily derived from the capital expenditures of companies involved in the exploration, development, and production of crude oil and natural gas. It noted that the level of capital expenditures is influenced by various supply and demand factors and global economic conditions.
The 10-K report detailed the contract backlog, which represents the expected future dayrate revenue from executed contracts, and highlighted that the total backlog as of September 30, 2025, was $7.0 billion, compared to $1.5 billion in the previous year. This significant increase was primarily due to the completion of the KCA Deutag acquisition. However, the report also cautioned that the early termination or suspension of contracts could adversely affect the company's financial condition, results of operations, and cash flows.
In terms of financial performance, the report revealed that Helmerich & Payne recorded a loss of $163.7 million for the fiscal year ended September 30, 2025, compared to income of $344.2 million for the previous fiscal year. The consolidated operating revenues were $3.7 billion in fiscal year 2025, up from $2.8 billion in fiscal year 2024, primarily driven by the completion of the KCA Deutag acquisition. The report also detailed the direct operating expenses, other operating expenses, depreciation and amortization, research and development expenses, selling, general and administrative expenses, and acquisition transaction costs, providing a comprehensive insight into the company's financial performance.
Today the company's shares have moved 2.45% to a price of $26.74. Check out the company's full 10-K submission here.
