Helmerich and Payne releases 2Q earnings

  • May 10, 2025

 

Helmerich & Payne reported second quarter earnings of 2 cents a share and missed the 65 cents a share estimated by analysts. A year ago, the Tulsa firm’s earnings were 86 cents a share a year. It means the company per share earnings were down nearly 97%.

Still, Helmerich & Payne posted revenues of $1.02 billion for the quartrer ended March 25, compared to $687.94 million a year ago.

Operating and Financial Highlights

  • Completed the acquisition of KCA Deutag, representing a major milestone in the Company’s long-term international growth strategy

  • H&P now expects to realize in excess of $25 million in expense synergies associated with the KCA Deutag acquisition; additionally we have identified further permanent cost savings that when aggregated with the synergies, we would expect the overall cost structure to be reduced by $50 to $75 million

  • Reported net income of $1.7 million, or $0.01 per diluted share, from operating revenues of $1.0 billion for the quarter ended March 31, 2025

  • Continued strong performance in the North America Solutions segment with operating income of $152 million, realizing associated direct margin(1) per day of $19,800 with total direct margin of $266 million during the quarter

  • Net cash provided by operating activities of $56.0 million during the fiscal second quarter

  • The Company reported fiscal second quarter Adjusted EBITDA(2) of $242 million

  • The Company repaid $25 million on its existing $400 million term loan funded at the close of the acquisition during the second fiscal quarter of 2025, and expects to repay approximately $175 million in calendar 2025

  • Returned approximately $25 million to shareholders as part of the Company’s ongoing dividend program

“This quarter marks a significant achievement for us as we completed our acquisition of KCA Deutag in January, positioning us as a leading global drilling company,” said John Lindsay, H&P President and CEO. “We’re confident this international expansion will benefit us over the long-term, despite the near-term challenges the industry is facing, as we build on our position to deliver leading edge solutions for our customers around the world.”

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Jerry Bohnen