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Mar 31, 2025
Helmerich & Payne Q2 2025 Earnings Report
Helmerich & Payne, Inc. reported its fiscal second quarter results, highlighted by the acquisition of KCA Deutag and strong performance in North America Solutions.
Key Takeaways
Helmerich & Payne, Inc. reported net income of $1.7 million, or $0.01 per diluted share, on operating revenues of $1.0 billion for the fiscal second quarter ended March 31, 2025. The quarter was marked by the completion of the KCA Deutag acquisition, positioning the Company as a leading global drilling company, and continued strong performance in its North America Solutions segment.
Completed the acquisition of KCA Deutag, a major milestone in the Company's long-term international growth strategy.
Expects to realize in excess of $25 million in expense synergies from the KCA Deutag acquisition, with overall cost structure reduced by $50 to $75 million.
North America Solutions segment maintained strong performance with operating income of $152 million and direct margin of $266 million.
Repaid $25 million on its existing term loan and expects to repay approximately $175 million in calendar 2025.
Revenue by Segment
Forward Guidance
For the third fiscal quarter of 2025, Helmerich & Payne expects North America Solutions direct margin to be between $235-$260 million with an average rig count of 143-149. International Solutions direct margin is projected to be $25-$35 million with 85-91 contracted rigs, and Offshore Solutions direct margin is expected to be $22-$29 million with 30-35 management contracts and platform rigs. Gross capital expenditures for fiscal year 2025 are still expected to be $360-$395 million.
Positive Outlook
- North America Solutions direct margin expected to remain strong ($235-$260 million).
- International Solutions direct margin projected to be $25-$35 million.
- Offshore Solutions direct margin expected to be $22-$29 million.
- Ongoing asset sales expected to offset a portion of gross capital expenditures ($45 million).
- Cash taxes to be paid in fiscal year 2025 are still expected to be approximately $190-$240 million.
Challenges Ahead
- Modestly lower rig count expected in North America Solutions due to market volatility.
- Interest expense for the remainder of fiscal year 2025 (Q3-Q4) is expected to be approximately $50 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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