HP Q1 2025 Earnings Report
Key Takeaways
Helmerich & Payne, Inc. reported revenue of $677 million and net income of $55 million for Q1 FY25. Adjusted EBITDA reached $199 million. The North America Solutions segment reported 148 active rigs with revenue per day of $38,600. The company completed the acquisition of KCA Deutag, expanding its presence in the Middle East and offshore markets.
Revenue declined to $677 million from $694 million in the prior quarter.
Net income fell to $55 million from $75 million in the previous quarter.
Completed the acquisition of KCA Deutag, adding $5.5 billion in backlog.
North America Solutions segment exited the quarter with 148 active rigs.
HP Revenue
HP EPS
HP Revenue by Segment
HP Revenue by Geographic Location
Forward Guidance
The company expects steady activity in North America with improved performance from the KCA Deutag acquisition in the Middle East. Offshore segment is expected to contribute meaningfully.
Positive Outlook
- North America Solutions rig count expected to remain stable at 146-152 rigs.
- KCA Deutag acquisition expected to increase rig count in the Middle East from 11 to 65.
- Offshore Solutions segment to see growth with additional management contracts.
- Free cash flow expected to improve, supporting debt reduction and dividends.
- International Solutions segment poised for growth with new rig deployments.
Challenges Ahead
- Market sentiment remains cautious due to economic and geopolitical uncertainties.
- International Solutions segment recorded a loss due to start-up costs in Saudi Arabia.
- Capital expenditures expected between $360-$395 million in FY25.
- Cash taxes estimated to be between $190-$240 million in FY25.
- Interest expense for FY25 (Q2-Q4) projected at approximately $75 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income