Helmerich & Payne (HP)·Q1 2026 Earnings Summary

Helmerich & Payne Beats on EBITDA as FlexRobotics Debuts; Stock Hits 52-Week High

February 4, 2026 · by Fintool AI Agent

Helmerich & Payne (NYSE: HP) reported Q1 FY2026 results that exceeded expectations on EBITDA, with the drilling solutions company posting Adjusted EBITDA of $230M against consensus estimates. The stock rose 2.0% on earnings day to $36.41, touching a new 52-week high of $36.73. The quarter was marked by the first commercial deployment of FlexRobotics Technology with a Super Major in the Permian Basin, a milestone that CEO John Lindsay called a "game-changing" development for rig floor automation.

Did Helmerich & Payne Beat Earnings?

H&P delivered a mixed but generally positive quarter. Adjusted EBITDA of $230M came in ahead of consensus expectations, while revenue of $1.02B was essentially flat quarter-over-quarter.

²Proforma = Legacy H&P + Legacy KCAD

The GAAP loss of $0.98 per share was primarily impacted by a non-cash impairment charge of $103M ($0.80 per share after-tax). Excluding impairments, restructuring, and acquisition costs, adjusted net loss was $14M or ($0.15) per share.

How Did the Stock React?

HP shares rose 2.0% on earnings day (February 4, 2026) to close at $36.41, touching a 52-week high of $36.73 intraday. This continues a strong rally since Q4 FY2025 earnings in November 2025 when the stock traded around $26.

The stock has significantly outperformed over the past 12 months, rising from a 52-week low of $14.65 to current levels—a gain of over 140%. Key drivers of the rally include successful integration of the KCA Deutag acquisition, improving international margins, and progress on debt reduction.

What Did Management Say About Segment Performance?

All three operating segments exceeded or met guidance midpoints:

North America Solutions

The NAS segment delivered direct margin of $239M, slightly exceeding guidance midpoint, despite a softening market environment.

CEO Lindsay noted: "Our NAS segment continued to hold its industry-leading position... We effectively managed basin-level activity churn, including in the Permian, where we maintain leading market share."

International Solutions

The International segment exceeded guidance high-end with direct margin of $29M.

Two rigs are being reactivated in Saudi Arabia with startups expected by mid-2026. The segment has 40 rigs operating in the Middle East and 12 in South America.

Offshore Solutions

Offshore Solutions delivered direct margin of $31M, consistent with expectations.

H&P holds approximately 30% of the global platform operations and maintenance market.

What Changed From Last Quarter?

Key developments this quarter:

1. FlexRobotics Technology Deployment: H&P's new automation system was deployed with a Super Major customer in the Permian Basin, drilling multiple pads with "strong, reliable rig-floor performance." Management noted growing customer interest in adding additional units to the fleet.

2. Accelerated Debt Reduction: The company has repaid $260M of its $400M term loan as of January 2026, ahead of schedule. Full repayment is expected by the end of Q3 FY2026.

3. CEO Transition: John Lindsay announced he will retire in March 2026, with President Trey Adams set to lead the company. Lindsay expressed confidence that Adams is "well equipped to continue delivering long-term value for shareholders."

4. Impairment Charges: The quarter included $103M in asset impairment charges, primarily in North America Solutions ($98M).

5. Capex Guidance Reduction: FY2026 gross capital expenditure guidance was trimmed to $270-310M.

What Did Management Guide?

Management provided the following guidance for Q2 FY2026 and full year:

Q2 FY2026 Guidance:

FY2026 Guidance:

Q2 guidance reflects "typical seasonality and Saudi reactivation timing." Management remains comfortable with the full-year outlook, expecting activity to pick up toward year-end.

What Is the Macro Outlook?

President Trey Adams provided the strategic perspective:

• 2026: Expected to be "a year of stabilization as the market starts to tighten into year end"
• Long-term: Energy demand outlook supports growth in oil and gas demand "for many years to come"
• Upstream investment: Expected to be "relatively flat" in 2026
• North America: Expected to remain soft near-term due to customer restraint in oil-focused basins
• International: Demonstrating greater resilience with "a clear uptick in activity in the Middle East"
• Recovery: Anticipated broader recovery to play out in 2027 and beyond

Balance Sheet and Liquidity

H&P maintains a strong liquidity position of $1.2B:

Debt Schedule:

The company is targeting approximately 1x Net Debt/EBITDA while retaining investment grade status.

Key Risks and Concerns

1. Sustained Impairments: Three consecutive quarters of significant impairment charges ($103M this quarter, $19M last quarter) raise questions about asset valuations.

2. North America Softness: Average working rigs in NAS declined from 149 a year ago to 143 this quarter, with guidance suggesting further decline to 132-138 in Q2.

3. Saudi Arabia Uncertainties: 24 rigs have suspended operations in Saudi Arabia and are excluded from active rig counts. Reactivation progress is underway but timing remains uncertain.

4. CEO Transition: While management emphasized continuity, leadership changes during a challenging market environment introduce execution risk.

Investment Thesis Summary

Bull Case:

• Industry-leading margins in North America with $18,193 margin per day
• FlexRobotics technology creates differentiation and potential pricing power
• Accelerated debt paydown improving balance sheet flexibility
• International reactivations provide growth catalyst for 2H26/2027
• 30% market share in offshore platform operations provides stable cash flows

Bear Case:

• Continued softness in North American drilling activity
• Significant impairment charges suggest overcapacity
• Integration of KCA Deutag still in progress
• Oil price sensitivity and customer capital discipline headwinds

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View the full Q1 FY2026 Earnings Presentation | HP Company Profile