Helmerich & Payne Sees Q4 Margins At Or Near Top Of Guidance, With International Near $45 Million
The drilling contractor kept its other guidance unchanged and flagged Latin America growth against near-term Middle East activity cuts.
Helmerich & Payne expects direct margins in all three of its drilling businesses to land at or near the high end of its fourth-quarter guidance ranges, according to an 8-K filed Wednesday. The figures are preliminary and unaudited, and the company left every other guidance item from its August 5, 2026, earnings release unchanged.
What the update says
The press release covers the fiscal fourth quarter and year ended September 30, 2026. Direct margin is operating revenue less direct operating costs, with reimbursements removed from both. The company calls it a non-GAAP measure, meaning it falls outside standard accounting.
The North America Solutions, International Solutions and Offshore Solutions segments are all expected at or near the top of their ranges.
On activity, North America Solutions average rig count is expected near the high end of its range. International Solutions and Offshore Solutions rig counts are expected near the midpoint. Offshore management contracts are also expected near the midpoint.
CEO Trey Adams called International Solutions "particularly notable." He said the company expects direct margins of around $45 million from that segment for the quarter.
The fiscal 2027 outlook
Adams said encouraging customer talks and contracting activity point to stronger overall direct margins in fiscal 2027 than in 2026. He expects North America activity to stay robust.
Internationally, he expects strong growth in Latin America to be partly offset by near-term activity reductions in the Middle East.
CFO Todd Scruggs cited "the ongoing conflict in the Middle East and related operational disruptions." He said the company remains committed to reaching about 1x net debt to adjusted EBITDA, a measure of annual operating earnings, by the end of calendar 2027, while keeping its base dividend.
HP shares traded at $39.66 in Wednesday trading, up 0.13% from the prior close of $39.61 (market data).
The caveat
The company says the numbers do not make up a complete statement of results. They remain subject to its financial closing procedures, and its outside auditor has not audited or reviewed them. It warns that actual results may differ materially.
Complete fourth-quarter and fiscal-year results will appear in the annual report on Form 10-K.
The 10-K will show whether the final segment margins match the preliminary read, including the roughly $45 million in International Solutions.
Sources
- 8-K Filing — Helmerich & Payne, Inc. (HP) — SEC EDGAR
- Exhibit a20261007guidanceupdate.htm — Helmerich & Payne, Inc. 8-K exhibit — SEC EDGAR
- Helmerich & Payne Forecasts Strong 4Q Results, Continued Momentum Next Year — MarketWatch
- H&P Provides Fourth Quarter Financial & Operational Update – Company Announcement - FT.com — Financial Times
