Helmerich & Payne Flags High-End Fourth-Quarter Margins
The driller now expects International Solutions direct margins of around $45 million in the fiscal fourth quarter, lifting the segment toward the top of its prior range.
Helmerich & Payne (HP) said it currently expects direct margins in North America Solutions, International Solutions and Offshore Solutions all at or near the high end of the ranges it issued on Aug. 5 for the fiscal fourth quarter ended Sept. 30, 2026.
The Tulsa-based driller, which designs, fabricates and operates high-performance rigs, framed the update as a year-end operational finish rather than a change in the rest of the August outlook. All other financial guidance items from that release were unchanged.
President and Chief Executive Officer Trey Adams said the company expects direct margins at or near the high end of its guidance range in its principal operating segments. He singled out International Solutions, where the company expects direct margins of around $45 million during the quarter.
That International figure sits well above the approximately $31 million of direct margin the segment delivered in the quarter ended June 30, 2026, when its operating loss had already narrowed to about $(54) million from about $(100) million in the March quarter.
For activity, the company said North America Solutions’ average rig count is expected near the high end of the previously issued fiscal fourth-quarter range. International Solutions’ average rig count, and Offshore Solutions’ average rig count and management contracts, are expected near the midpoint of their ranges.
In the June quarter, North America Solutions posted operating income of $140 million and direct margin of $241 million, or $18,669 a day, after deploying 10 additional rigs in response to demand from private operators and growing daily margins by more than $1,000 sequentially. Consolidated revenue was $1.035 billion and consolidated adjusted EBITDA was $236 million.
Offshore Solutions generated direct margin of $29 million and operating income of about $17 million in that June period. The company had secured a four-year contract renewal for an operator in Norway, strengthening offshore backlog to $3.6 billion, including firm and optional contract periods.
Adams said that as the company heads into fiscal 2027 it maintains a constructive outlook, with encouraging customer discussions and contracting activity across the global portfolio leading to an expectation of stronger overall direct margins compared with 2026. In North America Solutions, he said, activity levels are expected to remain robust, with a continuation of the strong commercial trends seen in recent quarters. In International Solutions, the company anticipates strong growth in Latin America to be partially offset by near-term activity reductions in the Middle East.
The company remains convinced that recent market volatility reinforces the importance of energy security and reliable supply while presenting an opportunity to deliver high-performance drilling solutions across its global portfolio.
Senior Vice President and Chief Financial Officer Todd Scruggs said that despite the ongoing conflict in the Middle East and related operational disruptions, the company is excited about the strength of North America Solutions, the diversity of the International Solutions portfolio, and the ongoing consistency of Offshore Solutions.
H&P remains committed to reaching approximately 1x net debt to adjusted EBITDA by calendar year-end 2027 while maintaining its base dividend. About $25 million was returned to shareholders through the dividend program in the June quarter.
The August commentary had already described direct margins that exceeded the midpoint of guidance ranges in all segments, with North America activity growth driven by private and smaller independent operators, FlexRig contracts in Argentina, and offshore performance bonuses.
The October update therefore reads as a confirmation that the year-end quarter is tracking to the top of those ranges, with International Solutions the segment where the company is pointing to a specific dollar level rather than a range position. North America rig counts are still expected near the high end of the prior band, while International and Offshore activity sit near the midpoint.
Complete results for the fiscal quarter and year ended Sept. 30, 2026, will be included in the company’s annual report on Form 10-K. The preliminary figures are based on information available as of Oct. 7, 2026, and remain subject to completion of financial closing procedures.