Helmerich & Payne, Inc. Announces Fiscal Fourth Quarter and Fiscal 2025 Results and Provides Initial Fiscal Year 2026 Operating and Financial Guidance

Helmerich & Payne, Inc. Announces Fiscal Fourth Quarter and Fiscal 2025 Results and Provides Initial Fiscal Year 2026 Operating and Financial Guidance TULSA, Okla.--(BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE: HP) Operating and Financial Highlights for the Quarter Ended September 30, 2025 The Company realized a consolidated net loss of $(57) million, or $(0.58) per share, which includes the impact of non-recurring charges of $56 million. Adjusted for this and other non-recurring one-time items, adjusted net loss(1) was $(1) million, or $(0.01) per share. The Company has received notifications for seven rigs to resume operations in Saudi Arabia during the first half of 2026. With these rig resumptions, the total operating rig count in country will increase to 24 total rigs by the middle of 2026. North America Solutions (NAS) segment reported operating income of $118 million during the quarter compared to $158 million during the prior quarter. NAS realized direct margins(2) of $242 million during the quarter, yielding an associated margin(1) per day of $18,620 and profitability continuing to lead all North American land drillers. International Solutions segment realized an operating loss of $(75) million during the quarter, an improvement from an operating loss of $(167) million in the prior quarter which included a one-time goodwill impairment of $(128) million. International Solutions again exceeded guidance midpoint expectations with direct margins(2) of approximately $30 million. The Company realized consolidated adjusted EBITDA(3) of $225 million. The Company has repaid $210 million on its existing $400 million term loan as of the end of October, up from prior expectations of $200 million by the end of calendar year 2025. The Company now expects to repay the entire term loan by the end of the third fiscal quarter of 2026. Approximately $25 million returned to shareholders as part of the Company’s ongoing dividend program. Select Operating and Financial Guidance for Fiscal Year 2026 The Company expects gross capital expenditures of between $280 million and $320 million during fiscal 2026. Key highlights of 2026’s capital program include: Investments related to NAS operations of between $40 million and $60 million, all of which is supported by customer demand and provides necessary upgrades for the Company to maintain its industry leading technical capabilities. Maintenance and reactivation-related capital across the Company’s global fleet of operating drilling rigs of approximately between $230 million and $250 million, which includes all capital associated with the newly announced reactivation of rigs in Saudi Arabia. The balance of all capital spending relates to corporate and other items. Based on customer demand, the Company’s capital spending will be weighted to the first half of the fiscal year. Ongoing asset sales that include reimbursements for lost and damaged tubulars and sales of other used drilling equipment offset a portion of the gross capital expenditures, and are expected to total approximately $40 million in fiscal year 2026. Based on current market dynamics, the Company is providing the following operating guidance for fiscal 2026: Average contracted rig count of 132 to 148 in NAS. Average operating rig count of 58 to 68 for International Solutions. Total Offshore direct margins of $100 million to $115 million, with average management contracts and contracted platform rigs to be approximately 30 to 35. Annual cost guidance, highlighted by reduced General and Administrative expenses and a significant sequential annual decline in cash taxes, can be found below. Management Commentary “Fiscal 2025 was a historic year for H&P, as we grew our global drilling footprint to over 200 operating rigs, surpassed over $1 billion of direct margins in our North American Solutions business, welcomed the talented team from KCA Deutag, and established new relationships with a diverse set of global customers,” commented CEO John Lindsay. “In NAS, our strong customer partnerships and disciplined focus on sustainable economic returns continue to deliver market-leading results. Despite a decline in the industry’s overall rig count, NAS achieved another year of exceptional results, underscoring the effectiveness of our operations and sales teams to deliver win/win solutions with customers. Assuming current commodity prices, we continue to expect stable activity trends in the Lower 48 throughout 2026 and remain committed to financial discipline while continuing to deliver mutually beneficial outcomes with our customers. “For our International Solutions segment, fiscal 2025 was particularly meaningful. We started operations for our eight FlexRigs in Saudi Arabia, completed the acquisition of KCA Deutag, and continued to grow our global presence, with operations now spanning six continents. With the right assets, people, customer relationships, and operating scale, we are well-positioned to capitalize on international opportunities,” Lindsay concluded. “As evidenced by our recent rig reactivations in Saudi Arabia and our numerous conversations with multiple national oil companies, international oil companies, and independents throughout the region, we’re confident our proven drilling solutions and technologies can deliver significant value to international clients. “In our Offshore Solutions segment, the inclusion of the legacy KCAD operation added significant scale during fiscal 2025, and we realized record margins of nearly $35 million during the fourth quarter as we enjoyed the full benefit of increased rig utilization. We are optimistic about Offshore Solutions going forward, and believe there are numerous opportunities to expand our footprint in this capital efficient business.” Senior Vice President and CFO Kevin Vann commented, "As we enter fiscal year 2026, our planned capital expenditures represent a meaningful reduction from H&P's fiscal year 2025 spend. We remain focused on generating strong free cash flow and accelerating debt reduction, as demonstrated by repayment of $210 million on the term loan through October, which was well ahead of schedule. We now expect to fully repay all $400 million by the end of the third fiscal quarter of 2026. “We have made solid progress in streaming our cost structure and have a clear line of sight on further improvements,” Vann said. Our fiscal year 2026 General and Administrative expense guidance represents a decrease of over $50 million relative to proforma annualized 2025, and we expect to realize additional savings which will accrue directly to operating margins in our core businesses.” Lindsay concluded, "While 2025 brought many achievements, I’m even more excited about the prospects and opportunities ahead. As we enter 2026, our industry-leading technology, performance-driven innovations, and expanding global scale position us to deliver even greater results. We are optimistic about the sector's long-term prospects and believe our global scale will allow our shareholders to benefit for decades to come. With a talented and dedicated workforce, an unwavering focus on safety, and a customer-centered approach, I am confident H&P is poised for continued success and long-term value creation for our shareholders.” Operating Segment Results for the Fourth Quarter of Fiscal Year 2025 North America Solutions: Realized operating income of $118 million, compared to $158 million during the previous quarter. Direct margin(2) slightly exceeded the midpoint of guidance, totaling approximately $242 million compared to approximately $266 million during the previous quarter. On a per day basis, direct margin was approximately $18,620 with an average of 141 rigs running. Innovations such as our performance contracts continue to help NAS to deliver peer leading margins. During the quarter approximately 50% of the NAS active rigs utilized performance contracts. International Solutions: This segment had operating loss of $(75) million, compared to a loss of approximately $(167) million during the previous quarter which included a one-time goodwill impairment of $(128) million. Direct margin(2) again exceeded the midpoint of guidance, totaling approximately $30 million compared to approximately $34 million during the previous quarter. Offshore Solutions: Contributed operating income of approximately $20 million, compared to approximately $9 million during the previous quarter, representing an increase of $11 million. The increase in operating income was primarily attributable to increased rig utilization. Direct margin(2) exceeded the guidance range, realizing record margins of approximately $35 million compared to approximately $23 million during the previous quarter. Select Items (4) Included in Net Income per Diluted Share Fourth quarter of fiscal year 2025 net loss of $(0.58) per diluted share included a net impact $(0.57) per share in after-tax losses comprised of the following: $0.03 of non-cash after-tax gains related to the change in actuarial assumptions on estimated liabilities $(0.05) of after-tax losses related to transaction and integration costs $(0.07) of after-tax losses related to restructuring charges $(0.08) of after-tax losses related to a credit loss expense associated with a long-term note receivable $(0.12) of non-cash after-tax losses related to impairment $(0.28) of non-cash after-tax losses related to investment securities Third quarter of fiscal year 2025 net loss of $(1.64) per diluted share included a net impact $(1.86) per share in after-tax losses comprised of the following: $0.21 of after-tax gains related to a legal settlement $(0.04) of after-tax losses related to restructuring charges $(0.07) of after-tax losses related to transaction and integration costs $(0.22) of non-cash after-tax losses related to the change in actuarial assumptions on estimated liabilities $(1.74) of non-cash after-tax losses related to goodwill impairment Operational Outlook for the First Quarter of Fiscal Year 2026 The below guidance represents our expectations as of the date of this release. North America Solutions: Direct margin(2) between $225 million and $250 million Average rig count of approximately 138 to 144 contracted rigs International Solutions: Direct margin(2) between $13 million and $23 million Average operating rig count of approximately 57 to 63 rigs(5) Offshore Solutions: Direct margin(2) between $27 million and $33 million Average management contracts and contracted platform rigs of approximately 30 to 35 Other: Direct margin(2) contribution from the Company's other operations between $3 million and $7 million Other Estimates for Fiscal Year 2026 Depreciation for fiscal year 2026 is expected to be approximately $690 million Research and development expenses for fiscal year 2026 of approximately $25 million General and administrative expenses for fiscal year 2026 of approximately $265 million to $285 million Cash taxes to be paid in fiscal year 2026 of approximately $95 million to $145 million Interest expense for fiscal year 2026 is expected to be approximately $100 million Conference Call A conference call will be held on Tuesday, November 18, 2025, at 11 a.m. (ET) with John Lindsay, CEO, Trey Adams, President, Kevin Vann, Senior Vice President and CFO, and other management team members to discuss the Company’s fourth quarter fiscal year 2025 results. Dial-in information for the conference call is (800)-245-3047 for domestic callers or (203)-518-9765 for international callers. The call access code is ‘Helmerich’. Participants can listen to the live webcast of the conference call and access the accompanying earnings presentation by visiting our website at www.hpinc.com. Navigate to the “Investors” section, click on “News and Events – Events & Presentations,” and select the event to access the webcast and materials. About Helmerich & Payne, Inc. Founded in 1920, Helmerich & Payne, Inc. (H&P) (NYSE: HP) is committed to delivering industry leading levels of drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for its customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies. As of November 17, 2025, H&P's fleet includes 203 land rigs in the United States, 137 international land rigs and 5 offshore platform rigs, plus operating approximately 30 offshore labor contracts. For more information, see H&P online at www.hpinc.com. Forward-Looking Statements This release includes “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and such statements are based on current expectations and assumptions that are subject to risks and uncertainties. All statements other than statements of historical facts included in this release, including, without limitation, outlook for fiscal 2026, statements regarding the anticipated benefits (including synergies and cash flow) of the acquisition and integration of KCA Deutag, the anticipated impact of the acquisition of KCA Deutag on the Company's business and future financial and operating results, the anticipated timing of expected synergies, cost savings and returns from the acquisition of KCA Deutag, the Company’s business strategy, future financial position, operations outlook, future cash flow, future use of generated cash flow, dividend amounts and timing, amounts of any future dividends, investments, active rig count projections, projected costs and plans, objectives of management for future operations, contract terms, financing and funding, debt reduction plans, capex spending and budgets, outlook for domestic and international markets, future commodity prices, and future customer activity and relationships are forward-looking statements. For information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections and other disclosures in the Company’s SEC filings, including but not limited to its annual report on Form 10‑K and quarterly reports on Form 10‑Q. As a result of these factors, Helmerich & Payne, Inc.’s actual results may differ materially from those indicated or implied by such forward-looking statements. Investors are cautioned not to put undue reliance on such statements. We undertake no duty to publicly update or revise any forward-looking statements, whether as a result of new information, changes in internal estimates, expectations or otherwise, except as required under applicable securities laws. Helmerich & Payne uses its Investor Relations website as a channel of distribution for material company information. Such information is routinely posted and accessible on its Investor Relations website at www.hpinc.com. Information on our website is not part of this release. Note Regarding Trademarks. Helmerich & Payne, Inc. owns or has rights to the use of trademarks, service marks and trade names that it uses in conjunction with the operation of its business. Some of the trademarks that appear in this release or otherwise used by H&P include FlexRig, which may be registered or trademarked in the United States and other jurisdictions. (1) Adjusted net income, which is considered a non-GAAP metric, is defined as net income (loss), excluding the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. Adjusted net income is included as supplemental disclosure as management uses it to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define adjusted net income the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies. See Non-GAAP Measurements for a reconciliation of net income (loss) to adjusted net income. (2) Direct margin, which is considered a non-GAAP metric, is defined as operating revenues (less reimbursements) less direct operating expenses (less reimbursements) and is included as a supplemental disclosure. We believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time. See Non-GAAP Measurements for a reconciliation of segment operating income(loss) to direct margin. Expected direct margin for the first quarter of fiscal 2026 is provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future items and adjustments, which could be significant, we are unable to provide a reconciliation of expected direct margin to the most comparable GAAP measure without unreasonable effort. (3) Adjusted EBITDA is considered to be a non-GAAP metric. Adjusted EBITDA is defined as net income (loss) before taxes, depreciation and amortization, gains and losses on asset sales, other income and expense - which includes interest income and interest expense, and excludes the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. Adjusted EBITDA is included as supplemental disclosure as management uses it to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful to information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define Adjusted EBITDA the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies. See Non-GAAP Measurements for a reconciliation of net income to Adjusted EBITDA. (4) Select items are considered non-GAAP metrics and are included as a supplemental disclosure as the Company believes identifying and excluding select items is useful in assessing and understanding current operational performance, especially in making comparisons over time involving previous and subsequent periods and/or forecasting future periods results. Select items are excluded as they are deemed to be outside the Company's core business operations. See Non-GAAP Measurements. (5) Does not include 27 rigs that have either suspended operations or have been notified to suspend operations in Saudi Arabia Interim Financial Information Prior to the three months ended March 31, 2025, foreign currency exchange gains and losses were presented in the operating costs and expense line items to which they relate, namely within Drilling services operating expenses, on our Consolidated Statements of Operations. To conform with the current period presentation, we reclassified amounts previously presented in separate line items within operating costs and expenses to the Foreign currency exchange loss line on our Consolidated Statements of Operations for the three months and fiscal year ending September 30, 2024. The impact of this change was not material to any period presented. Prior to the fourth quarter of fiscal year 2025, revenues associated with our BENTEC™ manufacturing and engineering operations were presented within Drilling services revenue within our Consolidated Statements of Operations. These revenues were reclassified to Other revenue during the three months ended September 30, 2025. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Drilling services revenue to Other revenue on our Consolidated Statements of Operations for the three months ended June 30, 2025. HELMERICH & PAYNE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Year Ended (in thousands, except per share amounts) September 30, June 30, September 30, September 30, 2025 2025 2024 2025 2024 OPERATING REVENUES Drilling services $ 990,211 $ 1,005,514 $ 691,293 $ 3,678,660 $ 2,746,128 Other 21,537 35,410 2,500 67,353 10,479 1,011,748 1,040,924 693,793 3,746,013 2,756,607 OPERATING COSTS AND EXPENSES Drilling services operating expenses, excluding depreciation and amortization 694,611 704,224 407,017 2,511,408 1,624,681 Other operating expenses 20,319 31,059 1,176 56,019 4,483 Depreciation and amortization 188,857 179,491 100,992 625,085 397,344 Research and development 7,567 7,777 8,850 34,125 40,955 Selling, general and administrative 77,645 65,506 66,920 287,052 244,883 Acquisition transaction costs 5,677 8,623 7,452 54,702 14,982 Asset impairment charges 18,928 173,258 — 194,030 — Restructuring charges 7,450 4,681 — 12,131 — Gain on reimbursement of drilling equipment (7,249 ) (6,773 ) (8,622 ) (33,398 ) (33,309 ) Other (gain) loss on sale of assets (595 ) 1,347 2,421 1,541 5,139 1,013,210 1,169,193 586,206 3,742,695 2,299,158 OPERATING INCOME (LOSS) (1,462 ) (128,269 ) 107,587 3,318 457,449 Other income (expense) Interest and dividend income 3,353 2,856 11,979 35,207 41,168 Interest expense (27,972 ) (29,200 ) (16,124 ) (107,808 ) (29,093 ) Gain (loss) on investment securities (36,461 ) (337 ) 13,851 (22,377 ) 13,953 Foreign currency exchange gain (loss) 6,455 (9,216 ) (1,041 ) (9,682 ) (5,550 ) Other (5,985 ) 31,258 102 27,229 3,093 (60,610 ) (4,639 ) 8,767 (77,431 ) 23,571 Income (loss) before income taxes (62,072 ) (132,908 ) 116,354 (74,113 ) 481,020 Income tax expense (benefit) (6,265 ) 28,991 40,878 85,835 136,855 NET INCOME (LOSS) $ (55,807 ) $ (161,899 ) $ 75,476 $ (159,948 ) $ 344,165 Net income attributable to non-controlling interest 1,556 859 — 3,747 — NET INCOME (LOSS) ATTRIBUTABLE TO HELMERICH & PAYNE, INC. $ (57,363 ) $ (162,758 ) $ 75,476 $ (163,695 ) $ 344,165 Basic earnings (loss) per common share $ (0.58 ) $ (1.64 ) $ 0.75 $ (1.66 ) $ 3.43 Diluted earnings (loss) per common share $ (0.58 ) $ (1.64 ) $ 0.76 $ (1.66 ) $ 3.43 Weighted average shares outstanding: Basic 99,441 99,422 98,755 99,272 98,857 Diluted 99,441 99,422 98,995 99,272 99,067 HELMERICH & PAYNE, INC. CONSOLIDATED BALANCE SHEETS September 30, September 30, (in thousands except share data and share amounts) 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 196,848 $ 217,341 Restricted cash 27,412 68,902 Short-term investments 21,496 292,919 Accounts receivable, net of allowance of $19,647 and $2,977, respectively 782,644 418,604 Inventories of materials and supplies, net 324,326 117,884 Prepaid expenses and other, net 97,518 76,419 Assets held-for-sale 15,231 — Total current assets 1,465,475 1,192,069 Investments, net 68,198 100,567 Property, plant and equipment, net 4,313,074 3,016,277 Other Noncurrent Assets: Goodwill 182,854 45,653 Intangible assets, net 485,540 54,147 Operating lease right-of-use asset 123,598 67,076 Restricted cash 1,640 1,242,417 Other assets, net 65,359 63,692 Total other noncurrent assets 858,991 1,472,985 Total assets $ 6,705,738 $ 5,781,898 LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 217,923 $ 135,084 Dividends payable 25,199 25,024 Accrued liabilities 564,855 286,841 Current portion of long-term debt, net 6,859 — Total current liabilities 814,836 446,949 Noncurrent Liabilities: Long-term debt, net 2,057,084 1,782,182 Deferred income taxes 624,000 495,481 Retirement benefit obligation 109,864 6,524 Other 270,616 133,610 Total noncurrent liabilities 3,061,564 2,417,797 Shareholders' Equity: Common stock, $0.10 par value, 160,000,000 shares authorized, 112,222,865 shares issued as of September 30, 2025 and 2024, and 99,446,577 and 98,755,412 shares outstanding as of September 30, 2025 and 2024, respectively 11,222 11,222 Preferred stock, no par value, 1,000,000 shares authorized, no shares issued — — Additional paid-in capital 513,050 518,083 Retained earnings 2,619,090 2,883,590 Accumulated other comprehensive loss 44,964 (6,350 ) Treasury stock, at cost, 12,776,288 shares and 13,467,453 shares as of September 30, 2025 and 2024, respectively (463,536 ) (489,393 ) Non-controlling interest 104,548 — Total shareholders’ equity 2,829,338 2,917,152 Total liabilities and shareholders' equity $ 6,705,738 $ 5,781,898 HELMERICH & PAYNE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended September 30, (in thousands) 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (159,948 ) $ 344,165 $ 434,100 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 625,085 397,344 382,314 Asset impairment charges 194,030 — 12,097 Amortization of debt discount and debt issuance costs 6,069 10,560 1,079 Stock-based compensation 31,594 31,198 32,456 (Gain) loss on investment securities 22,377 (13,953 ) (11,299 ) Gain on reimbursement of drilling equipment (33,398 ) (33,309 ) (48,173 ) Other loss on sale of assets 1,541 5,139 8,016 Deferred income tax benefit (78,661 ) (23,191 ) (20,400 ) Other 14,039 5,132 8,979 Changes in assets and liabilities (79,778 ) (38,422 ) 34,513 Net cash provided by operating activities 542,950 684,663 833,682 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (426,373 ) (495,072 ) (395,460 ) Purchase of short-term investments (117,057 ) (200,653 ) (180,993 ) Purchase of long-term investments (3,296 ) (9,120 ) (20,748 ) Payment for acquisition of business, net of cash acquired (1,836,072 ) — — Proceeds from sale of short-term investments 378,353 204,152 195,311 Proceeds from sale of long-term investments 31,990 — — Insurance proceeds from involuntary conversion 2,366 5,533 9,221 Proceeds from asset sales 45,776 46,412 70,085 Other (1,029 ) (10,000 ) — Net cash used in investing activities (1,925,342 ) (458,748 ) (322,584 ) CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid (100,735 ) (168,459 ) (201,456 ) Distributions to non-controlling interests (15,380 ) — — Proceeds from debt issuance 400,000 1,247,629 — Debt issuance costs (2,629 ) (22,934 ) — Payments for employee taxes on net settlement of equity awards (10,836 ) (12,177 ) (14,410 ) Payment of contingent consideration from acquisition of business — (6,250 ) (250 ) Payments for early extinguishment of long-term debt (200,000 ) — — Share repurchases — (51,302 ) (247,213 ) Other (3,759 ) — (540 ) Net cash provided by (used in) financing activities 66,661 986,507 (463,869 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 12,971 — — Net increase (decrease) in cash and cash equivalents and restricted cash (1,302,760 ) 1,212,422 47,229 Cash and cash equivalents and restricted cash, beginning of period 1,528,660 316,238 269,009 Cash and cash equivalents and restricted cash, end of period $ 225,900 $ 1,528,660 $ 316,238 HELMERICH & PAYNE, INC. SEGMENT REPORTING Three Months Ended Year Ended September 30, June 30, September 30, September 30, (in thousands, except operating statistics) 2025 2025 2024 2025 2024 NORTH AMERICA SOLUTIONS Operating revenues $ 572,274 $ 592,214 $ 618,285 $ 2,362,327 $ 2,445,946 Direct operating expenses 330,235 326,042 343,769 1,322,697 1,366,471 Depreciation and amortization 88,248 88,078 92,647 351,813 366,446 Research and development 7,580 7,617 8,975 34,140 41,293 Selling, general and administrative expense 25,781 10,972 17,301 68,047 61,113 Acquisition transaction costs — 7 — 41 — Asset impairment charges — — — 1,507 — Restructuring charges 2,272 1,849 — 4,121 — Segment operating income $ 118,158 $ 157,649 $ 155,593 $ 579,961 $ 610,623 Financial Data and Other Operating Statistics1: Direct margin (Non-GAAP)2 $ 242,039 $ 266,172 $ 274,516 $ 1,039,630 $ 1,079,475 Revenue days3 12,999 13,400 13,871 53,523 55,387 Average active rigs4 141 147 151 147 151 Number of active rigs at the end of period5 144 141 151 144 151 Number of available rigs at the end of period 223 224 228 223 228 Reimbursements of "out-of-pocket" expenses $ 71,289 $ 73,268 $ 76,148 $ 290,591 $ 294,375 INTERNATIONAL SOLUTIONS Operating revenues $ 241,234 $ 265,803 $ 45,463 $ 802,426 $ 193,975 Direct operating expenses 211,716 231,695 44,010 718,822 169,033 Depreciation and amortization 90,102 66,734 3,314 218,817 10,863 Selling, general and administrative expense 4,964 5,014 2,093 17,232 9,427 Acquisition transaction costs 1,234 141 — 1,585 — Asset impairment charges 4,368 128,352 — 132,720 — Restructuring charges 4,565 380 — 4,945 — Segment operating income (loss) $ (75,715 ) $ (166,513 ) $ (3,954 ) $ (291,695 ) $ 4,652 Financial Data and Other Operating Statistics1: Direct margin (Non-GAAP)2 $ 29,518 $ 34,108 $ 1,453 $ 83,604 $ 24,942 Revenue days3 5,691 6,573 1,336 19,985 4,614 Average active rigs4 62 72 15 55 13 Number of active rigs at the end of period5 61 69 16 61 16 Number of available rigs at the end of period 137 137 27 137 27 Reimbursements of "out-of-pocket" expenses $ 12,720 $ 10,736 $ 1,065 $ 34,045 $ 8,482 OFFSHORE GULF OF MEXICO Operating revenues $ 180,327 $ 161,777 $ 27,545 $ 520,394 $ 106,207 Direct operating expenses 145,566 139,004 20,468 430,135 82,668 Depreciation and amortization 10,023 12,681 1,723 32,461 7,530 Selling, general and administrative expense 1,297 1,294 1,079 4,619 3,594 Acquisition transaction costs 2,911 — — 2,971 — Restructuring charges 237 29 — 266 — Segment operating income $ 20,293 $ 8,769 $ 4,275 $ 49,942 $ 12,415 Financial Data and Other Operating Statistics1: Direct margin (Non-GAAP)2 $ 34,761 $ 22,773 $ 7,077 $ 90,259 $ 23,539 Revenue days3 276 273 276 1,095 1,111 Average active rigs4 3 3 3 3 3 Number of active rigs at the end of period5 3 3 3 3 3 Number of available rigs at the end of period 7 7 7 7 7 Reimbursements of "out-of-pocket" expenses $ 29,458 $ 23,043 $ 7,287 $ 86,662 $ 31,717 (1) These operating metrics and financial data, including average active rigs, are provided to allow investors to analyze the various components of segment financial results in terms of activity, utilization and other key results. Management uses these metrics to analyze historical segment financial results and as the key inputs for forecasting and budgeting segment financial results. (2) Direct margin, which is considered a non-GAAP metric, is defined as operating revenues less direct operating expenses and is included as a supplemental disclosure because we believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time. See — Non-GAAP Measurements below for a reconciliation of segment operating income (loss) to direct margin. (3) Defined as the number of contractual days during the reporting period in which revenue was recognized from Company owned rigs. This metric excludes revenue days associated with leased rigs. (4) Active rigs generate revenue for the Company; accordingly, 'average active rigs' represents the average number of rigs generating revenue during the applicable time period. This metric is calculated by dividing revenue days by total days in the applicable period (i.e. 92 days for the three months ended September 30, 2025 and 2024, 91 days for the three months ended June 30, 2025, 365 days for the year ended September 30, 2025 and 366 days for the year ended September 30, 2024). (5) Defined as the number of contractual days for owned and leased rigs with recognized revenue for during the period. Segment operating income (loss) for all segments is a non-GAAP financial measure of the Company’s performance, as it excludes gain on reimbursement of drilling equipment, other loss on sale of assets, corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transactions costs, corporate asset impairment charges, and corporate restructuring charges. The Company considers segment operating income (loss) to be an important supplemental measure of operating performance for presenting trends in the Company’s core businesses. This measure is used by the Company to facilitate period-to-period comparisons in operating performance of the Company’s reportable segments in the aggregate by eliminating items that affect comparability between periods. The Company believes that segment operating income (loss) is useful to investors because it provides a means to evaluate the operating performance of the segments and the Company on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income (loss) has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect the Company’s operating performance in future periods. The following table reconciles operating income (loss) per the information above to income before income taxes as reported on the Consolidated Statements of Operations: Three Months Ended Year Ended September 30, June 30, September 30, September 30, (in thousands) 2025 2025 2024 2025 2024 Operating income (loss) North America Solutions $ 118,158 $ 157,649 $ 155,593 $ 579,961 $ 610,623 International Solutions (75,715 ) (166,513 ) (3,954 ) (291,695 ) 4,652 Offshore Gulf of Mexico 20,293 8,769 4,275 49,942 12,415 Other (32,792 ) (70,004 ) 714 (103,397 ) (1,359 ) Eliminations (1,752 ) 6,114 2,315 (3,999 ) 1,261 Segment operating income (loss) $ 28,192 $ (63,985 ) $ 158,943 $ 230,812 $ 627,592 Gain on reimbursement of drilling equipment 7,249 6,773 8,622 33,398 33,309 Other gain (loss) on sale of assets 595 (1,347 ) (2,421 ) (1,541 ) (5,139 ) Corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction costs, corporate asset impairment charges, and corporate restructuring charges (37,498 ) (69,710 ) (57,557 ) (259,351 ) (198,313 ) Operating income (loss) $ (1,462 ) $ (128,269 ) $ 107,587 $ 3,318 $ 457,449 Other income (expense): Interest and dividend income 3,353 2,856 11,979 35,207 41,168 Interest expense (27,972 ) (29,200 ) (16,124 ) (107,808 ) (29,093 ) Gain (loss) on investment securities (36,461 ) (337 ) 13,851 (22,377 ) 13,953 Foreign currency exchange gain (loss) 6,455 (9,216 ) (1,041 ) (9,682 ) (5,550 ) Other (5,985 ) 31,258 102 27,229 3,093 Total other income (expense) (60,610 ) (4,639 ) 8,767 (77,431 ) 23,571 Income (loss) before income taxes $ (62,072 ) $ (132,908 ) $ 116,354 $ (74,113 ) $ 481,020 SUPPLEMENTARY STATISTICAL INFORMATION Unaudited U.S. LAND RIG COUNTS & MARKETABLE FLEET STATISTICS November 17, September 30, June 30, Q4FY25 2025 2025 2025 Average(2) U.S. Land Operations Term Contract Rigs 72 73 74 74 Spot Contract Rigs 71 71 67 67 Total Contracted Rigs 143 144 141 141 Idle or Other Rigs 60 79 83 82 Total Marketable Fleet 203 223 224 223 International Solutions Total Contracted Rigs(1) 86 88 89 89 Idle or Other Rigs 51 49 48 48 Total Marketable Fleet 137 137 137 137 Offshore Solutions Total Platform Rigs 3 3 3 3 Idle or Other Rigs 2 4 4 4 Total Fleet 5 7 7 7 Total Management Contracts 33 33 33 33 NON-GAAP MEASUREMENTS NON-GAAP RECONCILIATION OF SELECT ITEMS AND ADJUSTED NET INCOME(**) Three Months Ended September 30, 2025 (in thousands, except per share data) Pretax Tax Net EPS Net income (GAAP basis) $ (57,363 ) $ (0.58 ) (-) Changes in actuarial assumptions on estimated liabilities $ 3,864 $ 877 $ 2,987 $ 0.03 (-) Acquisition transaction costs $ (5,677 ) $ (680 ) $ (4,997 ) $ (0.05 ) (-) Restructuring charges $ (7,450 ) $ (595 ) $ (6,855 ) $ (0.07 ) (-) Credit loss expense associated with long-term note receivable $ (9,878 ) $ (2,242 ) $ (7,636 ) $ (0.08 ) (-) Impairment expense $ (11,450 ) $ — $ (11,450 ) $ (0.12 ) (-) Loss on investment securities $ (36,461 ) $ (8,277 ) $ (28,184 ) $ (0.28 ) Adjusted net income $ (1,228 ) $ (0.01 ) Three Months Ended June 30, 2025 (in thousands, except per share data) Pretax Tax Net EPS Net income (GAAP basis) $ (162,758 ) $ (1.64 ) (-) Legal settlement $ 27,500 $ 6,242 $ 21,258 $ 0.21 (-) Restructuring charges $ (4,681 ) $ (1,063 ) $ (3,618 ) $ (0.04 ) (-) Acquisition transaction costs $ (8,623 ) $ (1,957 ) $ (6,666 ) $ (0.07 ) (-) Changes in actuarial assumptions on estimated liabilities $ (28,932 ) $ (6,568 ) $ (22,364 ) $ (0.22 ) (-) Goodwill impairment $ (173,258 ) $ — $ (173,258 ) $ (1.74 ) Adjusted net income $ 21,890 $ 0.22 NON-GAAP RECONCILIATION OF DIRECT MARGIN Direct margin is considered a non-GAAP metric. We define "direct margin" as operating revenues less direct operating expenses. Direct margin is included as a supplemental disclosure because we believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time. Direct margin is not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. The following table reconciles direct margin to segment operating income (loss), which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to direct margin. Three Months Ended Year Ended September 30, June 30, September 30, September 30, September 30, (in thousands) 2025 2025 2024 2025 2024 NORTH AMERICA SOLUTIONS Segment operating income $ 118,158 $ 157,649 $ 155,593 $ 579,961 $ 610,623 Add back: Depreciation and amortization 88,248 88,078 92,647 351,813 366,446 Research and development 7,580 7,617 8,975 34,140 41,293 Selling, general and administrative expense 25,781 10,972 17,301 68,047 61,113 Acquisition transaction costs — 7 — 41 — Asset impairment charge — — — 1,507 — Restructuring charges 2,272 1,849 — 4,121 — Direct margin (Non-GAAP) $ 242,039 $ 266,172 $ 274,516 $ 1,039,630 $ 1,079,475 INTERNATIONAL SOLUTIONS Segment operating income (loss) $ (75,715 ) $ (166,513 ) $ (3,954 ) $ (291,695 ) $ 4,652 Add back: Depreciation and amortization 90,102 66,734 3,314 218,817 10,863 Selling, general and administrative expense 4,964 5,014 2,093 17,232 9,427 Acquisition transaction costs 1,234 141 — 1,585 — Asset impairment charge 4,368 128,352 — 132,720 — Restructuring charges 4,565 380 — 4,945 — Direct margin (Non-GAAP) $ 29,518 $ 34,108 $ 1,453 $ 83,604 $ 24,942 OFFSHORE SOLUTIONS Segment operating income $ 20,293 $ 8,769 $ 4,275 $ 49,942 $ 12,415 Add back: Depreciation and amortization 10,023 12,681 1,723 32,461 7,530 Selling, general and administrative expense 1,297 1,294 1,079 4,619 3,594 Acquisition transaction costs 2,911 — — 2,971 — Restructuring charges 237 29 — 266 — Direct margin (Non-GAAP) $ 34,761 $ 22,773 $ 7,077 $ 90,259 $ 23,539 NON-GAAP RECONCILIATION OF ADJUSTED EBITDA Adjusted EBITDA and 'Select Items' are considered to be non-GAAP metrics. Adjusted EBITDA is defined as net income (loss) before taxes, depreciation and amortization, gains and losses on asset sales, other income and expense - which includes interest income and interest expense, and excludes the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. These metrics are included as supplemental disclosures as management uses them to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful to information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define Adjusted EBITDA the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies. Three Months Ended Year Ended September 30, June 30, September 30, September 30, September 30, (in thousands) 2025 2025 2024 2025 2024 Net income (loss) attributable to Helmerich and Payne, Inc. $ (57,363 ) $ (162,758 ) $ 75,476 $ (163,695 ) $ 344,165 Add back: Net income attributable to non-controlling interest 1,556 859 — 3,747 — Income tax expense (benefit) (6,265 ) 28,991 40,878 85,835 136,855 Other (income) expense Interest and dividend income (3,353 ) (2,856 ) (11,979 ) (35,207 ) (41,168 ) Interest expense 27,972 29,200 16,124 107,808 29,093 (Gain) loss on investment securities 36,461 337 (13,851 ) 22,377 (13,953 ) Foreign currency exchange (gain) loss (6,455 ) 9,216 1,041 9,682 5,550 Other 5,985 (31,258 ) (102 ) (27,229 ) (3,093 ) Depreciation and amortization 188,857 179,491 100,992 625,085 397,344 Acquisition transaction costs 5,677 8,623 7,452 54,702 14,982 Asset impairment charges 18,928 173,258 — 194,030 — Restructuring charges 7,450 4,681 — 12,131 — Other (gain) loss on sale of assets (595 ) 1,347 2,421 1,541 5,139 Excluding Select Items (Non-GAAP) Research and development costs associated with an asset acquisition — — — — 3,840 Gains related to an insurance claim — — — (2,366 ) — Credit loss expense associated with long-term note receivable 9,878 — — 9,878 — Change in actuarial assumptions on estimated liabilities (3,864 ) 28,932 — 35,925 — Adjusted EBITDA (Non-GAAP) $ 224,869 $ 268,063 $ 218,452 $ 934,244 $ 878,754