Helmerich and Payne Q2 revenue misses estimates due to Mideast conflict

Helmerich & Payne

06/05/2026 21:31

Overview

US drilling services firm's fiscal Q2 revenue fell and missed analyst expectations

Company posted net loss of $59 mln, including $26 mln impairment charge

Completed Utica Square sale, used proceeds to retire $400 mln in debt

Outlook

Helmerich & Payne sees Q3 North America Solutions direct margin at $230 mln-$240 mln

Company expects Q3 International Solutions direct margin of $12 mln-$32 mln

Helmerich & Payne sees FY26 capex at $270 mln-$310 mln

Result Drivers

NORTH AMERICA CONTRACTS - New contracts and extensions in the U.S. land market supported segment performance, along with expanded FlexRobotics technology deployment

MIDDLE EAST IMPACT - Conflict in the Middle East led to higher costs and lower direct margins in International Solutions, though rigs were reactivated using in-house capabilities

OFFSHORE CONTRACT RENEWAL - Offshore Solutions benefited from a long-term contract renewal with bp in the Caspian Sea, supporting earnings stability

Company press release: ID:nBw8j5Hxla

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$932 mln
$949.64 mln (10 Analysts)
Q2 EPS
-$0.59
Q2 Net Income
-$59 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the oil & gas drilling peer group is "buy."

Wall Street's median 12-month price target for Helmerich and Payne Inc is $38.00, about 8.5% below its May 5 closing price of $41.53

The stock recently traded at 60 times the next 12-month earnings vs. a P/E of 40 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)