Helmerich & Payne (HPC) Q3 2026 Earnings Report

The call presented multiple strong operational and financial wins — higher revenue (+11% sequential), beat on adjusted EBITDA ($236M), robust free cash flow ($98M), notable NAS margin expansion and rig reactivations, offshore outperformance, and accelerating momentum in Argentina and geothermal. Management also laid out a concrete deleveraging and cost-reduction plan (targeting 1.0x net debt/EBITDA, $40M annual corporate cost savings, and $160M+ asset-sale proceeds). Offsetting these positives are continuing geopolitical disruptions in the Middle East that have delayed some reactivations, lumpy performance bonus timing, and the fact that reported EPS included a material one-time gain (adjusted EPS would be a loss). On balance, the highlights and forward-looking initiatives outweigh the lowlights, though some execution and geopolitical risks remain.

Management guided fiscal fourth-quarter North America Solutions direct margins of $245–$255 million on an expected 145–151 rigs (upgrading full‑year average rig count to 140–144), International Solutions to average 60–70 rigs with direct margins of $25–$45 million (targeting at least a $45 million quarterly run rate), and Offshore to average 30–35 management contracts/operating rigs with Q4 direct margins of $26–$30 million (offshore full‑year margin guidance upgraded to $113–$117 million); they kept full‑year CapEx guidance at $270–$310 million (anchored by ~ $250 million maintenance CapEx and $50 million sustaining CapEx annually), raised cash tax expectations to $150–$180 million, affirmed a ~ $100 million/year base dividend, and reiterated targets to cut corporate costs by $40 million/year by end of 2027, monetize >$160 million of assets by fiscal 2027, and drive net debt/EBITDA toward ~1.0x (after repaying a $400 million term loan and targeting retirement of a $350 million bond), while noting Q3 adjusted EBITDA of $236 million, Q3 free cash flow of $98 million and an implied ~5% sequential EBITDA improvement into Q4.