Free cash flow volatility remains a concern, with margins swinging from 14.1% in 2025Q4 to a negative 2.8% in 2026Q2, complicating capital allocation strategies.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 547.55M | 542.95M | 684.66M | 833.68M | 233.91M | 136.44M | 538.88M | 855.75M | 544.53M | 357.22M | 753.6M | 1.42B | 1.12B | 997.18M | 1B | 977.55M | 462.29M | 897.32M | 610.83M | 561.07M | 296.39M | 212.24M | 135.4M | 96.5M | 201.4M | 278.86M | 201.84M | 158.7M | 113.5M | 165.6M | 124.9M |
| Operating CF Margin % | - | 14.49% | 24.84% | 29.02% | 11.36% | 11.2% | 30.38% | 30.58% | 21.89% | 19.79% | 46.4% | 44.82% | 30.07% | 29.44% | 31.74% | 38.43% | 24.65% | 47.36% | 29.99% | 34.43% | 24.2% | 26.51% | 21.81% | 18.73% | 39.42% | 33.72% | 31.98% | 28.12% | 17.83% | 31.98% | 32.23% |
| Operating CF Growth % | -35.3% | -20.7% | -17.87% | 256.41% | 71.44% | -74.68% | -37.03% | 57.15% | 52.44% | -52.6% | -46.88% | 26.84% | 12.17% | -0.31% | 2.33% | 111.46% | -48.48% | 46.9% | 8.87% | 89.3% | 39.65% | 56.75% | 40.31% | -52.08% | -27.78% | 38.16% | 27.18% | 39.82% | -31.46% | 32.59% | 40.97% |
| Net Income | -375.89M | -159.95M | 344.17M | 434.1M | 6.55M | -326.15M | -496.39M | -32.51M | 493.01M | -127.86M | -52.99M | 422.27M | 708.77M | 721.45M | 573.61M | 434.67M | 286.08M | 353.55M | 461.74M | 449.26M | 293.86M | 127.61M | 4.36M | 17.87M | 53.71M | 144.25M | 82.3M | 42.8M | 101.2M | 84.2M | 72.5M |
| Depreciation & Amortization | 731M | 625.09M | 397.34M | 382.31M | 403.17M | 419.73M | 481.88M | 562.8M | 583.8M | 585.54M | 598.59M | 606.99M | 523.55M | 455.62M | 387.55M | 315.47M | 262.66M | 236.44M | 210.77M | 146.04M | 101.58M | 96.3M | 94.44M | 82.69M | 62.57M | 88.79M | 112.39M | 110.7M | 89.8M | 72.5M | 61.1M |
| Stock-Based Compensation | 27.56M | 31.59M | 31.2M | 32.46M | 28.03M | 27.86M | 36.33M | 34.29M | 31.69M | 26.18M | 24.38M | 25.2M | 26.7M | 23.27M | 18.08M | 12.1M | 15.86M | 8.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -50.34M | -78.66M | -23.19M | -20.4M | -28.49M | -89.75M | -157.56M | -44.55M | -486.76M | -24.11M | 60.09M | 131.58M | 27.12M | 29.56M | 196.93M | 187.65M | 105.69M | 158.15M | 129.59M | 88.4M | 7.99M | 54.57M | 8.26M | 41.23M | 24.13M | 21.64M | 21.13M | 600K | -1.2M | 7.5M | -2.7M |
| Other Non-Cash Items | 234.18M | 204.66M | -26.43M | -29.3M | -19.63M | 68.25M | 514.19M | 239.82M | 11.18M | 8.59M | -33.43M | -94.81M | -90.81M | -204.05M | -216.01M | -202.84M | -114.76M | -181.68M | 19.29M | 8.04M | 9.75M | -44.76M | 6.9M | 1.93M | -4.64M | 3.38M | -3.91M | -1.3M | -100K | -100K | -15.4M |
| Working Capital Changes | -24.8M | -79.78M | -38.42M | 34.51M | -155.73M | 36.51M | 160.43M | 95.9M | -88.39M | -111.12M | 156.96M | 327.52M | -76.8M | -28.67M | 40.18M | 230.51M | -93.24M | 322.51M | -136.96M | 7.96M | -77.11M | -21.48M | 1.77M | -40.28M | 46.76M | -2.78M | -1.09M | 5.9M | -38.3M | 4.7M | 9.4M |
| Change in Receivables | -47.27M | -48.6M | -10.74M | 56.28M | -235.56M | -28.42M | 300.81M | 70.32M | -85.2M | -97.11M | 72.79M | 249.87M | -83.59M | -4.81M | -160.15M | -2.99M | -223.92M | 216.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -15.75M | -26.85M | -20.76M | -7.83M | -5.23M | 19.85M | 7.2M | 1.82M | -22.43M | -10.61M | 1.94M | -22.49M | -17.38M | -12.29M | -22.17M | -11.01M | -3.86M | -11.63M | -3.95M | -2.98M | -4.85M | -487K | 1.71M | 251K | 1.04M | -2.06M | -411K | 200K | -5.8M | -2.7M | 2.4M |
| Change in Payables | -47.71M | -21.35M | -2.29M | 4.24M | 53.24M | 31.03M | -9.41M | -9.15M | -4.46M | 39.41M | -10.91M | -34.15M | -21.08M | -52.08M | 54.91M | 17.36M | 16.76M | -28.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -206.76M | -1.93B | -458.75M | -322.58M | -167.31M | -161.99M | -87.89M | -422.64M | -472.36M | -444.99M | -234.22M | -1.16B | -872.92M | -533.82M | -1.05B | -667.54M | -309.26M | -884.03M | -655.34M | -698.57M | -548.88M | 2.73M | -67M | -221.37M | -321.67M | -239.34M | -101.32M | -110.7M | -175.9M | -144.6M | -101.3M |
| Capital Expenditures | -291.56M | -426.37M | -495.07M | -395.46M | -272.54M | -82.15M | -140.79M | -458.4M | -466.58M | -397.57M | -257.17M | -1.13B | -952.89M | -809.07M | -1.1B | -694.26M | -329.57M | -880.75M | -705.63M | -894.21M | -528.9M | -86.81M | -88.97M | -246.3M | -312.06M | -274.67M | -131.93M | -123M | -266.3M | -161.2M | -110M |
| CapEx % of Revenue | 7.29% | 11.38% | 17.96% | 13.77% | 13.24% | 6.74% | 7.94% | 16.38% | 18.76% | 22.03% | 15.83% | 35.81% | 25.62% | 23.88% | 34.83% | 27.29% | 17.58% | 46.48% | 34.65% | 54.87% | 43.18% | 10.84% | 14.33% | 47.8% | 61.08% | 33.22% | 20.91% | 21.8% | 41.83% | 31.13% | 28.39% |
| Acquisitions | 29.01M | -1.84B | 0 | 0 | -250K | 130.04M | 15.06M | -16.16M | -47.89M | -70.42M | 21.84M | 0 | 0 | 0 | 0 | -4M | -7.92M | -16K | -12.04M | 0 | 11.78M | 0 | 0 | 0 | -55.23M | -2.28M | 0 | 0 | 0 | 0 | 4M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 28.92M | 47.11M | 41.95M | 79.31M | 55.05M | 0 | 77.85M | 50.82M | 44.38M | 23.41M | 21.84M | 22.5M | 30.77M | 43.03M | 47.39M | 26.8M | 7.87M | 8.7M | 13.93M | 67.83M | 2.97M | 28.99M | 7.94M | 6.72M | 4.13M | 13.17M | 18.04M | 10M | 15.4M | 9.4M | -2.1M |
| Cash from Financing | -387.91M | 66.66M | 986.51M | -463.87M | -734.3M | 425.52M | -297.22M | -376.33M | -309.19M | -296.42M | -343.2M | 94.91M | -332.57M | -111.59M | -218.2M | -8.79M | -186.15M | 6.68M | 76.81M | 192.87M | -2.41M | 8.49M | -41.3M | 116.17M | 38.33M | -24.64M | -14.19M | -50.7M | 58.9M | -9.9M | -26.2M |
| Debt Issued (Net) | -205M | 197.37M | 1.25B | 0 | -487.15M | 548.72M | 0 | 0 | 0 | 0 | -40M | 457.13M | -115M | -40M | -115M | -10M | -167.04M | 25.3M | 56.73M | 223.85M | 21.15M | 0 | -30M | 130M | 50M | 0 | -5M | -39.8M | 89.8M | 0 | -16.7M |
| Equity Issued (Net) | 0 | 0 | -51.3M | -247.21M | -77M | -2.16M | -28.5M | -39.73M | -7.11M | 0 | 1.04M | -59.65M | 0 | 0 | -77.61M | 0 | 0 | 0 | 14.54M | -13.82M | -16.04M | 25.36M | 4.93M | 2.19M | 3.55M | -9.6M | 4.99M | 2.93M | -17.1M | 3.1M | 3M |
| Dividends Paid | -101.07M | -100.73M | -168.46M | -201.46M | -107.39M | -109.13M | -260.33M | -313.42M | -308.43M | -305.51M | -300.15M | -298.37M | -264.39M | -93.05M | -30.05M | -26.74M | -22.25M | -21.11M | -19.33M | -18.64M | -17.71M | -16.87M | -16.22M | -16.03M | -15.22M | -15.05M | -14.18M | -13.8M | -13.8M | -13M | -12.5M |
| Share Repurchases | 0 | 0 | -51.3M | -247.21M | -77M | -2.16M | -28.5M | -42.78M | -7.11M | -6.6M | 0 | -59.65M | -3.05M | -1.68M | -77.61M | 0 | 0 | 0 | 0 | -17.62M | -28.41M | 0 | 0 | 0 | 0 | -23.2M | -450K | 0 | -19.1M | 0 | 0 |
| Other Financing | -81.84M | -29.98M | -41.36M | -15.2M | -62.76M | -11.9M | -8.38M | -23.18M | -4.27M | 9.1M | -4.09M | -4.19M | 46.82M | 21.46M | 4.46M | 27.95M | 3.14M | 2.49M | 24.87M | 1.47M | 10.19M | 0 | 0 | 0 | 0 | 0 | 0 | -49K | 0 | 0 | 0 |
| Net Change in Cash | -41.02M | -1.3B | 1.21B | 47.23M | -667.71M | 399.97M | 153.78M | 56.79M | -237.02M | -384.19M | 176.18M | 357.07M | -86.96M | 351.77M | -268.15M | 301.23M | -33.12M | 19.97M | 32.3M | 55.36M | -254.9M | 223.46M | 27.11M | -8.69M | -81.94M | 14.88M | 86.33M | -2.7M | -3.5M | 11.1M | -2.7M |
| Free Cash Flow | 255.99M | 116.58M | 189.59M | 438.22M | -38.63M | 54.29M | 398.09M | 397.35M | 77.95M | -40.35M | 496.43M | 285.26M | 165.63M | 188.12M | -97.35M | 283.29M | 132.72M | 16.57M | -94.81M | -333.15M | -232.51M | 125.43M | 46.43M | -149.8M | -110.67M | 4.19M | 69.9M | 35.7M | -152.8M | 4.4M | 14.9M |
| FCF Margin % | 6.4% | 3.11% | 6.88% | 15.26% | -1.88% | 4.46% | 22.44% | 14.2% | 3.13% | -2.24% | 30.56% | 9.01% | 4.45% | 5.55% | -3.09% | 11.14% | 7.08% | 0.87% | -4.66% | -20.44% | -18.98% | 15.66% | 7.48% | -29.07% | -21.66% | 0.51% | 11.08% | 6.33% | -24% | 0.85% | 3.85% |
| FCF Growth % | 241.52% | -38.51% | -56.74% | 1234.53% | -171.14% | -86.36% | 0.19% | 409.77% | 293.18% | -108.13% | 74.03% | 72.22% | -11.95% | 293.24% | -134.36% | 113.45% | 701.13% | 117.47% | 71.54% | -43.28% | -285.37% | 170.17% | 130.99% | -35.36% | -2743.79% | -94.01% | 95.81% | 123.36% | -3572.73% | -70.47% | 167.12% |
| FCF per Share | 2.56 | 1.17 | 1.91 | 4.26 | -0.36 | 0.50 | 3.69 | 3.64 | 0.71 | -0.37 | 4.60 | 2.63 | 1.52 | 1.74 | -0.90 | 2.61 | 1.24 | 0.16 | -0.89 | -3.17 | -2.19 | 1.21 | 0.46 | -1.48 | -1.10 | 0.04 | 0.70 | 0.36 | -1.51 | 0.04 | 0.15 |
| FCF Conversion (FCF/Net Income) | -0.68x | -3.29x | 1.99x | 1.92x | 33.64x | -0.42x | -1.09x | -26.32x | 1.13x | -2.79x | -13.26x | 3.36x | 1.58x | 1.35x | 1.72x | 2.25x | 2.96x | 2.54x | 1.32x | 1.25x | 1.01x | 1.66x | 31.06x | 5.40x | 3.17x | 1.93x | 2.45x | 3.71x | 1.12x | 1.97x | 1.72x |
| Interest Paid | 0 | 82.3M | 15.95M | 17.1M | 18.91M | 26.71M | 22.93M | 26.74M | 20.5M | 22.94M | 28.01M | 11.65M | 5.38M | 6.99M | 10.71M | 16.11M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -4.28M | 205.62M | 181.35M | 199.14M | 17.73M | 1.46M | 46.7M | 16.22M | 38.4M | 3.75M | 15.58M | 131.13M | 317.6M | 363.33M | 144.96M | 19.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical margin compression risk
According to recent financial disclosures, the company's OCF/NI ratio reached a negative 0.62 in 2026Q2, illustrating a significant disconnect between accounting losses and cash generation that warrants further investigation into the impact of non-cash depreciation charges on the reported bottom line.
The persistent gap between net income and operating cash flow suggests that GAAP earnings are heavily influenced by non-cash items, likely tied to the high depreciation of the FlexRig fleet. Investors should monitor whether this cash-generative capacity can be sustained if rig utilization continues to face downward pressure.
As reported in quarterly filings, FCF margins swung from a positive 14.1% in 2025Q4 to a negative 2.8% by 2026Q2, highlighting the company's vulnerability to cyclical revenue shifts and the difficulty of maintaining positive cash flow during periods of reduced drilling activity.
The rapid deterioration in free cash flow trajectory suggests that the company's high fixed-cost structure is struggling to adapt to current market conditions. This volatility implies that the business may require more consistent rig demand to achieve the scale necessary for reliable cash conversion.
Based on reported figures, the company's CapEx/Revenue ratio has fluctuated significantly, reaching 6.7% in 2026Q2, which indicates that the ongoing maintenance of a sophisticated, high-spec rig fleet remains a substantial drain on available cash resources during periods of top-line contraction.
The capital-intensive nature of the FlexRig fleet appears to be a double-edged sword, requiring constant reinvestment even when revenue growth stalls. This suggests that management faces a difficult balancing act between maintaining technological superiority and preserving liquidity in a challenging energy services environment.
Financial statements indicate that working capital changes have been highly inconsistent, shifting from a $22.1 million inflow in 2025Q4 to a $17.9 million outflow in 2026Q2, which may suggest challenges in managing receivables and inventory levels amidst a volatile North American drilling landscape.
The erratic nature of these working capital swings implies that the company's cash conversion cycle is sensitive to the timing of customer payments and rig-site supply chain demands. Investors should monitor whether these fluctuations represent temporary timing issues or a more structural difficulty in optimizing operational efficiency.
Quick answers to the most common questions about buying HP stock.
Helmerich & Payne, Inc. (HP) generated $543.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Helmerich & Payne, Inc. (HP) generated $116.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Helmerich & Payne, Inc. (HP) spent $426.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Helmerich & Payne, Inc. (HP) returned $100.7M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.