Gross margins have experienced a sharp contraction from 26.6% in 2024Q1 to 7.0% in 2026Q2, reflecting significant difficulty in passing through operational costs.
| 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 |
|---|
| Sales/Revenue | 4B | 3.75B | 2.76B | 2.87B | 2.06B | 1.22B | 1.77B | 2.8B | 2.49B | 1.8B | 1.62B | 3.17B | 3.72B | 3.39B | 3.15B | 2.54B | 1.88B | 1.89B | 2.04B | 1.63B | 1.22B | 800.73M | 620.93M | 515.28M | 510.93M | 826.85M | 631.1M | 564.3M | 636.6M | 517.9M | 387.5M |
| Revenue Growth % | 29.73% | 35.89% | -4.03% | 39.51% | 68.96% | -31.31% | -36.61% | 12.51% | 37.82% | 11.11% | -48.69% | -14.9% | 9.8% | 7.48% | 23.9% | 35.66% | -1.04% | -6.96% | 24.97% | 33.05% | 52.96% | 28.96% | 20.5% | 0.85% | -38.21% | 31.02% | 11.84% | -11.36% | 22.92% | 33.65% | 18.94% |
| Cost of Goods Sold | 3.55B | 3.19B | 2.03B | 2.1B | 1.83B | 1.37B | 1.67B | 2.37B | 2.24B | 1.83B | 1.5B | 2.31B | 2.53B | 2.31B | 1.75B | 1.43B | 1.07B | 1.01B | 1.09B | 862.25M | 661.56M | 484.23M | 416.63M | 345.54M | 336.89M | 447.42M | 339.63M | 342.5M | 356.3M | 283.1M | 235.9M |
| COGS % of Revenue | - | 85.22% | 73.55% | 73.02% | 88.87% | 112.62% | 93.95% | 84.74% | 89.91% | 101.67% | 92.19% | 73.01% | 68.11% | 68.14% | 55.54% | 56.32% | 57.17% | 53.38% | 53.36% | 52.91% | 54.01% | 60.47% | 67.1% | 67.06% | 65.94% | 54.11% | 53.82% | 60.69% | 55.97% | 54.66% | 60.88% |
| Gross Profit | 451.89M | 553.5M | 729.04M | 775.01M | 229.19M | -153.76M | 107.25M | 427.1M | 250.86M | -30.12M | 126.84M | 854.29M | 1.19B | 1.08B | 1.4B | 1.11B | 803.2M | 883.29M | 949.88M | 767.4M | 563.25M | 316.5M | 204.3M | 169.75M | 174.04M | 379.43M | 291.47M | 221.8M | 280.3M | 234.8M | 151.6M |
| Gross Margin % | 11.29% | 14.78% | 26.45% | 26.98% | 11.13% | -12.62% | 6.05% | 15.26% | 10.09% | -1.67% | 7.81% | 26.99% | 31.89% | 31.86% | 44.46% | 43.68% | 42.83% | 46.62% | 46.64% | 47.09% | 45.99% | 39.53% | 32.9% | 32.94% | 34.06% | 45.89% | 46.18% | 39.31% | 44.03% | 45.34% | 39.12% |
| Gross Profit Growth % | - | -24.08% | -5.93% | 238.16% | 249.06% | -243.36% | -74.89% | 70.26% | 932.88% | -123.75% | -85.15% | -27.98% | 9.92% | -22.98% | 26.1% | 38.36% | -9.07% | -7.01% | 23.78% | 36.25% | 77.96% | 54.92% | 20.35% | -2.47% | -54.13% | 30.18% | 31.41% | -20.87% | 19.38% | 54.88% | 31.26% |
| Operating Expenses | 525.88M | 321.18M | 277.14M | 213.12M | 183.89M | 274.79M | 727.44M | 221.88M | 218.79M | 163.05M | 156.45M | 151.01M | 151.04M | 141.49M | 510.92M | 408.78M | 351.41M | 298.95M | 245.93M | 135.09M | 145.96M | 137.29M | 132.09M | 123.52M | 81.84M | 144.36M | 151.63M | 150.4M | 127.3M | 103.1M | 87.1M |
| OpEx % of Revenue | - | 8.57% | 10.05% | 7.42% | 8.93% | 22.55% | 41.01% | 7.93% | 8.8% | 9.03% | 9.63% | 4.77% | 4.06% | 4.18% | 16.21% | 16.07% | 18.74% | 15.78% | 12.08% | 8.29% | 11.92% | 17.15% | 21.27% | 23.97% | 16.02% | 17.46% | 24.03% | 26.65% | 20% | 19.91% | 22.48% |
| Selling, General & Admin | 273.66M | 287.05M | 244.88M | 206.66M | 182.37M | 172.19M | 167.51M | 194.42M | 200.62M | 151M | 146.18M | 134.91M | 135.14M | 126.25M | 107.31M | 91.45M | 81.48M | 59.41M | 57.06M | 47.4M | 51.87M | 41.02M | 37.66M | 41M | 20.39M | 15.41M | 11.58M | 14.2M | 11.8M | 9.3M | 9.1M |
| SG&A % of Revenue | - | 7.66% | 8.88% | 7.19% | 8.86% | 14.13% | 9.44% | 6.95% | 8.07% | 8.37% | 9% | 4.26% | 3.63% | 3.73% | 3.4% | 3.6% | 4.35% | 3.14% | 2.8% | 2.91% | 4.24% | 5.12% | 6.07% | 7.96% | 3.99% | 1.86% | 1.83% | 2.52% | 1.85% | 1.8% | 2.35% |
| Research & Development | 29.01M | 34.13M | 40.97M | 30.05M | 26.56M | 21.72M | 21.64M | 27.47M | 18.17M | 12.05M | 10.27M | 16.1M | 15.9M | 15.23M | 16.06M | 15.76M | 12.26M | 9.67M | 1.83M | 0 | 0 | 0 | 0 | 0 | 0 | 21.72M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.91% | 1.49% | 1.05% | 1.29% | 1.78% | 1.22% | 0.98% | 0.73% | 0.67% | 0.63% | 0.51% | 0.43% | 0.45% | 0.51% | 0.62% | 0.65% | 0.51% | 0.09% | - | - | - | - | - | - | 2.63% | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | -8.71M | -23.58M | -25.04M | 80.87M | 538.28M | -1.6M | 486K | 0 | -965K | -901K | -636K | -9K | 387.55M | 301.56M | 257.67M | 229.86M | 187.04M | 87.68M | 94.09M | 96.27M | 94.42M | 82.51M | 61.45M | 128.95M | 140.05M | 136.2M | 115.5M | 93.8M | 78M |
| Operating Income | -73.99M | 232.32M | 451.9M | 561.89M | 45.29M | -428.55M | -620.19M | 213.09M | 31.6M | -172.54M | -25.97M | 675.75M | 1.05B | 956.66M | 890.38M | 702.51M | 451.8M | 583.53M | 703.95M | 632.32M | 417.29M | 179.21M | 72.21M | 46.23M | 92.2M | 235.07M | 139.84M | 71.4M | 153M | 131.7M | 64.5M |
| Operating Margin % | -1.85% | 6.2% | 16.39% | 19.56% | 2.2% | -35.17% | -34.96% | 7.61% | 1.27% | -9.56% | -1.6% | 21.35% | 28.36% | 28.24% | 28.25% | 27.62% | 24.09% | 30.8% | 34.57% | 38.8% | 34.07% | 22.38% | 11.63% | 8.97% | 18.05% | 28.43% | 22.16% | 12.65% | 24.03% | 25.43% | 16.65% |
| Operating Income Growth % | - | -48.59% | -19.57% | 1140.59% | 110.57% | 30.9% | -391.04% | 574.29% | 118.32% | -564.49% | -103.84% | -35.93% | 10.26% | 7.44% | 26.74% | 55.49% | -22.58% | -17.11% | 11.33% | 51.53% | 132.85% | 148.17% | 56.2% | -49.86% | -60.78% | 68.1% | 95.85% | -53.33% | 16.17% | 104.19% | 354.23% |
| EBITDA | 657.01M | 857.41M | 849.24M | 944.2M | 448.46M | -8.82M | -138.3M | 771.19M | 615.4M | 413M | 572.62M | 1.28B | 1.58B | 1.41B | 1.28B | 1.02B | 714.45M | 819.97M | 914.71M | 778.36M | 518.87M | 275.51M | 166.65M | 128.92M | 154.77M | 323.86M | 252.22M | 182.1M | 242.8M | 204.2M | 125.6M |
| EBITDA Margin % | 16.42% | 22.89% | 30.81% | 32.87% | 21.78% | -0.72% | -7.8% | 27.56% | 24.74% | 22.88% | 35.25% | 40.52% | 42.43% | 41.69% | 40.55% | 40.02% | 38.1% | 43.27% | 44.91% | 47.76% | 42.36% | 34.41% | 26.84% | 25.02% | 30.29% | 39.17% | 39.97% | 32.27% | 38.14% | 39.43% | 32.41% |
| EBITDA Growth % | -17.94% | 0.96% | -10.06% | 110.54% | 5182.87% | 93.62% | -117.93% | 25.31% | 49.01% | -27.88% | -55.36% | -18.73% | 11.76% | 10.51% | 25.54% | 42.48% | -12.87% | -10.36% | 17.52% | 50.01% | 88.33% | 65.32% | 29.26% | -16.7% | -52.21% | 28.4% | 38.51% | -25% | 18.9% | 62.58% | 37.57% |
| D&A (Non-Cash Add-back) | 731M | 625.09M | 397.34M | 382.31M | 403.17M | 419.73M | 481.88M | 558.1M | 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 |
| EBIT | -208.38M | 33.7M | 510.11M | 610.66M | 50.52M | -405.92M | -612.02M | -26.03M | 40.11M | -164.85M | -49.75M | 676.9M | 1.1B | 1.12B | 911.23M | 704.42M | 455.39M | 589.3M | 703.95M | 632.32M | 417.29M | 225.3M | -12.26M | 34.45M | 92.2M | 134.68M | 67.08M | 71.42M | 153M | 131.7M | 70.3M |
| Net Interest Income | -97.47M | -72.6M | 12.07M | 11.11M | -1.11M | -13.7M | -17.17M | -15.72M | -16.25M | -13.83M | -19.75M | -9.18M | -3.11M | -4.48M | -7.27M | -15.4M | -15.35M | -10.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 11.12M | 35.21M | 41.17M | 28.39M | 18.09M | 10.25M | 7.3M | 9.47M | 8.02M | 5.92M | 3.17M | 5.83M | 1.54M | 1.65M | 1.38M | 1.95M | 1.81M | 4.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 108.59M | 107.81M | 29.09M | 17.28M | 19.2M | 23.95M | 24.47M | 25.19M | 24.27M | 19.75M | 22.91M | 15.04M | 4.66M | 6.13M | 8.65M | 17.36M | 17.16M | 13.49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -251.28M | -306.44M | 29.12M | 31.49M | -13.97M | -1.32M | -16.31M | -71.8M | -15.76M | -15.51M | -46.7M | -10.1M | 43.14M | 157.64M | -7.02M | -15.44M | -13.56M | -33.06M | -4.02M | 58.03M | 23.7M | 33.45M | -31.25M | -506K | -980K | -1.7M | -2.73M | -2.92M | 4.9M | -2M | 6.7M |
| Pretax Income | -325.27M | -74.11M | 481.02M | 593.38M | 31.32M | -429.87M | -636.5M | -51.22M | 15.84M | -184.6M | -72.67M | 665.65M | 1.1B | 1.11B | 902.58M | 687.07M | 438.24M | 575.82M | 699.93M | 690.35M | 440.98M | 212.66M | 8M | 33.94M | 91.22M | 235.1M | 136.76M | 68.5M | 157.9M | 129.7M | 71.2M |
| Pretax Margin % | -8.13% | -1.98% | 17.45% | 20.66% | 1.52% | -35.28% | -35.88% | -1.83% | 0.64% | -10.23% | -4.47% | 21.03% | 29.47% | 32.89% | 28.64% | 27.01% | 23.37% | 30.39% | 34.37% | 42.36% | 36% | 26.56% | 1.29% | 6.59% | 17.85% | 28.43% | 21.67% | 12.14% | 24.8% | 25.04% | 18.37% |
| Income Tax | 43.23M | 85.83M | 136.85M | 159.28M | 24.37M | -103.72M | -140.11M | -18.71M | -477.17M | -56.73M | -19.68M | 243.38M | 387.55M | 392.84M | 328.97M | 252.4M | 152.16M | 232.38M | 255.56M | 250.98M | 154.39M | 87.46M | 4.37M | 14.65M | 40.57M | 93.03M | 57.68M | 25.7M | 56.7M | 45.5M | 25.8M |
| Effective Tax Rate % | -13.29% | -115.82% | 28.45% | 26.84% | 77.8% | 24.13% | 22.01% | 36.53% | -3012.24% | 30.73% | 27.08% | 36.56% | 35.35% | 35.25% | 36.45% | 36.74% | 34.72% | 40.36% | 36.51% | 36.36% | 35.01% | 41.13% | 54.56% | 43.16% | 44.48% | 39.57% | 42.18% | 37.52% | 35.91% | 35.08% | 36.24% |
| Net Income | -375.89M | -165.09M | 344.17M | 434.1M | 6.95M | -326.15M | -494.5M | -32.51M | 482.67M | -128.21M | -56.83M | 422.23M | 708.72M | 736.64M | 581.04M | 434.19M | 156.31M | 353.55M | 461.74M | 449.26M | 293.86M | 127.61M | 4.36M | 17.87M | 63.52M | 144.25M | 82.3M | 42.8M | 101.2M | 84.2M | 72.5M |
| Net Margin % | -9.39% | -4.41% | 12.49% | 15.11% | 0.34% | -26.77% | -27.88% | -1.16% | 19.41% | -7.1% | -3.5% | 13.34% | 19.05% | 21.75% | 18.44% | 17.07% | 8.34% | 18.66% | 22.67% | 27.57% | 23.99% | 15.94% | 0.7% | 3.47% | 12.43% | 17.45% | 13.04% | 7.58% | 15.9% | 16.26% | 18.71% |
| Net Income Growth % | -270.4% | -147.97% | -20.72% | 6143.35% | 102.13% | 34.04% | -1421.06% | -106.74% | 476.46% | -125.61% | -113.46% | -40.42% | -3.79% | 26.78% | 33.82% | 177.77% | -55.79% | -23.43% | 2.78% | 52.88% | 130.29% | 2827.41% | -75.61% | -71.86% | -55.97% | 75.28% | 92.29% | -57.71% | 20.19% | 16.14% | 639.8% |
| Net Income (Continuing) | -368.5M | -159.95M | 344.17M | 434.1M | 6.95M | -326.15M | -496.39M | -32.51M | 493.01M | -127.86M | -52.99M | 420.47M | 706.61M | 721.45M | 573.61M | 434.67M | 286.08M | 380.55M | 461.74M | 449.26M | 293.86M | 127.61M | 4.36M | 17.87M | 53.71M | 80.47M | 36.47M | 42.79M | 101.2M | 84.2M | 45.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 401K | 11.31M | 1.9M | 0 | 0 | 0 | 0 | 0 | -47K | 15.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 101.08M | 104.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.76 | -1.66 | 3.43 | 4.16 | 0.05 | -3.04 | -4.60 | -0.30 | 4.41 | -1.18 | -0.53 | 3.87 | 6.46 | 6.79 | 5.34 | 3.99 | 0.77 | 3.32 | 4.34 | 4.27 | 2.77 | 1.23 | 0.05 | 0.09 | 0.27 | 0.79 | 0.82 | 0.43 | 1.00 | 0.21 | 0.18 |
| EPS Growth % | -273.19% | -148.4% | -17.55% | 8040.9% | 101.68% | 33.91% | -1433.33% | -106.8% | 473.73% | -122.64% | -113.7% | -40.09% | -4.86% | 27.15% | 33.83% | 418.18% | -76.81% | -23.5% | 1.64% | 54.15% | 125.2% | 2633.33% | -50% | -66.67% | -65.82% | -3.66% | 90.7% | -57% | 376.19% | 16.67% | 620% |
| EPS (Basic) | - | -1.66 | 3.43 | 4.18 | 0.05 | -3.04 | -4.60 | -0.30 | 4.43 | -1.19 | -0.53 | 3.90 | 6.54 | 6.89 | 5.42 | 4.06 | 1.47 | 3.36 | 4.43 | 4.35 | 2.81 | 1.23 | 0.05 | 0.09 | 0.27 | 0.81 | 0.83 | 0.44 | 1.01 | 0.21 | 0.18 |
| Diluted Shares Outstanding | 99.88M | 99.27M | 99.07M | 102.85M | 106.56M | 107.82M | 108.01M | 109.22M | 109.39M | 108.5M | 108M | 108.57M | 109.14M | 107.88M | 108.38M | 108.63M | 107.45M | 106.65M | 106.42M | 105.13M | 106.09M | 103.65M | 101.67M | 101.13M | 100.61M | 101.88M | 100.07M | 99.63M | 101.13M | 98.77M | 98.77M |
| Basic Shares Outstanding | 99.88M | 99.27M | 98.86M | 102.45M | 105.89M | 107.82M | 108.01M | 109.22M | 108.85M | 108.06M | 108M | 107.75M | 107.8M | 106.29M | 106.82M | 106.64M | 105.81M | 105.36M | 104.28M | 103.34M | 104.66M | 103.65M | 100.62M | 100.03M | 99.59M | 100.32M | 99.07M | 98.49M | 99.9M | 98.77M | 98.77M |
| Dividend Payout Ratio | - | - | 48.95% | 46.41% | 1544.59% | - | - | - | 63.9% | - | - | 70.67% | 37.3% | 12.63% | 5.17% | 6.16% | 14.24% | 5.97% | 4.19% | 4.15% | 6.03% | 13.22% | 372.15% | 89.67% | 23.96% | 10.43% | 17.22% | 32.24% | 13.64% | 15.44% | 17.24% |
Margin compression from inflation
As reported in recent financial filings, Helmerich & Payne experienced a notable revenue contraction of 8.2% in 2026Q2, marking a sharp reversal from the 50.2% growth observed in 2026Q1, which suggests that the company's top-line trajectory remains highly sensitive to fluctuating demand within the North American drilling market.
The erratic revenue performance indicates that the company is struggling to maintain consistent activity levels despite its high-spec fleet advantage. Investors should monitor whether this volatility reflects a broader cooling in E&P capital expenditure budgets or specific challenges in securing long-term, high-margin contracts.
Based on the provided income statement data, gross margins have deteriorated significantly from 26.6% in 2024Q1 to a mere 7.0% by 2026Q2, indicating that the company is facing substantial difficulty in passing through rising operational costs to its customers in the current energy environment.
This compression suggests that the high fixed-cost nature of the FlexRig fleet is becoming a liability during periods of lower utilization. The inability to maintain historical margin levels implies that the company's pricing power may be weaker than previously anticipated by the market.
According to the latest quarterly results, operating income swung to a loss of $12.4 million in 2026Q2, a stark contrast to the $123.5 million profit reported in 2024Q1, which highlights how the company's high operating leverage is currently amplifying the impact of declining revenue on bottom-line performance.
The rapid transition from profitability to operating losses suggests that SG&A and direct operating expenses are not scaling down in proportion to the revenue decline. This lack of cost flexibility warrants further investigation into the company's ability to manage its rig-site labor and maintenance overhead during downturns.
Financial statements reveal that Helmerich & Payne reported a net loss of $58.6 million in 2026Q2, despite maintaining significant revenue levels, which suggests that non-operating items or heavy depreciation charges are masking the underlying cash-generative potential of the core drilling business for the average equity investor.
The persistent net losses, coupled with recurring stock-based compensation expenses, raise questions regarding the quality of earnings and the sustainability of current capital allocation strategies. Investors should be cautious of relying on headline net income figures given the potential for non-cash charges to distort the true operational health.
While bulls often point to the company's technological moat, the recent data shows a negative net margin of 6.3% in 2026Q2, which challenges the narrative that Helmerich & Payne can consistently command premium pricing through its automated rig fleet in a competitive and inflationary energy services landscape.
Short-sellers may focus on the company's inability to achieve profitability despite its technological differentiation, suggesting that the market may be overvaluing the 'software-like' potential of its drilling services. The ongoing margin compression may indicate that the company is essentially a commodity provider with high-cost, capital-intensive assets.
Quick answers to the most common questions about buying HP stock.
For fiscal year 2025, Helmerich & Payne, Inc. (HP) reported total revenue of $3.75B. This represents a 866.7% increase compared to $387.5M in 1996.
Helmerich & Payne, Inc. (HP) reported a net loss of $165.1M for the fiscal year ending 2025.
Helmerich & Payne, Inc. (HP) reported an operating income of $232.3M, resulting in an operating profit margin of 6.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Helmerich & Payne, Inc. (HP) generated $553.5M in gross profit for the year, representing a gross profit margin of 14.8%. This demonstrates the company's core pricing power and production efficiency.