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HP

Helmerich & Payne, Inc.

Energy • CIK: 0000046765

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Market Cap
$2.85B
P/E (TTM)
-9.0x
Rev Growth (TTM)
+48.2%
Net Margin (TTM)
-7.7%
FCF Yield (TTM)
6.3%
FCF Margin (TTM)
4.4%

LATEST EARNINGS

Q1 2026
30 days ago
View source
Revenue
$1.02B
+50.2%
Net Income
$-96.71M
-276.2%
EPS
$-0.98
-281.5%
Operating
-5.9% -19.3%
Net
-9.5% -17.6%
  • North America Solutions (NAS) reported operating income of $36 million, with direct margins of $239 million, demonstrating strong, sector-leading margin performance.
  • International Solutions (IS) operating loss improved to $(55) million from $(76) million in the prior quarter, exceeding guidance midpoint expectations.
  • Consolidated adjusted EBITDA totaled $230 million.
  • The company repaid $260 million on its $400 million term loan and expects full repayment by the end of Q3 2026.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$180M
Q '26
$115M-20%
Q4 '25
$143M+481%
FCF Margin
TTM4.4%
Q '2611.3%-20%
Sector: 7.7%Below Avg
OCF Margin13.9%
OCF/NI-1.80x
CapEx Coverage1.5x
FCF Yield6.3%
FCF Growth (2Y)+14%
Cash Conversion Cycle
385 days
DSO: 65+DIO: 1274DPO: 954

Capital Allocation & Returns

Balanced
Total Shareholder Yield
TTM2.6%
Div Yield2.6%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)2.6%
FCF Payout Ratio41.5%
Free Cash Flow (TTM)$179.6M
Stock Repurchases ()$0
Capital Return / FCF56.2%
Est. Dividends Paid (TTM)$74.6M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
-10.2%
Moderate
-13.6%
P25MedianP75
25th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
-4.8%
8Q: 4.9%
Asset Turnover
0.61x
8Q: 0.61x
Leverage (1+D/E)
Asset & CapEx Efficiency
Fixed Asset Turn
0.98x
8Q:0.93x
+4.4%
Invested Cap Turn
2.14x
8Q:1.39x
+136.8%
CapEx Intensity
20.2%
8Q:16.7%
CapEx/Depreciation
0.55x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$4.1B
$1.0B0.5%
$1.0B2.8%
$1.0B2.4%
$1.0B50.0%
$677.3M2.4%
$693.8M0.6%
$697.7M1.4%
$687.9M
Operating Income
$-147.5M
$-59.9M3997.9%
$-1.5M98.9%
$-128.3M404.2%
$42.2M53.6%
$90.9M15.5%
$107.6M5.2%
$113.5M2.1%
$111.2M
Net Income
$-238.9M
$-96.7M613.1%
$18.8M111.6%
$-162.8M9590.3%
$1.7M96.9%
$54.8M59.0%
$133.5M186.0%
$46.7M35.2%
$72.0M
Operating Cash Flow
$567.0M
$182.4M11.8%
$206.9M70.2%
$121.6M117.0%
$56.0M64.6%
$158.4M6.2%
$168.8M14.5%
$197.4M37.3%
$143.7M
Free Cash Flow
$179.6M
$114.9M19.6%
$142.8M480.6%
$24.6M124.0%
$-102.7M298.0%
$51.9M17.4%
$62.8M0.4%
$63.0M147.9%
$25.4M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
-9.0x
Valuation Lenses
Earnings
-9.0x
vs sector
Cash Flow
22.1x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
P/E per %ROIC
ROIC: -10.2%
Shareholder Returns
Dividend
2.6%
Buyback
Total Yield
2.6%
Market Cap$2.85B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
-1/100
Below Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)
8Q:
Return on Invested Capital (ROIC)Below Avg
-10.2%
8Q:
-13.6%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: -4.8%
Asset Turnover: 0.61x

Earnings Quality

Cash Conversion

-1.80x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin97.9%

Capital Efficiency

Invested Capital Turnover2.14x

Working Capital

Cash Conversion Cycle385 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
77/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
48.2%
OpInc Growth YoY
-165.9%
EPS Growth YoY
N/A
FCF 3Y CAGR
14.3%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 33.9%
Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
97.9%
Operating
-3.6%
Below Avg in sector
Net
-7.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+12.1 pts
FCF: 4.4% | Net: -7.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Net Debt / EBITDA
Net Debt: $1.73B
Interest Coverage
Leverage Metrics
Debt-to-Equity
x
Balance sheet risk & solvency analysis