Helmerich & Payne (HP) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 12:47 PM CDT 38 min read

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Date

May 7, 2026 astatine 11:00 a.m. ET

Call participants

• President and CEO — Raymond John Adams

• Chief Financial Officer — J. Kevin Vann

• Incoming Chief Financial Officer — Todd Scruggs

• Executive Vice President, Western Hemisphere — Michael P. Lennox

Full Conference Call Transcript

Raymond John Adams, our President and CEO, volition beryllium joined by J. Kevin Vann, Chief Financial Officer, Todd Scruggs, incoming CFO, and Michael P. Lennox, Executive Vice President of the Western Hemisphere. Before we statesman our prepared remarks, I would similar to punctual everyone that this telephone volition see forward-looking statements arsenic defined nether securities laws. Although absorption believes that expectations reflected successful specified forward-looking statements are reasonable, it tin springiness nary assurance that expectations volition beryllium to beryllium correct. Please notation to our filings with the SEC for a database of factors that whitethorn origin results to disagree materially from those successful the forward-looking statements made during this call.

Adjusted EBITDA, nonstop margin, adjusted EPS, and escaped currency travel are non-GAAP measures. The astir straight comparable GAAP measures and reconciliations are included successful our net merchandise and capitalist materials connected our Investor Relations website. I besides privation to item that we person a presumption that supports the prepared remarks from the absorption squad and tin beryllium recovered connected the IR website. With that, I volition crook the telephone implicit to Raymond. Thank you.

Raymond John Adams: Hello, everyone. Thank you for joining us. As always, we admit your involvement successful Helmerich & Payne, Inc. I volition statesman with an overview of our fiscal 2nd 4th results. I volition past sermon the broader macro environment, existent dynamics successful the rig market, and respective cardinal commercialized developments, including a circumstantial update connected our NASS concern segment. J. Kevin Vann volition past locomotion done our fiscal results and supply guidance for the 3rd 4th and afloat fiscal year. To wrapper up, I volition instrumentality to summarize cardinal takeaways earlier we unfastened the enactment for questions. Turning to descent 4 of the presentation, execution remains strong, starring to coagulated operational performance.

Adjusted EBITDA for the play was $178 million, which aligned with the little extremity to midpoint of our implied guidance. This was chiefly led by impacts of the struggle successful the Middle East. Specifically, during the quarter, we were capable to utilize our in-house engineering and aftermarket capabilities to reactivate rigs successful Saudi Arabia, leveraging in-country instrumentality and circumventing proviso concatenation constraints. This determination enhances returns and importantly avoided delays for our customers; however, it did pb to much costs being classified arsenic OpEx, which impacted our nonstop margins. While these dynamics are important, our apical precedence passim the 4th was our people. I americium pleased to study that our teams remained focused and safe.