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Helmerich & Payne, Inc. ("H&P," which, together with its subsidiaries, is identified as the Company, we, us or our, except where stated or the context requires otherwise) was incorporated under the laws of the State of Delaware on February 3, 1940 and is successor to a business originally organized in 1920. We provide performance-driven drilling solutions and technologies that are intended to m…
Operating margin is thin at 0.09%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 35.9%, still solid. Margins contracted 16.5pp, which offsets some of the top-line progress.
Free cash flow declined 39% versus the prior year, cash generation momentum has weakened. ROIC dropped from 7.87% to 0.05%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$4.00B
▲ +35.9% YoY
Net Income (TTM)
-$377M
▼ -147.6% YoY
Op. Margin
-5.66%
▼ -16.5pp YoY
ROIC
-3.65%
▼ -7.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$256M
▼ -38.5% YoY
Op. Cash Flow (TTM)
$548M
▼ -20.7% YoY
Net Debt
$1.80B
Cash & Equiv.
$199M
5Y CAGR: +16.1%
5Y CAGR: -21.8%
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