Helmerich and Payne Inc (NYSE:HP) stock fell 3.98% (As on November 18, 11:21:35 AM UTC-4, Source: Google Finance) after the company reported an unexpected fourth-quarter loss, overshadowing better-than-expected revenue. Fiscal 2025 was a historic year for H&P, as the company grew the global drilling footprint to over 200 operating rigs, surpassed over $1 billion of direct margins in the North American Solutions business, welcomed the talented team from KCA Deutag, and established new relationships with a diverse set of global customers. The North America Solutions segment reported operating income of $118 million during the quarter, down from $158 million in the prior quarter. The segment realized direct margins of $242 million, yielding $18,620 per day. Meanwhile, the International Solutions segment posted an operating loss of $75 million, though this marked an improvement from the previous quarter’s $167 million loss.

Meanwhile, the Company has repaid $210 million on its existing $400 million term loan as of the end of October, up from prior expectations of $200 million by the end of calendar year 2025. The Company now expects to repay the entire term loan by the end of the third fiscal quarter of 2026.

HP posted an adjusted loss of $0.01 per share for the quarter ended September 30, 2025, missing analyst expectations of $0.21 in earnings. The disappointing bottom-line results included $56 million in non-recurring charges that contributed to a consolidated net loss of $57 million, or $0.58 per share. The company had reported the adjusted revenue of $1.01 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $968.58 million. The Company realized consolidated adjusted EBITDA of $225 million.

Looking ahead, Helmerich & Payne expects gross capital expenditures between $280 million and $320 million for fiscal 2026, representing a reduction from 2025 spending. Investments related to NAS operations is expected to be of between $40 million and $60 million and Maintenance and reactivation-related capital across the Company’s global fleet of operating drilling rigs of approximately between $230 million and $250 million, which includes all capital associated with the newly announced reactivation of rigs in Saudi Arabia. Ongoing asset sales are expected to total approximately $40 million in fiscal year 2026.

For the first quarter of fiscal 2026, the company expects direct margins between $225 million and $250 million in North America Solutions, with an average rig count of approximately 138 to 144 contracted rigs.