Does Reactivation of Saudi Rigs Signal a Turning Point for Helmerich & Payne (HP)?

• Helmerich & Payne, Inc. recently reported its fourth quarter and full-year financial results for 2025, showing a year-over-year increase in revenue to US$1.01 billion for the quarter and US$3.75 billion for the year, but a shift from net income to net losses over both periods.
• Additionally, the company announced the staged recommencement of operations for seven land rigs in Saudi Arabia during the first half of 2026, an important step in expanding its presence in the Middle East amid strengthening regional demand for advanced drilling solutions.
• We'll examine how the reactivation of rigs in Saudi Arabia could influence Helmerich & Payne's investment narrative and international growth outlook.

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Helmerich & Payne Investment Narrative Recap

To be a shareholder in Helmerich & Payne, you need to believe in its transition toward international diversification and capturing demand in regions like the Middle East, offsetting the current earnings volatility and losses seen in its latest results. The recent recommencement of seven rigs in Saudi Arabia enhances the company's international growth outlook but does not eliminate the short-term risk of overcapacity and reduced demand in North America, which continues to pressure margins and utilization rates.

Among recent announcements, the staged reactivation of Saudi rigs stands out as the most relevant to today's investment narrative. This operational push reinforces the importance of expanding beyond North America to capture more stable long-term rig contracts in growth regions, directly linking to the company's catalysts around international expansion and demand visibility.

However, investors should be aware that despite these global operations, persistent industry overcapacity and weak North American demand could still...

Read the full narrative on Helmerich & Payne (it's free!)

Helmerich & Payne's outlook anticipates $3.9 billion in revenue and $276.0 million in earnings by 2028. This reflects a projected 4.3% annual revenue growth and a $309.0 million earnings improvement from current earnings of -$33.0 million.

Uncover how Helmerich & Payne's forecasts yield a $24.00 fair value, a 10% downside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range widely from US$23.67 to US$61.60 across 5 individual perspectives. While some see opportunity, others remain cautious given the ongoing risk of overcapacity and industry margin pressure.

Explore 5 other fair value estimates on Helmerich & Payne - why the stock might be worth 11% less than the current price!

Build Your Own Helmerich & Payne Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Helmerich & Payne research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Helmerich & Payne research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Helmerich & Payne's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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