Financial Analysis

"NOTE 3 BUSINESS COMBINATION On January 16, 2025 (the Closing Date or ""Acquisition Date""), H&P and certain of its wholly owned subsidiaries completed the previously announced agreement to acquire KCA Deutag. Upon closing, H&P paid aggregate cash consideration of approximately $2.0 billion, which consisted of the share purchase price of $0.9 billion and $1.1 billion which was used to contemporaneously repay or redeem certain of KCA Deutag's existing debt, including, as applicable, the payment of all accrued and unpaid interest, premiums, and fees. Of the $0.9 billion, approximately $80.0 million was deposited into a customary escrow on the Closing Date pending the resolution of certain potential tax obligations of KCA Deutag. In May 2025, these escrowed funds were subsequently released to the shareholders following a determination that KCA Deutag would not be liable for the identified obligations. As part of this release, H&P received approximately $5.2 million, primarily attributable to favorable movements in the euro foreign exchange rate since the Closing Date. This amount is reported within Foreign currency exchange loss in our Consolidated Statements of Operations for the year ended September 30, 2025. To finance the purchase price and to pay related fees and expenses, we completed a private offering of $1.25 billion aggregate principal amount of senior notes, together with the proceeds of a term loan credit agreement, cash on hand, and monetization of our i …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 16 COMMITMENTS AND CONTINGENCIES Purchase Commitments Equipment, parts and supplies are ordered in advance to promote efficient construction and capital improvement progress. At September 30, 2025, we had purchase commitments for equipment, parts and supplies of approximately $124.8 million. Of the $124.8 million total purchase commitments for equipment, parts and supplies, $56.0 million is attributable to our recently acquired subsidiary, KCA Deutag. Lease Obligations Refer to Note 5Leases for additional information on our lease obligations. Guarantee Arrangements We are contingently liable to sureties in respect of bonds issued by the sureties in connection with certain commitments entered into by us in the normal course of business. We have agreed to indemnify the sureties for any payments made by them in respect of such bonds. Contingencies During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain or loss contingency. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies, and, therefore, we do not record gain contingencies or recognize income until realized. The property and equipment of our Venezuelan subsidiary was seized by the Venezuelan government on June 30, 2010. Our wholly-owned subsidiaries, Helmerich & Payne International Drilling Co. (""HPIDC""), and Helmerich & Payn …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 7 DEBT We have the following long-term debt outstanding with maturities shown in the following table: September 30, 2025 September 30, 2024 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Discount and Debt Issuance Cost Book Value Unsecured senior notes: Due December 1, 2027 $ 350,000 $ (2,326) $ 347,674 $ 350,000 $ (2,907) $ 347,093 Due December 1, 2029 350,000 (3,398) 346,602 350,000 (3,703) 346,297 Due September 29, 2031 550,000 (3,664) 546,336 550,000 (4,262) 545,738 Due December 1, 2034 550,000 (6,803) 543,197 550,000 (6,946) 543,054 Total unsecured senior notes $ 1,800,000 $ (16,191) $ 1,783,809 $ 1,800,000 $ (17,818) $ 1,782,182 Unsecured term loan credit agreement: Due January 15, 2027 200,000 (980) 199,020 Secured term loan credit agreements: Due December 31, 2033 39,789 (888) 38,901 Due December 31, 2034 43,091 (878) 42,213 Total secured term loan credit agreements $ 82,880 $ (1,766) $ 81,114 $ $ $ Total debt $ 2,082,880 $ (18,937) $ 2,063,943 $ 1,800,000 $ (17,818) $ 1,782,182 Less: current portion of long-term debt (6,859) (6,859) Total long-term debt, net $ 2,076,021 $ (18,937) $ 2,057,084 $ 1,800,000 $ (17,818) $ 1,782,182 The principal amount and maturities of our long-term debt as of September 30, 2025 are summarized in the table below (in thousands): Fiscal Year Amount 2026 $ 6,859 2027 206,859 2028 356,860 2029 8,577 2030 360,862 Thereafter 1,142,863 Total $ 2,082,880 Senior Notes Issued in Fisc …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 11 STOCK-BASED COMPENSATION The Helmerich & Payne, Inc. 2024 Omnibus Incentive Plan (the 2024 Plan) approved by our stockholders is a stock and cash-based incentive plan that, among other things, authorizes the Board or Human Resources Committee of the Board to grant executive officers, employees and non-employee directors stock options, stock appreciation rights, restricted shares and restricted share units (including performance share units), share bonuses, other share-based awards and cash awards. Restricted stock may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than market price of the underlying stock on the date of grant. Stock options expire ten years after the grant date. The 2024 Plan governs all of our stock-based awards granted on or after February 27, 2024. Awards outstanding under the Helmerich & Payne, Inc. 2010 Long-Term Incentive Plan, the Helmerich & Payne, Inc. 2016 Omnibus Incentive Plan and the Helmerich & Payne, Inc. Amended and Restated 2020 Omnibus Incentive Plan (the ""2020 Plan"") remain subject to the terms and conditions of those plans. Beginning with fiscal year 2019, we replaced stock options with performance share units as a component of our executives' long-term equity incentive compensation. As a result, no stock options were granted after the 2018 fiscal year. We have also eliminated stock options as an element of our non-employee dire …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"NOTE 13 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS We have certain assets and liabilities that are required to be measured and disclosed at fair value. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use the following fair value hierarchy established in ASC 820-10 to measure fair value to prioritize the inputs: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Refer …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"NOTE 6 GOODWILL AND INTANGIBLE ASSETS Due to the Acquisition, we recognized increases to our goodwill and intangible assets balances as of September 30, 2025. The goodwill and intangible assets recognized as a result of the Acquisition are considered final as of September 30, 2025. During the fiscal year ended September 30, 2025, goodwill increased by $15.8 million due to certain measurement period adjustments which primarily consisted of a $17.4 million increase resulting from the finalization of deferred tax liabilities and a $4.0 million decrease resulting from the refinement of the fair value calculation of the inventory and intangible asset balances. For additional information regarding the completion of the Acquisition, refer to Note 3Business Combination. Goodwill Goodwill represents the excess of the purchase price over the fair values of the assets acquired and liabilities assumed in a business combination, at the date of acquisition. Goodwill is not amortized but is tested for potential impairment at the reporting unit level, at a minimum on an annual basis in the fourth fiscal quarter, or when indications of potential impairment exist. Our reporting units with goodwill are H&P Technologies (within our North America Solutions segment), International Solutions, Offshore Solutions, and BENTEC (within Other). During the third fiscal quarter of 2025, due primarily to the sustained decline in our share price and market capitalization, we identified indicators of pot …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 8 INCOME TAXES Income Tax Provision and Rate The components of the provision for income taxes are as follows: Year Ended September 30, (in thousands) 2025 2024 2023 Current: Federal $ 114,973 $ 136,110 $ 150,273 Foreign 35,588 7,756 12,883 State 13,935 16,180 16,523 164,496 160,046 179,679 Deferred: Federal (44,564) (18,785) (20,337) Foreign (30,174) (2,102) (1,254) State (3,923) (2,304) 1,191 (78,661) (23,191) (20,400) Total provision $ 85,835 $ 136,855 $ 159,279 The amounts of domestic and foreign income (loss) before income taxes are as follows: Year Ended September 30, (in thousands) 2025 2024 2023 Domestic $ 339,966 $ 433,553 $ 584,891 Foreign (414,079) 47,467 8,488 $ (74,113) $ 481,020 $ 593,379 The reconciliation of our effective income tax rates to the U.S. Federal income tax rate is as follows: Year Ended September 30, 2025 2024 2023 U.S. Federal income tax rate 21.0 % 21.0 % 21.0 % Effect of foreign taxes (54.6) 1.3 2.1 State income taxes, net of federal tax benefit (9.6) 2.2 2.4 Other impact of foreign operations (15.8) 1.7 0.2 Non-deductible meals and entertainment (5.6) 0.9 0.6 Equity compensation (0.6) (0.1) (0.1) Excess officer's compensation (4.8) 0.8 0.4 Goodwill impairment (54.6) Other 8.8 0.7 0.2 Effective income tax rate (115.8) % 28.5 % 26.8 % Deferred Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Recoverability of any tax assets are evalua …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 5 LEASES Lease Position (in thousands) September 30, 2025 September 30, 2024 Operating lease commitments, including probable extensions 1 $ 158,086 $ 104,535 Discounted using the lessee's incremental borrowing rate $ 147,581 $ 77,316 (Less): short-term leases recognized on a straight-line basis as expense (864) (404) (Less): other (637) (182) Lease liability recognized $ 146,080 $ 76,730 Of which: Current lease liabilities $ 35,960 $ 16,997 Non-current lease liabilities 110,120 59,733 (1) Our future minimal rental payments exclude optional extensions that have not been exercised but are probable to be exercised in the future. Those probable extensions are included in the operating lease liability balance. The recognized right-of-use assets relate to the following types of assets: (in thousands) September 30, 2025 September 30, 2024 Real estate properties $ 113,877 $ 66,842 Drilling equipment 9,721 234 Total right-of-use assets $ 123,598 $ 67,076 Lease Costs The following table presents certain information related to the lease costs for our operating leases: Year ended September 30, (in thousands) 2025 2024 2023 Operating lease cost $ 30,795 $ 11,693 $ 11,004 Short-term lease cost 25,795 1,567 1,437 Total lease cost $ 56,590 $ 13,260 $ 12,441 Lease Terms and Discount Rates The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases: September 30, 2025 September 30, 2024 Wei …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Updates Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (""ASUs"") to the FASB Accounting Standards Codification (""ASC""). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable, clarifications of ASUs listed below, immaterial, or already adopted by the Company. The following table provides a brief description of recently adopted accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Recently Adopted Accounting Pronouncements ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update enhance annual and interim disclosure requirements, determine significant segment expense, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This update is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Septem …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"NOTE 14 EMPLOYEE BENEFIT PLANS U.S. Pension Plan We maintain a domestic noncontributory defined benefit pension plan covering certain U.S. employees who meet certain age and service requirements. In July 2003, we revised the Helmerich & Payne, Inc. Employee Retirement Plan (U.S. Plan) to close the plan to new participants effective October 1, 2003, and to reduce benefit accruals for existing participants through September 30, 2006. On that date, all benefit accruals were discontinued and the plan was frozen. The following table provides a reconciliation of the changes in the pension benefit obligations and fair value of the U.S. Plan assets over the two-year period ended September 30, 2025 and a statement of the funded status as of September 30, 2025 and 2024: September 30, (in thousands) 2025 2024 Accumulated benefit obligation $ 50,127 $ 57,154 Changes in projected benefit obligations: Projected benefit obligation at beginning of year $ 57,154 $ 54,646 Interest cost 2,584 3,009 Actuarial loss (gain) (3,404) 2,885 Benefits paid (6,207) (3,386) Projected benefit obligation at end of year $ 50,127 $ 57,154 Change in plan assets: Fair value of plan assets at beginning of year $ 53,521 $ 43,780 Actual return on plan assets 1,236 7,127 Employer contribution 6,000 Benefits paid (6,207) (3,386) Fair value of plan assets at end of year $ 48,550 $ 53,521 Funded status of the plan at end of year $ (1,577) $ (3,633) Fluctuations in actuarial gains and losses during the period are …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 18 RESTRUCTURING CHARGES Beginning in the third quarter of fiscal year 2025, we initiated a workforce reduction plan to help improve operating margins by reducing direct and indirect support costs. As a result, during the fiscal year ended September 30, 2025, we incurred costs of approximately $12.1 million, primarily related to one-time severance payments to involuntarily terminated employees. These expenses are recorded within Restructuring charges on our Consolidated Statements of Operations

RestructuringAndRelatedActivitiesDisclosureTextBlock

NOTE 10 REVENUE FROM CONTRACTS WITH CUSTOMERS Drilling Services Revenue The majority of our drilling services are performed on a daywork contract basis, under which we charge a rate per day, with the price determined by the location, depth and complexity of the well to be drilled, operating conditions, the duration of the contract, and the competitive forces of the market. These drilling services, including our technology solutions, represent a series of distinct daily services that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period and our efforts in providing drilling services are incurred relatively evenly over the period of performance, revenue is recognized over time using a time-based input measure as we provide services to the customer. For any contracts that include a provision for pooled term days at contract inception, followed by the assignment of days to specific rigs throughout the contract term, we have elected, as a practical expedient, to recognize revenue in the amount for which the entity has a right to invoice, as permitted by ASC 606. Performance-based contracts are contracts pursuant to which we are compensated partly based upon our performance against a mutually agreed upon set of predetermined targets. These types of contracts typically have a lower base dayrate, but give us the opportunity to receive additional compensation by meeting or exceeding certain pe …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"NOTE 17 BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION Description of the Business During the second quarter of fiscal year 2025, the naming convention for one of our reportable segments changed from Offshore Gulf of Mexico to Offshore Solutions. Beginning on the Closing Date, Offshore Solutions now includes the results from the acquired KCA Deutag offshore management contract operations. Similarly, our International Solutions segment now includes the results from the acquired KCA Deutag land operations. Operating results related to KCA Deutag's BENTEC business unit are included in ""Other"" along with results from our real estate operations and our wholly-owned captive insurance companies. Our North America Solutions operating segment remains unchanged. For additional information regarding the completion of the Acquisition, refer to Note 3Business Combination. We are a performance-driven drilling solutions and technologies company based in Tulsa, Oklahoma with operations in all major U.S. onshore oil and gas producing basins as well as the Middle East, Europe, Latin America, and Australia. Our drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. We believe we are the recognized industry leader in drilling as well as technological innovation. We focus on offering our customers an integrated solutions-based approach by combining proprietary rig technology, automation software, and digital expert …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 9 SHAREHOLDERS EQUITY The Company has an evergreen authorization from the Board of Directors for the repurchase of up to four million common shares in any calendar year. The repurchases may be made using our cash and cash equivalents or other available sources and are held as treasury shares on our Consolidated Balance Sheets. We did not make any share repurchases during the fiscal year ended September 30, 2025. During the fiscal years ended September 30, 2024 and 2023, we repurchased 1.4 million and 6.5 million common shares at an aggregate cost of $51.6 million and $249.0 million, including excise tax of $0.3 million and $1.8 million, respectively. A cash dividend of $0.25 per share was declared on September 9, 2025 for shareholders of record on November 18, 2025, payable on December 2, 2025. As a result, we recorded a Dividend Payable of $25.2 million on our Consolidated Balance Sheets as of September 30, 2025. Accumulated Other Comprehensive Income (Loss) Components of accumulated other comprehensive income (loss) were as follows: September 30, (in thousands) 2025 2024 2023 Pre-tax amounts: Unrealized pension actuarial gain (loss) on defined benefit pension plans $ 3,336 $ (7,632) $ (10,407) Unrealized gain (loss) on available-for-sale debt security 383 (662) Unrealized gain on foreign currency translation adjustment 45,682 $ 49,401 $ (8,294) $ (10,407) After-tax amounts: Unrealized pension actuarial gain (loss) on defined benefit pension plans $ 4,470 $ (5,838) $ (7 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 19 SUBSEQUENT EVENTS Subsequent to September 30, 2025, we committed to a plan to scrap 30 rigs and auxiliary equipment within our North America Solutions segment and three rigs within our Offshore Solutions segment as part of our strategy to right size our fleet and reduce expenses. Of the 30 North America Solutions rigs, 10 were previously decommissioned. In accordance with ASC 360, Property, Plant and Equipment, these assets will be classified as held-for-sale until disposal. We will continue to assess these assets for potential impairment until they are disposed of. Based on our preliminary assessment, we expect to record an impairment charge ranging from $90.0 million and $110.0 million during the three months ended December 31, 2025. Subsequent to September 30, 2025, we received notifications for seven rigs to resume operations in Saudi Arabia during the first half of calendar year 2026. With the rig resumptions, the total operating rig count in country will increase to 24 total rigs by the middle of calendar year 2026.

SubsequentEventsTextBlock

"NOTE 11 COMMITMENTS AND CONTINGENCIES Purchase Commitments Equipment, parts, and supplies are ordered in advance to promote efficient construction and capital improvement progress. At December 31, 2025, we had outstanding purchase commitments for equipment, parts and supplies of approximately $160.2 million. Guarantee Arrangements We are contingently liable to sureties in respect of bonds issued by the sureties in connection with certain commitments entered into by us in the normal course of business. We have agreed to indemnify the sureties for any payments made by them in respect of such bonds. Contingencies During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain or loss contingency. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies, and, therefore, we do not record gain contingencies or recognize income until realized. The property and equipment of our Venezuelan subsidiary was seized by the Venezuelan government on June 30, 2010. Our wholly-owned subsidiaries, Helmerich & Payne International Drilling Co. (""HPIDC""), and Helmerich & Payne de Venezuela, C.A. filed a lawsuit in the United States District Court for the District of Columbia on September 23, 2011 against the Bolivarian Republic of Venezuela, Petroleos de Venezuela, S.A. and PDVSA Petroleo, S.A., seeking damages for …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 5 DEBT As of December 31, 2025 and September 30, 2025, we have the following long-term debt outstanding with maturity shown in the following table: December 31, 2025 September 30, 2025 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Discount and Debt Issuance Cost Book Value Unsecured senior notes: Due December 1, 2027 $ 350,000 $ (2,071) $ 347,929 $ 350,000 $ (2,326) $ 347,674 Due December 1, 2029 350,000 (3,215) 346,785 350,000 (3,398) 346,602 Due September 29, 2031 550,000 (3,513) 546,487 550,000 (3,664) 546,336 Due December 1, 2034 550,000 (6,661) 543,339 550,000 (6,803) 543,197 Total unsecured senior notes $ 1,800,000 $ (15,460) $ 1,784,540 $ 1,800,000 $ (16,191) $ 1,783,809 Unsecured term loan credit agreement: Due January 15, 2027 170,000 (789) 169,211 200,000 (980) 199,020 Secured term loan credit agreements: Due December 31, 2033 38,930 (861) 38,069 39,789 (888) 38,901 Due December 31, 2034 42,235 (882) 41,353 43,091 (878) 42,213 Total secured term loan credit agreements $ 81,165 $ (1,743) $ 79,422 $ 82,880 $ (1,766) $ 81,114 Total debt $ 2,051,165 $ (17,992) $ 2,033,173 $ 2,082,880 $ (18,937) $ 2,063,943 Less: current portion of long-term debt (6,859) (6,859) (6,859) (6,859) Total long-term debt, net $ 2,044,306 $ (17,992) $ 2,026,314 $ 2,076,021 $ (18,937) $ 2,057,084 Senior Notes Issued in Fiscal Year 2024 On September 17, 2024, we completed a private offering of $1.25 billion aggregate principal amou …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 10 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS We have certain assets and liabilities that are required to be measured and disclosed at fair value. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use the following fair value hierarchy established in ASC 820-10 to measure fair value to prioritize the inputs: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair V …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"NOTE 4 GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair values of the assets acquired and liabilities assumed in a business combination, at the date of acquisition. Goodwill is not amortized but is tested for potential impairment at the reporting unit level, at a minimum on an annual basis in the fourth fiscal quarter, or when indications of potential impairment exist. Our reporting units with goodwill are H&P Technologies (within our North America Solutions segment) and Offshore Solutions. The following table sets forth our goodwill balance by segment for the periods indicated: (in thousands) North America Solutions Offshore Solutions Total Goodwill balance at September 30, 2025 $ 45,653 $ 137,201 $ 182,854 Foreign currency translation adjustment (278) (278) Goodwill balance at December 31, 2025 $ 45,653 $ 136,923 $ 182,576 Indefinite-lived Intangible After initial recognition, in-process research and development (""IPR&D"") assets are considered indefinite-lived until the abandonment or completion of the associated research and development effort. Acquired IPR&D is not amortized, but is subject to an annual impairment assessment. Included in Intangible assets, net, on our Unaudited Condensed Consolidated Balance Sheets as of December 31, 2025 and September 30, 2025 was $1.6 million and $3.2 million, of IPR&D, respectively. During the three months ended December 31, 2025, we recorded a non-cash impair …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 6 INCOME TAXES We use an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating our estimated annual effective tax rate, we consider forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to the forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. Our income tax expense for the three months ended December 31, 2025 and 2024 was $11.2 million and $21.6 million, respectively, resulting in effective tax rates of (13.4) percent and 28.3 percent, respectively. Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent for the three months ended December 31, 2025, primarily due to permanent non-deductible items, foreign losses for which no tax benefit has been recognized, state and foreign income taxes, and discrete adjustments. The discrete adjustments are primarily due to tax expense of $4.3 million related to equity compensation and unrecognized tax benefits. Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent for the three months ended December 31, 2024 primarily due to state and foreign income taxes, permanent non-deductible items, and discrete adjustments. The discrete adjustments are primar …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Updates Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (""ASUs"") to the FASB Accounting Standards Codification (""ASC""). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable, clarifications of ASUs listed below, immaterial, or already adopted by the Company. The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Standards that are not yet adopted as of December 31, 2025 ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures This ASU enhances income tax disclosure requirements. Under the ASU, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). Specific categories that must be included in the reconciliation for each annual reporting period are specified in the amendment. This update is effective for annual periods beginning after December 15, 2024. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 8 REVENUE FROM CONTRACTS WITH CUSTOMERS Drilling Services Revenue The majority of our drilling services are performed on a daywork contract basis, under which we charge a rate per day, with the price determined by the location, depth and complexity of the well to be drilled, operating conditions, the duration of the contract, and the competitive forces of the market. These drilling services, including our technology solutions, represent a series of distinct daily services that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period and our efforts in providing drilling services are incurred relatively evenly over the period of performance, revenue is recognized over time using a time-based input measure as we provide services to the customer. For any contracts that include a provision for pooled term days at contract inception, followed by the assignment of days to specific rigs throughout the contract term, we have elected, as a practical expedient, to recognize revenue in the amount for which the entity has a right to invoice, as permitted by ASC 606. Performance-based contracts are contracts pursuant to which we are compensated partly based upon our performance against a mutually agreed upon set of predetermined targets. These types of contracts typically have a lower base dayrate, but give us the opportunity to receive additional compensation by meeting or exceeding certain per …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"NOTE 12 BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION Description of the Business We are a performance-driven drilling solutions and technologies company based in Tulsa, Oklahoma with operations in all major U.S. onshore oil and gas producing basins as well as the Middle East, Europe, Latin America, and Australia. Our drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. We believe we are the recognized industry leader in drilling as well as technological innovation. We focus on offering our customers an integrated solutions-based approach by combining proprietary rig technology, automation software, and digital expertise into our rig operations rather than a product-based offering, such as a rig or separate technology package. Our drilling services operations are organized into the following reportable operating business segments: North America Solutions, International Solutions, and Offshore Solutions. Each reportable operating segment is a strategic business unit that is managed separately, and consolidated revenues and expenses reflect the elimination of all material intercompany transactions. External revenues included in Other primarily consist of rental, manufacturing and engineering services income. Segment Performance Our chief operating decision maker (""CODM"") is John Lindsay, Director and Chief Executive Officer. Our CODM evaluates segment performance and allocates resources based …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 7 SHAREHOLDERS EQUITY The Company has an evergreen authorization from the Board of Directors for the repurchase of up to four million common shares in any calendar year. The repurchases may be made using our cash and cash equivalents or other available sources and are held as treasury shares on our Unaudited Condensed Consolidated Balance Sheets. We did not make any share repurchases during the three months ended December 31, 2025 and 2024. A cash dividend of $0.25 per share was declared on December 9, 2025 for shareholders of record on February 13, 2026, payable on February 27, 2026. As a result, we recorded a Dividend payable of $25.4 million on our Unaudited Condensed Consolidated Balance Sheets as of December 31, 2025. Accumulated Other Comprehensive Income Components of accumulated other comprehensive income were as follows: December 31, September 30, (in thousands) 2025 2025 Pre-tax amounts: Unrealized pension actuarial gain on defined benefit pension plans $ 4,853 $ 3,336 Unrealized gain on available-for-sale debt security 383 Foreign currency translation adjustment 36,980 45,682 $ 41,833 $ 49,401 After-tax amounts: Unrealized pension actuarial gain on defined benefit pension plans $ 5,711 $ 4,470 Unrealized gain on available-for-sale debt security 296 Foreign currency translation adjustment 36,969 40,198 $ 42,680 $ 44,964 The following is a summary of the changes in accumulated other comprehensive income, net of tax, for the three months ended December 31, 2025: …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing