PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Sep. 30, 2025

Property, Plant and Equipment [Abstract]

NOTE 4 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of September 30, 2025 and 2024 consisted of the following:


(in thousands)	Estimated Useful Lives	September 30, 2025		September 30, 2024
Drilling services equipment	2 - 15 years	$	8,168,906	$	6,671,975
Tubulars	4 years	597,933		552,773
Real estate properties	10 - 45 years	8,223		48,617
Other	2 - 23 years	620,908		460,857
Construction in progress1		182,942		106,183
		9,578,912		7,840,405
Accumulated depreciation		(5,265,838)		(4,824,128)
Property, plant and equipment, net		$	4,313,074	$	3,016,277

Assets held-for-sale		$	15,231	$	—

(1)Included in construction in progress are costs for projects in progress to upgrade or refurbish certain rigs in our existing fleet. Additionally, we include other advances for capital maintenance purchase-orders that are open/in process. As these various projects are completed, the costs are then classified to their appropriate useful life category.

KCA Deutag Acquisition

Refer to Note 3—Business Combination for additional information regarding the property, plant and equipment acquired in connection with the Acquisition.

Depreciation

Depreciation in the Consolidated Statements of Operations of $574.5 million, $390.9 million and $375.7 million includes abandonments of $2.9 million, $6.5 million and $3.3 million for the fiscal years 2025, 2024 and 2023, respectively.

In November 2022, a fire at a wellsite caused substantial damage to one of our super-spec rigs within our North America Solutions segment. The major components were destroyed beyond repair and considered a total loss, and, as a result, these assets were written off and the rig was removed from our available rig count. At the time of the loss, the rig was fully insured under replacement cost insurance. During the fiscal year ended September 30, 2024, we recognized a gain on involuntary conversion of the rig of $5.5 million which represents the insurance proceeds received in excess of the carrying value of the rig and therefore was recognized as a gain within operating income during the year ended September 30, 2024.

Assets Held-for-Sale

Fiscal Year 2025 Activity

During the fiscal year ended September 30, 2025, we committed to a plan to sell a significant portion of our real estate portfolio, including a shopping center comprised of approximately 371,000 leasable square feet with a net book value of $12.0 million.

During the fiscal year ended September 30, 2025, we identified 16 land rigs within our International Solutions operating segment that met the asset held-for-sale criteria with an aggregate net book value of $3.2 million.

During the year ended September 30, 2025, we identified a domestic drilling rig that met the asset held-for-sale criteria. The rig's net book value of $1.7 million was written down to its estimated scrap value of $0.2 million, resulting in a non-cash impairment charge of $1.5 million in our North America Solutions segment during the fiscal year ended September 30, 2025. During the year ended September 30, 2025, the rig was fully disposed of resulting in a nominal gain recorded within Other loss on sale of assets on our Consolidated Statement of Operations during the period.

As a result of the activity described above, a combined total of $15.2 million in real estate and land rig assets are classified as Assets held-for-sale on our Consolidated Balance Sheets as of September 30, 2025.

Fiscal Year 2024 Activity

We did not have any assets meeting the assets held-for-sale criteria during or as of the fiscal year ended September 30, 2024.

Fiscal Year 2023 Activity

During the fiscal year ended September 30, 2023, our North America Solutions assets that were previously classified as Assets held-for-sale at September 30, 2022 were either sold or written down to scrap value. The aggregate net book value of these remaining assets was $3.0 million, which exceeded the estimated scrap value of $0.3 million, resulting in a non-cash impairment charge of $2.7 million. During the same period, we also identified additional equipment that met the asset held-for-sale criteria and was reclassified to Assets held-for-sale on our Consolidated Balance Sheets. The aggregate net book value of the equipment of $1.4 million was written down to its estimated scrap value of $0.1 million, resulting in a non-cash impairment charge of $1.3 million during the fiscal year ended September 30, 2023. These impairment charges are recorded in Asset impairment charges within our North America Solutions segment in our Consolidated Statement of Operations.

During the fiscal year ended September 30, 2023, the Company initiated a plan to decommission and scrap four international FlexRig® drilling rigs and four conventional drilling rigs located in Argentina that are not suitable for unconventional drilling. As a result, these rigs were reclassified to Assets held-for-sale on our Consolidated Balance Sheets. The rigs’ aggregate net book value of $8.8 million was written down to the estimated scrap value of $0.7 million, which resulted in a non-cash impairment charge of $8.1 million within our International Solutions segment and recorded in Asset impairment charges within our Consolidated Statement of Operations during the fiscal year ended September 30, 2023.

(Gain)/Loss on Sale of Assets

Gain on Reimbursement of Drilling Equipment

We recognized a gain of $33.4 million, $33.3 million, $48.2 million in fiscal years 2025, 2024 and 2023, respectively, related to customer reimbursement for the current replacement value of lost or damaged drill pipe. Gains related to these asset sales are recorded in Gains on reimbursement of drilling equipment within our Consolidated Statements of Operations.

Other Loss on Sale of Assets

We recognized a loss of $1.5 million, $5.1 million and $8.0 million in fiscal years 2025, 2024 and 2023, respectively, related to the sale of rig equipment and other capital assets. These amounts are recorded in Other loss on sale of assets within our Consolidated Statements of Operations.