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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Sep. 30, 2025
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS
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)20252024
Accumulated benefit obligation$50,127 $57,154 
Changes in projected benefit obligations:
Projected benefit obligation at beginning of year$57,154 $54,646 
Interest cost2,584 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 assets1,236 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 primarily due to changes in the discount rate and investment returns. The mortality table issued by the Society of Actuaries in October 2021 was used for the September 30, 2025 pension calculation. The U.S. Plan's net pension liability at September 30, 2025 and 2024 was $1.6 million and $3.6 million, respectively. These liabilities are recorded within Retirement benefit obligation in our Consolidated Balance Sheets.
The U.S. Plan's net actuarial loss recognized in Accumulated other comprehensive income (loss) at September 30, 2025 and 2024, and not yet reflected in net periodic benefit cost, was $4.7 million and $7.6 million, respectively. Unrecognized actuarial gains/losses outside of a corridor of the greater of: 1) 10 percent of the Projected Benefit Obligation, or 2) the fair value of assets, are amortized into expense for the year on a straight-line basis over the average remaining service years of participants. Amortization is not carried from year-to-year as the calculation resets each year.
The following weighted average assumptions were used in the U.S. Plan's calculation:
September 30,
2025    2024    2023
Discount rate for net periodic benefit costs4.84 %5.77 %5.44 %
Discount rate for year-end obligations5.21 %4.84 %5.77 %
Expected return on plan assets4.40 %4.40 %4.50 %
We did not make any voluntary contributions to the U.S. Plan in fiscal year 2025; however, we made voluntary contributions of $6.0 million and $5.0 million in fiscal years 2024 and 2023, respectively. In fiscal year 2026, we do not expect minimum contributions required by law to be needed. However, we may make contributions in fiscal year 2026 if needed to fund unexpected distributions in lieu of liquidating pension assets.
Components of the net periodic pension expense were as follows:
Year Ended September 30,
(in thousands)202520242023
Interest cost$2,584 $3,009 $3,086 
Expected return on plan assets1
(2,220)(2,080)(1,762)
Recognized net actuarial loss190 612 1,139 
Settlement expense442 — — 
Net pension expense$996 $1,541 $2,463 
(1)The Company uses the fair value of plan assets in determining the expected return on plan assets.

The following table reflects the expected benefits to be paid from the U.S. Plan in each of the next five fiscal years, and in the aggregate for the five years thereafter (in thousands):
Year Ended September 30,
202620272028202920302031-2035Total
$4,778 $4,788 $4,449 $3,789 $4,341 $19,501 $41,646 
Our investment policy and strategies are established with a long-term view in mind. The investment strategy is intended to help pay the cost of the U.S Plan while providing adequate security to meet the benefits promised under the U.S. Plan. We maintain a diversified asset mix to minimize the risk of a material loss to the portfolio value that might occur from devaluation of any single investment. In determining the appropriate asset mix, our financial strength and ability to fund potential shortfalls are considered. Pension Plan assets are invested in portfolios of diversified public-market equity securities and fixed income securities. The U.S. Plan does not directly hold securities of the Company.
The expected long-term rate of return on U.S. Plan assets is based on historical and projected rates of return for current and planned asset classes in the U.S. Plan’s investment portfolio after analyzing historical experience and future expectations of the return and volatility of various asset classes.
During the 2021 fiscal year, for our U.S. Plan, we implemented a glide-path strategy with a goal to reduce risk as certain funded levels are achieved and began aligning our fixed income exposure with our pension liabilities. The target allocation for fiscal year 2026 and the asset allocation at the end of fiscal years 2025 and 2024, by asset category, are as follows:
Target AllocationSeptember 30,
Asset Category2026    2025    2024
U.S. equities4 %5 %10 %
International equities5 5 5 
Fixed income91 90 85 
Total100 %100 %100 %
The fair value of U.S. Pension Plan's assets at September 30, 2025 and 2024, summarized by level within the fair value hierarchy described in Note 13—Fair Value Measurement of Financial Instruments, are as follows:
September 30, 2025
(in thousands)Total    Level 1    Level 2    Level 3
Short-term investments$201 $201 $— $— 
Mutual funds:
Domestic stock funds2,218 2,218 — — 
Bond funds43,489 43,489 — — 
International stock funds2,615 2,615 — — 
Total mutual funds48,322 48,322 — — 
Oil and gas properties27 — — 27 
Total$48,550 $48,523 $— $27 
September 30, 2024
(in thousands)Total    Level 1    Level 2    Level 3
Short-term investments$3,369 $3,369 $— $— 
Mutual funds:
Domestic stock funds5,223 5,223 — — 
Bond funds41,950 41,950 — — 
International stock funds2,887 2,887 — — 
Total mutual funds50,060 50,060 — — 
Oil and gas properties92 — — 92 
Total$53,521 $53,429 $— $92 
As of September 30, 2025 and 2024, the assets utilizing Level 3 inputs consist of oil and gas properties. The fair value of oil and gas properties is determined by Wells Fargo Bank, N.A., based upon actual revenue received for the previous twelve-month period and experience with similar assets.
Non-U.S. Pension Plans
As a result of the Acquisition, we now maintain four pension plans in Germany (the "German Plans") and two pension plans in the UK (the "UK Plans") (collectively, the "Non-U.S. Plans"). The German Plans are unfunded, consistent with local business practices, whereas the UK Plans are funded through trustee-administered trusts. The Non-U.S. Plans are closed to new entrants, but existing members continue to accrue based on years of service and final salary. These plans had a net pension liability of $99.3 million ($132.5 million in obligations and $33.2 million in plan assets) recorded in Retirement benefit obligations within Noncurrent liabilities, on the opening balance sheet presented in Note 3—Business Combination as of the Acquisition Date. The Non-U.S. Plans had a net pension liability of $99.5 million ($134.6 million in obligations and $35.1 million in plan assets) presented in Retirement benefit obligations within Noncurrent liabilities on the Consolidated Balance Sheet as of September 30, 2025. Changes in the funded status are recognized in our Consolidated Statements of Comprehensive Income (Loss) in the period in which they occur.
The Company recognizes the unfunded status of its German Plans, based on the projected benefit obligation, as retirement benefit obligations.
The following table provides a reconciliation of the changes in the pension benefit obligations and fair value of the Non-U.S. Plans' assets over the year ended September 30, 2025 and a statement of the funded status as of September 30, 2025:
(in thousands)
 September 30, 20251
Accumulated benefit obligation$134,585 
Changes in projected benefit obligations:
Projected benefit obligation at beginning of year$— 
Acquisition of KCA Deutag
132,477 
Service cost
3,339 
Interest cost5,549 
Actuarial gain
(1,714)
Benefits paid(5,066)
Projected benefit obligation at end of year$134,585 
Change in plan assets:
Fair value of plan assets at beginning of year$— 
Acquisition of KCA Deutag
33,176 
Actual return on plan assets1,260 
Employer contribution1,342 
Benefits paid(583)
Administration costs
(67)
Fair value of plan assets at end of year$35,128 
Funded status of the plan at end of year$(99,457)
(1)The Company did not have Non-U.S. Plans prior to the Acquisition which occurred on January 16, 2025.
Fluctuations in actuarial gains and losses during the period are primarily due to changes in the discount rate and investment returns. Mortality assumptions for the UK Plans are based on tables issued under the Continuous Mortality Investigation (CMI) 2024 model, developed by the Institute and Faculty of Actuaries. For the German Plans, mortality assumptions are based on the Heubeck 2018 G tables. These liabilities are recorded within Retirement benefit obligation in our Consolidated Balance Sheets.
The Non-U.S. Plans' net actuarial gain recognized in Accumulated other comprehensive income (loss) at September 30, 2025, and not yet reflected in net periodic benefit cost, was $8.1 million.
The following weighted average assumptions were used in the Non-U.S. Plan's calculations:
 September 30, 20251
UK Plans:
Contribution increase rate
3.0 %
Discount rate5.8 %
Inflation rate
3.0 %
Germany Plans:
Participant salaries increase rate
4.0 %
Contribution increase rate
2.5 %
Discount rate
4.0 %
Inflation rate
3.0 %
(1)The Company did not have Non-U.S. Plans prior to the Acquisition which occurred on January 16, 2025.
We made voluntary contributions of $5.7 million to the Non-U.S. Plans in fiscal year 2025. In fiscal year 2026, we do not expect minimum contributions required by law to be needed. However, we may make contributions in fiscal year 2026 if needed to fund unexpected distributions in lieu of liquidating pension assets.
Components of the net periodic pension expense were as follows:
(in thousands)
Year ended September 30, 20251
Service cost
$3,339 
Interest cost5,549 
Expected return on plan assets2
(1,714)
Net pension expense$7,174 
(1)The Company did not have Non-U.S. Plans prior to the Acquisition which occurred on January 16, 2025.
(2)The Company uses the fair value of plan assets in determining the expected return on plan assets.
The following table reflects the expected benefits to be paid from the Non-U.S. Plans in each of the next five fiscal years, and in the aggregate for the five years thereafter (in thousands):
Year Ended September 30,
202620272028202920302031-2035Total
$7,231 $6,481 $6,359 $6,379 $6,560 $31,406 $64,416 
The German Plans are unfunded, therefore the plans' activities consist primarily of monthly payments to participants. Assets within the UK Plans are invested primarily in fixed income securities and liability-driven investment strategies to mitigate interest rate risk. In determining the appropriate asset mix, our financial strength and ability to fund potential shortfalls are considered. The UK Plans do not directly hold securities of the Company. The expected long-term rate of return on assets is based on historical and projected rates of return for current and planned asset classes in the UK Plans' investment portfolio after analyzing historical experience and future expectations of the return and volatility of various asset classes. The target allocation for fiscal year 2026 is expected to align with the current fiscal year allocation shown below.
The asset allocation at the end of fiscal year 2025, by asset category, was as follows:
Asset Category
 September 30, 20251
Equities:
International equities
10 %
Diversified Growth Fund2
13 
Fixed income:
Gilts (UK government bonds)4 
Corporate bonds2 
Strategic Income Fund3
13 
Risk management:
Liability-Driven Investments (LDI)27 
Alternative investments:
Absolute Return Credit Fund4
25 
Cash
6 
(1)The Company did not have Non-U.S. Plans prior to the Acquisition which occurred on January 16, 2025.
(2)Investments are equity-oriented with multi-asset exposure.
(3)An actively managed investment fund designed to invest mainly in debt securities.
(4)Invests primarily in credit instruments (corporate bonds, loans, structured credit) and uses active management techniques.
The fair value of the U.K. Plan assets at September 30, 2025, summarized by level within the fair value hierarchy described in Note 13—Fair Value Measurement of Financial Instruments, are as follows:
September 30, 20251
(in thousands)TotalLevel 1Level 2Level 3
Equities:
International equities
$3,674 $3,674 $— $— 
Diversified Growth Fund
4,636 — 4,636 — 
Fixed income:
Gilts (UK government bonds)1,359 1,359 — — 
Corporate bonds817 — 817 — 
Strategic Income Fund
4,729 — 4,729 — 
Risk management:
Liability-Driven Investments (LDI)9,365 — 9,365 — 
Alternative investments:
Absolute Return Credit Fund
8,734 — 8,734 — 
Cash
1,838 1,838 — — 
$35,152 $6,871 $28,281 $— 
(1)The Company did not have Non-U.S. Plans prior to the Acquisition which occurred on January 16, 2025.
Consolidated Balance Sheets Presentation - Retirement Benefit Obligations
Prior to September 30, 2025, Retirement benefit obligations were presented in Other within Noncurrent liabilities on our Consolidated Balance Sheets. To conform with the current period presentation, we reclassified amounts previously presented in Other within Noncurrent liabilities to the Retirement benefit obligations line, within Noncurrent liabilities, on our Consolidated Balance Sheets as of September 30, 2024.
Defined Contribution Plan
Substantially all employees on the U.S. payroll may elect to participate in our 401(k)/Thrift Plan by contributing a portion of their earnings. We contribute an amount equal to 100 percent of the first five percent of the participant’s compensation subject to certain limitations. The annual expense incurred for this defined contribution plan was $23.6 million, $26.9 million and $25.8 million in fiscal years 2025, 2024 and 2023, respectively. The Company continues to participate in defined contribution plans acquired in the Acquisition. The annual expense incurred for these defined contribution plans was $10.0 million in fiscal year 2025.