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BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
 12 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
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 3—Business 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 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 on segment operating income (loss) before income taxes. Components within segment operating income (loss), such as operating revenues and direct operating expenses, are used to monitor actual performance against forecasted results for each segment.
Segment operating income (loss) before income taxes includes:
•Revenues from external and internal customers
•Direct operating costs
•Depreciation and amortization
•Research and development
•Allocated general and administrative costs
•Acquisition transaction costs
•Asset impairment charges
•Restructuring charges
but excludes gain on reimbursement of drilling equipment, other loss on sale of assets, corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transactions costs, corporate asset impairment charges, and corporate restructuring charges.
General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, other methods may be used which we believe to be a reasonable reflection of the utilization of services provided.
Summarized financial information of our reportable segments for the fiscal years ended September 30, 2025, 2024 and 2023 is shown in the following tables:
September 30, 2025
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsTotal
Revenues from external customers
$2,361,288 $797,851 $520,394 $3,679,533 
Intersegment revenues
1,039 4,575 — 5,614 
Total revenues
2,362,327 802,426 520,394 3,685,147 
Reconciliation of revenues:
All other revenues
163,687 
Elimination of intersegment revenues
(102,821)
Total consolidated revenues
3,746,013 
Less1:
Direct operating expenses
1,322,697 718,822 430,135 2,471,654 
Depreciation & amortization
351,813 218,817 32,461 603,091 
Research and development
34,140 — — 34,140 
Selling, general and administrative costs
68,047 17,232 4,619 89,898 
Acquisition transaction costs
41 1,585 2,971 4,597 
Asset impairment charge
1,507 132,720 — 134,227 
Restructuring charges
4,121 4,945 266 9,332 
Segment operating income (loss)
579,961 (291,695)49,942 338,208 
Reconciliation of segment operating income (loss):
All other operating loss
(103,397)
Elimination of intersegment loss
(3,999)
Segment operating income
230,812 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
September 30, 2024
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsTotal
Revenues from external customers
$2,445,946 $193,975 $106,207 $2,746,128 
Intersegment revenues
— — — — 
Total revenues2,445,946 193,975 106,207 2,746,128 
Reconciliation of revenues
All other revenues
71,630 
Elimination of intersegment revenues
(61,151)
Total consolidated revenues2,756,607 
Less1:
Direct operating expenses
1,366,471 169,033 82,668 1,618,172 
Depreciation & amortization
366,446 10,863 7,530 384,839 
Research and development
41,293 — — 41,293 
Selling, general and administrative costs
61,113 9,427 3,594 74,134 
Segment operating income
610,623 4,652 12,415 627,690 
Reconciliation of segment operating income (loss)
All other operating loss
(1,359)
Elimination of intersegment profit
1,261 
Segment operating income
627,592 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
September 30, 2023
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsTotal
Revenues from external customers
$2,519,743 $212,566 $130,244 $2,862,553 
Intersegment revenues
— — — — 
Total revenues2,519,743 212,566 130,244 2,862,553 
Reconciliation of revenues
All other revenues
77,296 
Elimination of intersegment revenues
(67,428)
Total consolidated revenues2,872,421 
Less1:
Direct operating expenses
1,447,522 180,797 96,783 1,725,102 
Depreciation & amortization
353,976 7,615 7,622 369,213 
Research and development30,507 — — 30,507 
Selling, general and administrative costs
58,397 10,401 3,035 71,833 
Asset impairment charge
3,948 8,149 — 12,097 
Segment operating income
625,393 5,604 22,804 653,801 
Reconciliation of segment operating income
All other operating profit
15,876 
Elimination of intersegment profit
4,671 
Segment operating income
674,348 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
The following table reconciles segment operating income per the tables above to income before income taxes as reported on the Consolidated Statements of Operations:
Year Ended September 30,
(in thousands)202520242023
Segment operating income
$230,812 $627,592 $674,348 
Gain on reimbursement of drilling equipment33,398 33,309 48,173 
Other loss on sale of assets
(1,541)(5,139)(8,016)
Corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction costs, corporate asset impairment charges, and corporate restructuring charges
(259,351)(198,313)(146,197)
Operating income
3,318 457,449 568,308 
Other income (expense)
Interest and dividend income35,207 41,168 28,393 
Interest expense(107,808)(29,093)(17,283)
Gain (loss) on investment securities
(22,377)13,953 11,299 
Foreign currency exchange loss(9,682)(5,550)(6,419)
Other27,229 3,093 9,081 
Total other income (expense)
(77,431)23,571 25,071 
Income (loss) before income taxes
$(74,113)$481,020 $593,379 
The following table reconciles segment total assets to total assets as reported on the Consolidated Balance Sheets:
Year Ended September 30,
(in thousands)20252024
Total assets1
North America Solutions$2,957,139 $3,225,410 
International Solutions2,426,613 685,833 
Offshore Solutions714,708 73,119 
Other360,037 157,877 
6,458,497 4,142,239 
Investments and corporate operations247,241 1,639,659 
$6,705,738 $5,781,898 
(1)Assets by segment exclude investments in subsidiaries and intersegment activity.
The following table presents revenues from external customers by country based on the location of service provided:
Year Ended September 30,
(in thousands)202520242023
Operating revenues
United States$2,481,593 $2,558,814 $2,656,617 
Saudi Arabia
261,747 — — 
Norway220,263 — — 
Oman179,568 — — 
Argentina155,727 142,451 137,420 
Azerbaijan129,011 — — 
Germany57,561 — — 
Colombia
36,058 9,254 46,720 
Bahrain30,816 17,990 15,401 
Kuwait30,653 — — 
Other foreign163,016 28,098 16,263 
Total$3,746,013 $2,756,607 $2,872,421 
The following table presents property, plant and equipment by country based on the location of service provided:
Year Ended September 30,
(in thousands)20252024
Property, plant and equipment, net
United States$2,503,045 $2,752,325 
Saudi Arabia
971,440 149,472 
Oman445,706 — 
United Kingdom
71,385 — 
Argentina
71,135 62,533 
Germany51,306 — 
Kuwait40,760 — 
Colombia
36,723 19,243 
Norway
25,431 — 
Other foreign96,143 32,704 
Total$4,313,074 $3,016,277