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BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
 9 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
NOTE 15 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 Kenera 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
We evaluate segment performance based on segment operating income (loss) before income taxes which includes:
•Revenues from external and internal customers
•Direct operating costs
•Depreciation and amortization
•Research and development
•Allocated general and administrative expenses
•Asset impairment charges
•Restructuring charges
but excludes gain on reimbursement of drilling equipment, other gain 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 three and nine months ended June 30, 2025 and 2024 is shown in the following tables:
Three Months Ended June 30, 2025
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsOtherEliminationsTotal
External sales$591,976 $265,099 $161,777 $22,072 $1,040,924 
Intersegment238 704 — 20,826 (21,768)— 
Total sales592,214 265,803 161,777 42,898 (21,768)1,040,924 
Segment operating income (loss)
$157,649 $(166,513)$8,769 $(70,004)$6,114 $(63,985)
Three Months Ended June 30, 2024
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsOtherEliminationsTotal
External sales$620,040 $47,882 $27,218 $2,584 $— $697,724 
Intersegment— — — 14,677 (14,677)— 
Total sales620,040 47,882 27,218 17,261 (14,677)697,724 
Segment operating income (loss)
$163,407 $(2,748)$5,010 $(4,791)$(616)$160,262 
Nine Months Ended June 30, 2025
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsOtherEliminationsTotal
External sales$1,789,350 $560,319 $340,067 $44,529 $— $2,734,265 
Intersegment703 873 — 63,175 (64,751)— 
Total sales1,790,053 561,192 340,067 107,704 (64,751)2,734,265 
Segment operating income (loss)
$461,803 $(215,980)$29,649 $(70,605)$(2,247)$202,620 
Nine Months Ended June 30, 2024
(in thousands)North America SolutionsInternational SolutionsOffshore SolutionsOtherEliminationsTotal
External sales$1,827,661 $148,512 $78,662 $7,979 $— $2,062,814 
Intersegment— — — 45,649 (45,649)— 
Total sales1,827,661 148,512 78,662 53,628 (45,649)2,062,814 
Segment operating income (loss)
$455,030 $8,606 $8,140 $(2,073)$(1,054)$468,649 
The following table reconciles segment operating income (loss) per the tables above to income before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations:
Three Months Ended June 30, 2025Nine Months Ended June 30, 2025
(in thousands)2025202420252024
Segment operating income (loss)
$(63,985)$160,262 $202,620 $468,649 
Gain on reimbursement of drilling equipment6,773 9,732 26,149 24,687 
Other loss on sale of assets
(1,347)(2,730)(2,136)(2,718)
Corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction costs, corporate asset impairment charges, and corporate restructuring charges
(69,710)(53,807)(221,853)(140,756)
Operating income (loss)
(128,269)113,457 4,780 349,862 
Other income (expense)
Interest and dividend income2,856 11,888 31,854 29,189 
Interest expense(29,200)(4,336)(79,836)(12,969)
Gain (loss) on investment securities(337)389 14,084 102 
Foreign currency exchange loss
(9,216)(2,144)(16,137)(4,509)
Other31,258 3,134 33,214 2,991 
Total unallocated amounts(4,639)8,931 (16,821)14,804 
Income (loss) before income taxes
$(132,908)$122,388 $(12,041)$364,666 
The following table reconciles segment total assets to total assets as reported on the Unaudited Condensed Consolidated Balance Sheets:
(in thousands)June 30, 2025September 30, 2024
Total assets1
North America Solutions$3,099,587 $3,225,410 
International Solutions2,504,474 685,833 
Offshore Solutions645,611 73,119 
Other324,751 157,877 
6,574,423 4,142,239 
Investments and corporate operations287,580 1,639,659 
$6,862,003 $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:
Three Months Ended June 30,Nine Months Ended June 30,
(in thousands)2025202420252024
Operating revenues
United States$659,364 $648,816 $1,876,295 $1,911,122 
Saudi Arabia103,752 — 201,673 — 
Norway82,854 — 161,159 — 
Argentina39,634 38,064 119,245 107,964 
Oman45,089 — 114,709 — 
Azerbaijan38,922 — 81,681 — 
Germany16,027 — 33,079 — 
Bahrain8,304 4,602 21,576 13,634 
Columbia9,742 31 20,688 8,976 
Kuwait10,508 — 19,680 — 
Other Foreign26,728 6,211 84,480 21,118 
Total$1,040,924 $697,724 $2,734,265 $2,062,814 
Refer to Note 10—Revenue from Contracts with Customers for additional information regarding the recognition of revenue.
The following table presents property, plant and equipment by country based on the location of service provided:
(in thousands)June 30, 2025September 30, 2024
Property, plant and equipment, net
United States$2,576,767 $2,752,325 
Saudi Arabia991,640 149,472 
Oman449,849 — 
Germany81,417 — 
Argentina71,414 62,533 
Kuwait41,947 — 
Colombia38,520 19,243 
Norway24,629 — 
Bahrain23,221 19,807 
Other Foreign108,752 12,897 
Total$4,408,156 $3,016,277