Core Insights - Halliburton's shares surged 25% in five days, outperforming the S&P 500's 1.7% increase, following solid Q3 2025 performance, indicating a company preparing for the next oilfield cycle [2][11] Financial Performance - Q3 2025 revenue was approximately $5.6 billion, a 2% decrease year-over-year, while adjusted earnings per share were $0.58, reflecting a 21% drop from the previous year, both exceeding analyst forecasts [3] Cost Management - Halliburton's cost-saving initiative generates approximately $100 million each quarter, reaffirming the company's commitment to operational efficiency amid fluctuating pricing [5] Backlog and Revenue Visibility - The current backlog exceeds $10 billion, indicating a strong pipeline of secured projects, which enhances revenue visibility and demand durability, particularly in long-term international contracts [6] Technological Advancements - Over half of Halliburton's active U.S. frac fleet is now operated by the Zeus electric system, representing a shift towards lower-emission, higher-efficiency operations, which enhances reliability and aligns with decarbonization goals [7][8] Supply-Side Discipline - The company is idling or retiring non-economic equipment, demonstrating a disciplined approach to capacity management, which prioritizes returns over market share and strengthens pricing power [9] International Expansion - Halliburton has secured major international contracts, including a five-year project in the North Sea and multi-year agreements in Kuwait and Colombia, reinforcing its commitment to higher-margin, less cyclical markets [10] Strategic Positioning - Despite revenue and EPS exceeding expectations, the underlying narrative focuses on structural advancements, with management curbing costs, enhancing the international portfolio, and leveraging technology to sustain profitability [11]

Group 1 - Halliburton Company (NYSE:HAL) experienced a significant share price increase of 19.22% week-on-week, driven by a positive outlook for its international business despite disappointing earnings in Q3 [1][2] - The company reported a 97% decline in attributable net income, dropping to $18 million from $571 million year-on-year [3] - Revenues decreased by 1.7% to $5.6 billion compared to $5.697 billion in the previous year, with a 2.3% decline in completion and production revenues, while drilling and evaluation revenues remained flat [4] Group 2 - Halliburton has set a cost-saving goal of $400 million starting next year, aiming to return cash to shareholders, maintain capital discipline, and invest in technology for long-term performance [3]

Summary of Global Oil Services Conference Call Industry Overview - The report discusses the **Global Oil Services** industry, focusing on the outlook for 2H25 and FY26, highlighting both positive and negative signals in the market [1][2]. Key Insights 1. **Financial Strength**: The industry is currently in a strong financial position, although it is trading at historically low multiples. Many investors have not capitalized on the O&G capex recovery from 2022-24 [1][2]. 2. **Conflicting Signals**: There are concerns regarding oil supply and price stability, with questions about whether oil will remain oversupplied and if prices might decline. Additionally, there are indications of weakening International/Offshore activity, which could be exacerbated by high consensus expectations [1][2]. 3. **US Market Activity**: The Dallas Fed survey indicates a rapid deterioration in US activity expected in 4Q25, despite a stabilizing rig count. Current consensus expectations for the US market are low [1][2]. 4. **Optimism from Key Players**: Companies like GTT and Viridien express optimism ahead of 3Q25, contrasting with the overall cautious sentiment [1][2]. Regional Activity Recovery 1. **Diverging Opinions**: There are differing views on whether North America or international markets will lead the recovery. SLB suggests North America will remain constrained due to economic challenges, while Halliburton believes it is positioned for recovery [3][4]. 2. **Investment Implications**: The outlook for 2026-27 is more positive than generally perceived, with potential catalysts for the sector. The report suggests that 4Q25 may represent a low point for North America, and given the sector's low valuation (approximately 1.3x EV/Revenue), there is significant upside potential for various stocks [4][6]. Preferred Investment Calls - **Next 6 Months**: GTT (Target Price €193), Viridien (Target Price €94), SLB (Target Price $47.60) - **Next 12 Months**: SBM (Target Price €24), Rubis (Target Price €38.7), Vallourec (Target Price €22.6), Tenaris (Target Price €21) - **Next 18 Months**: Adnoc Drilling (Target Price AED6.76), Saipem (Target Price €3.54), Subsea (Target Price NOK240) - Notably, GTT, SBM, and Rubis are largely de-correlated from oil prices [6]. Conclusion - The Global Oil Services industry is at a critical juncture with mixed signals regarding future activity and investment opportunities. The financial strength of the sector, combined with low valuations, presents potential upside for select stocks, while regional disparities in recovery expectations highlight the complexity of the market landscape [1][4][6].

Core Insights - Halliburton reported revenue of $5.6 billion for the quarter ended September 2025, a decrease of 1.7% year-over-year, but exceeded the Zacks Consensus Estimate by 3.96% [1] - Earnings per share (EPS) were $0.58, down from $0.73 in the same quarter last year, but surpassed the consensus estimate of $0.50 by 16% [1] Revenue Breakdown - Latin America revenue was $996 million, exceeding the average estimate of $962.97 million, with a year-over-year decline of 5.4% [4] - Europe/Africa/CIS revenue reached $828 million, surpassing the estimated $754.3 million, reflecting a year-over-year increase of 14.7% [4] - North America revenue was $2.36 billion, above the average estimate of $2.16 billion, showing a slight decline of 0.9% year-over-year [4] - Middle East/Asia revenue totaled $1.41 billion, below the average estimate of $1.51 billion, with a year-over-year decrease of 8.1% [4] Segment Performance - Drilling and Evaluation revenue was $2.38 billion, exceeding the average estimate of $2.28 billion, with a year-over-year decline of 0.9% [4] - Completion and Production revenue was $3.22 billion, above the average estimate of $3.11 billion, reflecting a year-over-year decrease of 2.3% [4] - Operating income for Completion and Production was $514 million, surpassing the estimated $447.21 million [4] - Operating income for Drilling and Evaluation was $348 million, exceeding the average estimate of $337.72 million [4] - Corporate and other operating income reported a loss of $64 million, better than the estimated loss of $70.99 million [4] Stock Performance - Halliburton shares returned +10.4% over the past month, outperforming the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Performance - Total company revenue for Q3 2025 was $5.6 billion, a 2% decrease compared to Q3 2024[94]. - Operating income for Q3 2025 was $356 million, down from $871 million in Q3 2024, impacted by $392 million in impairments and other charges[94]. - Total revenue for Q3 2025 was $5.6 billion, a decrease of 2% compared to $5.7 billion in Q3 2024[122]. - Total revenue for the first nine months of 2025 was $16.5 billion, a decrease of $807 million, or 5%, compared to the same period in 2024[138]. - Total operating income for the first nine months of 2025 was $1.5 billion, a decrease of 48% compared to 2024[138]. Segment Performance - Completion and Production segment revenue decreased by 2% in Q3 2025, primarily due to lower pressure pumping services in North America[95]. - Completion and Production revenue in Q3 2025 was $3.2 billion, down 2% from $3.3 billion in Q3 2024, with operating income decreasing by 23% to $514 million[123]. - Drilling and Evaluation segment revenue was relatively flat in Q3 2025, with decreased drilling-related services in Latin America offset by increased services in Europe[96]. - Drilling and Evaluation revenue in Q3 2025 was $2.4 billion, relatively flat compared to Q3 2024, with operating income down 14% to $348 million[124]. - Completion and Production segment revenue decreased by $559 million, or 6%, to $9.5 billion, with operating income down 25% to $1.6 billion[139]. - Drilling and Evaluation segment revenue fell by $248 million, or 3%, to $7.0 billion, with operating income decreasing by 16% to $1.0 billion[140]. Regional Performance - North America revenue remained flat in Q3 2025, with lower pressure pumping services offset by higher completion tool sales[97]. - North America revenue in Q3 2025 was $2.4 billion, showing a slight decline of 1% compared to Q3 2024[125]. - Latin America revenue decreased by 5% to $996 million in Q3 2025, primarily due to reduced activity in Mexico[126]. - Latin America revenue declined by 12% to $2.9 billion, driven by decreased activity in Mexico and lower completion tool sales[142]. - Europe/Africa/CIS revenue increased by 15% to $828 million in Q3 2025, driven by higher completion tool sales in the North Sea[127]. - Europe/Africa/CIS revenue increased by 10% to $2.4 billion, supported by improved activity in Norway and Romania[143]. - Middle East/Asia revenue decreased by 8% to $1.4 billion in Q3 2025, largely due to lower activity in Saudi Arabia[128]. - Middle East/Asia revenue decreased by 2% to $4.4 billion, primarily due to reduced activities in Saudi Arabia and Malaysia[144]. - The company expects full year 2025 international revenue to decline year over year, primarily due to reduced activity in Saudi Arabia and Mexico[120]. Cash and Expenditures - As of September 30, 2025, the company had $2.0 billion in cash and equivalents, down from $2.6 billion at the end of 2024[100]. - Capital expenditures for 2025 are expected to be approximately 6% of revenue, with a planned 30% reduction in 2026 to around $1.0 billion[102]. - The quarterly dividend rate is $0.17 per common share, totaling approximately $144 million, with a goal to return at least 50% of annual free cash flow to shareholders[103]. Cost Management - The company has implemented cost-cutting measures expected to save approximately $100 million per quarter going forward[120]. - Impairments and other charges totaled $748 million in 2025, significantly higher than the $116 million recorded in 2024[146]. - SAP S4 upgrade expenses amounted to $112 million in 2025, up from $91 million in 2024[145]. Market Conditions - WTI crude oil prices decreased by approximately 12% since the end of Q2 2025, impacting customer spending on exploration and production activities[119]. - Halliburton Labs had 40 participating companies and alumni as of September 30, 2025, focusing on clean tech start-ups and energy transition[99].

Core Insights - Halliburton has formed a strategic partnership with distributed energy company VoltaGrid to provide efficient and low-emission power solutions for the rapidly growing global data center market [1] - The initial phase of the collaboration will focus on promoting these solutions in the Middle East, addressing the increasing energy demands of data centers while enhancing sustainability and reliability [1] Industry Overview - Data centers, as critical infrastructure supporting cloud computing and artificial intelligence, are driving exponential growth in electricity demand, particularly in the Middle East [1] - Local governments are heavily investing in digital infrastructure, with major projects like the UAE's "Gateway to the Stars" data center, which plans for an initial capacity of 1 gigawatt [1] - The International Energy Agency predicts that global electricity demand from data centers will rise to approximately 945 terawatt-hours by 2030 [1] Company Strategy - Halliburton's entry into distributed power solutions signifies a strategic expansion beyond its traditional oilfield services, aligning with its goal to support global energy transition through technology and collaboration [1] - For VoltaGrid, this partnership will accelerate its international expansion, leveraging Halliburton's global business scale to serve more customers seeking reliable low-carbon energy systems [1]

Group 1 - Schlumberger, ConocoPhillips, and Halliburton saw pre-market gains exceeding 2% [1] - Chevron and ExxonMobil experienced pre-market increases of over 1% [1]

Core Viewpoint - Halliburton Company reported third-quarter results that exceeded expectations, driven by stronger execution and improved cost efficiency [1] Financial Performance - RBC Capital Markets upgraded Halliburton to Outperform from Sector Perform, raising the price forecast to $31 from $26 due to strong third-quarter results [1] - Halliburton's quarterly costs were reduced by approximately $100 million through operational optimization and headcount adjustments [4] - Projected capital spending is expected to decrease by 30% in 2026 to $1 billion, representing 4.8% of revenue, compared to an average of 6% from 2023-2025 [4] - RBC projects Halliburton's 2026 free cash flow at $1.8 billion, a 4% year-over-year increase, implying a 9% yield [6] - Revenue projections for 2025 and 2026 have been increased to $21.94 billion (up 2%) and $21.67 billion (up 4%), respectively [7] - EBITDA forecasts for 2025 and 2026 were raised by 5% to $4.27 billion and $4.09 billion, respectively [7] - Expected earnings are projected to rise from $1.41 in 2025 to $2.14 in 2026 [7] Valuation - Halliburton trades at 6.1x and 6.4x EV/EBITDA on 2025 and 2026 estimates, respectively, which is below its eight-year average multiple of 7.3x [8] - The new price forecast of $31 reflects a 7.5x multiple on 2026 estimated EBITDA, up from 7.0x previously, indicating improved margins and stronger growth prospects [9] Growth Catalysts - Halliburton's partnership with VoltaGrid is highlighted as a new growth catalyst, focusing on distributed power solutions for data centers in the Middle East [5] - The firm expects shareholder returns of 91% in 2025 and 75% in 2026, remaining in line with peers despite reduced buybacks [6]

Core Insights - Halliburton Company (NYSE:HAL) has shown strong performance recently, with a stock price increase of 11.58% to $25.24, driven by positive investor sentiment regarding its international oilfield outlook for Q4, despite a poor earnings report for the previous quarter [1][3]. Financial Performance - For Q3, Halliburton's attributable net income fell by 97% to $18 million from $571 million year-on-year [3]. - Revenues decreased by 1.7% to $5.6 billion compared to $5.697 billion in the same quarter last year, with completion and production revenues down by 2.3%, while drilling and evaluation revenues remained flat [3]. Strategic Outlook - Halliburton has announced plans to achieve estimated savings of $100 million per quarter, reset its capital expenditures for 2026, and idle underperforming equipment [4]. - The company emphasizes its commitment to returning cash to shareholders, maintaining cost and capital discipline, and investing in technologies that enhance long-term performance [4]. Management Commentary - CEO Jeff Miller highlighted the company's competitive edge in the international market, showcasing differentiated performance both onshore and offshore, and confirmed that growth engines are on track [2].

Core Insights - Halliburton Co. reported stronger-than-expected third-quarter 2025 results with revenue of $5.6 billion, exceeding analyst estimates of $5.39 billion, and adjusted earnings of 58 cents per diluted share, surpassing the 50-cent estimate [1][2] Financial Performance - The company achieved an adjusted operating margin of 13% and announced estimated savings of $100 million per quarter [2] - GAAP earnings were reported at 2 cents per share [1] Stock Market Reaction - Following the earnings announcement, Halliburton shares rose by 3.1%, trading at $26.01 [2] Analyst Ratings and Price Targets - Stifel analyst Stephen Gengaro maintained a Buy rating and raised the price target from $27 to $32 [5] - Susquehanna analyst Charles Minervino maintained a Positive rating and increased the price target from $27 to $29 [5] - RBC Capital analyst Keith Mackey upgraded Halliburton from Sector Perform to Outperform, raising the price target from $26 to $31 [5] - Piper Sandler analyst Derek Podhaizer maintained a Neutral rating and boosted the price target from $25 to $27 [5] - HSBC analyst Samantha Hoh upgraded Halliburton from Hold to Buy, raising the price target from $23 to $30 [5]