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Core Viewpoint - Halliburton Company is experiencing a shift in analyst expectations, with a decrease in the consensus price target, yet it shows positive financial performance indicators in recent quarters [2][3][6] Financial Performance - In Q3 2025, Halliburton reported a net income of $18 million, or $0.02 per diluted share, with adjusted net income rising to $496 million, or $0.58 per diluted share, an improvement from Q2's $472 million, or $0.55 per diluted share [3][6] - Total revenue for Q3 reached $5.6 billion, indicating strong operational performance [4] Analyst Opinions - The consensus price target for Halliburton has decreased by $3.00 over the past year, from $24.5 to $21.5, reflecting a more conservative outlook from analysts [2][6] - Analyst Charles Minervino from Susquehanna has set a more optimistic price target of $48 for Halliburton, suggesting potential for growth despite the general caution among other analysts [4][6] Upcoming Events - Halliburton is scheduled to host a conference call on October 21, 2025, to discuss its third-quarter financial results, which may provide further insights into the company's performance and future prospects [5]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $5.6 billion, a 2% increase compared to Q2 2025 [17] - Adjusted operating margin was 13%, with adjusted operating income of $748 million [17] - Cash flow from operations was $488 million, and free cash flow was $276 million [5][17] - Net income per diluted share was $0.02, while adjusted net income per diluted share was $0.58 [16] Business Line Data and Key Metrics Changes - Completion and Production division revenue was $3.2 billion, a 2% increase from Q2 2025, with operating income flat at $514 million [17] - Drilling and Evaluation division revenue was $2.4 billion, also a 2% increase from Q2 2025, with operating income rising 12% to $348 million [19] Market Data and Key Metrics Changes - International revenue was $3.2 billion, a decrease of 2% year over year, while North America revenue was $2.4 billion, flat year over year [5] - North America revenue saw a 5% sequential growth driven by strong activity in the Gulf of America [11] - Middle East Asia revenue decreased by 3% sequentially, primarily due to lower activity in Saudi Arabia [20] Company Strategy and Development Direction - The company is focused on maintaining a strong cost structure, with expected savings of approximately $100 million per quarter [5][15] - Capital expenditures for 2026 are expected to decline by almost 30% to around $1 billion [7] - The company is prioritizing technology development and maintaining a competitive position in the market [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of oil and gas demand, despite near-term volatility in commodity prices [6][15] - The company anticipates a cautious posture from customers in North America due to market conditions [6] - Management expects international revenue to increase by 3% to 4% in Q4 2025 [8] Other Important Information - The company repurchased approximately $250 million of its common stock during the quarter [5][17] - The partnership with VoltaGrid aims to deliver distributed power solutions for data centers internationally, which is seen as a significant growth opportunity [14][92] Q&A Session Summary Question: Insights on VoltaGrid's market evolution and strategic collaboration - Management highlighted the unprecedented demand for power and AI, emphasizing the strategic collaboration with VoltaGrid to leverage each other's strengths in project execution and technology [30][31] Question: Drivers of North American revenue outperformance - Management noted less whitespace than expected in Q3 and strong customer programs as key drivers for the revenue increase [32] Question: Middle East opportunity for power - Management sees significant opportunities in the Middle East due to available energy and capital, focusing initially on this region [36] Question: Margins and cost reductions impact - Management indicated that half of the margin beat came from earlier-than-expected labor cost reductions and strong international performance [42][44] Question: Halliburton's role in the VoltaGrid partnership - Management clarified that Halliburton brings industrial scale, project management, and customer relationships to the partnership, which is crucial for success in international markets [46][68] Question: 2026 outlook and customer conversations - Management described 2026 as flattish with some bright spots, emphasizing the importance of OPEC+ barrels and production levels in North America [38][39] Question: Growth engines and market share - Management confirmed that growth engines are on track to add significant revenue, with strong performance in artificial lift and drilling technology [74][76] Question: Brazil market outlook - Management expressed optimism about Brazil, highlighting strong positions with both IOC work and Petrobras [77] Question: Idling equipment strategy - Management stated that idling is focused on non-economic assets, which will help create a tighter supply-demand balance in the market [100][101]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $5.6 billion, a 2% increase compared to Q2 2025 [17] - Adjusted operating margin was 13%, with adjusted operating income of $748 million [17] - Cash flow from operations was $488 million, and free cash flow was $276 million [5][17] - Net income per diluted share was $0.02, while adjusted net income per diluted share was $0.58 [16] Business Line Data and Key Metrics Changes - Completion and Production division revenue was $3.2 billion, a 2% increase from Q2 2025, with operating income flat at $514 million [17] - Drilling and Evaluation division revenue was $2.4 billion, also a 2% increase from Q2 2025, with operating income rising 12% to $348 million [19] - Increased completion tool sales and higher artificial lift activity in North America were noted, while lower completion tool sales internationally impacted results [18] Market Data and Key Metrics Changes - International revenue was $3.2 billion, a decrease of 2% year over year, while North America revenue was flat at $2.4 billion [5] - Europe, Africa revenue was $828 million, flat sequentially, while Middle East Asia revenue decreased by 3% to $1.4 billion [20] - Latin America revenue increased by 2% to $996 million, driven by higher project management activity [20] Company Strategy and Development Direction - The company is focused on maintaining a strong cost structure, with expected savings of approximately $100 million per quarter [5][15] - Capital expenditures for 2026 are expected to decline by almost 30% to around $1 billion [7] - The company is prioritizing technology development and maintaining a competitive position in the market [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of oil and gas demand, despite near-term volatility in commodity prices [6][15] - The company anticipates a cautious posture from customers in North America due to market conditions [6] - Management highlighted the importance of ongoing investment in technology and international growth engines [15] Other Important Information - The company repurchased approximately $250 million of its common stock during the quarter [5][17] - The partnership with VoltaGrid aims to deliver distributed power solutions for data centers internationally, expanding growth opportunities [14][96] Q&A Session Summary Question: Insights on VoltaGrid's market evolution and strategic collaboration - Management highlighted the significant demand for power and AI, emphasizing the collaboration with VoltaGrid to leverage strengths in project economics and execution [29][31] Question: Drivers of North American revenue outperformance - Management noted less whitespace than expected and strong customer programs as key drivers for the 5% sequential revenue increase in North America [32] Question: Margins and cost reductions impact - Management indicated that half of the margin beat came from earlier-than-expected labor cost reductions, with strong performance in international markets contributing to overall results [42][44] Question: Halliburton's role in the VoltaGrid partnership - Management clarified that Halliburton brings industrial scale, project management, and customer relationships to the partnership, enhancing execution capabilities [46][68] Question: 2026 outlook and customer conversations - Management described 2026 as flattish with some bright spots, emphasizing the importance of OPEC Plus barrels and production levels in North America [38][108] Question: Growth engines and market share - Management expressed confidence in the growth engines, indicating they are on track to outgrow the industry internationally [73][76] Question: Brazil's market outlook - Management remains positive about Brazil, highlighting strong positions with both IOC work and Petrobras [77] Question: Idling equipment and market dynamics - Management confirmed that idling decisions are based on economic viability, with expectations for tightness in pricing as underperforming assets remain idle [100][101]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $5,600,000,000, representing a 2% increase compared to Q2 2025 [24] - Adjusted operating margin was 13%, with adjusted operating income of $748,000,000 [24] - Cash flow from operations was $488,000,000, and free cash flow was $276,000,000 [24] - The company repurchased approximately $250,000,000 of its common stock during the quarter [5][24] Business Line Data and Key Metrics Changes - Completion and Production division revenue was $3,200,000,000, a 2% increase from Q2 2025, with operating income flat at $514,000,000 and an operating margin of 16% [25] - Drilling and Evaluation division revenue was $2,400,000,000, also a 2% increase from Q2 2025, with operating income rising 12% to $348,000,000 and an operating margin of 15% [25] Market Data and Key Metrics Changes - International revenue was flat compared to Q2 2025, with Europe Africa revenue at $828,000,000 and Middle East Asia revenue at $1,400,000,000, a 3% decrease [27][28] - North America revenue was $2,400,000,000, a 5% increase sequentially, driven by improved stimulation activity [28] Company Strategy and Development Direction - The company is focusing on cost structure improvements, expecting to save approximately $100,000,000 per quarter going forward [5][7] - Capital expenditures for 2026 are expected to decline by almost 30% to around $1,000,000,000 [7] - The company is prioritizing technology development and maintaining a strong competitive position in the market [7][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of oil and gas demand, despite near-term volatility in commodity prices [6][20] - The company anticipates a cautious posture from customers in North America due to market conditions, while international markets are expected to remain steady [6][20] - Management highlighted the importance of maintaining cost and capital discipline while investing in technology [20] Other Important Information - The company has a strategic partnership with Voltigrid, focusing on distributed power solutions for data centers, which is expected to be a long-term growth opportunity [18][19] - The company recorded severance and fixed asset write-offs of $284,000,000 due to market conditions [23] Q&A Session Summary Question: Insights on the distributed power generation market and strategic collaboration with Voltigrid - Management highlighted the significant demand for power and AI, emphasizing the growth potential in international markets and the collaborative investment in project economics with Voltigrid [35][37] Question: Drivers of North American revenue outperformance - Management noted less white space than expected in Q3, contributing to better-than-anticipated revenues, and expressed confidence in Halliburton's market positioning for 2026 [40][41] Question: Opportunities in the Middle East and scaling AI - Management identified the Middle East as a region with substantial opportunities due to available energy and capital, and discussed strategies to overcome constraints [43][44] Question: Margins and cost savings impact - Management indicated that half of the margin beat came from earlier-than-expected labor cost reductions, alongside strong performance in North America and international markets [52] Question: VoltaGrid partnership details - Management confirmed that the partnership with Voltigrid is exclusive in certain targeted areas, emphasizing the growth potential for both companies [102] Question: CapEx funding and strategic investments - Management clarified that the $1,000,000,000 CapEx budget for next year does not include investments related to Voltigrid, which will be funded on a project-by-project basis [63] Question: Idling equipment and market dynamics - Management discussed the disciplined approach to idling non-economic fleets, indicating that this could lead to tighter pricing in North America as the market recovers [112] Question: Free cash flow expectations for 2026 - Management projected $1,700,000,000 in free cash flow for 2025, with expectations for improved liquidity in 2026 due to cost reductions and lower CapEx [115]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2025 was $5.6 billion, a 2% increase compared to Q2 2025 [16] - Adjusted operating margin was 13%, with adjusted operating income of $748 million [16] - Cash flow from operations was $488 million, and free cash flow was $276 million [16] - Net income per diluted share was $0.02, while adjusted net income per diluted share was $0.58 [15] Business Line Data and Key Metrics Changes - Completion and Production division revenue was $3.2 billion, a 2% increase from Q2 2025, with operating income flat at $514 million [16] - Drilling and Evaluation division revenue was $2.4 billion, also a 2% increase from Q2 2025, with operating income rising 12% to $348 million [17] Market Data and Key Metrics Changes - International revenue was $3.2 billion, flat year over year, with expectations for a 3-4% increase in Q4 [4][7] - North America revenue was $2.4 billion, a 5% sequential increase driven by strong activity in the Gulf of America [10][18] - Middle East Asia revenue decreased by 3% sequentially, primarily due to lower activity in Saudi Arabia [18] Company Strategy and Development Direction - The company is focused on maintaining a strong cost structure, with expected savings of approximately $100 million per quarter [4][14] - Capital expenditures for 2026 are expected to decline by almost 30% to around $1 billion [6] - The company is prioritizing technology development and maintaining a competitive position in the market [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of oil and gas demand despite near-term volatility [5][14] - The company anticipates a cautious posture from customers in North America due to volatile commodity prices [5] - Management expects a recovery in activity, although the timing remains uncertain [14] Other Important Information - The company repurchased approximately $250 million of its common stock during the quarter [4][16] - The partnership with VoltaGrid aims to deliver distributed power solutions internationally, expanding growth opportunities [12][13] Q&A Session Summary Question: Insights on the VoltaGrid partnership and market evolution - Management highlighted the significant demand for power and AI, emphasizing the strategic collaboration with VoltaGrid to leverage strengths in project economics and execution [24][25] Question: Drivers of North American revenue outperformance - Management noted strong customer programs and technology adoption as key factors for the better-than-expected performance in North America [28] Question: Middle East opportunities and constraints - Management identified the Middle East as a region with significant potential due to available energy and capital, focusing on investment and development [30][31] Question: Margins and cost savings impact - Management indicated that half of the margin beat was due to earlier-than-expected labor cost reductions, with strong performance in international markets contributing to overall results [36] Question: VoltaGrid's project sizes and Halliburton's role - Management confirmed that they are aligned with VoltaGrid on project sizes and emphasized Halliburton's strengths in international execution and customer relationships [38][39] Question: CapEx funding and strategic investments - Management clarified that the $1 billion CapEx budget for next year does not include investments related to the VoltaGrid partnership, which will be funded on a project-by-project basis [42][43] Question: Idling equipment and market dynamics - Management stated that idling decisions are based on economic viability, with expectations for tightness in pricing as the market recovers [60][71] Question: Free cash flow expectations - Management projected a free cash flow target of approximately $1.7 billion for the year, with Q4 expected to be the strongest for collections [72][73]

Halliburton (HAL) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +16.00%. A quarter ago, it was expected that this provider of drilling services to oil and gas operators would post earnings of $0.55 per share when it actually produced earnings of $0.55, delivering no surprise.Over the ...

Oil-services company Halliburton's third-quarter net income fell sharply due to hefty impairment charges. ...

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) Halliburton's Q3 2025 financial performance, CEO commentary, and key metrics are presented [Q3 2025 Performance Overview](index=1&type=section&id=Q3%202025%20Performance%20Overview) Halliburton reported Q3 2025 net income of $18 million, adjusted net income of $496 million, and $5.6 billion in revenue - Net income for Q3 2025 was **$18 million**, or **$0.02 per diluted share**, a significant decrease from **$472 million**, or **$0.55 per diluted share**, in Q2 2025[2](index=2&type=chunk) - Adjusted net income for Q3 2025, excluding impairments and other charges, was **$496 million**, or **$0.58 per diluted share**[2](index=2&type=chunk) | Metric | Q3 2025 (USD) | Q2 2025 (USD) | | :------------------ | :-------- | :-------- | | Total Revenue | $5.6 billion | $5.5 billion | | Operating Income | $356 million | $727 million | | Adjusted Operating Income | $748 million | N/A | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jeff Miller expressed satisfaction with Q3 performance, highlighting $5.6 billion revenue and 13% adjusted operating margin - Halliburton delivered total company revenue of **$5.6 billion** and an adjusted operating margin of **13%** in Q3 2025[3](index=3&type=chunk) - The company took steps to deliver estimated savings of **$100 million per quarter**, reset its 2026 capital budget, and idled equipment that no longer meets return expectations[3](index=3&type=chunk) - Strategic focus includes prioritizing returns, technology leadership, and working with leading operators in North America, alongside a commitment to returning cash to shareholders, maintaining cost and capital discipline, and investing in differentiated technologies[4](index=4&type=chunk)[5](index=5&type=chunk) [Key Financial Metrics Summary](index=1&type=section&id=Key%20Financial%20Metrics%20Summary) This section provides a concise overview of Halliburton's key financial metrics for Q3 2025 | Metric | Value | | :----------------------------- | :------------------ | | Net income per diluted share | $0.02 | | Adjusted net income per diluted share | $0.58 | | Revenue | $5.6 billion | | Operating margin | 6% | | Adjusted operating margin | 13% | | Cash flow from operations | $488 million | | Free cash flow | $276 million | [Segment Performance](index=2&type=section&id=Segment%20Performance) Halliburton's Q3 2025 financial performance is detailed across its Completion and Production, and Drilling and Evaluation segments [Completion and Production](index=2&type=section&id=Completion%20and%20Production) Completion and Production revenue increased 2% sequentially to $3.2 billion, with operating income remaining flat at $514 million | Metric | Q3 2025 (USD) | Q2 2025 (USD) | Change (QoQ) | | :---------------- | :-------- | :-------- | :------------- | | Revenue | $3.2 billion | $3.171 billion | +2% | | Operating Income | $514 million | $513 million | Flat | - Revenue increase driven by higher completion tool sales and increased artificial lift activity in North America, and improved cementing activity in Africa and Latin America[8](index=8&type=chunk) - Operating income was adversely impacted by lower completion tool sales internationally, decreased well intervention services in Middle East/Asia, lower cementing activity in North America, and rig reductions in Saudi Arabia[8](index=8&type=chunk) [Drilling and Evaluation](index=2&type=section&id=Drilling%20and%20Evaluation) Drilling and Evaluation revenue rose 2% sequentially to $2.4 billion, with operating income increasing 12% to $348 million | Metric | Q3 2025 (USD) | Q2 2025 (USD) | Change (QoQ) | | :---------------- | :-------- | :-------- | :------------- | | Revenue | $2.4 billion | $2.339 billion | +2% | | Operating Income | $348 million | $312 million | +12% | - Revenue and operating income growth driven by higher project management and improved wireline activity in Latin America, increased drilling services in North America and Europe/Africa, and higher software sales in Europe/Africa[9](index=9&type=chunk) - Partially offsetting increases were lower activity across multiple product service lines in the Middle East and decreased fluid services in North America and Europe/Africa[9](index=9&type=chunk) [Geographic Performance](index=2&type=section&id=Geographic%20Performance) This section analyzes Halliburton's Q3 2025 revenue performance across North America and international regions [North America](index=2&type=section&id=North%20America) North America revenue increased 5% sequentially to $2.4 billion in Q3 2025, driven by increased stimulation activity | Metric | Q3 2025 (USD) | Q2 2025 (USD) | Change (QoQ) | | :------ | :-------- | :-------- | :------------- | | Revenue | $2.4 billion | $2.259 billion | +5% | - Revenue growth primarily driven by increased stimulation activity in US Land and Canada, and higher completion tool sales and increased wireline activity in the Gulf of America[10](index=10&type=chunk) - Partially offset by lower cementing activity in US Land and decreased stimulation activity in the Gulf of America[10](index=10&type=chunk) [International](index=2&type=section&id=International) International revenue remained flat sequentially at $3.2 billion in Q3 2025, with varied regional performance | Metric | Q3 2025 (USD) | Q2 2025 (USD) | Change (QoQ) | | :------ | :-------- | :-------- | :------------- | | Revenue | $3.2 billion | $3.2 billion | Flat | [Latin America](index=2&type=section&id=Latin%20America) Latin America revenue increased 2% sequentially to $996 million, driven by higher project management activity | Metric | Q3 2025 (USD) | Q2 2025 (USD) | Change (QoQ) | | :------ | :-------- | :-------- | :------------- | | Revenue | $996 million | $977 million | +2% | - Revenue increase primarily driven by higher project management activity across the region and increased drilling services in Argentina[12](index=12&type=chunk) - Partially offset by decreased activity across multiple product service lines in Mexico and lower completion tool sales in Brazil[12](index=12&type=chunk) [Europe/Africa/CIS](index=2&type=section&id=Europe%2FAfrica%2FCIS) Europe/Africa/CIS revenue remained flat at $828 million, influenced by improved completion tool sales and drilling services | Metric | Q3 2025 (USD) | Q2 2025 (USD) | Change (QoQ) | | :------ | :-------- | :-------- | :------------- | | Revenue | $828 million | $820 million | Flat | - Results primarily driven by improved completion tool sales in Norway and increased drilling-related services in Namibia[13](index=13&type=chunk) - Offsetting increases were lower completion tool sales in the Caspian Area and lower fluid services across Europe[13](index=13&type=chunk) [Middle East/Asia](index=2&type=section&id=Middle%20East%2FAasia) Middle East/Asia revenue decreased 3% sequentially to $1.4 billion, primarily due to lower activity in Saudi Arabia | Metric | Q3 2025 (USD) | Q2 2025 (USD) | Change (QoQ) | | :------ | :-------- | :-------- | :------------- | | Revenue | $1.4 billion | $1.454 billion | -3% | - Revenue decrease primarily driven by lower activity across multiple product service lines in Saudi Arabia[14](index=14&type=chunk) - Partially offset by improved pressure pumping services in Qatar, increased artificial lift activity in Kuwait, and higher completion tool sales and improved fluids services in Asia[14](index=14&type=chunk) [Other Financial Information](index=3&type=section&id=Other%20Financial%20Information) This section covers Halliburton's Q3 2025 shareholder returns, capital allocation, and impairment charges [Shareholder Returns & Capital Allocation](index=3&type=section&id=Shareholder%20Returns%20%26%20Capital%20Allocation) In Q3 2025, Halliburton repurchased $250 million of common stock and paid $0.17 per share in dividends - Approximately **$250 million** of common stock was repurchased during Q3 2025[16](index=16&type=chunk) - Dividends of **$0.17 per share** were paid[16](index=16&type=chunk) - Spent **$50 million** on SAP S4 migration[16](index=16&type=chunk) [Impairments and Other Charges](index=3&type=section&id=Impairments%20and%20Other%20Charges) Halliburton incurred a total charge of $540 million in Q3 2025, including $392 million in impairments and other charges - Incurred a total charge of **$540 million** related to 'Impairments and other charges' and other items in Q3 2025[16](index=16&type=chunk) | Impairment Component | Q3 2025 (Millions of dollars) | | :------------------------- | :---------------------------- | | Severance costs | $169 | | Fixed and Other assets write-offs | $115 | | Impairment of assets held for sale | $96 | | Total impairments and other charges | $392 | [Technology & Strategic Highlights](index=3&type=section&id=Technology%20%26%20Strategic%20Highlights) This section highlights Halliburton's new product launches and significant contract awards in Q3 2025 [New Product Launches](index=4&type=section&id=New%20Product%20Launches) Halliburton launched LOGIX™ automated geosteering, the Summit Knowledge® digital ecosystem, and the Turing electro-hydraulic control system - Launched LOGIX™ automated geosteering, which optimizes geological interpretation and well placement using automation, machine learning, and advanced geological insights[16](index=16&type=chunk) - Unveiled the next generation Summit Knowledge® (SK™) digital ecosystem, featuring SK Well Pages with an all-in-one electric submersible pump (ESP) workspace for proactive monitoring and agile decision-making[17](index=17&type=chunk) - Launched the Turing electro-hydraulic control system, the next generation of SmartWell® intelligent completions technology, designed to improve recovery and reduce well count through fast zonal optimization[20](index=20&type=chunk) [Contract Awards](index=3&type=section&id=Contract%20Awards) Halliburton secured contracts for carbon capture and storage (CCS) services and comprehensive well stimulation in the North Sea - Awarded a contract to provide completions and downhole monitoring services for the Northern Endurance Partnership (NEP) carbon capture and storage (CCS) system in northeast England[16](index=16&type=chunk) - Awarded a five-year contract from ConocoPhillips Skandinavia AS to deliver comprehensive well stimulation services in the North Sea, including the transformation of Tidewater's vessel, North Pomor, into an advanced stimulation vessel[17](index=17&type=chunk) [Company Overview](index=4&type=section&id=Company%20Overview) This section provides a brief overview of Halliburton's founding, mission, and role in the energy industry [About Halliburton](index=4&type=section&id=About%20Halliburton) Halliburton, founded in 1919, is a leading provider of products and services to the energy industry - Halliburton was founded in **1919**[18](index=18&type=chunk) - The company is a leading provider of products and services to the energy industry[18](index=18&type=chunk) - Its mission is to create innovative technologies, products, and services that help customers maximize value throughout the life cycle of an asset and advance a sustainable energy future[18](index=18&type=chunk) [Forward-Looking Statements & Non-GAAP Measures](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Non-GAAP%20Measures) This section outlines the risks associated with forward-looking statements and defines non-GAAP financial measures [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to numerous risks and uncertainties that could cause actual results to differ materially - Statements in the press release that are not historical are forward-looking and subject to numerous risks and uncertainties beyond the company's control[19](index=19&type=chunk) - Key risks include changes in demand or price of oil/natural gas, general economic conditions, changes in customer capital spending, modification of shareholder return framework, potential catastrophic events, cyber-attacks, and compliance with environmental laws[19](index=19&type=chunk) - Additional risks involve changes in government regulations, tax disputes, international operations risks (unsettled political conditions, war, foreign exchange rates, sanctions), weather-related issues, delays in customer payments, infrastructure issues, and availability/cost of labor and raw materials[19](index=19&type=chunk)[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures used by management to assess operating performance - Adjusted net income per diluted share, adjusted operating margin, adjusted operating income, and free cash flow are non-GAAP financial measures[20](index=20&type=chunk) - Management believes these non-GAAP measures are useful to investors for assessing and understanding operating performance, especially when comparing results across periods or forecasting future performance, as excluded items are considered outside normal operating results[42](index=42&type=chunk)[43](index=43&type=chunk)[54](index=54&type=chunk)[58](index=58&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Halliburton's condensed consolidated statements of operations, balance sheets, and cash flows [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) This section presents Halliburton's condensed consolidated statements of operations for both three and nine months ended September 30, 2025 [Three Months Ended September 30, 2025](index=5&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025) This table provides Halliburton's condensed consolidated statements of operations for the three months ended September 30, 2025 | Metric | Sep 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | Jun 30, 2025 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | :----------- | | Total revenue | $5,600 | $5,697 | $5,510 | | Total operating income | $356 | $871 | $727 | | Net income attributable to Company | $18 | $571 | $472 | | Basic and diluted net income per share | $0.02 | $0.65 | $0.55 | | Impairment and other charges | $(392) | $(116) | $— | [Nine Months Ended September 30, 2025](index=6&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025) This table provides Halliburton's condensed consolidated statements of operations for the nine months ended September 30, 2025 | Metric | Sep 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | | Total revenue | $16,527 | $17,334 | | Total operating income | $1,514 | $2,890 | | Net income attributable to Company | $694 | $1,886 | | Basic and diluted net income per share | $0.81 | $2.13 | | Impairment and other charges | $(748) | $(116) | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) Halliburton's total assets were $25.164 billion as of September 30, 2025, with total liabilities at $14.918 billion | Metric | Sep 30, 2025 (Millions of USD) | Dec 31, 2024 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | | Total assets | $25,164 | $25,587 | | Total liabilities | $14,918 | $15,039 | | Total shareholders' equity | $10,246 | $10,548 | | Cash and equivalents | $2,026 | $2,618 | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Cash flows from operating activities were $1.761 billion for the nine months ended September 30, 2025 | Metric | 9 Months Ended Sep 30, 2025 (Millions of USD) | 9 Months Ended Sep 30, 2024 (Millions of USD) | 3 Months Ended Sep 30, 2025 (Millions of USD) | | :---------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Total cash flows provided by operating activities | $1,761 | $2,409 | $488 | | Total cash flows used in investing activities | $(1,126) | $(1,210) | $(86) | | Total cash flows used in financing activities | $(1,216) | $(1,185) | $(405) | | Decrease in cash and cash equivalents | $(592) | $(86) | $(12) | [Revenue and Operating Income by Segment and Region](index=9&type=section&id=Revenue%20and%20Operating%20Income%20by%20Segment%20and%20Region) This section details Halliburton's Q3 2025 revenue and operating income by segment and geographic region [Three Months Ended September 30, 2025](index=9&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025) This table provides a detailed breakdown of Halliburton's Q3 2025 revenue and operating income by segment and region | Metric | Sep 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | Jun 30, 2025 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | :----------- | | **Revenue by operating segment:** | | | | | Completion and Production | $3,223 | $3,299 | $3,171 | | Drilling and Evaluation | $2,377 | $2,398 | $2,339 | | **Revenue by geographic region:** | | | | | North America | $2,364 | $2,386 | $2,259 | | Latin America | $996 | $1,053 | $977 | | Europe/Africa/CIS | $828 | $722 | $820 | | Middle East/Asia | $1,412 | $1,536 | $1,454 | | **Operating Income by operating segment:** | | | | | Completion and Production | $514 | $669 | $513 | | Drilling and Evaluation | $348 | $406 | $312 | [Nine Months Ended September 30, 2025](index=10&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025) This table presents Halliburton's revenue and operating income breakdown by segment and region for the nine months ended September 30, 2025 | Metric | Sep 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | | **Revenue by operating segment:** | | | | Completion and Production | $9,514 | $10,073 | | Drilling and Evaluation | $7,013 | $7,261 | | **Revenue by geographic region:** | | | | North America | $6,859 | $7,413 | | Latin America | $2,869 | $3,258 | | Europe/Africa/CIS | $2,423 | $2,208 | | Middle East/Asia | $4,376 | $4,455 | | **Operating Income by operating segment:** | | | | Completion and Production | $1,558 | $2,080 | | Drilling and Evaluation | $1,012 | $1,207 | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for Halliburton's adjusted operating income, adjusted net income, and free cash flow [Adjusted Operating Income Reconciliation](index=10&type=section&id=Adjusted%20Operating%20Income%20Reconciliation) This section provides reconciliations of operating income to adjusted operating income for Q3 and nine months ended September 30, 2025 [Three Months Ended September 30, 2025](index=10&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025_Adjusted_Operating_Income) This table reconciles Halliburton's operating income to adjusted operating income for the three months ended September 30, 2025 | Metric | Sep 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | Jun 30, 2025 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | :----------- | | Operating income | $356 | $871 | $727 | | Total impairments and other charges | $392 | $116 | $— | | Adjusted operating income | $748 | $987 | $727 | [Nine Months Ended September 30, 2025](index=11&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025_Adjusted_Operating_Income) This table reconciles Halliburton's operating income to adjusted operating income for the nine months ended September 30, 2025 | Metric | Sep 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | | Operating income | $1,514 | $2,890 | | Total impairments and other charges | $748 | $116 | | Adjusted operating income | $2,262 | $3,006 | [Adjusted Net Income Reconciliation](index=12&type=section&id=Adjusted%20Net%20Income%20Reconciliation) This section provides reconciliations of net income to adjusted net income for Q3 and nine months ended September 30, 2025 [Three Months Ended September 30, 2025](index=12&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025_Adjusted_Net_Income) This table reconciles Halliburton's net income to adjusted net income for the three months ended September 30, 2025 | Metric | Sep 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | Jun 30, 2025 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | :----------- | | Net income attributable to company | $18 | $571 | $472 | | Total adjustments, net of taxes | $478 | $70 | $— | | Adjusted net income attributable to company | $496 | $641 | $472 | | Adjusted net income per diluted share | $0.58 | $0.73 | $0.55 | [Nine Months Ended September 30, 2025](index=13&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025_Adjusted_Net_Income) This table reconciles Halliburton's net income to adjusted net income for the nine months ended September 30, 2025 | Metric | Sep 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :---------------------------------- | :----------- | :----------- | | Net income attributable to company | $694 | $1,886 | | Total adjustments, net of taxes | $791 | $143 | | Adjusted net income attributable to company | $1,485 | $2,029 | | Adjusted net income per diluted share | $1.73 | $2.29 | [Free Cash Flow Reconciliation](index=14&type=section&id=Free%20Cash%20Flow%20Reconciliation) This table reconciles Halliburton's cash flows from operating activities to free cash flow for Q3 and nine months ended September 30, 2025 | Metric | 9 Months Ended Sep 30, 2025 (Millions of USD) | 9 Months Ended Sep 30, 2024 (Millions of USD) | 3 Months Ended Sep 30, 2025 (Millions of USD) | | :---------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Total cash flows provided by operating activities | $1,761 | $2,409 | $488 | | Capital expenditures | $(917) | $(1,016) | $(261) | | Proceeds from sales of property, plant, and equipment | $138 | $149 | $49 | | Free cash flow | $982 | $1,542 | $276 | [Conference Call & Contacts](index=15&type=section&id=Conference%20Call%20%26%20Contacts) This section provides details for Halliburton's Q3 2025 earnings conference call and contact information [Conference Call Details](index=15&type=section&id=Conference%20Call%20Details) Halliburton will host a conference call on October 21, 2025, to discuss its Q3 2025 financial results - Halliburton Company will host a conference call on Tuesday, October 21, 2025, to discuss its third quarter 2025 financial results[59](index=59&type=chunk) - The call will begin at **8:00 a.m. CT (9:00 a.m. ET)**[59](index=59&type=chunk) - The call will be available via live webcast on the Halliburton website, with a recorded version available for seven days[60](index=60&type=chunk) [Contacts](index=15&type=section&id=Contacts) Contact information for Halliburton's Investor Relations and Media Relations departments is provided - Investor Relations Contact: David Coleman, Investors@Halliburton.com, 281-871-2688[61](index=61&type=chunk) - Media Relations Contact: Alexandra Franceschi, PR@Halliburton.com, 281-871-2601[61](index=61&type=chunk)

Core Insights - Halliburton exceeded Wall Street profit estimates for the third quarter, driven by consistent demand for its oilfield equipment and services in North America [1] Group 1 - Halliburton's third quarter profit performance was better than expected by analysts [1] - The company's success is attributed to steady demand in the North American market [1]