Halliburton(HAL) - 2025 Q2 - Quarterly Results

Halliburton Q2 2025 Earnings Release Financial Highlights Halliburton reported Q2 2025 net income of $472 million on $5.5 billion revenue, with $896 million operating cash flow and $250 million stock repurchases Q2 2025 vs Q1 2025 Financial Performance (in millions) | Metric | Q2 2025 | Q1 2025 (GAAP) | Q1 2025 (Adjusted) | | :--- | :--- | :--- | :--- | | Total Revenue | $5,500 | $5,400 | $5,400 | | Operating Income | $727 | $431 | $787 | | Net Income | $472 | $204 | $517 | | Diluted EPS | $0.55 | $0.24 | $0.60 | - In Q2 2025, the company generated cash flow from operations of $896 million and free cash flow of approximately $582 million[7] - The company repurchased approximately $250 million of its common stock during the second quarter[7][18] Management Commentary Management expects a softer oilfield services market but reaffirms shareholder returns and confidence in international strategy - The oilfield services market is anticipated to be softer than previously expected in the short to medium term[4] - The company remains fully committed to its shareholder returns framework despite near-term market softness[4] - Management is confident in its international strategy, with growth engines in unconventionals, drilling, production services, and artificial lift remaining key[5] - In North America, Halliburton expects to outperform competitors due to its unmatched capability to deliver technology and service execution at scale[6] Segment Performance Both segments saw 2% revenue growth, but operating income declined due to lower pricing in US Land and seasonal software sales Completion and Production Completion and Production revenue grew 2% to $3.2 billion, but operating income fell 3% to $513 million due to lower US Land pricing Completion and Production Performance (Q2 2025 vs Q1 2025, in millions) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $3,200 | $3,100 | +2% | | Operating Income | $513 | $531 | -3% | - Revenue growth was driven by improved pressure pumping services and higher completion tool sales in the Western Hemisphere, along with better well intervention services internationally[8] - The decline in operating income was primarily caused by lower pricing for stimulation services in US Land[8] Drilling and Evaluation Drilling and Evaluation revenue grew 2% to $2.3 billion, but operating income decreased 11% to $312 million due to software sales and costs Drilling and Evaluation Performance (Q2 2025 vs Q1 2025, in millions) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2,300 | $2,300 | +2% | | Operating Income | $312 | $352 | -11% | - Revenue increased due to higher drilling-related services globally, offset by decreased software sales and lower wireline activity in Middle East/Asia[9] - Operating income fell due to the seasonal roll-off of software sales and increased startup and mobilization costs across multiple product service lines[9] Geographic Performance North America revenue was flat at $2.3 billion, while international revenue grew 2% to $3.3 billion, driven by Latin America and Europe/Africa North America North America revenue remained flat at $2.3 billion, with gains in Canada and US Land offset by declines in other areas North America Revenue (Q2 2025 vs Q1 2025, in millions) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2,300 | $2,200 | Flat | - Positive drivers included increased stimulation activity in Canada and higher fluid services and cementing in US Land[10] - These gains were offset by lower artificial lift activity in US Land, decreased fluid services and wireline activity in the Gulf of America, and lower software sales[10] International International revenue grew 2% to $3.3 billion, driven by Latin America (+9%) and Europe/Africa (+6%), offsetting Middle East/Asia decline International Revenue by Region (Q2 2025 vs Q1 2025, in millions) | Region | Q2 2025 Revenue | Sequential Change | | :--- | :--- | :--- | | Total International | $3,300 | +2% | | Latin America | $977 | +9% | | Europe/Africa | $820 | +6% | | Middle East/Asia | $1,500 | -4% | - Latin America's growth was led by improved activity in Mexico and Brazil[12] - Europe/Africa's increase was primarily driven by higher activity in Norway[13] - The Middle East/Asia decrease was mainly due to lower activity in Saudi Arabia and Kuwait[14] Technology and Corporate Highlights Halliburton returned capital via $250 million stock repurchases and dividends, while advancing key technologies and securing new contracts - The company returned capital to shareholders through $250 million in stock repurchases and dividends of $0.17 per share[18] - Won a contract with GeoFrame Energy for a geothermal and direct lithium extraction (DLE) project in East Texas[16] - Key technology advancements include a new intelligent fracturing process with Chevron, fully automated drilling with Nabors in Oman, and the launch of the EarthStar® 3DX look-ahead resistivity service[18] - Awarded a 5-year contract by Repsol Resources UK to support the full well lifecycle for its UK North Sea platform assets[18] Financial Statements Financial statements show sequential revenue growth but year-over-year decline, stable balance sheet, and positive operating cash flow for H1 2025 Condensed Consolidated Statements of Operations Q2 2025 revenue was $5.51 billion with $472 million net income; H1 2025 revenue was $10.93 billion with $676 million net income Three Months Ended Financial Summary (in millions) | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Total Revenue | $5,510 | $5,833 | $5,417 | | Total Operating Income | $727 | $1,032 | $431 | | Net Income Attributable to Company | $472 | $709 | $204 | Six Months Ended Financial Summary (in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Revenue | $10,927 | $11,637 | | Total Operating Income | $1,158 | $2,019 | | Net Income Attributable to Company | $676 | $1,315 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $25.38 billion, with total liabilities at $14.83 billion and stable shareholders' equity Balance Sheet Summary (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $11,671 | $12,382 | | Total Assets | $25,377 | $25,587 | | Total Current Liabilities | $5,844 | $6,050 | | Total Liabilities | $14,830 | $15,039 | | Total Shareholders' Equity | $10,547 | $10,548 | Condensed Consolidated Statements of Cash Flows H1 2025 operating cash flow was $1.27 billion, with $1.04 billion used in investing and $811 million in financing activities Six Months Ended Cash Flow Summary (in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cash flows from operating activities | $1,273 | $1,568 | | Cash flows used in investing activities | $(1,040) | $(774) | | Cash flows used in financing activities | $(811) | $(838) | | Decrease in cash and equivalents | $(580) | $(126) | | Cash and equivalents at end of period | $2,038 | $2,138 | Reconciliation of Non-GAAP Measures Reconciliations clarify non-GAAP measures, showing Q1 2025 adjusted operating income of $787 million and Q2 2025 free cash flow of $582 million Reconciliation of Operating Income to Adjusted Operating Income Q1 2025 adjusted operating income was $787 million, excluding $356 million in pre-tax charges for severance and asset impairments Operating Income Reconciliation (in millions) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Operating Income (GAAP) | $727 | $431 | | Impairments and other charges | $— | $356 | | Adjusted Operating Income (Non-GAAP) | $727 | $787 | - The Q1 2025 charges of $356 million consisted of severance costs ($107M), impairment of assets held for sale ($104M), impairment of real estate ($53M), and other items ($92M)[43] Reconciliation of Net Income to Adjusted Net Income Q1 2025 adjusted net income was $517 million ($0.60 per diluted share), excluding $356 million in pre-tax charges Net Income Reconciliation (in millions, except per share data) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income (GAAP) | $472 | $204 | | Adjustments, net of taxes | $— | $313 | | Adjusted Net Income (Non-GAAP) | $472 | $517 | | Diluted EPS (GAAP) | $0.55 | $0.24 | | Adjusted Diluted EPS (Non-GAAP) | $0.55 | $0.60 | Reconciliation of Cash Flows from Operating Activities to Free Cash Flow Free cash flow for Q2 2025 was $582 million, and $706 million for H1 2025, calculated from operating cash flow less capital expenditures Free Cash Flow Reconciliation (in millions) | Metric | Q2 2025 | H1 2025 | | :--- | :--- | :--- | | Cash flows from operating activities | $896 | $1,273 | | Capital expenditures | $(354) | $(656) | | Proceeds from sales of PP&E | $40 | $89 | | Free Cash Flow (Non-GAAP) | $582 | $706 |