Halliburton(HAL) - 2025 Q3 - Quarterly Results

Executive Summary & Financial Highlights Halliburton's Q3 2025 financial performance, CEO commentary, and key metrics are presented Q3 2025 Performance Overview 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] - Adjusted net income for Q3 2025, excluding impairments and other charges, was $496 million, or $0.58 per diluted share[2] | 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 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] - 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] - 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][5] Key Financial Metrics Summary 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 Halliburton's Q3 2025 financial performance is detailed across its Completion and Production, and Drilling and Evaluation segments Completion and Production 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] - 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] Drilling and Evaluation 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] - 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] Geographic Performance This section analyzes Halliburton's Q3 2025 revenue performance across North America and international regions North America 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] - Partially offset by lower cementing activity in US Land and decreased stimulation activity in the Gulf of America[10] 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 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] - Partially offset by decreased activity across multiple product service lines in Mexico and lower completion tool sales in Brazil[12] Europe/Africa/CIS 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] - Offsetting increases were lower completion tool sales in the Caspian Area and lower fluid services across Europe[13] Middle East/Asia 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] - 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] Other Financial Information This section covers Halliburton's Q3 2025 shareholder returns, capital allocation, and impairment charges Shareholder Returns & Capital Allocation 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] - Dividends of $0.17 per share were paid[16] - Spent $50 million on SAP S4 migration[16] Impairments and Other Charges 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] | 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 This section highlights Halliburton's new product launches and significant contract awards in Q3 2025 New Product Launches 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] - 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] - 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] Contract Awards 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] - 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] Company Overview This section provides a brief overview of Halliburton's founding, mission, and role in the energy industry About Halliburton Halliburton, founded in 1919, is a leading provider of products and services to the energy industry - Halliburton was founded in 1919[18] - The company is a leading provider of products and services to the energy industry[18] - 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] Forward-Looking Statements & Non-GAAP Measures This section outlines the risks associated with forward-looking statements and defines non-GAAP financial measures Forward-Looking Statements 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] - 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] - 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][21] Non-GAAP Financial Measures 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] - 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][43][54][58] Condensed Consolidated Financial Statements This section presents Halliburton's condensed consolidated statements of operations, balance sheets, and cash flows Statements of Operations 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 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 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 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 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 This section details Halliburton's Q3 2025 revenue and operating income by segment and geographic region Three Months Ended September 30, 2025 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 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 This section provides reconciliations for Halliburton's adjusted operating income, adjusted net income, and free cash flow Adjusted Operating Income Reconciliation 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 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 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 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 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 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 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 This section provides details for Halliburton's Q3 2025 earnings conference call and contact information Conference Call Details 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] - The call will begin at 8:00 a.m. CT (9:00 a.m. ET)[59] - The call will be available via live webcast on the Halliburton website, with a recorded version available for seven days[60] 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] - Media Relations Contact: Alexandra Franceschi, PR@Halliburton.com, 281-871-2601[61]