Halliburton(US:HAL)2025-10-24 16:13Financial 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].