Halliburton Company (NYSE:HAL) Q4 2025 Earnings call January 21, 2026 09:00 AM ET Company ParticipantsNeil Mehta - Managing DirectorJeff Miller - Chairman, President and CEOJames West - Managing DirectorEric Carre - EVP and CFODavid Coleman - SVP of Investor RelationsStephen Gengaro - Managing DirectorConference Call ParticipantsSaurabh Pant - Energy Equity Research AnalystJ. David Anderson - Senior Equity AnalystArun Jayaram - Research AnalystMarc Bianchi - Equity Research AnalystScott Gruber - Managing Di ...

Halliburton Company (NYSE:HAL) Q4 2025 Earnings call January 21, 2026 09:00 AM ET Company ParticipantsNeil Mehta - Managing DirectorJeff Miller - Chairman, President and CEOJames West - Managing DirectorEric Carre - EVP and CFODavid Coleman - SVP of Investor RelationsStephen Gengaro - Managing DirectorConference Call ParticipantsSaurabh Pant - Energy Equity Research AnalystJ. David Anderson - Senior Equity AnalystArun Jayaram - Research AnalystMarc Bianchi - Equity Research AnalystScott Gruber - Managing Di ...

Financial Data and Key Metrics Changes - Halliburton reported total company revenue of $22.2 billion for 2025, with an adjusted operating margin of 14% [5] - International revenue was $13.1 billion, down 2% year over year, while North America revenue was $9.1 billion, a decrease of 6% year over year [5] - The company generated $2.9 billion in cash flow from operations and $1.9 billion in free cash flow, returning 85% of free cash flow to shareholders [5] Business Line Data and Key Metrics Changes - Completion and Production division revenue in Q4 was $3.3 billion, flat compared to Q3 2025, with operating income increasing by 11% to $570 million [17] - Drilling and Evaluation division revenue in Q4 was $2.4 billion, also flat compared to Q3 2025, with operating income increasing by 5% to $367 million [18] Market Data and Key Metrics Changes - International revenue increased by 7% in Q4 compared to Q3 2025, with Europe-Africa revenue up 12% and Middle East Asia revenue up 3% [18] - North America revenue in Q4 was $2.2 billion, a 7% decrease sequentially, primarily due to lower stimulation activity [19] Company Strategy and Development Direction - The company anticipates 2026 to be a year of rebalancing, with expectations of stable international activity and moderate softness in North America [6][22] - Halliburton's strategy focuses on maximizing value rather than market share, prioritizing technology adoption to improve recovery [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of oilfield services, highlighting the importance of technology and collaboration in driving growth [6][15] - The company sees potential growth opportunities in Venezuela, contingent on resolving commercial and legal terms [11][24] Other Important Information - Halliburton repurchased $1 billion of its common stock during the year, reducing the share count to its lowest levels in 10 years [5] - The company expects capital expenditures for 2026 to be about $1.1 billion, excluding potential spending for re-entry into Venezuela [20] Q&A Session Summary Question: What is the potential size of the opportunity in Venezuela and how quickly can Halliburton scale up? - Management indicated that they could scale up fairly quickly in Venezuela, with existing operating bases facilitating equipment movement [24][25] Question: What are the expectations for margins in 2026? - Management expects the second half of 2026 to show stronger margins compared to the first half, with a stable pricing environment [26][29] Question: Can you provide a breakdown of international market expectations for 2026? - Latin America is expected to lead growth, particularly in Brazil and Argentina, while the Middle East is anticipated to be flat [31] Question: How do the prospective returns on power projects compare to organic investments? - Returns on power projects are expected to be higher than current returns in North America, but it will depend on specific opportunities [55]