Business Strategy - Halliburton is diversifying into data-center power generation [1] Industry Trends - Worldwide demand for oilfield fracking is slackening [1]

Core Insights - Halliburton Co. shares increased by over 8% in intra-day trading following the release of better-than-expected third-quarter results and improved profitability [1] - Adjusted earnings were reported at $0.58 per share, surpassing the analyst consensus of $0.50, while revenue rose to $5.6 billion, exceeding expectations of $5.39 billion [1] - The company reported an adjusted operating margin of 13% for the quarter, with GAAP earnings at $0.02 per share after accounting for $392 million in impairments and other charges [2] Revenue Breakdown - The Completion and Production segment generated $3.2 billion in revenue, reflecting a 2% sequential increase, while Drilling and Evaluation revenue also rose by 2% to $2.4 billion [3] - North American revenue climbed 5% from the previous quarter to $2.4 billion, driven by stronger stimulation activity in U.S. land operations and Canada [3] - International markets continued to provide stable growth opportunities, supported by rising demand for well construction and production services [3]

Core Insights - NOV Inc. is expected to report third-quarter 2025 results on October 27, with earnings estimated at 24 cents per share and revenues at $2.1 billion [1][9] Financial Performance - In the last reported quarter, NOV missed the consensus earnings estimate, reporting adjusted EPS of 29 cents against an expected 30 cents, while revenues were $2.2 billion, up 1.9% from the consensus [2] - Over the past four quarters, NOV has beaten the Zacks Consensus Estimate once and missed three times, resulting in an average negative surprise of 3.9% [3] Revenue and Expense Outlook - The Zacks Consensus Estimate predicts a 2.4% decline in third-quarter revenues compared to the previous year, with the Energy Products and Services segment expected to generate $983 million, down from $1,003 million [5][9] - Selling, general, and administrative expenses are projected to rise by approximately 12.4% year-over-year, reaching $309 million [5][9] - The cost of goods sold is anticipated to decrease to $1,679.7 million from $1,722 million in the prior year [6] Market Conditions - The company expects a slowdown in global drilling activity in the second half of 2025, with North American shale activity also projected to decline modestly [5] - NOV believes that conventional drilling in Saudi Arabia will not see a resurgence before 2026 [5] Earnings Prediction - The Zacks model does not predict an earnings beat for NOV this quarter, with an Earnings ESP of -7.29% [7][8]

Core Insights - Schlumberger's total revenue for the quarter ending September 2025 was $8.93 billion, reflecting a year-over-year decline of 2.5% [4] - The company's international revenue streams are crucial for assessing its financial resilience and growth prospects [2][3] International Revenue Breakdown - Latin America contributed $1.48 billion, accounting for 16.6% of total revenue, with a surprise decline of -2.91% compared to analyst expectations of $1.53 billion [5] - Middle East & Asia generated $3 billion, representing 33.6% of total revenue, with a surprise decline of -1.04% against expectations of $3.03 billion [6] - Europe & Africa provided $2.43 billion, making up 27.3% of total revenue, exceeding the consensus estimate of $2.41 billion by +1.02% [7] Future Revenue Expectations - Analysts project Schlumberger's revenues for the current fiscal quarter to reach $9.5 billion, an increase of 2.3% year-over-year, with expected contributions of 17.3% from Latin America ($1.65 billion), 34.4% from Middle East & Asia ($3.26 billion), and 27% from Europe & Africa ($2.56 billion) [8] - For the full year, total annual revenue is expected to be $35.47 billion, a decrease of 2.3% compared to the previous year, with projected contributions of 17.4% ($6.16 billion) from Latin America, 34.5% ($12.25 billion) from Middle East & Asia, and 27% ($9.58 billion) from Europe & Africa [9] Market Performance and Outlook - The reliance on international markets presents both opportunities and challenges for Schlumberger, making it essential to track international revenue trends for future projections [10] - The company's current Zacks Rank is 4 (Sell), indicating potential underperformance in the near term [12] - Over the past month, Schlumberger's stock has declined by 1.4%, while the Zacks S&P 500 composite increased by 1.2% [13]

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]

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]

HOUSTON--(BUSINESS WIRE)--Halliburton Company (NYSE: HAL) announced today net income of $18 million, or $0.02 per diluted share, for the third quarter of 2025 and adjusted net income4, excluding "Impairments and other charges†and other items, of $496 million, or $0.58 per diluted share. This compares to net income for the second quarter of 2025 of $472 million, or $0.55 per diluted share. Halliburton's total revenue for the third quarter of 2025 was $5.6 billion, compared to total revenue of $. ...