Core Insights - Halliburton reported fourth-quarter 2025 revenue of $5.7 billion, flat sequentially, with an adjusted operating income of $829 million and a 15% adjusted operating margin [4] - The company generated $1.2 billion in cash flow from operations and $875 million in free cash flow during the quarter, repurchasing $250 million of common stock [3] - For the full year, Halliburton's total revenue reached $22.2 billion, with international revenue at $13.1 billion, down 2% year-over-year, and North America revenue at $9.1 billion, down 6% [6] Financial Performance - Drilling and Evaluation segment revenue was $2.4 billion, flat sequentially, with operating income increasing 5% to $367 million and an operating margin of 15% [1] - Completion and Production segment revenue was $3.3 billion, also flat sequentially, with operating income rising 11% to $570 million and an operating margin of 17% [2] - The company repurchased approximately 42 million shares at an average price of $23.80 per share throughout the year [3] Geographic Trends - International revenue increased 7% sequentially in the fourth quarter, with Europe-Africa revenue rising 12% to $928 million and Middle East/Asia revenue increasing 3% to $1.5 billion [8] - North America revenue declined 7% sequentially to $2.2 billion, primarily due to lower stimulation activity and decreased fluid services [9] 2026 Outlook - Halliburton expects international activity to be stable year-over-year, with total international revenue projected to be flat to up modestly [10] - In North America, revenue is expected to decline high single digits in 2026, reflecting reduced customer activity and a focus on returns over market share [11] - The company anticipates a "rebalancing" year for oil markets, with moderate softness expected in North America and stable conditions internationally [7][12] Technology and Initiatives - Halliburton emphasized technology initiatives, including Zeus IQ for measuring and automating sand placement, with customer adoption increasing by 18% in the quarter [16] - The company is also investing in SAP S/4HANA migration, expecting approximately $100 million in annual savings post-completion [13] Leadership Changes - Shannon Slocum was promoted to chief operating officer effective January 1 [17]

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][6] - Q4 reported net income per diluted share was $0.70, with adjusted net income per diluted share at $0.69 [23] 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 [24] - 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 [24] Market Data and Key Metrics Changes - International revenue increased by 7% in Q4 compared to Q3 2025, with Europe-Africa revenue up 12% and Latin America revenue up 7% [25] - North America revenue in Q4 was $2.2 billion, a 7% decrease sequentially, primarily due to lower stimulation activity [26] Company Strategy and Development Direction - Halliburton's strategy focuses on maximizing value rather than market share, prioritizing returns and developing technology to improve recovery [17][20] - The company is optimistic about the future of oilfield services, expecting a rebalancing year in 2026 followed by sustained growth [7][29] - Halliburton is expanding its collaborative value proposition and technology offerings, particularly in international markets [10][11] Management's Comments on Operating Environment and Future Outlook - Management anticipates moderate softness in North America but stable international activity year over year [7] - The company expects supply and demand to rebalance in the medium term, driven by declining reservoir quality and limited exploration success [7][8] - Management expressed confidence in Halliburton's ability to capitalize on future growth opportunities and deliver leading returns [21][22] Other Important Information - Halliburton announced the promotion of Shannon Slocum to Chief Operating Officer effective January 1st [22] - The company expects capital expenditures for 2026 to be about $1.1 billion, excluding potential spending for re-entry into Venezuela [27] Q&A Session Summary Question: Update on Venezuela - Management indicated that Halliburton could scale up operations in Venezuela quickly once legal and commercial terms are resolved, with a potential market size that could grow significantly over time [36][39] Question: Margin Outlook for 2026 - Management expects the second half of 2026 to show stronger margins compared to the first half, with stable pricing in the frac market [41][42] Question: International Market Breakdown - Latin America is expected to lead growth, particularly in Brazil and Argentina, while the Middle East is anticipated to be flat [56] Question: VoltaGrid Business Potential - Management expressed excitement about the potential of the VoltaGrid business, indicating it could become a significant growth area over time [60] Question: Completion Efficiency and U.S. Production - Management noted that technology will be key to improving recovery and production efficiency, with current activity levels at maintenance levels [108][110] Question: Power Project Returns - Management indicated that returns on power projects could be higher than current organic investments, depending on the specific opportunities [119]

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 [6][5] - Q4 reported net income per diluted share was $0.70, with adjusted net income per diluted share at $0.69 [23] 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 [24] - 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 [24] Market Data and Key Metrics Changes - International revenue increased by 7% in Q4 compared to Q3 2025, with Europe-Africa revenue up 12% and Latin America revenue up 7% [25] - North America revenue in Q4 was $2.2 billion, a 7% decrease sequentially, primarily due to lower stimulation activity [26] Company Strategy and Development Direction - Halliburton's strategy focuses on maximizing value rather than market share, prioritizing returns and developing technology to improve recovery [17][21] - The company is confident in its collaborative value proposition and technology, which are expected to drive future growth [10][21] - Halliburton anticipates a rebalancing year in 2026, with expectations for international activity to remain stable and North America to experience a decline in revenue [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of oilfield services, highlighting the importance of technology adoption for improving recovery [17][21] - The company expects moderate softness in key markets, particularly North America, but anticipates a rebalancing of supply and demand in the medium term [7][8] - Management noted that the return of OPEC spare capacity and higher non-OPEC production has created a market with abundant supply [7] Other Important Information - Halliburton announced the promotion of Shannon Slocum to Chief Operating Officer effective January 1st [22] - The company expects capital expenditures for 2026 to be about $1.1 billion, consistent with prior guidance [27] Q&A Session Summary Question: Update on Venezuela - Management indicated that Halliburton could scale up operations in Venezuela quickly once legal and commercial terms are resolved, with a potential market size that could grow significantly over time [36][39] Question: Margin Outlook for 2026 - Management expects the second half of 2026 to show stronger margins compared to the first half, with stable pricing in the frac business [41][42] Question: International Market Breakdown - Management provided a regional outlook, indicating growth in Latin America, flat conditions in the Middle East, and a stable outlook in Asia-Pacific for 2026 [56] Question: VoltaGrid Business Potential - Management expressed excitement about the potential of the VoltaGrid business, indicating a solid pipeline and the possibility of significant growth over time [60][61] Question: North America Stimulation Market - Management noted that frac pricing is stable, with expectations for gradual improvement as equipment attrition continues and demand increases [66][68] Question: Completion Tool Sales Impact - Management explained that the expected decline in margins for Q1 is primarily due to the roll-off of completion tool sales and typical seasonality [72][74]

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]