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 [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]

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 $5.6 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]

Financial Data and Key Metrics Changes - The reported net income per diluted share for Q2 2025 was $0.55, with total company revenue of $5.5 billion, reflecting a 2% increase compared to Q1 2025 [19] - Operating income was $727 million, with an operating margin of 13% [19] - Cash flow from operations was $896 million, and free cash flow was $582 million [19] Business Line Data and Key Metrics Changes - Completion and Production division revenue for Q2 was $3.2 billion, a 2% increase from Q1, but operating income decreased by 3% to $513 million [20] - Drilling and Evaluation division revenue also increased by 2% to $2.3 billion, but operating income decreased by 11% to $312 million [21] Market Data and Key Metrics Changes - International revenue for Q2 was $3.3 billion, showing a 2% sequential growth, with notable increases in Latin America and Europe Africa [9] - North America revenue remained flat at $2.3 billion, with seasonal improvements offset by lower service pricing and reduced artificial lift activity [13] Company Strategy and Development Direction - The company plans to align its business with current market conditions by reducing costs and reallocating underperforming assets [26] - Halliburton aims to focus on growth engines such as unconventionals, drilling, production services, and artificial lift, which are seen as key to its international strategy [9][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the oilfield services market is expected to be softer than previously anticipated due to reduced activity and lower discretionary spending in international markets [6] - The company remains confident in its future, emphasizing its differentiated technology and collaborative approach to maximize asset value for customers [18] Other Important Information - The company expects international artificial lift revenue to grow over 20% this year and plans to double the installed base of its remote operations and automation platform [13] - Capital expenditures for Q2 were $354 million, with expectations to be about 6% of revenue for the full year [25] Q&A Session Summary Question: C and P margins were softer in the quarter; what are the contributing factors? - Management explained that the softness was due to lower pricing for stimulation services in the U.S. and reduced activity in Saudi Arabia, with expectations for a 1% to 3% revenue decline in Q3 [30][32] Question: What is the outlook for customer activity in North America? - Management indicated that customers are cautious and focused on conserving cash, with expectations for activity to pick up earlier in 2026 but not until there are catalysts for change [35][36] Question: How is Halliburton positioned in the unconventional market, particularly in the Middle East? - Management expressed confidence in their positioning and noted ongoing work in the UAE, emphasizing a disciplined approach to bidding based on returns [56][57] Question: What is the impact of tariffs on the artificial lift market? - Management acknowledged that tariffs have affected the U.S. land artificial lift market, with efforts underway to adjust the supply chain [105] Question: What is the expected performance in Mexico and Kuwait? - Management noted solid growth expectations in Kuwait, while Mexico's performance remains uncertain due to ongoing issues [108]