Halliburton's Q1 2025 Earnings Report (dated June 17, 2025)

Last quarter’s situation: Halliburton’s Q4 earnings report was released on February 23, 2025. Last Friday, I spoke with a technical expert about Halliburton’s autonomous fracturing technology—combined with oil prices’ recent sharp breakout—I decided to revisit the earnings report. [‘Lock in first, then analyze’ series] The Q1 earnings report appears rather weak, primarily due to sales slumps in North America (reduced U.S. onshore production activity and lower completion tool sales in the Gulf of Mexico) and Mexico (reduced marketing activities across multiple product and service lines). The company’s strategy is value maximization in North America (via reduced investment) coupled with international growth. Accounting for seasonality, we assume the company’s 2025 revenue will be $22 billion (vs. $22.9 billion in 2024); last year’s EPS was $2.83, and we forecast EPS of $2.09 for the remaining three quarters of 2025 (assuming the same revenue-to-EPS ratio as last year’s final three quarters), resulting in full-year EPS of $2.33. This PE ratio of nearly 10 is not particularly attractive (relative to peers).

Halliburton's Q4 2025 Earnings Report (dated January 26, 2026)

Q4 marked a dramatic turnaround for the oilfield services industry: first a clean breakout from bottom-range levels, followed by a further surge triggered by the Venezuela event—resulting in roughly 50% gains for both HAL and SLB... Key takeaways after reviewing the earnings call transcript: 1. Notably, this earnings report presents only sequential (quarter-over-quarter), not year-over-year, comparisons—suggesting HAL has stabilized to the point where seasonal fluctuations are negligible (this may differ from SLB; possibly attributable to HAL’s ~40% North American market share?). 2. Under these operating conditions, HAL’s response is to reduce capital expenditures (CapEx), using free cash flow for share repurchases or acquisitions: • HAL’s CapEx in 2023/2024/2025 was $1.379B, $1.442B, and $1.254B respectively; the 2026 guidance stands at $1.1B. • In 2025, HAL generated $1.857B in free cash flow, repurchased $1.007B worth of shares, and paid $579M in dividends—achieving an 85% free cash flow return rate. 3. While operational performance remains stable, the stock price remains subdued—suggesting price movements are driven more by valuation than by EPS. 4. Regarding Venezuela: a decade ago, HAL generated $500M annually there; assuming a full recovery to that level, it would contribute approximately $0.12 to EPS—roughly 5%.

Halliburton Tops Estimates as Latin America, Europe Cushion North American Weakness

Oct 20, 2026

Halliburton beat Q3 earnings expectations as Latin American and European demand offset North American weakness, with management forecasting steady growth through 2027.

reuters

2026-07-21

Halliburton Sees Improvement in North American Activity in 2026

2026-09-21

Halliburton Signs Energy Pacts in Venezuela with Eneva, WESCA

2026-10-20

Halliburton Tops Estimates as Latin America, Europe Cushion North American Weakness

Halliburton Tops Estimates as Latin America, Europe Cushion North American Weakness

FAQ