Halliburton (NYSE:HAL) executives told investors the company finished 2025 with stronger-than-expected fourth-quarter performance, driven by higher-than-anticipated activity and execution in both North America and international completion and production. Management also framed 2026 as a “rebalancing” year for oil markets, with moderate softness expected in North America and stable conditions internationally.
Full-year 2025 results and shareholder returns
Chairman, President and CEO Jeff Miller said Halliburton delivered total company revenue of $22.2 billion in 2025 and an adjusted operating margin of 14%. International revenue totaled $13.1 billion, down 2% year over year, while North America revenue was $9.1 billion, down 6%.
Fourth-quarter financial performance and segment detail
Executive Vice President and CFO Eric Carre reported fourth-quarter 2025 revenue of $5.7 billion, flat sequentially compared with the third quarter. Adjusted operating income was $829 million, translating to a 15% adjusted operating margin. Reported net income per diluted share was $0.70, while adjusted net income per diluted share was $0.69.
Halliburton generated $1.2 billion of cash flow from operations in the quarter and $875 million of free cash flow. The company repurchased $250 million of common stock in the fourth quarter. For the full year, Carre said Halliburton bought back approximately 42 million shares at an average price of $23.80 per share.
By segment, Completion and Production revenue in the fourth quarter was $3.3 billion, flat sequentially. Operating income rose 11% from the third quarter to $570 million, with operating margin of 17%. Carre said results benefited from higher year-end completion tool sales globally, partly offset by lower stimulation activity in the Western Hemisphere, while operating income improved due to activity mix.
In Drilling and Evaluation, revenue was $2.4 billion, also flat sequentially. Operating income increased 5% to $367 million, and operating margin was 15%. Carre attributed the mix benefit to higher wireline activity in the Eastern Hemisphere and year-end software sales, offset by lower fluid services in North America.
Geographic trends: international strength versus North America softness
Carre said international revenue increased 7% sequentially in the fourth quarter. Europe-Africa revenue rose 12% to $928 million, driven by higher completion tool sales in the North Sea and improved activity across multiple product service lines in Africa. Middle East/Asia revenue increased 3% to $1.5 billion on higher well intervention services and stimulation activity in the Middle East and improved activity across multiple product service lines in Asia. Latin America revenue climbed 7% to $1.1 billion, helped by higher completion tool sales in Brazil and the Caribbean and higher software sales in Mexico.
North America revenue declined 7% sequentially to $2.2 billion, primarily due to lower stimulation activity in U.S. land and Canada, decreased fluid services in the Gulf of Mexico, and lower well intervention services in U.S. land.
For 2026, Miller said Halliburton expects international activity to be stable year over year, with total international revenue “flat to up modestly.” On the call, he described Latin America as a leading growth area, citing Brazil deepwater, Argentina, Ecuador, and Guyana, while describing the Middle East as “flatish” and potentially down slightly due to a conservative view on the timing and pacing of growth in Saudi Arabia. He also said Asia-Pacific looked “fairly flatish,” with gas demand a positive factor.
In North America, Halliburton expects revenue to decline high single digits in 2026 versus 2025, reflecting reduced customer activity in land operations, the company’s decision to stack uneconomic fleets, and timing of customer programs in the Gulf of Mexico. Miller said Halliburton’s approach in the region will prioritize returns over market share, including stacking equipment that does not meet return thresholds and focusing investment on differentiated technologies.
2026 outlook: “rebalancing” year, first-quarter guidance, and key initiatives
Miller said the return of OPEC spare capacity and higher non-OPEC production have created abundant supply, and that absent geopolitical disruptions, commodity prices are unlikely to rise in the near term. He added that supply increases should moderate as demand continues to rise, and he expects the market to rebalance over the medium term due to steeper decline rates, diminishing reservoir quality, and limited exploration success.
Carre provided first-quarter 2026 expectations for both divisions:
- Completion and Production: sequential revenue expected to decline 7% to 9%, with margins down about 300 basis points, reflecting a higher-than-normal roll-off of year-end completion tool sales and lower international activity.
- Drilling and Evaluation: sequential revenue expected to decline 2% to 4%, with margins down 25 to 75 basis points.
Carre also discussed costs related to Halliburton’s SAP S/4HANA migration. The company spent $42 million on the project in the fourth quarter, and expects roughly $45 million in the first quarter. On the call, Carre said investors should expect SAP expenses to run about $40 million to $45 million per quarter throughout 2026, with the project anticipated to complete in the fourth quarter. He added that Halliburton broadened the project’s scope to include adjacent processes such as outsourcing payroll and redesigning the order-to-cash process, and said the company expects approximately $100 million per year of savings after completion.
Capital expenditures in the fourth quarter were $337 million, about $100 million lower than expected due to late equipment deliveries. For full-year 2026, Halliburton expects capex of about $1.1 billion, consistent with prior guidance adjusted for timing impacts; Carre said this guidance excludes any spending needed for a potential re-entry into Venezuela.
During Q&A, management discussed a potential return to Venezuela, noting Halliburton exited in 2019 to comply with U.S. sanctions. Miller said the company could “mobilize in weeks” and return “in months” as commercial and legal terms are resolved, including payment certainty. He said Halliburton still has operating bases in-country and can move equipment quickly, and described customer interest as high. Miller said Venezuela was “probably a $500 million business” for Halliburton a decade ago, is smaller today, and could become “a much bigger business” longer term.
Management also emphasized technology initiatives including Zeus IQ for measuring and automating sand placement, and iCruise rotary steerable and LOGIX automation in drilling. Miller said customer adoption of Zeus IQ, sensor technology, and auto frac increased 18% in the quarter. He also pointed to Halliburton’s international power collaboration with VoltaGrid, noting the companies secured manufacturing capacity for 400 megawatts of modular power systems and described the opportunity pipeline as expanding across the Eastern Hemisphere.
Separately, Miller announced a leadership change: Shannon Slocum was promoted to chief operating officer effective Jan. 1.
About Halliburton (NYSE:HAL)
Halliburton is one of the world’s largest providers of products and services to the energy industry, offering a broad portfolio that supports the lifecycle of oil and gas reservoirs from exploration and drilling through production and abandonment. Founded in 1919 by Erle P. Halliburton as an oil-well cementing company, the firm is headquartered in Houston, Texas and has developed into an integrated oilfield services company serving upstream operators globally.
The company’s activities encompass drilling and evaluation, well construction and completion, production enhancement and well intervention.
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