Halliburton Company (HAL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $5.8 billion, with over 55% generated internationally, reflecting strong global presence and portfolio strength; operating income reached $1.0 billion, up 2% year-over-year.

• Net income for Q2 2024 was $709 million ($0.80 per diluted share), up from $610 million in Q2 2023.

• Cash flow from operations reached $1.1 billion, with free cash flow of approximately $800 million; $250 million in stock was repurchased and $0.17 per share in dividends paid.

• International revenue grew 8% year-over-year, marking the 12th consecutive quarter of international growth, led by Latin America and the Middle East; North America revenue declined 8% but outperformed a 12% drop in rig count.

• Strategic focus on profitable international growth, capital efficiency, digital transformation, and maximizing North America value.

Financial highlights

• Q2 2024 net income: $709 million; diluted EPS: $0.80, up from $0.68 in Q2 2023.

• Operating income for Q2 2024: $1.0 billion, up 5% sequentially and 2% year-over-year; operating margin was 18%.

• Completion & Production (C&P) division Q2 revenue: $3.4 billion, flat sequentially; operating income up 5% to $723 million and margin at 21%.

• Drilling & Evaluation (D&E) division Q2 revenue: $2.4 billion, flat sequentially; operating income was $403 million and margin at 17%.

• Free cash flow (TTM): $2.58 billion as of Q2 2024; Q2 capital expenditures were $347 million.

Outlook and guidance

• International revenue expected to grow about 10% for full year 2024; North America revenue expected to decline 6%-8% year-over-year.

• Free cash flow for 2024 expected to be at least 10% higher than 2023; at least 50% of annual free cash flow to be returned to shareholders via dividends and buybacks.

• Capital spending for 2024 expected at approximately 6% of revenue, focused on key technologies and structurally lower capital intensity.

• Focus on advancing digital, automation, and sustainable energy solutions to drive future growth.