Halliburton Company (HAL) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $5.5–$5.51 billion, up 2% sequentially but down 6% year-over-year, with net income per diluted share of $0.55 and operating income of $727 million at a 13% margin, reflecting lower activity and pricing pressure across segments and regions.

• Strategic focus remains on technology leadership, cost discipline, capital returns, digital acceleration, and advancing sustainable energy initiatives.

• Market conditions softened in both North America and international regions due to commodity volatility, OPEC+ production cuts, and reduced discretionary spend by operators.

• A $356 million pre-tax charge was recorded in the first half of 2025 for severance, asset impairments, and facility closures to align cost structure with market conditions.

• Operates in over 70 countries with 48,000 employees and a broad technology portfolio across the oilfield lifecycle.

Financial highlights

• Q2 2025 revenue: $5.5–$5.51 billion; operating income: $727 million; net income: $472–$480 million; EPS: $0.55; operating margin: 13%.

• Q2 operating cash flow: $896 million; free cash flow: $582 million; six-month revenue: $10.9 billion; net income: $676–$683 million.

• Repurchased $250–$252 million in common stock during Q2; dividend of $0.17/share paid.

• Completion & Production (C&P) Q2 revenue: $3.2 billion (+2% sequentially, -7% year-over-year); operating income: $513 million (-3% sequentially, -29% year-over-year).

• Drilling & Evaluation (D&E) Q2 revenue: $2.3–$2.34 billion (+2% sequentially, -4% year-over-year); operating income: $312 million (-11% sequentially, -23% year-over-year).

Outlook and guidance

• International and North America revenues are expected to decline year-over-year in 2025, mainly due to activity reductions and pricing pressure in Saudi Arabia, Mexico, and North America.

• Q3 guidance: C&P revenue to decrease 1%-3% sequentially with 150-200 basis point margin reduction; D&E revenue to decline 1%-3% with margin improvement of 125-175 basis points.

• Full-year 2025 capital expenditures expected at about 6% of revenue; free cash flow for 2025 revised to $1.8–$2.0 billion.

• At least 50% of annual free cash flow to be returned to shareholders via dividends and share repurchases.

• Committed to reducing Scope 1 and 2 emissions by 40% by 2035 (from 2018 baseline).