Halliburton Company (HAL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $5.7 billion, with 58% generated internationally and operating income of $871 million; net income was $571–$580 million, with diluted EPS of $0.65 and adjusted EPS of $0.73.

• International revenue grew 4% year-over-year to $3.3 billion, led by Middle East/Asia up 9%, while North America revenue declined 9% year-over-year to $2.4 billion.

• Key priorities include maximizing value in North America, advancing sustainable energy, digital transformation, and delivering strong free cash flow.

• A $116 million pre-tax charge was recorded for severance, asset impairment, cybersecurity incident, and other items; adjusted earnings were impacted by $0.02 per share due to a cybersecurity event and Gulf storms.

• Management remains confident in international growth, technology portfolio, and capital allocation strategy focused on high-return opportunities and shareholder returns.

Financial highlights

• Q3 2024 revenue was $5.7 billion, with North America contributing $2.4 billion, Middle East/Asia $1.5 billion, Europe/Africa $722 million, and Latin America $1.1 billion.

• Q3 2024 operating income was $871 million; adjusted operating income was $987 million, with an adjusted operating margin of 17%.

• Q3 2024 net income was $571–$580 million; adjusted net income was $641 million.

• Q3 2024 free cash flow was $543 million; trailing twelve months free cash flow was $2.6 billion.

• Q3 2024 capital expenditures were $339 million; full-year CapEx expected at about 6% of revenue.

Outlook and guidance

• International revenue growth for full year 2024 is expected in the mid to high single digits, while North America revenue is expected to decline due to lower rig counts and service activity.

• 2025 international growth projected in low to mid-single digits; capital spending for 2024 expected at about 6% of revenue.

• At least 50% of annual free cash flow will be returned to shareholders through dividends and buybacks.

• Free cash flow for 2024 expected to be at least 10% higher than 2023; Q4 free cash flow and shareholder returns expected to accelerate.

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