Halliburton Company (HAL) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $5.6 billion, with adjusted operating margin at 13% and adjusted EPS of $0.58; net income was $18 million due to $392 million in impairments and other charges.

• International revenue was $3.2 billion (down 2% year-over-year), while North America revenue was $2.4 billion (flat year-over-year, up 5% sequentially).

• Cost reduction actions are expected to save $100 million per quarter going forward.

• Strategic focus remains on technology leadership, capital discipline, international growth, and digital transformation.

• Maintains a global footprint with operations in 70+ countries and 47,000 employees, participating in all stages of the oilfield lifecycle.

Financial highlights

• Q3 2025 operating income was $356 million, down from $727 million in Q2 2025 due to $392 million in impairments and other charges.

• Adjusted operating income for Q3 2025 was $748 million; adjusted operating margin was 13%.

• Free cash flow for Q3 2025 was $276 million; cash flow from operations was $488 million.

• Dividend of $0.17/share declared for Q3 2025; $250 million in share repurchases during the quarter.

• Q3 2025 included a $125 million tax expense related to a valuation allowance on U.S. foreign tax credits.

Outlook and guidance

• Q4 international revenue expected to increase 3–4% on flat activity, with typical seasonal software and completion tool sales.

• Completion and production division Q4 revenue expected to decrease 4–6% sequentially; margins down 25–75 basis points.

• Drilling and evaluation division Q4 revenue expected flat to down 2%; margins up 50–100 basis points.

• 2026 capital spending targeted to decline by almost 30% to around $1 billion, excluding VoltaGrid-related investments.

• At least 50% of annual free cash flow to be returned to shareholders going forward.