Halliburton Company (HAL) Q4 2025 earnings summary

Executive summary

• Q4 2025 performance exceeded expectations with strong execution in North America and international completion and production businesses, and a focus on profitable international growth, capital efficiency, digital transformation, and sustainability.

• Operates in over 70 countries with 46,000 employees and a broad technology portfolio across the oilfield lifecycle.

• Q4 2025 net income was $589 million ($0.70 per diluted share), with adjusted net income of $576 million ($0.69 per share), up significantly from the prior quarter.

• Total 2025 revenue reached $22.2 billion with an adjusted operating margin of 14%.

• 85% of free cash flow was returned to shareholders, reducing share count to a 10-year low.

Financial highlights

• Q4 2025 revenue was $5.7 billion, with 61% generated internationally; adjusted operating income was $829 million with a 15% margin.

• Q4 net income per diluted share was $0.70 (adjusted $0.69); full-year net income was $1.3 billion ($1.50/share), adjusted $2.1 billion ($2.42/share).

• Q4 cash flow from operations was $1.2 billion; free cash flow was $875 million; full-year free cash flow was $1.86 billion.

• $1 billion of common stock repurchased in 2025; 42 million shares at $23.8 average price.

• Dividend of $0.17 per share in Q4 2025; 838 million shares outstanding as of January 2026.

Outlook and guidance

• 2026 expected to be a rebalancing year with abundant supply and moderate demand growth; commodity prices unlikely to rise near-term.

• International revenue expected to be flat to up modestly in 2026; North America revenue expected to decline high single digits.

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

• Q1 2026: Completion & Production revenue to decrease 7%-9% sequentially, margins down ~300 bps; Drilling & Evaluation revenue to decline 2%-4%, margins down 25-75 bps.

• Full-year 2026 capital expenditures expected at $1.1 billion, excluding Venezuela re-entry.