Outlook and Operating Highlights: Halliburton’s (HAL) international business remains robust. Here, technology and collaboration are keeping growth aligned with market trends. In North America, Halliburton expects improvement as macro conditions strengthen. It expects to deliver strong returns and capture future opportunities in North America in the near terms.
Among the key projects in Q4, Halliburton and VoltaGrid formed a strategic collaboration to deliver modular natural gas power systems for global data centers. They secured manufacturing for 400 megawatts of distributed power units planned for delivery in 2028. It also signed a framework agreement with Shell to use its ROCS technology, which enhances safety and enables deep umbilical-less tubing hanger installations. The company introduced the StreamStar wired drill pipe interface system to provide high‑speed data and improved drilling efficiency.
North America Loses; International Steadies
Quarter-over-quarter, the revenue growth in the company's Completion and Production segments (1.4%) was higher than that of the Drilling and Evaluation segment in Q4. Geographically, North America witnessed a fall (6.6% down), contrasting the sharp rise (12% up) in Europe/Africa/CIS. The other geographic segments witnessed low-to-medium sales rises in Q4.
In C&P, revenue rose due to stronger completion tool sales and increased cementing and well intervention activity. Better activity mix, including higher completion tool sales and resumed well intervention in the Middle East, led to better margins in this segment. In D&E, higher wireline activity aided sales, while lower fluid service and decreased drilling services pushed back growth. Quarter-over-quarter, the company’s net income turned significantly positive ($589 million) because its Q3 net income was slashed by a significant impairment charge of $540 million in Q3.
Share Repurchase Amidst Cash Flow Weakness: HAL's cash flow from operations weakened (27% down) in FY2025 compared to a year ago. As a result, its FCF decreased by ~31%. Debt-to-equity (0.68x) remained unchanged compared to a year earlier. Halliburton repurchased $250 million of common stock during Q4 2025. Year-to-date, total share repurchases reached $1 billion.
Thanks for reading the HAL take three, designed to give you three critical takeaways from HAL's earnings report. Soon, we will present a second update on HAL earnings highlighting its current strategy, news, and notes we extracted from our deeper dive.
