Halliburton's Perspective in Q2 2026: KEY Takeaways

Industry Outlook

We have already discussed Halliburton's (HAL) Q2 2026 financial performance in our recent article. During the Q2 earnings call, management held the view that energy security would remain the key driver of global oil and gas investment for years. Management expects countries to rebuild strategic reserves and diversify energy supplies, supporting long-cycle upstream spending. The company is seeing strong customer engagement across international markets, particularly in unconventional, offshore, and intervention services. 

North American activity has also improved as expected, with higher service intensity needed to sustain production. Halliburton believes growing technology adoption and stronger international demand will support future revenue growth and margin expansion. Management continues to view the current market as constructive for long-term oilfield services activity.

North America Outlook

In North America, HAL’s management continues to prioritize returns over market share and will only reactivate fleets when economics justify it. The company expanded its technology offering with the latest ZEUS IQ release, improving real-time fracture placement and treatment optimization. Management estimates that North American activity and pricing are recovering, with further improvement expected through the year. Halliburton believes its technology-driven strategy and strong contract pipeline will support future revenue growth and margin expansion.

Middle East & Offshore Outlook 

Halliburton remains optimistic about its long-term Middle East outlook despite ongoing regional uncertainty. Management highlighted a major integrated field management contract in Iraq and the resumption of fracturing operations at Jafurah (Saudi Arabia's large unconventional gas field) as important growth milestones. 

Outside the Middle East, the company expects low double-digit year-over-year growth driven by production services, drilling, unconventionals, and lift. Halliburton also began commissioning its new North Sea stimulation vessel, which will be the first offshore deployment of its OCTIV automated (digital automation and control platform). The company has fully integrated the Sekal acquisition (a Norwegian digital drilling automation company) with its LOGIX platform to expand its closed-loop drilling offering.

Other International Completion Activity 

Halliburton secured Sonatrach's first unconventional drilling and completions contract in Algeria. The project strengthens its position in international unconventional development. The company also mobilized its first ZEUS electric fracturing fleet to Argentina, with operations expected to begin in Q4. 

Halliburton believes its technology portfolio differentiates it in growing international unconventional markets. Management expects its international strategy and project pipeline to drive profitable long-term growth.

Segment Forecast 

In Q3, HAL expects Completion and Production revenue to be flat to down 2%, with margins improving 125–175 basis points. Drilling and Evaluation revenue is expected to decline 3–5%, while margins improve 25–75 basis points.

Relative Valuation

Halliburton is currently trading at an EV/EBITDA multiple of 8.0x. Based on sell-side analysts' EBITDA estimates, the forward EV/EBITDA multiple is slightly higher. The current multiple is lower than its five-year average EV/EBITDA multiple of 9.2x.

HAL's forward EV/EBITDA multiple expansion versus the adjusted current EV/EBITDA contrasts with a decline in the multiple for its peers because the company's EBITDA is expected to decline versus a rise in EBITDA for its peers in the next four quarters. This typically results in a much lower EV/EBITDA multiple than peers. The stock's EV/EBITDA multiple is lower than its peers' (SLB, BKR, and FTI) average of 12.6x. So, the stock appears reasonably valued versus its peers.

Final Commentary

Halliburton sees long-term energy security and long-cycle international investment supporting sustained oilfield services demand. Management expects North American activity to improve in the medium-term while maintaining a disciplined, returns-focused approach to fleet utilization. The company continues to expand its international footprint through new contracts, digital drilling technologies, and unconventional completion projects. 

The management believes its technology portfolio and strong project pipeline will drive profitable long-term growth across international and North American markets. Management's Q3 guidance points to stable activity with further margin expansion despite mixed segment revenue trends. The stock appears reasonably valued compared to its peers.Bottom of Form