Loading company profile...

Expand full investment commentary ▼

📘 Halliburton Company (HAL) — Investment Overview

🧩 Business Model Overview

Halliburton Company is one of the world’s largest providers of products and services to the energy industry, specializing predominantly in upstream oilfield services. The company operates in a broad range of oilfield-related domains, with core offerings that span drilling, evaluation, completion, production, and well intervention solutions. Its customer base primarily consists of integrated oil & gas majors, national oil companies, and independent exploration and production firms across the globe. With a presence in key hydrocarbon-producing regions worldwide, Halliburton’s operations are both extensive and diversified, supporting client projects in a wide variety of geographies and reservoir conditions.

💰 Revenue Model & Ecosystem

Halliburton’s revenue model is built upon a multi-stream approach, deriving income from services, engineering solutions, technology licensing, equipment rentals, and software platforms supporting oilfield exploration and development. The company provides field services—such as hydraulic fracturing, cementing, and directional drilling—supported by proprietary equipment and automation technologies. Software solutions for reservoir modeling and digital well management further strengthen client integration and increase the stickiness of the ecosystem. Revenue streams are predominantly enterprise-focused, catering to large-scale operators and multi-year development contracts, with an increasing tilt toward digital and consulting offerings that complement traditional field services.

🧠 Competitive Advantages

  • Brand strength: Halliburton’s legacy and extensive industry reputation position it as a go-to service provider among global energy operators.
  • Switching costs: Deep integration in client field operations and long-term contracts create significant switching costs for customers.
  • Ecosystem stickiness: Proprietary technologies and end-to-end workflows—from planning through production—entrench the company within client supply chains.
  • Scale + supply chain leverage: A global operating footprint and robust supplier relationships enable cost efficiencies and agile project delivery, while allowing rapid deployment of new technologies to core markets.

🚀 Growth Drivers Ahead

Key growth catalysts for Halliburton include the global demand for energy, increased upstream investment, and the ongoing digital transformation of the oilfield sector. The company is actively focused on expanding its portfolio of automation and digital subsurface solutions, which unlock efficiencies for customers and generate higher-value, recurring revenue streams. In addition, Halliburton is pursuing new opportunities in unconventional resource development and international markets, especially as certain regions ramp development activity. The growing emphasis on cost-effective extraction and environmentally responsible operations is also encouraging adoption of Halliburton’s advanced, lower-emission technologies and integrated service models.

⚠ Risk Factors to Monitor

Key risks include intense competition from both global and regional oilfield service providers, rapidly shifting commodity price environments, and customer capital discipline limiting spending on new projects. Regulatory scrutiny, especially regarding environmental and safety standards, represents an ongoing challenge that may affect operating costs or restrict certain activities. The energy sector’s secular transition toward renewables and alternative energy sources introduces long-term displacement risk, requiring adaptation and continuous innovation. Margin pressure due to cyclical service pricing and potential technological disruption by new entrants or by digital transformation are additional factors warranting ongoing attention.

📊 Valuation Perspective

Historically, Halliburton is valued by investors in relation to other diversified oilfield services peers, taking into account factors such as scale, technology portfolio, geographic exposure, and operational efficiency. The company’s valuation often reflects its ability to generate returns across industry cycles, with the market at times attaching a premium or discount based on management’s execution, balance sheet strength, and the sustainability of its order backlog relative to changing macro conditions and customer sentiment.

🔍 Investment Takeaway

The Halliburton investment thesis is defined by a strong brand, global scale, and an increasingly technology-driven offering suite, balanced by exposure to cyclical energy markets and evolving regulatory and competitive landscapes. The bull case centers on the company’s leadership in integrated oilfield services, technological innovation, and its ability to capture share as global energy demand recovers or transitions. The bear case highlights risks from commoditization of services, operational leverage in downturns, and potential secular headwinds as energy markets decarbonize. Investors should weigh Halliburton’s agility and strategic pivots against industry-specific risks and the pace of technological change when considering its long-term positioning.


⚠ AI-generated research summary — not financial advice. Validate using official filings & independent analysis.

📢 Show latest earnings summary

📢 Earnings Summary — HAL

Halliburton delivered a solid Q3 with modest sequential growth, stable margins, and strong D&E profitability, while acknowledging a softer near-term North America backdrop. Management is aggressively cutting costs, idling uneconomic equipment, and lowering 2026 capex to protect returns, targeting $100 million in quarterly savings starting in Q4. International operations remain resilient with growth in key product lines and a constructive Q4 revenue outlook of up 3%–4%, supported by seasonal software and tool sales. Technology leadership continued with broader Zeus electric fleet adoption and new iCruise offerings, and the VoltaGrid partnership opens a long-duration growth avenue in international data center power. However, Q4 guidance points to sequential declines in North America and rising tariff headwinds. Overall tone is confident on long-term demand and competitive positioning but cautious near term given macro and seasonal pressures.

📈 Growth Highlights

  • Total revenue $5.6B, up 2% sequentially; adjusted operating margin 13%.
  • North America revenue $2.4B, up 5% sequentially and flat YoY; International revenue $3.2B, flat sequentially and down 2% YoY.
  • Drilling & Evaluation operating income up 12% sequentially; margin improved to 15%.
  • International Q4 outlook: revenue expected to increase 3%–4% on roughly flat activity with seasonal software/completions sales.
  • Zeus electric fleets now comprise over half of active North America fleets; Zeus IQ demand expected to grow meaningfully in 2025–2026.
  • Record continuous pumping achieved in Argentina’s Vaca Muerta; iCruise CX (778) introduced in the Permian driving single-run curve-to-lateral performance.

🔨 Business Development

  • Awarded a major 5-year production services contract from ConocoPhillips in the North Sea, including converting a vessel into an advanced stimulation platform and first offshore deployment of Octave Automation.
  • Kuwait Oil Company named Halliburton service partner of the year and awarded a multiyear ESP contract; Ecopetrol awarded ESP contracts in 9 of 11 fields in Colombia.
  • Introduced iCruise Force in the UAE and Qatar, enhancing ROP and logging value.
  • Expanded North America drilling services with iCruise CX 778 tool for the Permian.
  • VoltaGrid announced 2.3 GW agreement to power Oracle AI data centers; HAL to be VoltaGrid’s international partner for distributed power solutions for data centers outside North America.

💵 Financial Performance

  • Reported EPS $0.02; adjusted EPS $0.58.
  • Adjusted operating income $748M; Q3 cash from operations $488M; free cash flow $276M.
  • Completion & Production: revenue $3.2B (+2% seq), operating income $514M (flat seq), margin 16%.
  • Drilling & Evaluation: revenue $2.4B (+2% seq), operating income $348M (+12% seq), margin 15%.
  • International revenue detail: Europe/Africa $828M (flat seq); Middle East/Asia $1.4B (-3% seq, lower activity in Saudi Arabia); Latin America $996M (+2% seq).
  • North America revenue $2.4B (+5% seq) on improved stimulation in U.S. Land/Canada and higher Gulf of America tool and wireline activity.
  • Corporate & other expense $64M (Q4 guide +$5M); SAP S/4 costs $50M in Q3 (Q4 guide ~$40M).
  • Net interest expense $88M (Q4 guide +$5M); other net expense $49M (includes $23M impairment in Argentina; Q4 guide ~$45M).
  • Normalized effective tax rate 21.5% (Q4 approx. flat).
  • Tariffs impacted Q3 by $31M; Q4 gross impact expected ~$60M (Section 232).
  • Capex $261M in Q3; FY25 capex expected ~6% of revenue.

🏦 Capital & Funding

  • Repurchased ~$250M of common stock in Q3; reiterated focus on shareholder returns.
  • Executed cost actions and asset write-offs totaling $284M to reset cost structure; expected ~$100M per quarter savings beginning Q4.
  • Reset 2026 capital spending target down ~30% to around $1B.
  • Actively idling, relocating, or retiring equipment that does not meet return thresholds.
  • U.S. tax law changes led to a $125M valuation allowance in Q3 and are expected to lower effective tax rate on U.S. taxable income going forward.

🧠 Operations & Strategy

  • Rightsizing operations and overhead to improve cost structure; prioritizing returns and technology leadership.
  • Stacked uneconomic frac fleets; expanded automation offerings; continued focus on leading operators.
  • International growth engines (production services, artificial lift, unconventionals, drilling) showing momentum.
  • Offshore represents roughly half of revenue outside North America land; expected to grow given technology breadth in evaluation, automation, fluids, cementing, completions, and intervention.
  • Maintaining investment in differentiated technologies (Zeus electric, Zeus IQ closed-loop fracturing, iCruise/iCruise Force, Octave Automation) despite near-term market softness.

🌍 Market Outlook

  • Long-term oil and gas demand expected to grow; ~90% of upstream spend offsets natural declines.
  • Near-term volatility from oil prices, OPEC+ spare capacity returning, and trade concerns.
  • North America: customers remain cautious; Q4 revenue expected down ~12%–13% sequentially due to greater-than-typical white space and seasonality.
  • Completion & Production Q4: revenue down 4%–6% seq; margins down 25–75 bps. Drilling & Evaluation Q4: revenue flat to down 2% seq; margins up 50–100 bps.
  • International activity broadly steady into 2026; Q4 international revenue expected up 3%–4% with seasonal software/completion tool sales.
  • Tariff headwinds increasing in Q4; SAP, interest, and other expense guided slightly higher.

⚠ Risks & Headwinds

  • Commodity price volatility and OPEC+ spare capacity impacting near-term activity, particularly in North America.
  • Greater-than-typical white space and seasonality in North America completions in Q4.
  • Lower activity across multiple product lines in the Middle East, notably Saudi Arabia.
  • Increasing tariff impacts (Section 232) from $31M in Q3 to an estimated $60M in Q4.
  • Foreign investment risk highlighted by a $23M impairment in Argentina.
  • Execution risk around cost reductions, equipment idling/relocation, and capital discipline amid uncertain recovery timing.

AI-generated earnings recap sourced from company results & conference call observations. Not investment advice — verify with official filings.

📊 Halliburton Company (HAL) — AI Scoring Summary

📊 AI Stock Rating — Summary

Halliburton (HAL) reported revenue of $5.6 billion for the quarter ending 2025-09-30, with net income of $18 million and earnings per share (EPS) of $0.0212. The net income margin stands at a modest 0.32%, reflecting a challenging profitability landscape. Free cash flow (FCF) for the period was reported at $227 million, continuing the positive trend over the past quarters. Year-over-year, the company has seen fluctuations in revenue and profitability, with revenue seeing a slight decline from $5.61 billion a year ago. Despite the low net margin, Halliburton's operating segments continue contributing to stable cash flow, supporting its current dividend yield of 3.3%. On the balance sheet, the company maintains a debt-to-equity ratio of 0.81, indicating moderate leverage. The stock has faced a tough market, with a 23.11% decline over the past year but has seen some recovery over the past 6 months with a 17.93% increase. Analyst price targets up to $27 suggest potential upside if market conditions improve. However, the current sideways trend and pressure on profitability may challenge significant short-term valuation expansion.

AI Score Breakdown

Revenue Growth — Score: 5/10

Revenue is relatively stable but shows slight volatility with a decline in recent quarters driven by market dynamics in the energy sector. Stability and main growth drivers are under pressure.

Profitability — Score: 4/10

Profit margins remain low with recent EPS of $0.0212. The company faces profitability challenges due to fluctuations in net income, affecting overall margin performance.

Cash Flow Quality — Score: 6/10

Free cash flow remains positive, supporting consistent dividend payments, albeit with some variability in operating cash flow. Liquidity remains acceptable.

Leverage & Balance Sheet — Score: 7/10

The company's debt-to-equity ratio of 0.81 indicates moderate leverage, with financial resilience supported by manageable net debt levels and stable asset base.

Shareholder Returns — Score: 6/10

The stock price has recovered by 17.93% over the last 6 months, despite a 23.11% decline over the year. Dividends and buybacks contribute positively to investor returns against market appreciation challenges.

Analyst Sentiment & Valuation — Score: 6/10

Current P/E ratio of 9.3 and FCF yield of 3.09% suggest the stock is fairly valued, with analyst targets indicating potential room for appreciation if operational improvements materialize.

⚠ AI-generated — informational only, not financial advice.

SEC Filings

Related Companies in Energy

EXE logo

EXPAND ENERGY CORP (EXE)

Energy

$24.16B

TPL logo

TEXAS PACIFIC LAND CORP (TPL)

Energy

$22.54B

FSLR logo

FIRST SOLAR INC (FSLR)

Energy

$25.37B

TRGP logo

TARGA RESOURCES CORP (TRGP)

Energy

$39.24B

EQT logo

EQT CORP (EQT)

Energy

$31.37B

FANG logo

DIAMONDBACK ENERGY INC (FANG)

Energy

$44.70B