Halliburton (HAL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $5.4 billion, down 7% year-over-year, with operating income of $431 million including $356 million in impairments and other charges.

• Net income attributable to company was $204 million ($0.24 per diluted share), a 66% decrease from $606 million in Q1 2024.

• Adjusted net income was $517 million ($0.60 per share); adjusted operating margin was 14.5%.

• International revenue was $3.2 billion (59% of total), down 2% year-over-year, with growth in Europe/Africa and Middle East/Asia offset by declines in Latin America.

• Strategic priorities include international growth, digital innovation, automation, capital efficiency, and returning over 50% of annual free cash flow to shareholders.

Financial highlights

• Q1 2025 operating income was $431 million, down from $987 million in Q1 2024, with $356 million in pre-tax charges for severance, asset impairments, and environmental remediation.

• Adjusted operating income was $787 million; adjusted net income per diluted share was $0.60.

• Free cash flow was $124 million, down from $206 million in Q1 2024; cash and equivalents at quarter-end were $1.8 billion.

• Capital expenditures totaled $302 million; $250 million was used for share repurchases and $0.17 per share in dividends.

• Debt at quarter-end was $7.4 billion; credit ratings remain BBB+ (S&P) and A3 (Moody's).

Outlook and guidance

• Q2 2025 earnings per share expected to be negatively impacted by a 10% drop in crude oil prices since Q1 end, driven by new US tariffs and OPEC production increases.

• International revenue expected to be flat to slightly down year-over-year, with more risk than three months ago.

• Capital spending for 2025 expected to remain at approximately 6% of revenue; at least 50% of annual free cash flow to be returned to shareholders.

• No additional debt planned for 2025; cash on hand and operations expected to cover obligations.

• Committed to reducing Scope 1 and 2 emissions by 40% by 2035 from a 2018 baseline.