Halliburton (HAL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $5.8 billion, with over 55% generated internationally, and operating margin of 18%; net income rose to $709 million ($0.80 per share).

• International revenue increased 8% year-over-year, while North America revenue declined 8%; international business marked its 12th consecutive quarter of growth.

• Strategic focus on profitable international growth, capital efficiency, digital transformation, and shareholder returns.

• Cash flow from operations was $1.1 billion, free cash flow $800 million, and $250 million in common stock was repurchased.

• Dividend increased to $0.17/share, with at least 50% of annual free cash flow returned to shareholders.

Financial highlights

• Q2 2024 net income: $709 million; diluted EPS: $0.80, up from $0.68 in Q2 2023.

• Operating income for Q2 2024: $1.03 billion, up 5% sequentially and 2% year-over-year; operating margin was 18%.

• Completion & Production division Q2 revenue: $3.4 billion (flat sequentially), operating income $723 million (up 2%), margin 21%.

• Drilling & Evaluation division Q2 revenue: $2.4 billion (up 5% year-over-year), operating income $403 million (up 7%), margin 17%.

• Free cash flow for Q2 2024 was $793 million; cash and equivalents at quarter-end were $2.1 billion.

Outlook and guidance

• International revenue expected to grow about 10% for full year 2024; North America revenue expected to decline 6%-8%.

• Q3 2024 guidance: Completion & Production revenue down 1%-3% sequentially, margins down 75-125 bps; Drilling & Evaluation revenue up 2%-4%, margins up 25-75 bps.

• Free cash flow for 2024 expected to be at least 10% higher than 2023; CAPEX to remain at 5-6% of revenue.

• Commitment to return at least 50% of annual free cash flow to shareholders via dividends and buybacks.

• Focus on advancing digital, automation, and sustainable energy solutions for future growth.