Halliburton (HAL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $5.7 billion, with 58% generated internationally; operating income was $871 million, down 16% year-over-year due to $116 million in charges including severance, asset impairment, and cybersecurity costs.

• Net income for Q3 2024 was $571 million ($0.65 per share), with adjusted net income at $641 million ($0.73 per share); adjusted EPS was reduced by $0.02 due to a cybersecurity event and Gulf storms.

• International revenue grew 4% year-over-year to $3.3 billion, led by Middle East/Asia up 9%; North America revenue declined 9% year-over-year to $2.4 billion.

• Key priorities include maximizing value in North America, advancing sustainable energy, and delivering strong free cash flow.

• Management remains confident in international growth, technology portfolio, and capital allocation strategy focused on high-return opportunities and shareholder returns.

Financial highlights

• Q3 2024 revenue was $5.7 billion; operating income was $871 million; adjusted operating income was $987 million; adjusted operating margin was 17%.

• Q3 2024 net income was $571 million; adjusted net income was $641 million; diluted EPS was $0.65, adjusted EPS $0.73.

• Free cash flow for Q3 2024 was $543 million; trailing twelve months free cash flow was $2.6 billion.

• Capital expenditures for Q3 2024 were $339 million, expected to be about 6% of 2024 revenue.

• Dividend was $0.17 per share in Q3 2024; $200 million in share repurchases in Q3; $3.4 billion remains authorized for buybacks.

Outlook and guidance

• International revenue growth for full year 2024 is expected in line with market, below prior guidance; 2025 international growth projected in low to mid-single digits.

• North America full-year revenue to decline at low end of prior guidance; 90% of fracturing fleets committed for 2025.

• Q4 guidance: Completion & Production revenue to decline 1–3% sequentially, margins down 75–125 bps; Drilling & Evaluation revenue flat to up 2%, margins flat to up 50 bps.

• Capital spending for 2024 expected at about 6% of revenue, focused on key technologies; 2025 CapEx expected at ~6% of revenue.

• At least 50% of annual free cash flow will be returned to shareholders through dividends and buybacks.