Halliburton (HAL) Q4 2025 earnings summary

Executive summary

• Q4 2025 performance exceeded expectations with strong execution in both North America and international businesses, despite challenging market conditions.

• Focused on profitable international growth, maximizing value in North America, improving capital efficiency, accelerating digital and automation, and advancing a sustainable energy future.

• Operates in over 70 countries with 46,000 employees and a broad technology portfolio across the oilfield lifecycle.

• Leadership update: Shannon Slocum promoted to COO effective January 1st.

• Fourth quarter 2025 net income was $589 million ($0.70 per diluted share), with adjusted net income of $576 million ($0.69 per diluted share), up significantly from the prior quarter’s $18 million net income ($0.02 per share).

Financial highlights

• Q4 2025 revenue was $5.7 billion, flat sequentially from Q3 2025, with 61% generated internationally.

• Q4 adjusted operating income was $829 million with a 15% margin; full-year adjusted operating margin was 14%.

• Full-year 2025 revenue reached $22.2 billion; net income was $1.3 billion ($1.50 per share), with adjusted net income of $2.1 billion ($2.42 per share).

• Free cash flow for 2025 was $1.86 billion; Q4 cash flow from operations was $1.2 billion, free cash flow $875 million.

• Dividend of $0.17 per share in Q4 2025; 838 million shares outstanding as of January 2026.

Outlook and guidance

• 2026 expected to be a year of rebalancing with abundant supply and moderate demand growth.

• International revenue projected to be flat to modestly up in 2026; North America revenue expected to decline high single digits.

• Q1 2026 guidance: Completion & Production revenue to decrease 7%-9% sequentially, margins down ~300 bps; Drilling & Evaluation revenue to decline 2%-4%, margins down 25-75 bps.

• SAP S/4HANA migration to continue through Q4 2026, with $40-45 million in quarterly expenses and $100 million annual savings expected post-completion.

• At least 50% of annual free cash flow to be returned to shareholders going forward.