Halliburton Q4 2025 Earnings Beat on International Strength

Halliburton Company (NYSE: HAL) said in a press release on Jan. 21, 2026, that international demand boosted its fourth-quarter 2025 revenue and margins. This strength drove stronger cash generation and supported extensive share repurchases alongside a tighter capital plan for 2026.

Earnings, Margins and Cash Returns

Halliburton reported adjusted earnings of $0.69 per diluted share for the quarter, exceeding Wall Street estimates of $0.54–$0.55. Revenue reached $5.7 billion, while net income totaled $589 million, or $0.70 per diluted share. Adjusted operating margin expanded to 15.0% from 13.0% in the prior quarter.

The quarter followed a third quarter that included $540 million in impairment charges. Management said cost-reduction initiatives helped restore profitability in Q4, supporting the margin recovery alongside the favorable international revenue mix.

The company generated $1.2 billion in operating cash flow and $875 million in free cash flow during the quarter. In 2025, Halliburton repurchased $1.0 billion of stock and returned 85% of free cash flow to shareholders. Capital spending in the quarter was $337 million, below the projected $390 million. Full-year revenue declined to $22.2 billion from $22.9 billion in 2024. The balance sheet held $2.2 billion in cash and equivalents against $7.2 billion in long-term debt, with a debt-to-capitalization ratio of 40.5% as of Dec. 31, 2025.

International Growth Offsets North America Weakness

International revenue totaled $3.5 billion in the quarter, rising about 1.5–2.9% year-over-year and roughly 7.0% sequentially. Latin America saw gains in completion tools in Brazil and the Caribbean. Europe, Africa, and the CIS region posted a 12.0% sequential increase driven by North Sea activity. The Middle East and Asia benefited from resumed well intervention and software sales in markets such as Saudi Arabia and Indonesia.

North America revenue was $2.2 billion, flat year-over-year but down about 7.0% sequentially. The decline reflected lower stimulation activity on U.S. land and reduced fluid services in the Gulf of Mexico. These headwinds were partly offset by stronger cementing work and higher completion-tool sales.

Completion & Production posted operating income of $570 million, up 11.0% sequentially, on roughly steady revenue of $3.3 billion. Higher-margin completion-tool sales, cementing activity in Europe and Africa, and recovering well-intervention activity in the Middle East supported returns. Drilling & Evaluation operating income rose about 5.0% sequentially to $367 million, with revenue of $2.4 billion helped by wireline activity in the Eastern Hemisphere and year-end software sales.

2026 Outlook and Capital Plan

Management projects roughly $1.8 billion of free cash flow for 2026 and plans about a 30.0% reduction in capital expenditure to focus on shareholder returns and compete for high-return international tenders. The company expects continued strength in its international business, supported by a collaborative value proposition, proven technology, and growth engines aligned with evolving market dynamics.

Halliburton will emphasize integrated services, digital well construction, and offshore developments. It highlighted deployments of StreamStar™, ROCS tubing-hanger technology, and the Zeus IQ autonomous fracturing platform. The company also announced an agreement with VoltaGrid to deploy modular natural-gas systems for data-center power in the Eastern Hemisphere by 2028.