Halliburton Q2 Earnings Meet Estimates on International Growth

Halliburton Company HAL reported second-quarter 2025 adjusted net income per share of 55 cents, the same as the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.

Meanwhile, revenues of $5.5 billion were 5.5% lower year over year but beat the Zacks Consensus Estimate by 1.1%. 

Halliburton Company Price, Consensus and EPS Surprise

Halliburton Company price-consensus-eps-surprise-chart | Halliburton Company Quote

Inside Halliburton’s Regions & Segments

North American revenues fell 9% year over year to $2.3 billion and missed our projection by almost $60 million. Revenues from Halliburton’s international operations decreased 3% from the year-ago period to $3.3 billion but surpassed our estimate of $3.1 billion. 

The Completion and Production segment earned $513 million in operating income, lower than last year’s $723 million and our estimate of $537.7 million. The decline was due to lower prices for stimulation services in the U.S. Land, less work in the Middle East and a lull in domestic onshore artificial lift activity. However, stronger pressure pumping activity and higher demand for completion tools across the Western Hemisphere, notable well intervention services internationally, in addition to growth in pipeline and process services across the Eastern Hemisphere.

The Drilling and Evaluation unit's profit fell to $312 million in the second quarter of 2025 from $403 million in the same period in 2024 and fell short of our estimate of $316.6 million. The downtick was caused by the seasonal slowdown in software sales, combined with elevated startup and mobilization expenses across several product service lines. This was partly offset by higher drilling-related services globally.

Balance Sheet

Halliburton reported second-quarter capital expenditure of $354 million, higher than our projection of $338.2 million. As of June 30, 2025, the Zacks Rank #5 (Strong Sell) company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. HAL bought back $250 million worth of its stock during the April-June period. The company generated $896 million of cash flow from operations in the second quarter, leading to a free cash flow of $582 million.   

You can see the complete list of today’s Zacks #1 Rank stocks here.

Management Remarks & Outlook

Halliburton’s management anticipates a softer oilfield services market in the near to medium term and plans to act accordingly, while staying committed to shareholder returns. International activity is expected to be mixed, with strength in some regions offset by declines in others. The company remains confident in its strategy, emphasizing growth in drilling, unconventional, and artificial lift. In North America, Halliburton aims to outperform peers through scale, technology leadership, and strong service execution.

Important Earnings at a Glance

While we have discussed Halliburton’s second-quarter results in detail, let’s take a look at two other key reports in the Oil/Energy space.

Halliburton’s larger rival SLB SLB reported second-quarter 2025 adjusted earnings per share of 74 cents, a penny ahead of the Zacks Consensus Estimate. It recorded total quarterly revenues of $8.6 billion, which beat the Zacks Consensus Estimate of $8.5 billion. SLB’s robust numbers reflect international growth, strong digital revenues and rising demand for production systems.

SLB reported a free cash flow of $622 million in the second quarter. As of June 30, 2025, the company had approximately $3.75 billion in cash and short-term investments. It registered a long-term debt of $10.89 billion at the end of the quarter.

Meanwhile, energy infrastructure provider Kinder Morgan KMI reported second-quarter 2025 adjusted earnings per share of 28 cents, which met the Zacks Consensus Estimate. The bottom line increased year over year from 25 cents. Kinder Morgan’s quarterly revenues of $4 billion beat the Zacks Consensus Estimate of $3.9 billion. The better-than-expected quarterly earnings were primarily due to robust natural gas demand and higher contributions from its Natural Gas Pipelines and Terminals segments.

For 2025, Kinder Morgan reiterated its projected net income of $2.8 billion (up 8% from the 2024 level) and an adjusted EPS of $1.27 (up 10%). The company expects dividends of $1.17 per share, up 2% from the prior-year figure. Kinder Morgan also anticipates a budgeted adjusted EBITDA of $8.3 billion, up 4% from the previous year’s level.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research