Halliburton Company's Q4 Earnings and Revenues Beat Estimates

Halliburton Company HAL reported fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.

Houston, TX-based oil and gas equipment and services company’s revenues of $5.7 billion increased 0.8% year over year and beat the Zacks Consensus Estimate by 4.7%.

Inside Halliburton’s Regions & Segments

North American revenues edged down 0.3% year over year to $2.2 billion but beat our projection by more than $146 million. Revenues from Halliburton’s international operations increased 1.5% from the year-ago period to $3.5 billion and beat our estimate by 3%.

The Completion and Production segment earned $570 million in operating income, lower than last year’s $629 million. The figure topped our estimate of $473.2 million due to a favorable activity mix, including stronger completion tool sales in the Western Hemisphere and Europe, increased cementing activity in Europe/Africa and the resumption of well intervention work in the Middle East.

The Drilling and Evaluation unit’s profit fell to $367 million in the fourth quarter of 2025 from $401 million in the same period of 2024, reflecting lower fluid services in North America and reduced drilling services in the Middle East/Asia. However, the result exceeded our estimate of $359.9 million, supported by a better activity mix from wireline operations in the Eastern Hemisphere and year-end software sales.

HAL’s Balance Sheet

Halliburton reported fourth-quarter capital expenditure of $337 million, well below our projection of $390.4 million. As of Dec. 31, 2025, the company had approximately $2.2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5. During 2025, HAL executed $1 billion in share repurchases, delivering a full-year return of 85% of free cash flow to its shareholders. The company generated $1.2 billion of cash flow from operations in the fourth quarter, leading to a free cash flow of $875 million.

Management Remarks & Outlook

Halliburton expects continued strength in its international business, supported by a collaborative value proposition, proven technology and growth engines aligned with evolving market dynamics. In North America, management expects to maintain its Maximize Value strategy, anticipating that the region will be the first to respond as macro fundamentals improve. Overall, management remains confident in the outlook, underscoring Halliburton’s ability to deliver leading returns and capitalize on growth opportunities.

HAL's Zacks Rank & Other Key Picks

Currently, HAL has a Zacks Rank #2 (Buy).

Investors interested in the energy sector might look at some other top-ranked stocks like Cenovus Energy CVE, Oceaneering International OII, sporting a Zacks Rank #1 (Strong Buy) each, and TechnipFMC plc FTI, carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cenovus Energy, a Calgary-based integrated oil and gas company, is valued at $33.97 billion. It is a Canadian integrated oil and natural gas company, focused on the exploration, production and transportation of crude oil and natural gas. Cenovus Energy operates primarily in Alberta and is known for its innovative oil sands projects and strong commitment to sustainability and environmental responsibility.

Oceaneering International, a Houston, TX-based oil and gas equipment and services company, is valued at $2.72 billion. The company is a global provider of engineered services and products to the offshore energy, aerospace and defense industries. Oceaneering International specializes in underwater robotics, remotely operated vehicles and subsea engineering solutions for offshore oil and gas exploration and production.

TechnipFMC is valued at $21.1 billion. FTI is a global leader in energy projects, technologies and services, specializing in subsea, onshore, offshore and surface solutions for the oil and gas industry. TechnipFMC is known for its integrated engineering, procurement, construction and installation model, which helps clients reduce project costs and accelerate delivery.

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

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