Halliburton Q4 Results Show Where Earnings Strength Is Holding

Oilfield service biggie Halliburton Company’s HAL fourth-quarter 2025 results highlighted pockets of earnings resilience despite a softer year-over-year backdrop. Revenues totaled $5.7 billion, modestly above the prior-year quarter, while adjusted earnings were 69 cents per share. Profitability remained solid but lower than the prior year, with adjusted operating income of $829 million and adjusted operating margin of 15%, reflecting normalization from stronger fourth-quarter 2024 levels. Cash generation remained robust, with operating cash flow of $1.2 billion during the quarter, underscoring disciplined execution and a continued focus on returns.

International operations continued to be the primary stabilizer on a year-over-year basis. Full-year international revenues declined just 2% in 2025, outperforming broader activity trends. Fourth-quarter results showed sequential and annual resilience across multiple regions. Growth in Europe, Africa, Latin America, and parts of the Middle East and Asia was supported by higher completion tool sales, well intervention activity, and steady project execution. These longer-cycle markets provided more durable pricing and utilization, helping sustain margins and offset declines in select countries where customer spending moderated.

North America highlighted the cyclical contrast. Full-year regional revenues declined 6% year over year, and fourth-quarter results reflected continued pressure from lower stimulation activity, reduced fluid services, and cautious customer spending. Management’s response centered on cost discipline, selective activity, and technology deployment to protect returns. These efforts, combined with operational efficiency, helped support earnings quality despite weaker demand. The company also returned capital through $250 million of share repurchases during the quarter, underscoring how execution and financial discipline remain key buffers as North American conditions stay challenging.

Halliburton’s performance was not an outlier, as international operations also played a stabilizing role for its closest oilfield services peers during the quarter.

Peers Reinforce the Importance of International Markets

Halliburton’s larger rival SLB N.V.’s SLB international operations were a key driver of its fourth-quarter 2025 performance, delivering high single-digit sequential growth and underpinning margin expansion. SLB benefited from stronger activity in the Middle East, Asia, and Latin America, supported by higher production systems sales, digital operations growth, and increased intervention work. International momentum helped SLB offset mixed North American trends, with SLB highlighting Saudi Arabia, UAE, Brazil, and offshore gas markets as major contributors to fourth-quarter revenue strength.

Rounding out the big three oilfield services providers, Baker Hughes’ BKR international operations also provided resilience in the fourth quarter, particularly within Oilfield Services & Equipment. Baker Hughes saw improving activity in Sub-Saharan Africa, Brazil, and Saudi Arabia, which partially offset softness in the Asia Pacific, the North Sea, and Mexico. Strong international subsea orders and Middle East production solutions supported Baker Hughes’ results, while cost discipline preserved margins. Overall, Baker Hughes’ international footprint helped stabilize earnings and sustain profitability despite the prevailing macro-driven pressures.

The Zacks Rundown on HAL

Shares of HAL have gained more than 70% over the past six months, breezing past the industry’s growth.

Halliburton currently has an average brokerage recommendation (ABR) of 1.91 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. 

The chart below shows HAL’s earnings over the past four quarters.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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