Executive Summary
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Overview: Halliburton reported Q2 2025 results with solid profitability and robust cash generation against a backdrop of cyclical oilfield services dynamics. Revenue of $5.51 billion marked a 5.5% year-over-year decline but a 1.7% sequential increase, underscoring the ongoing adjustment to a lower-for-longer activity environment. The company delivered an EBITDA of $987 million and an operating income of $727 million, translating to an EBITDA margin of approximately 17.9% and an operating margin of about 13.2% for the quarter. Net income totaled $472 million, yielding an 8.6% net margin and EPS of $0.55.
Key Performance Indicators
5.51B
QoQ: 1.72% | YoY: -5.54%
825.00M
14.97% margin
QoQ: -6.14% | YoY: -26.54%
727.00M
QoQ: 68.68% | YoY: -29.55%
472.00M
QoQ: 131.37% | YoY: -33.43%
0.55
QoQ: 129.17% | YoY: -31.25%
Revenue: $5.51 billion; YoY: -5.54%; QoQ: +1.72%
Gross Profit: $825 million; Gross Margin: 14.97%; YoY Gross Margin: -26.54%; QoQ: -6.14%
Operating Income: $727 million; Operating Margin: 13.19%; YoY: -29.55%; QoQ: +68.68%
EBITDA: $987 million; EBITDA Margin: 17.91%
Net Income: $472 million; Net Margin: 8.57%; YoY: -33.43%; QoQ: +131.37%
EPS: $0.55; Diluted EPS: $0.55; YoY: -31.25%; QoQ: +129.17%
Cash Flow: Operating Cash Flow $896 million; Free Cash Flow $542 million; Capex (Cash) $-354 million
Liquidity & Balance Sheet: Cash & Equivalents $2.038 billion; Total Assets $25.378 billion; Total Liabilities $14.83 billion; Shareholders’ Equity $10.505 billion; Net Debt $6.523 billion
Liquidity Ratios: Current Ratio 1.997; Quick Ratio 1.472; Cash Ratio 0.349
Leverage & Coverage: Total Debt $8.561 billion; Long-Term Debt $7.919 billion; Interest Coverage 6.61x; Debt-to-Total-Capitalization 0.449; Debt-to-Equity 0.815
Valuation/Market Context: Dividend Yield ~0.83%; P/E ~9.3x; P/B ~1.67x; EV Multiple ~24.41x; Free Cash Flow per Share $0.629; Operating Cash Flow per Share $1.039
Metric
Value
YoY Change
QoQ Change
Revenue
5.51B
-5.54%
1.72%
Gross Profit
825.00M
-26.54%
-6.14%
Operating Income
727.00M
-29.55%
68.68%
Net Income
472.00M
-33.43%
131.37%
EPS
0.55
-31.25%
129.17%
Key Financial Ratios
15.00%
Gross profit margin is below industry norms, profitability concerns
13.20%
Operating margin is moderate, room for improvement in cost management
8.57%
Net profit margin is moderate, room for improvement in cost management
1.86%
Return on assets suggests inefficient capital allocation
4.49%
Return on equity suggests inefficient capital allocation
2.00
Current ratio shows adequate liquidity to meet short-term obligations
0.82
Debt-to-equity shows significant leverage, monitor debt levels
9.30x
P/E ratio suggests potential undervaluation or stable earnings
1.67x
Price-to-book ratio reasonable for profitable companies
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