Halliburton reported Q3 2025 revenue of $5.60 billion, representing a YoY decline of 1.7% and a QoQ increase of 1.63%. A striking feature of the quarter is a negative gross profit of approximately $1.70 billion, yielding a gross margin of -30.4%. Despite the gross loss, operating income was positive at $356 million, translating to an operating margin of about 6.36%. Net income was modest at $20 million (EPS $0.02), with a notable drag from interest expense of roughly $0.49 billion and a tax line that shows a counterintuitive tax benefit in the period. Cash flow metrics convey resilience: operating cash flow per share of $0.57 implies roughly $490 million of operating cash flow for the quarter, while free cash flow per share of $0.265 points to about $230 million of free cash flow. Cash per share stood at $2.36, supporting a healthy liquidity profile alongside a current ratio near 2.0 and a moderate leverage footprint (debt-to-capitalization about 45.5%). The combination of negative gross profit and elevated financing costs highlights the cyclicality and cost-structure challenges within Halliburton’s currently stressed margin environment, even as the company preserves cash generation and balance-sheet strength. Absent a clear positive shift in activity mix or stabilization of input costs, the near-term profitability trajectory will likely hinge on cost discipline, favorable project mix, and continued monetization of digital and AI-enabled solutions across Subsurface, Drilling, and Production segments.
Key Performance Indicators
Revenue
Decreasing
5.60B
QoQ: 1.63% | YoY: -1.70%
Gross Profit
Decreasing
-1.70B
-30.43% margin
QoQ: -306.55% | YoY: -259.25%
Operating Income
Decreasing
356.00M
QoQ: -51.03% | YoY: -59.13%
Net Income
Decreasing
20.00M
QoQ: -95.76% | YoY: -96.50%
EPS
Decreasing
0.02
QoQ: -96.36% | YoY: -96.92%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability dynamics in Q3 2025 show a challenging margin backdrop despite top-line stability. Key metrics include:
- Revenue: $5.60 billion; YoY change: -1.7%; QoQ change: +1.63% (per reported metrics).
- Gross profit: -$1.704 billion; Gross margin: -30.4% (negative due to cost of revenue exceeding revenue).
- Operating income: $356 million; Operating margin: 6.36%.
- EBITDA: -$0.822 billion; EBITDARatio: -14.68%.
- Net income: $20 million; Net margin: 0.36%.
- Earnings per share (EPS): $0.02; Diluted EPS: $0.02; Weighted avg shares: ~857 million.
- Interest expense: $0.487 billion; Depreciation & amortization: $0.561 billion.
- Free cash flow per share: $0.265; Operating cash flow per share: $0.569.
- Cash per share: $2.36; Current ratio: 1.96; Quick ratio: 1.44; Cash ratio: 0.34.
- Debt metrics: Debt ratio 34%; Debt-to-capitalization 45.5%; Long-term debt-to-capitalization 43.5%; Interest coverage: -0.73 (negative).
- Valuation benchmarks (period end): P/B ~ 2.06; P/S ~ 3.76; P/E ~ 263.5 (noting earnings are minimal in this period).
- Dividends: Dividend payout ratio ~ 7.2%; Dividend yield ~ 0.68%.
- Efficiency: Receivables turnover ~ 1.09x; Payables turnover ~ 2.90x; Inventory turnover ~ 2.98x; Asset turnover ~ 0.223; Capex coverage ratio 1.87 (implies capex funded by cash flow).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.60B
-1.70%
1.63%
Gross Profit
-1.70B
-259.25%
-306.55%
Operating Income
356.00M
-59.13%
-51.03%
Net Income
20.00M
-96.50%
-95.76%
EPS
0.02
-96.92%
-96.36%
Key Financial Ratios
Gross Profit Margin
Weak
-0.30%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
6.36%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
0.36%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.08%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.20%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.96
Current ratio shows adequate liquidity to meet short-term obligations