Halliburton reported solid cash flow generation in QQ4 2024 despite a modest year-over-year revenue decline. Key profitability metrics remained resilient, supported by disciplined cost management and favorable sequential dynamics. Despite a 5%+ year-over-year contraction in earnings power, the quarter delivered meaningful sequential improvements in operating income and net income, underpinning free cash flow (FCF) generation of approximately $1.03 billion and FCF per share of about $1.18. The balance sheet remains robust, with a cash balance of $2.62 billion and a net debt position of roughly $5.98 billion on enterprise scale, enabling continued shareholder returns and deleveraging optionality as market conditions normalize.
Key QQ4 2024 metrics include revenue of $5.61 billion, gross profit of $1.026 billion (gross margin ~18.29%), and operating income of $0.932 billion (operating margin ~16.61%). Net income was $0.615 billion with diluted earnings per share of $0.70. Cash from operations stood at $1.456 billion, while capex was $426 million, yielding a free cash flow of $1.03 billion. The quarter featured capital allocation activity (share repurchases of $309 million and $148 million in dividends), highlighting the company’s emphasis on returning capital alongside deleveraging efforts. Market indicators imply a cyclical but improving energy-services backdrop, with Halliburton positioned to benefit from ongoing well-construction activity and ongoing digital integration in subsurface workflows.