Halliburton Company (0R23.L) Q4 2025 Earnings Report

Halliburton delivered a solid fourth quarter of 2025, closing the year with meaningful free cash flow and balance-sheet discipline. Q4 revenue totaled $5.70 billion, flat to sequentially modest, with an adjusted operating margin of 15% and net income of $589 million ($0.70 per diluted share). For the full year, Halliburton reported revenue of $22.2 billion and an adjusted operating margin of 14%, underscored by strong cash generation: $2.9 billion of cash flow from operations and $1.9 billion of free cash flow, enabling roughly $1.0 billion of stock repurchases and returning approximately 85% of free cash flow to shareholders. The company also highlighted a strategy-driven, value-based operating plan, emphasizing technology (ZEUS IQ, Zoos IQ, and Logix), collaboration with customers, and expansion into adjacent growth engines (VoltaGrid, international unconventionals, and offshore opportunities).

Management remains cautious on near-term macro softness in North America while signaling a longer-run rebalancing thesis: 2026 is expected to be a year of market rebalancing as supply and demand re-align, with non-OPEC supply moderation and continued demand growth. International revenue is forecast to be flat to up modestly in 2026, while North America revenue is projected to decline in the high-single digits versus 2025. The company expects a stronger second half versus the first half of 2026, driven by improved activity mix, technology adoption, and a tailwind from mature international growth engines. Key catalysts cited include VoltaGrid’s modular power platform expansion, advances in unconventionals internationally, autonomous drilling capabilities, and the potential reentry into Venezuela under clarified terms.

While the outlook presents attractive upside, Halliburton faces typical cyclicality and execution risks inherent to oilfield services, including commodity price volatility, sanctions/regulatory developments (notably Venezuela), and integration milestones for SAP. The company’s disciplined capital allocation (share repurchases, D&A-driven free cash flow, and potential Venezuela ramp) and a robust technology stack position Halliburton to capitalize on a recovery in offshore, international unconventionals, and power/industrial growth through VoltaGrid.