Halliburton’s international strength offsets U.S. slump, beats Q4 estimates

Halliburton posted stronger-than-expected fourth-quarter results as rising international activity and year-end software sales offset continued restraint in U.S. shale spending. Adjusted earnings per share came in at $0.69 for the quarter ended Dec. 31, 2025, above the LSEG consensus of $0.55, while revenue reached roughly $5.66 billion to $5.7 billion, topping analyst projections near $5.41 billion.

The beat masked a narrower profit picture versus a year earlier. Reported net income was $589 million, or $0.70 per diluted share, but pretax charges tied to asset impairments and severance reduced headline profitability. Management disclosed an $83 million pretax charge that, together with other restructuring items, accounted for much of the year-on-year decline in operating results.

Regional performance underscored the company’s diverging geographies. International revenue rose to $3.5 billion and was the primary growth driver, lifted by higher completion-tool sales in Brazil, the North Sea and the Caribbean and stronger software sales in Mexico. North America revenue held at about $2.2 billion, essentially unchanged sequentially and versus the prior year, reflecting continued capital discipline by U.S. shale producers amid lower oil prices and restrained activity. That dynamic left North America unable to contribute meaningful growth for the quarter.

By business segment, Completion & Production generated roughly $3.3 billion in revenue and Drilling & Evaluation about $2.4 billion, both steady sequentially. Reported operating income for the quarter was $746 million; adjusted operating income excluding impairments and other charges was $829 million, implying an adjusted operating margin near 15 percent. Segment profitability remained above some estimates despite year-over-year declines in operating income for both major divisions.

Cash generation and shareholder returns were bright spots. Operating cash flow for the quarter was $1.2 billion and free cash flow $875 million. For the full year 2025, Halliburton produced $2.9 billion of cash from operations and about $1.9 billion of free cash flow, returning roughly $1.0 billion to shareholders through share repurchases and distributing an amount equal to about 85 percent of free cash flow to investors over the year.

Full-year 2025 revenue totaled $22.2 billion, down from $22.9 billion in 2024, and full-year operating income fell to $2.3 billion from $3.8 billion a year earlier. Adjusted operating income for the year was reported at $3.1 billion. International revenue for 2025 amounted to $13.1 billion, modestly outperforming regional rig-count declines, while North America revenue declined to about $9.1 billion.

Chief Executive Jeff Miller said in prepared remarks that Halliburton "outperformed our expectations" and expressed confidence in the company’s strategy and global franchise. He added that North America is typically the first region to respond when macro conditions improve, leaving the international franchise to carry momentum when U.S. activity lags.

The market reacted positively to the beat, lifting shares by about 3.7 percent to roughly $33 shortly after the opening bell. Analysts point to a favorable activity mix, continued cost reductions and growing software and completion-tool sales overseas as reasons for resilience. The results underscore a longer-term trend in oilfield services: operators that can harness international growth and software-enabled offerings are better positioned to cushion cyclical downturns in North American shale.