HALLIBURTON CO
For the period ended Jun 30, 2025. Filed Jul 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 25, 2025
HAL$31.84-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-25.
0000045012-25-000035
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewLiquidity and Capital ResourcesBusiness Environment and Results of OperationsResults of Operations in 2025 Compared to 2024Forward-Looking InformationCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-25.
0000045012-25-000057
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewLiquidity and Capital ResourcesBusiness Environment and Results of OperationsResults of Operations in 2025 Compared to 2024Forward-Looking InformationThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
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182 unchanged; 75 reworded; 99 added; 38 removed; 5 previous and 6 current paragraphs rearranged.
Tables are not compared: 12 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (99)
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Oil prices declined in the second quarter of 2025 from the first quarter of 2025 due to increased trade tensions from
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tariffs weighing on the demand outlook while increases in production from OPEC+ countries have increased supply surpluses.
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quarter of 2025 as oil basins saw declines while gas basins saw modest increases. The international rig count declined in the
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thesecond quarter of 2024. We reported operating income of $727 million in thesecond quarter of 2025, as compared to
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operating income of$1.0 billion in thesecond quarter of 2024. The tariff impact on operating income for the second quarter of
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2025 imposed primarilyby the United Stateswas approximately $27 million.
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second quarter of 2024. These results were largely driven by lower pressure pumping services in the Western Hemisphere and
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reduced completion tool sales in the Gulf of America and Africa. Partially offsetting these decreases were increased completion
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tool sales in Europe. Operating income was further adversely impacted by reduced pricing for stimulation services in US Land.
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management activity and lower testing services internationally, and lower wireline activity in the Western Hemisphere and
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Saudi Arabia. Partially offsetting these decreases were improved fluid services in Latin America and the Middle East. Operating
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income was further adversely impacted by startup and mobilization costs incurred across multiple product service lines.
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America. Partially offsetting these decreases were improved stimulation activity in the Gulf of America and Canada and higher
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Internationally, revenue decreased 3% in thesecond quarter of 2025, as compared to thesecond quarter of 2024,
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largely driven by lower activity across multiple product service lines in Mexico and Saudi Arabia and decreased completion
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tool sales in Africa. Partially offsetting these decreases were improved fluid services in the Middle East, Norway, and
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Argentina, higher pipeline services in Europe and Middle East/Asia and improved well intervention services in Saudi Arabia.
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•We received$120 million on the sale of an equity investment.
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•Capital expenditures were$656 million.
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•We paid $162 million to acquire businesses.
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project to the second half of 2026, we are currently re-evaluating the $270 million estimated total cost and will provide a new
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as of June 30, 2025 of$909 million, compared to an aggregate notional amount outstanding as of March 31, 2025 of $1.0
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Rising geopolitical tensions in the Middle East have recently caused high volatility in oil markets. While new conflicts
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have caused prices to fluctuate, tariffs have increased trade tensions, raised broad economic concerns, which together with the
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11% in the second quarter of 2025 when compared to the first quarter of 2025. In response to these factors, we have seen
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customers reduce their expected spend on oil and gas exploration and production activities and engage in other cost-cutting
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activities, which has caused us to lower our expectations of activity over the short to medium term.
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We expect our full year 2025 international revenue to decrease year over year primarily driven by further activity
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reductions in Saudi Arabia and Mexico and pricing pressure. We expect revenue growth in Brazil and Norway, as well as
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offshore frontier basins, to partially offset these reductions. We also expect North America full year 2025 revenue to decline
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year over year driven by lower drilling and completion activity and pricing pressure. While increases in gas activity are likely to
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absorb some service capacity in North America this year, it is unlikely to offset the decreases in oil-directed activity. To address
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the softness in the market, we will continue to focus our equipment on profitable work, reduce our variable and fixed cash costs
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to size our business to the market we see, and remain focused on generating free cash flow and returns, and capital discipline.
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developing countries. Additionally, we believe increased investment in existing and new sources of oil and natural gas
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$210 million, or 29%, when compared to thesecond quarter of 2024. These results were largely driven by lower pressure
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pumping services in the Western Hemisphere and reduced completion tool sales in the Gulf of America and Africa. Partially
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Previous report
Oil prices increased in the first quarter of 2025 from the fourth quarter of 2024 partially from an improving demand
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outlook in Europe and China while tighter sanctions on Venezuela, Iran and Russia weighed on the supply-side. Risks
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slightly as compared to the three months ended December 31, 2024 as oil basins saw a small increase while natural gas basins
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first quarter of 2024. We reported operating income of $431 million, including impairments and other charges of$356 million,
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in thefirst quarter of 2025, this compares to operating income of$987 million in thefirst quarter of 2024.
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the Western Hemisphere. Partially offsetting these decreases were increased completion tool sales and improved stimulation
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management activity in Mexico, and lower wireline activity in the Middle East/Asia. Partially offsetting these decreases was
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Internationally, revenue decreased 2% in thefirst quarter of 2025, as compared to thefirst quarter of 2024, largely
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driven by lower activity across multiple product service lines in Mexico, Senegal, and Italy. Partially offsetting these decreases
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•Capital expenditures were$302 million.
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Currently, we do not intend to incur additional debt in 2025, as we believe our cash on hand and earnings from
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operations are sufficient to cover our obligations for the year.
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reduces monthly over its remaining 18-month term.
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The tariffs announced on April 2, 2025 by the United States government included sweeping measures affecting many
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goods imported into the United States, with rates starting at 10%, and higher rates for specific countries and products. These
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tariffs could significantly increase the cost of imported goods and materials. The tariffs have brought uncertainty into markets,
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the price of crude oil of approximately 10% since the end of the first quarter of 2025. While the situation is still fluid, we expect
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that the decrease in the price of crude oil will negatively impact our earnings per share in the second quarter of 2025. However,
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increased completion tool sales and improved stimulation activity in the Middle East.
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or 12%, when compared to thefirst quarter of 2024. These results were primarily driven by decreased drilling services in
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Mexico and the Middle East, reduced project management activity in Mexico, and lower wireline activity in the Middle East/
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Asia. Partially offsetting these decreases was increased fluid services in the Middle East.
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North America revenue in thefirst quarter of 2025 was$2.2 billion, a 12% decrease compared to thefirst quarter of
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Land and increased stimulation activity in the Gulf of America.
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Brazil, and the Caribbean.
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increases was decreased activity across multiple product service lines in Senegal and Italy.
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This increase resulted from improved activity across multiple product service lines in Kuwait, improved stimulation
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offsetting these improvements were lower well construction activity in Saudi Arabia and Australia, decreased completion tool
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sales in Malaysia, and declined drilling-related activity in Oman.
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expect to complete in thefirst half of 2026. During thefirst quarter of 2025, we recognized$30 million of expense on our SAP
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S4 migration. During thefirst quarter of 2024, we recognized$34 million of expense on our SAP S4 migration.
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$103 million on a pre-tax income of$306 million, resulting in an effective tax rate of 33.7% for the quarter. The effective tax
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recorded a total income tax provision of$178 million on a pre-tax income of$787 million, resulting in an effective tax rate of
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significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 48,000
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significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With more than 48,000 employees,
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employees, we operate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
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we operate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
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associated with trade tensions and geopolitical unrest in the Middle East and the Russia-Ukraine conflict continue to be major
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Geopolitical unrest, and armed conflicts in the Middle East and in Russia-Ukraine continue to be major sources of volatility for
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sources of volatility for the oil and natural gas markets. During the first quarter of 2025, the U.S. active rig count increased
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the oil and natural gas markets. During the second quarter of 2025, the U.S. active rig count decreased as compared to the first
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declined. The international rig count declined in the first quarter of 2025 from the fourth quarter of 2024 driven by declines in
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second quarter of 2025 from the first quarter of 2025 driven by declines in the Middle East, Asia-Pacific and Africa.
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Since the end of the first quarter of 2025, the macro environment for oil and natural gas has seen significant
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Since the end of the second quarter of 2025, the macro environment for oil and natural gas has seen significant
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faster-than-expected return of OPEC production, weighed on commodity prices. As of April 22, 2025, both West Texas
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faster-than-expected return of OPEC+ production, weighed on commodity prices. As of July 22, 2025, West Texas Intermediate
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Intermediate (WTI) and United Kingdom Brent crude oil prices decreased by approximately 10% since the end of the first
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(WTI) crude oil prices decreased byapproximately 7% since the end of the first quarter of 2025.
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The following graph illustrates our revenue and operating margins for each operating segment for thefirst quarter of
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The following graph illustrates our revenue and operating margins for each operating segment for thesecond quarter of
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During thefirst quarter of 2025, we generated total company revenue of$5.4 billion, a 7% decrease as compared to the
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During thesecond quarter of 2025, we generated total company revenue of$5.5 billion, a 6% decrease as compared to
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Our Completion and Production segment revenue decreased 8% in thefirst quarter of 2025 as compared to thefirst
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Our Completion and Production segment revenue decreased 7% in thesecond quarter of 2025 as compared to the
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Our Drilling and Evaluation segment revenue decreased 6% in thefirst quarter of 2025 as compared to thefirst quarter
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Our Drilling and Evaluation segment revenue decreased 4% in thesecond quarter of 2025 as compared to thesecond
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of 2024. These results were primarily driven by decreased drilling services in Mexico and the Middle East, reduced project
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quarter of 2024. These results were primarily driven by decreased drilling services in Mexico and Saudi Arabia, reduced project
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Our North America revenue decreased 12% in thefirst quarter of 2025, as compared to thefirst quarter of 2024. This
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Our North America revenue decreased 9% in thesecond quarter of 2025 as compared to thesecond quarter of 2024.
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decrease was primarily driven by lower stimulation activity in US Land and reduced completion tool sales in the Gulf of
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This decrease was largely driven by lower stimulation activity in US Land and reduced completion tool sales in the Gulf of
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As of March 31, 2025, we had$1.8 billion of cash and equivalents, compared to$2.6 billion of cash and equivalents at
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As of June 30, 2025, we had$2.0 billion of cash and equivalents, compared to$2.6 billion of cash and equivalents at
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Significant sources and uses of cash during the first three months of 2025
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Significant sources and uses of cash during the first six months of 2025
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•Cash flows from operating activities were$377 million. Working capital, which consists of receivables,
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•Cash flows from operating activities were$1.3 billion. Working capital, which consists of receivables, inventories,
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inventories, and accounts payable, hada negative impact of$154 million, primarily due to increased receivables
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and accounts payable, hada positive impact of$100 million, primarily due to decreased receivables.
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•We repurchased 9.6 million shares of our common stock for$250 million.
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•We repurchased 21.5 million shares of our common stock for$507 million, which includes excise tax payment due
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•We paid$147 million of dividends to our shareholders.
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•We paid$292 million of dividends to our shareholders.
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•We paid $461 million related to a purchase of an equity investment and payments to acquire businesses.
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•We paid $345 million related to a purchase of an equity investment.
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shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$147 million. In 2023, our Board
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shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$145 million. In 2023, our Board
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program to repurchase our common stock from time to time. We repurchased 9.6 million shares of common stock during the
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program to repurchase our common stock from time to time. We repurchased 12 million shares of common stock during the
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first quarter of 2025 under this program. Approximately$2.8 billion remained authorized for repurchases as of March 31, 2025
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second quarter of 2025 under this program. Approximately$2.5 billion remained authorized for repurchases as of June 30, 2025
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During 2023, we began our migration to SAP S4 which we expect to complete in the first half of 2026. During the
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During 2023, we began our migration to SAP S4 which we now expect to complete in the second half of 2026. During
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three months ended March 31, 2025 we incurred$30 million in expense on our SAP S4 migration. The total project investment
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thesix months ended June 30, 2025 we incurred$62 million in expense on our SAP S4 migration. Due to the extension of the
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is estimated to cost approximately$270 million. We believe the new system will provide important efficiency benefits, cost
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estimate in the third quarter of 2025. We believe the new system will provide important efficiency benefits, cost savings,
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savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.
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enhanced visibility to ouroperations, and advanced analytics that will benefit us and our customers.
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Financial condition in current market. As of March 31, 2025, we had$1.8 billion of cash and equivalents and$3.5
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Financial condition in current market. As of June 30, 2025, we had$2.0 billion of cash and equivalents and$3.5
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approximately $2.7 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2025. Some
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approximately $2.8 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of June 30, 2025. Some of
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of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however,
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the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however, none
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none of these triggering events have occurred. As of March 31, 2025, we had no material off-balance sheet liabilities and were
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of these triggering events have occurred. As of June 30, 2025, we had no material off-balance sheet liabilities and were not
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not required to make any material cash distributions to our unconsolidated subsidiaries.
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required to make any material cash distributions to our unconsolidated subsidiaries.
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as of March 31, 2025 of$1.0 billion related to borrowings provided by the financial institutions to one of our primary
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billion, related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which,
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customers in Mexico, of which, portions of the proceeds were utilized by this customer to pay certain of our outstanding
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portions of the proceeds were utilized by this customer to pay certain of our outstanding receivables. Approximately $124
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receivables. Approximately $155 million of the outstanding amount of the CDSs reduces monthly over its remaining 11-month
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million of the outstanding amount of the CDSs reduces monthly over its remaining 8-month term and$139 million reduces
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term and$171 million reduces monthly over its remaining 15-month term. The remaining$717 million outstanding amount
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monthly over its remaining 12-month term. The remaining$646 million outstanding amount reduces monthly over its
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Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of
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Receivables from our primary customer in Mexico accounted for approximately 9% of our total receivables as of
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in global economic growth and will be driven by economic expansion, energy security concerns and population growth in
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Partially offsetting these decreaseswas increased activity across multiple product services lines in Brazil.
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SAP S4 Upgrade Expense. As previously mentioned, during 2023 we began our migration to SAP S4, which we now
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Pillar Two. As previously mentioned, The Organization for Economic Co-operation and Development enacted model
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rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or
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are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes
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Latin America, Asia-Pacific, and Africa.
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quarter of 2024. These results were primarily driven by decreased pressure pumping services and lower completion tool sales in
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increased fluid services in the Middle East.
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economic expansion, energy security concerns and population growth. Additionally, we believe increased investment in
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This decrease was primarily driven by lower stimulation activity in US Land and reduced completion tool sales in the