HALLIBURTON CO
For the period ended Sep 30, 2025. Filed Oct 24, 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.
Sep 30, 2025 · Filed Oct 24, 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 2025-06-30; 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 InformationCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-24.
0000045012-25-000069
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.
Compared 362 previous paragraphs and 393 current paragraphs.
172 unchanged; 117 reworded; 98 added; 72 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 17 previous and 18 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 (98)
Current report
Oil prices declined further in the third quarter of 2025 compared to the second quarter of 2025, as ongoing supply
Current report
additions from OPEC+ and non-OPEC producers weighed on the markets. While geopolitical unrest in the Middle East and the
Current report
Russia-Ukraine conflict remain persistent sources of volatility, the more pronounced influence this quarter came from weaker
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global economic activity and cautious consumer spending, which tempered expectation for near-term demand.
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In the United States, the active rig count declined modestly in the third quarter of 2025 compared to the second
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quarter of 2025, with activity in oil basins continuing to soften while gas basins remained relatively stable. However, despite
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the rig count decline, United States total liquids production, as reported by the Energy Information Administration, reached an
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all-time high in the third quarter of 2025. Internationally, rig count increased modestly in the third quarter of 2025, as declines
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in Saudi Arabia were offset by rig additions elsewhere in the Middle East.
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tensions and tariffs continue to negatively impact the demand outlook, while the pace of supply growth has outstripped
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thethird quarter of 2024. We reported operating income of $356 million, including impairments and other charges of$392
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million, in thethird quarter of 2025, as compared to operating income of$871 million in thethird quarter of 2024, including
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impairments and other charges of$116 million. The tariff impact on operating income for thethird quarter of 2025 was
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approximately $31 million and resulted primarily from tariffs imposed by the United States.
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completion tool sales in Latin America and the Middle East. Partially offsetting these decreases were increased stimulation
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activity in Latin America and higher completion tool sales in Norway. Operating income was further adversely impacted by
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quarter of 2024. Decreased drilling-related services in Latin America and lower activity across multiple product service lines in
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activity mix and mobilization costs in drilling-related services.
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Our North America revenuewas relatively flat in thethird quarter of 2025 as compared to thethird quarter of 2024.
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Lower pressure pumping services, decreased fluid services, and reduced artificial lift activity in US Land were offset by higher
Current report
Internationally, revenue decreased 2% in thethird quarter of 2025 as compared to thethird quarter of 2024, largely
Current report
were higher activity across multiple product service lines in Norway, improved fluid services in the Middle East and Argentina,
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•We received$228 million on the sale of investment securities.
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•Capital expenditures were$917 million.
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•We paid$128 million on the purchase of investment securities.
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revenue. However, we intend to reduce our capital expenditures in 2026 by 30%, to approximately $1.0 billion, in response to
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the market conditions we expect to encounter. Despite this reduction, we believe this level of spending will enable continued
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investment in our core strategic technologies and businesses, including the international expansion ofour artificial lift, well
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intervention, unconventionals, and drilling technologies.
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extension of the project, we currently expect the estimated total cost will be approximately $40 million per quarter going
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natural gas consumption.
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Geopolitical tensions in the Middle East and the Russia-Ukraine conflict continue to cause high volatility in oil
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markets. Additionally, the unwinding of OPEC+ supply cuts and tempered demand growth expectations due to trade tensions
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contributed to decreases in the average WTI and United Kingdom Brent crude oil prices. As of October 21, 2025, WTI crude oil
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accordingly, which we expect will save us approximately $100 million per quarter going forward. Furthermore, we will
Current report
continue to idle, relocate, or retire equipment that does not meet our return thresholds and will remain focused on generating
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Removed paragraphs (72)
Previous report
Oil prices declined in the second quarter of 2025 from the first quarter of 2025 due to increased trade tensions from
Previous report
tariffs weighing on the demand outlook while increases in production from OPEC+ countries have increased supply surpluses.
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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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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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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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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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fluctuations, as the trade environment injected uncertainty into markets, raised broad economic concerns, and along with the
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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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(WTI) crude oil prices decreased byapproximately 7% since the end of the first quarter of 2025.
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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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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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quarter of 2024. These results were primarily driven by decreased drilling services in Mexico and Saudi Arabia, reduced project
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management activity and lower testing services internationally, and lower wireline activity in the Western Hemisphere and
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income was further adversely impacted by startup and mobilization costs incurred across multiple product service lines.
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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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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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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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tool sales in Africa. Partially offsetting these decreases were improved fluid services in the Middle East, Norway, and
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•Capital expenditures were$656 million.
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revenue. We believe this level of spend will allow us to invest in our key strategic technologies and businesses, including the
Previous report
construction and depl oyment of our Zeus electric fracturing systems in North America and the international growth of our
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artificial lift, well intervention, unconventionals, and drilling technologies. We will maintain our capital discipline and we may
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adjust our capital spend to address changing market dynamics.
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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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and natural gas consumption.
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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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faster-than-expected return of OPEC+ production, caused a decrease in the average WTIprice of crude oil ofapproximately
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Despite the softening market described above, we continue to believe oil and natural gas will play a fundamental role
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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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$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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services in Mexico and Saudi Arabia, reduced project management activity and lower testing services internationally, and lower
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in Latin America and the Middle East. Operating income was further adversely impacted bystartup and mobilization costs
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Reworded paragraphs (117)
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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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significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 47,000
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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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employees, we operate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
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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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Since the end of the third quarter of 2025, the macro environment for oil and natural gas has remained volatile. Trade
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We continue to monitor and assess the potential impact of newly implemented tariffs on goods being imported into the
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We continue to monitor and assess the impact of tariffs on goods being imported into the United States. Our global
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United States. Our global supply chain organization continuously monitors market trends and works to mitigate those and other
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supply chain organization continuously monitors market trends and works to mitigate those and other cost increases through
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cost increases through economies of scale in global procurement, technology modifications, and efficient sourcing practices.
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economies of scale in global procurement, technology modifications, and efficient sourcing practices. Globally, we continue to
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Globally, we continue to be impacted by extended supply chain lead times for the supply of select raw materials. Also, while
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be impacted by extended supply chain lead times for the supply of select raw materials. Also, while we have been impacted by
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we have been impacted by inflationary cost increases, we generally try to pass much of those increases on to our customers and
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inflationary cost increases, we generally try to pass much of those increases on to our customers and we believe we have
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we believe we have effective solutions to minimize their operational impact.
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effective solutions to minimize their operational impact.
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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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The following graph illustrates our revenue and operating margins for each operating segment for thethird quarter of
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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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During thethird quarter of 2025, we generated total company revenue of$5.6 billion, a 2% decrease as compared to
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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 Completion and Production segment revenue decreased 2% in thethird quarter of 2025 as compared to thethird
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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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quarter of 2024. These results were largely driven by lower pressure pumping services in North America and reduced
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reduced pricing for stimulation services in US Land.
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lower activity and reduced pricing for stimulation activity in US Land.
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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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Our Drilling and Evaluation segment revenue was relatively flat in thethird quarter of 2025 as compared to thethird
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offsetting these decreases were increased completion tool sales in Europe. Operating income was further adversely impacted by
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Saudi Arabia were offset by increased drilling-related services in Europe. Operating income was further adversely impacted by
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Saudi Arabia, and increased fluid services in the United Arab Emirates.
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completion tool sales and increased fluid services in the Gulf of America and higher drilling activity in US Land.
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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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driven bylower activity across multiple product service lines in Mexico and Saudi Arabia. Partially offsetting these decreases
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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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baseline. We continue to execute on our priorities to drive down our emissions intensity. At the same time, we support our
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baseline. We continue to execute our priorities to drive down our emissions intensity. At the same time, we support our
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significant outlay of capital while we learn where we can strategically engage new markets. As of June 30, 2025, Halliburton
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significant outlay of capital while we learn where we can strategically engage in new markets. As of September 30, 2025,
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Halliburton Labs had 40 participating companies and alumni.
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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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As of September 30, 2025, we had$2.0 billion of cash and equivalents, compared to$2.6 billion of cash and
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Significant sources and uses of cash during the first six months of 2025
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Significant sources and uses of cash during the first nine months of 2025
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•Cash flows from operating activities were$1.3 billion. Working capital, which consists of receivables, inventories,
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•Cash flows from operating activities were$1.8 billion. Working capital, which consists of receivables, inventories,
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and accounts payable, hada positive impact of$100 million, primarily due to decreased receivables.
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and accounts payable, hada negative impact of$111 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 repurchased 32.9 million shares of our common stock for$757 million, which includes excise tax payment due
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•We paid$292 million of dividends to our shareholders.
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•We paid$436 million of dividends to our shareholders.
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•We paid $345 million related to a purchase of an equity investment.
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•We paid$343 million related to a purchase of an equity investment.
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•We paid $162 million to acquire businesses.
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•We paid$175 million to acquire businesses.
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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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shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$144 million. In 2023, our Board
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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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program to repurchase our common stock from time to time. We repurchased 11.3 million shares of common stock during the
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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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third quarter of 2025 under this program. Approximately$2.3 billion remained authorized for repurchases as of September 30,
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and may be used for open market and other share purchases.
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2025 and may be used for open market and other share purchases.
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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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During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026. During
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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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thenine months ended September 30, 2025, we incurred$112 million in expense on our SAP S4 migration. Due to the
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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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forward. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our
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enhanced visibility to ouroperations, and advanced analytics that will benefit us and our customers.
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operations, and advanced analytics that will benefit us and our customers.
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billion of available committed bank credit under a revolving credit facility with an expiration date of April 27, 2027. We
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billion of available committed bank credit under a new revolving credit facility executed on August 18, 2025, with an
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believe we have a manageable debt maturity profile, with approximately$471 million coming due beginning in 2025 through
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expiration date of August 16, 2030. We believe we have a manageable debt maturity profile, with approximately$472 million
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Chargesfor further discussion of these charges.
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received notes that are to be repaid in U.S. dollars upon maturity or earlier if certain conditions are met. During thethree
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months ended September 30, 2025, we recorded a loss of $23 million resulting from the deterioration in the outlook of the
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debtor’s liquidity and financial projections. This is included in “Other, net” on the consolidated statements of operations.
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fluid services in Latin America and the Middle East.
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Argentina Impairment on Investment. In years 2022, 2023 and 2024, we executed a series of loans to a third party and
Rearranged previous paragraphs (1)
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wireline activity in the Western Hemisphere and Saudi Arabia. Partially offsetting these decreases were improved fluid services