HALLIBURTON CO
For the period ended Jun 30, 2026. Filed Jul 24, 2026.
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, 2026 · Filed Jul 24, 2026
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 2026-03-31; filed 2026-04-24.
0000045012-26-000039
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 2026 Compared toForward-Looking InformationNew Accounting Standards Not Yet AdoptedCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-24.
0000045012-26-000061
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 2026 Compared to 2025 (QTD)Results of Operations in 2026 Compared to 2025 (YTD)Forward-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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147 unchanged; 71 reworded; 148 added; 81 removed; 6 previous and 8 current paragraphs rearranged.
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A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (148)
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quarter of 2026, we completed the sale of a portion of our chemical business.
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intervention, and artificial lift businesses. Develop behind-the-meter power generation, independently or through
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East, which disrupted activity levels in certain markets and affected operations across both of our segments.
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Higher commodity prices generally support customer activity and capital spending in the markets we serve, as operator
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investment decisions are often influenced by expectations regarding future commodity prices.
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2026, we recognized a gain ofapproximately$57 million related to a government refund recovery, which is included in
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developments related to trade policy and evaluate the potential effects of future tariff actions on our business, financial position,
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Customers remained focused on capital discipline, production optimization, operating efficiency, and expected returns
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on investment. Customer activity and spending decisions were influenced by the geopolitical conflict in the Middle East, higher
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commodity prices, uncertainty related to global trade policies and tariffs, and inflationary cost pressures. As a result, customers
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continued to evaluate investment opportunities while balancing growth objectives, operating priorities, and return expectations.
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thesecond quarter of 2025. We reported operating income of $778 million, including a pre-tax credit on impairments and other
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second quarter of 2025. Revenue improvements were primarily driven by increased stimulation activity and improved artificial
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lift activity in Latin America, higher completion tool sales in Europe/Africa, and improved pressure pumping services in Africa.
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stimulation activity and lower specialty chemicals activity resulting from the completed sale of a portion of our chemical
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business in North America. Operating income was further adversely impacted by activity mix and reduced pricing for
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quarter of 2025. These results were primarily driven by higher drilling-related services in North America, Europe/Africa, and
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Asia, and higher activity across multiple product service lines in Latin America. Partially offsetting these increases were lower
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drilling-related services and decreased wireline activity in the Middle East.
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Our North America revenue wasrelatively flat in thesecond quarter of 2026 as compared to thesecond quarter of
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These results were primarily driven by improved well construction activity and increased stimulation activity in US Land.
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Partially offsetting these increases were lower stimulation activity in the Gulf of America and Canada, and a decrease in well
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intervention services and lower specialty chemicals activity resulting from the completed sale of a portion of our chemical
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driven by improved stimulation services and higher project management activity in Latin America, increased well construction
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activity and higher project management activity in Africa, and higher completion tool sales in Europe/Africa. Partially
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offsetting these increases was lower activity across multiple product service lines in the Middle East due to conflict-related
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•Capital expenditures were$427 million.
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•We paid$101 million primarily in connection with an equity investment.
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Demand for our services and products is largely dependent on our customers' spending for the exploration,
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development, and production of oil and natural gas reserves. Customer spending is influenced by a variety of factors, including
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availability of capital, government policies and regulations, geopolitical developments, and overall economic conditions.
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Activity levels in certain markets may also be influenced by longer-term trends affecting energy demand, including
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increasing electricity consumption associated with digital infrastructure and data center growth. These factors collectively
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influence global drilling, completions, intervention, and production-related activity levels.
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Because a significant portion of our business supports our customers' capital spending programs, our financial
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Removed paragraphs (81)
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third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business. We expect
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the sale to be completed in the second quarter of 2026.
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intervention, and artificial lift businesses. Develop our strategic collaboration with VoltaGrid around behind-the-
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an impactof $0.02 to $0.03 of diluted net income per share across both of our segments. Oilfield activity reflected continued
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customer focus on capital discipline and returns, with spending concentrated on projects and programs that improve near-term
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production and operating efficiency. Customer activity levels and spending plans remained sensitive to oil and natural gas price
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volatility and changes in global supply-and-demand fundamentals and were impacted by geopolitical developments, including
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regional conflicts, sanctions, and trade or regulatory actions.
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Following a U.S. Supreme Court ruling that invalidated tariffs imposed in 2025 by the Trump Administration on goods from all
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countries, President Trump implemented a 150-day “global tariff” of 10% effective February 24, 2026, using presidential
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powers under Section 122 of the Trade Act of 1974, and indicated a desire to increase such “global tariff” to 15%. Although the
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Section 122 tariffs are due to expire in July, the Trump Administration has initiated processes that could result in new tariffs
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income of$431 million in thefirst quarter of 2025, including impairments and other charges of$356 million.
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quarter of 2025. These results were primarily driven by lower stimulation activity in North America, and lower completion tool
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sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion
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tool sales in the Western Hemisphere, and improved pressure pumping services in Africa.
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of 2025. These results were primarily driven by higher project management activity in Latin America and increased drilling-
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related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across multiple
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product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the
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Both divisional results were negatively impacted by the geopolitical conflict in the Middle East.
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Our North America revenue decreased 4% in thefirst quarter of 2026 as compared to thefirst quarter of 2025. This
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decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower
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stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased
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activity in Mexico and Argentina, increased drilling-related services and higher completion tool sales in Norway, and improved
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pressure pumping services in Angola. Offsetting these increases were lower activity across multiple product service lines in the
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•Capital expenditures were$192 million.
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and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil
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and natural gas consumption.
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Some of the more significant determinants of current and future spending levels of our customers are oil and natural
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demand in North America of electrification and data centers power requirements, completions intensity, the world economy, the
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availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions
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activity. Lower oil and natural gas prices usually translate into lower exploration and production budgets and lower rig count,
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while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly
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We expect oilfield services activity to be supported by continued customer focus on capital discipline, production
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experience operational disruptions in the Middle East, including work cancellations, force‑majeure declarations, reduced
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offshore activity, and higher logistics costs, the majority of our operations remain active.
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Outside the Middle East, our outlook remains positive. International activity is expected to grow in the mid‑to‑high
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single digits for the full year 2026, led by strong customer engagement and investment in Latin America and continued
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Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the
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Tools, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the second
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The following charts depict the revenue split between our two operating segments and our four primary geographic
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The following charts depict the revenue split between ourtwo operating segments and ourfour primary geographic
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During the first quarter of 2026, the ongoing geopolitical conflict has impacted activity in the Middle East resulting in
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During the second quarter of 2026, market conditions were impacted by the ongoing geopolitical conflict in the Middle
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Oil prices increased in the first quarter of 2026 compared to the fourth quarter of 2025. The West Texas Intermediate
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Oil prices increased in the second quarter of 2026 compared to the first quarter of 2026. The West Texas Intermediate
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(WTI) crude oil price averaged approximately $72 per barrel during the first quarter of 2026, compared to approximately $60
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(WTI) crude oil price averaged approximately$96 per barrel during the second quarter of 2026, compared to approximately
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per barrel during the fourth quarter of 2025, or a 20% increase. The Brent crude oil price averaged approximately$80 per barrel
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$72 per barrel during the first quarter of 2026, or a 33% increase. The Brent crude oil price averaged approximately$103 per
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during the first quarter of 2026, compared to approximately $64 per barrel during the fourth quarter, or a 25% increase.
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barrel during the second quarter of 2026, compared to approximately$80 per barrel during the first quarter, or a 29% increase.
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being imposed under other statutes. We continue to monitor and evaluate the effects on goods imported into the United States.
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We continue to monitor and evaluate the effects of these on goods imported into the United States. During the second quarter of
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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 segmentfor thesecond quarter of
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During thefirst quarter of 2026, we generated total company revenue of$5.4 billion, relatively flat as compared to the
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During thesecond quarter of 2026, we generated total company revenue of$5.7 billion, a 4% increase as compared to
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first quarter of 2025. We reported operating income of $679 million, in thefirst quarter of 2026, as compared to operating
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credits of$95 million, in thesecond quarter of 2026, as compared to operating income of$727 million in thesecond quarter of
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Our Completion and Production segment revenue decreased 3% in thefirst quarter of 2026, as compared to thefirst
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Our Completion and Production segment revenuewas relatively flat in thesecond quarter of 2026 as compared to the
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Middle East and decreased drilling-related services in Namibia.
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Offsetting these increases were lower activity across multiple product service lines in the Middle East, and decreased
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Our Drilling and Evaluation segment revenue increased 4% in thefirst quarter of 2026 as compared to thefirst quarter
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Our Drilling and Evaluation segment revenue increased 7% in thesecond quarter of 2026 as compared to thesecond
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Internationally, revenue increased 3% in thefirst quarter of 2026 as compared to thefirst quarter of 2025, largely
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Internationally, revenue increased 6% in thesecond quarter of 2026 as compared to thesecond quarter of 2025, largely
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Significant sources and uses of cash during the first three months of 2026
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Significant sources and uses of cash during the first six months of 2026
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•Cash flows from operating activities were$273 million. Working capital, which consists of receivables,
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•Cash flows from operating activities were$1.1 billion. Working capital, which consists of receivables, inventories,
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inventories, and accounts payable, collectively hada negative impact of$252 million.
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and accounts payable, hada negative impact of$187 million.
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•We repurchased 2.8 million shares of our common stock for$100 million.
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•We repurchased 7.9 million shares of our common stock for$308 million, which includes the excise tax payment
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•We paid$142 million of dividends to our shareholders.
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•We paid$285 million of dividends to our shareholders.
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shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$142 million. In 2023, our Board
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shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$143 million. In 2023, our Board
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dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for
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dividends and share repurchases, andwe expect our returns to shareholders will be in line with our capital return framework for
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program to repurchase our common stock from time to time. We repurchased 2.8 million shares of common stock during the
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program to repurchase our common stock from time to time. We repurchased 5 million shares of common stock during the
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first quarter of 2026 under this program. Approximately$1.9 billion remained authorized for repurchases as of March 31, 2026
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second quarter of 2026 under this program. Approximately$1.7 billion remained authorized for repurchases as of June 30, 2026
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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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During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026. Forthe
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thethree months ended March 31, 2026, we incurred $42 million in expense on our SAP S4 migration and expect the estimated
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six months ended June 30, 2026, we incurred $88 million in expense on our SAP S4 migration andexpect the estimated cost to
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cost to be approximately $45 million per quarter going forward. We believe the new system will provide important efficiency
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be approximately$45 million in the third quarter of 2026. We believe the new system will provide important efficiency
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Financial condition in current market. As of March 31, 2026, we had$2.0 billion of cash and equivalents and$3.5
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Financial condition in current market. As of June 30, 2026, we had$2.0 billion of cash andequivalents and$3.5
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approximately $3.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2026. Some
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approximately $3.3 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of June 30, 2026. 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, 2026, we had no material off-balance sheet liabilities and were
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of these triggering events have occurred. As of June 30, 2026, 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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notional amount outstanding as of March 31, 2026 of$374 million, compared to an aggregate notional amount outstanding as
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notional amount outstanding as of June 30, 2026 of$217 million, compared to an aggregate notional amount outstanding as of
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of December 31, 2025 of$592 million, related to borrowings provided by the financial institutions to one of our primary
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December 31, 2025 of$592 million, related to borrowings provided by the financial institutions to one of our primary
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receivables. Approximately$331 million of the outstanding amount of the CDSs reduces monthly over its remaining 6-month
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receivables. The aggregate notional amount outstanding of the CDSs reduces monthly over its remaining 3-month term.
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March 31, 2026 and December 31, 2025. While we have experienced payment delays from our primary customer in Mexico,
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June 30, 2026 and December 31, 2025. While we have experienced payment delays from our primary customer in Mexico, the
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the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to
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amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability
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collectability of receivables from this customer.
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We operate inmore than 70 countries throughout the world to provide a comprehensive range of services and products
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We operate in more than 70 countries throughout the world and provide a broad range of services and products to the
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to the energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil
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energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil and
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“Impairments and other charges (credits)” on the Condensed Consolidated Statements of Operations. We continue to monitor
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results of operations and cash flows.
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$32 million of expense on our SAP S4 migration, respectively.
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sale of a portion of our chemical business. See Notes to Condensed Consolidated Financial Statements, Note 2. Impairments
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Inthe first six months of 2026, the geopolitical conflict in the Middle East affected both of our operating segments.
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SAP S4 Upgrade Expense. As previously mentioned, during 2023 we began our migration to SAP S4, which we expect
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$62 million of expense on our SAP S4 migration, respectively.
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by the additional valuation allowance recognized on our deferred tax assets, which resulted from the pre-tax $356 million of
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term and$43 million reduces monthly over its remaining 3-month term.
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Activity within our business segments is significantly impacted by spending on upstream exploration, development,
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drilling-related services in US Land and higher completion tool sales in the region.
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primarily related to severance costs, an impairment of assets held for sale, an impairment of facility closures and lease
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assets, which resulted from the pre-tax $356 million of impairments and other charges.
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See Notes to Condensed Consolidated Financial Statements, Note 12 for further discussion of accounting standards