HALLIBURTON CO
For the period ended Sep 30, 2026. Filed Oct 23, 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.
Sep 30, 2026 · Filed Oct 23, 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 2026-06-30; 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 InformationCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-23.
0000045012-26-000074
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.
Compared 374 previous paragraphs and 372 current paragraphs.
162 unchanged; 117 reworded; 93 added; 92 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 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 (93)
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of a portion of our chemical business in the second quarter of 2026.
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During thethird quarter of 2026, oil and natural gas markets remained volatile due to geopolitical developments and
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global economic uncertainty. These factors continued to disrupt global oil supply and contribute to supply constraints.
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of 2025, including impairments and other charges of$392 million.
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quarter of 2025. This decrease was primarily drivenby decreased stimulation activity in North America and lower completion
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quarter of 2025. This increase was primarily driven by improved drilling related services in North America and Europe and
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Our North America revenue decreased 9% in thethird quarter of 2026 as compared to thethird quarter of 2025. This
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decrease was primarily driven by lower stimulation activity in the region and reduced specialty chemicals in U.S. Land as a
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result of the sale of a portion of our chemical business.
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driven by multiple product service lines in Europe/Africa/CIS and Latin America.
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•Capital expenditures were$693 million.
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•We paid$111 million on the purchase of investment securities.
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•We paid$107 million to acquire businesses.
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7.3 million shares of common stock during thethird quarter of 2026 under this program. Approximately$1.5 billion remained
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During 2023, we began our migration to SAP S4, which will be completed in the fourth quarter of 2026. Forthe nine
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The remaining CDSs we had previously entered into with third-party financial institutions related to borrowings
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resulting in no outstanding notional amounts as of September 30, 2026, compared to$592 million as of December 31, 2025.
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same time, efforts to restore production, rebuild inventories and strengthen energy security are expected to drive growth for
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Outside of the Middle East, our international businesses continue to demonstrate strong performance relative to recent
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years. We expect activity growth to be led by production services, drilling, unconventionals, and artificial lift. We believe these
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capacity maintenance, and selected offshore and strategic energy projects. We remain focused on optimizing asset utilization
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and generating appropriate returns on our investments. During the third quarter, we re-established our operations in Venezuela
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and expect customer activity to increase as opportunities develop.
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periodic operational disruptions, persistent inflationary pressures that we expect to continue for some time, reduced activity in
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East markets, the pace and breadth of that recovery remain uncertain and continue to be influenced by geopolitical
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developments across the region.
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within existing capital budgets. We remain focused on reducing exposure to commoditized activity anddifferentiating through
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million, or 11%, when compared to thethird quarter of 2025. These decreases were primarily driven by decreased stimulation
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activity in North America and lower completion tool sales in Middle East/Asia. Partially offsetting these decreases were higher
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completion tool sales in Europe and improved activity across multiple product service lines in Africa.
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million, or 12%, when compared to thethird quarter of 2025. These increases were primarily driven by higher activity across
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multiple product service lines in Latin America and improved drilling related services in North America and Europe.
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In thethird quarter of 2026, results in both of our operating segments reflected continued recovery in activity
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following disruptions related to the geopolitical conflict in the Middle East, partially offset by ongoing inflationary pressures on
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operating costs in the region.
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Removed paragraphs (92)
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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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East, which disrupted activity levels in certain markets and affected operations across both of our segments.
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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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“Impairments and other charges (credits)” on the Condensed Consolidated Statements of Operations. We continue to monitor
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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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Offsetting these increases were lower activity across multiple product service lines in the Middle East, and decreased
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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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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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•Capital expenditures were$427 million.
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We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a
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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. Forthe
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We have entered into credit default swaps(CDSs) with third-party financial institutions that have an aggregate
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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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customers in Mexico, of which portions of the proceeds were utilized by this customer to pay certain of our outstanding
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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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region is recovering from conflict-related lows; however, the pace of recovery remains dependent on day-to-day developments
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Outside of the Middle East, we expect acti vity growth to be led by prod uction services, drilling, unconventionals, and
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8%, when compared to thesecond quarter of 2025. Revenue improvements were primarily driven by increased stimulation
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activity and improved artificial lift activity in Latin America, higher completion tool salesin Europe/Africa, and increased
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pressure pumping services in Africa. Offsetting these increases were lower activity across multiple product service lines in the
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Middle East, and decreased stimulation activity and lower specialty chemicals activity resulting from the completed sale of a
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portion of our chemical business in North America. Operating income was further adversely impacted by activity mix and
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reduced pricing for stimulation services in US Land and Latin America.
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$26 million, or 8%, when compared to thesecond quarter of 2025. These results were primarily driven by higher drilling-
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related services in North America, Europe/Africa, and Asia, and higher activity across multiple product service linesin Latin
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Tools, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the second
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Tools, Pipeline and Process Services, Production Enhancement, and Production Solutions. We completed the sale
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significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With over 46,000 employees, we
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significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 46,000
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operate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
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employees, weoperate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
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-Capital efficiency: Maintain our capital expenditures at about$1.1 billion, while leveraging technology and targeted
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-Capital efficiency: Maintain our capital expenditures at about $1.1 billion, while leveraging technology and targeted
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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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Oil prices decreased in thethird quarter of 2026 compared to the second quarterof 2026. The West Texas Intermediate
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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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(WTI) crude oil price averaged approximately$87 per barrel during the third quarter of 2026, compared to approximately$96
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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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per barrel during the second quarter of 2026, or a 9% decrease. The Brent crude oil price averaged approximately$96 per barrel
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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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during the third quarter of 2026, compared to approximately$103 per barrel during the second quarter, or a 7% decrease.
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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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We continue to monitor and evaluate the effects of these on goods imported into the United States, developments related to
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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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trade policy and the potential effects of future tariff actions on our business, financial position, results of operations, and cash
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cement. We manage these pressures through global procurement strategies, technology modifications, and sourcing efficiencies.
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cement, which we expect to persist for sometime. We manage these pressures through global procurement strategies,
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As a standard practice, we generally seek to pass a portion of these cost increases on to our customers and believe we have
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technology modifications, and sourcing efficiencies. As a standard practice, we generally seek to pass a portion of these cost
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effective solutions in place to minimize their operational impact.
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increases on to our customers and believe we have effective solutions in place to minimize their operational impact.
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The following graph illustrates our revenue and operating margins for each operating segmentfor thesecond quarter of
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The following graph illustrates our revenue and operating margins for each operating segmentfor thethird quarter of
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The following charts depict the revenue split between ourtwo operating segments and ourfour primary geographic
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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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During thesecond quarter of 2026, we generated total company revenue of$5.7 billion, a 4% increase as compared to
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During thethird quarter of 2026, we generated total company revenueof$5.7 billion, an increase of 2% as compared
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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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to thethird quarter of 2025. We reported operating income of $624 million, including a pre-tax chargefor impairments and
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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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other charges of$107 million, in thethird quarter of 2026, as compared to operating income of$356 million in thethird quarter
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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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Our Completion and Production segment revenue decreased 4% in thethird quarter of 2026 as compared to thethird
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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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Our Drilling and Evaluation segment revenue increased 10% in thethird quarter of 2026 as compared to thethird
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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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higher activity across multiple product service lines in Latin America.
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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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Internationally, revenue increased 9% in thethird quarter of 2026 as compared to thethird quarter of 2025, largely
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As of June 30, 2026, we had$2.0 billion of cash and equivalents, compared to$2.2 billion of cash and equivalents at
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As of September 30, 2026, we had$1.8 billion of cash and equivalents, compared to$2.2 billion of cash and
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Significant sources and uses of cash during the first six months of 2026
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Significant sources and uses of cash during the first nine months of 2026
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•Cash flows from operating activities were$1.1 billion. Working capital, which consists of receivables, inventories,
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•Cash flows from operating activities were$1.5 billion. Working capital, which consists of receivables, inventories,
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and accounts payable, hada negative impact of$187 million.
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and accounts payable, hada negative impact of$517 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 repurchased 15.2 million shares of our common stock for$558 million, which includes the excise tax payment
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•We paid$285 million of dividends to our shareholders.
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•We paid$426 million of dividends to our shareholders.
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•We paid$101 million primarily in connection with an equity investment.
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•We paid $101 million primarily in connection with the purchase of an equity investment.
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capital expenditures based on market conditions. We currently expect capital spending for 2026 to be approximately $1.1
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capital expenditures based on market conditions. We still expect capital spending for 2026 to be approximately $1.1 billion. We
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billion. We believe this level of spending will enable continued investment in our core strategic technologies and businesses,
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believe this level of spending will enable continued investment in our core strategic technologies and businesses, including the
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including the international expansion of our artificial lift, well intervention, unconventionals, and drilling technologies. We will
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international expansion of ourartificial lift, unconventionals, production services, and drilling technologies. We will continue to
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continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital
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maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spending
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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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shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$141 million. In 2023, our Board
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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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dividends and share repurchases, andwe expect our returns to shareholders will be in line with that framework for 2026.
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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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Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased
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and may be used for open market and other share purchases.
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authorized for repurchases as of September 30, 2026 and may be used for open market and other share purchases.
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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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months ended September 30, 2026, we incurred $130 million in expense on our SAP S4 migration andexpect the estimated cost
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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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to be approximately$34 million in the fourth quarter of 2026. We believe the new system will provide important efficiency
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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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Financial condition in current market. As of September 30, 2026, we had$1.8 billion of cash andequivalents and$3.5
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quarter of 2026, we completed the sale of a portion of our chemical business.
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results of operations and cash flows.
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offsetting these increases was lower activity across multiple product service lines in the Middle East due to conflict-related