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Halliburton Company HAL reported first-quarter 2025 adjusted net income per share of 60 cents, the same as the Zacks Consensus Estimate but below the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.
Meanwhile, revenues of $5.4 billion were 6.7% lower year over year but beat the Zacks Consensus Estimate of $5.3 billion.
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Halliburton Company Price, Consensus and EPS Surprise
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Inside Halliburton’s Regions & Segments
North American revenues fell 12% year over year to $2.2 billion and missed our projection of $2.4 billion. Revenues from Halliburton’s international operations decreased 2.4% from the year-ago period to $3.2 billion but surpassed our estimate of $2.8 billion.
The Completion and Production segment earned $531 million in operating income, lower than last year’s $688 million and our estimate of $541.5 million. The decline was due to weaker pressure pumping services and fewer completion tool sales in the Western Hemisphere. However, higher completion tool sales and stronger stimulation activity in the Middle East helped offset some of the decline.
The Drilling and Evaluation unit's profit fell to $352 million in the first quarter of 2025 from $398 million in the same period in 2024 and fell short of our estimate of $360.8 million. The decline was caused by a drop in drilling services in Mexico and the Middle East, less project work in Mexico, and lower wireline activity in the Middle East and Asia. However, higher fluid services in the Middle East helped balance things out a bit.
Balance Sheet
Halliburton reported first-quarter capital expenditure of $302 million, lower than our projection of $318.2 million. As of March 31, 2025, the company had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8. HAL bought back $250 million worth of its stock during the January-March period. The company generated $377 million of cash flow from operations in the first quarter, leading to a free cash flow of $124 million.
Management Remarks & Outlook
Halliburton management highlighted strong international contract wins and growing demand for the company’s advanced technologies, including the world’s first closed-loop, autonomous fracturing operation. Despite broader energy market challenges, Halliburton remains confident of its long-term growth, driven by its focus on technology, service quality, and customer value.