Halliburton (HAL) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 21, 2026 astatine 9:27 AM CST 43 min read

Image source: The Motley Fool.

Jan. 21, 2026 astatine 9 a.m. ET

• Chairman, President, and Chief Executive Officer — Jeffrey A. Miller

• Executive Vice President and Chief Financial Officer — Eric Carre

Jeffrey Miller: Thank you, David, and bully morning, everyone. I americium pleased with Halliburton's 4th fourth show and the mode we closed retired 2025. We outperformed our expectations with stronger than anticipated enactment and coagulated execution successful some our North America and planetary completion and accumulation businesses. It is wide that Halliburton's strategy and worth proposition present differentiated results. Here are immoderate of the highlights from 2025. We delivered full institution gross of $22.2 cardinal and adjusted operating borderline of 14%. International gross was $13.1 billion, down 2% twelvemonth implicit year. North America gross was $9.1 billion, a alteration of 6% twelvemonth implicit year.

During the year, we generated $2.9 cardinal of currency travel from operations, $1.9 cardinal of escaped currency flow, and repurchased $1 cardinal of our communal stock. Finally, we returned 85% of our escaped currency travel to shareholders, reducing our stock number to its lowest levels successful 10 years. These results bespeak hard enactment and dedication by the men and women of Halliburton each astir the world. I privation to convey each Halliburton worker for your dedication to information and our worth proposition, maximizing worth for our customers and delivering returns for our shareholders. Now let's crook to our macro outlook for 2026. We judge 2026 volition beryllium a twelvemonth of rebalancing.

The instrumentality of OPEC spare capableness and higher non-OPEC accumulation person created a marketplace with abundant supply. We expect proviso increases to mean this twelvemonth arsenic request continues to rise. Near term, absent geopolitical disruptions, we expect commodity prices are improbable to rise. We expect mean softness successful immoderate cardinal markets, peculiarly North America. We expect planetary enactment to beryllium unchangeable twelvemonth implicit year. Medium term, we judge proviso and request volition rebalance, expect the operation of steeper diminution rates, diminishing reservoir quality, and constricted exploration occurrence to make favorable tailwinds for oilfield services. I expect the adjacent rhythm to statesman wherever it ever has, successful North America, followed by a planetary propulsion to conscionable the increasing demand.

Let maine adjacent our macro outlook with this. I americium assured successful the aboriginal of oilfield services and excited astir Halliburton's opportunities present and successful the years ahead. Let's crook to our planetary business. Halliburton delivered different coagulated 4th nether the spot of our planetary franchise and the resilience of our strategy. For the afloat year, planetary gross was $13.1 billion, a alteration of 2% twelvemonth implicit year, outperforming a 7% diminution successful rig count. While we experienced notable declines during the twelvemonth successful Saudi Arabia and Mexico, the remainder of our planetary concern demonstrated beardown maturation of astir 7%. Looking up to 2026, we expect full planetary gross to beryllium level to up modestly.