Halliburton's Mixed Earnings Revealed
Halliburton (NYSE:HAL), a prominent oilfield services company, released its earnings for the first quarter on April 22. The results reflect a mixed performance with revenue exceeding expectations by approximately $144 million to reach $5.4 billion (GAAP), beating the consensus estimate of $5.273 billion.
However, the earnings per share (EPS) of $0.60 (Non-GAAP), while on par with predictions, represented a decrease from $0.76 in the same quarter last year. Despite the revenue beat, the company's quarterly performance highlighted a contraction in profit margins, indicating both challenges and opportunities ahead.
| Metric | Q1 2025 | Q1 Estimate | Q1 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.60 | $0.602 | $0.76 | -21.1% |
| Revenue (GAAP), in billions | $5.417 | $5.273 | $5.804 | -6.9% |
| Net Income (GAAP), in milions | $204 | N/A | $606 | -66.3% |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview
Halliburton is a leading oilfield services company offering products and services to the energy industry. It provides services to customers in the upstream oil and gas industry throughout the lifecycle of the reservoir—from locating hydrocarbons and managing geological data to drilling and formation evaluation, well construction, and completion, and optimizing production throughout the life of the field.
Recently, Halliburton has focused on expanding its technological capabilities, particularly in digital and automation technologies, to enhance service delivery and operational efficiency. The company's strategic initiatives include increasing its international market presence and maintaining a strong capital allocation framework.
Quarterly Performance
During Q1 2025, Halliburton's revenue decreased by 6.9% year-over-year, from $5.8 billion in Q1 2024 to $5.4 billion. This decline was primarily due to reduced pressure pumping services and lower completion tool sales in the Western Hemisphere, although some declines were offset by increased sales in the Middle East.
The company's Completion and Production segment saw an 8% year-over-year revenue decline to $3.1 billion, with operating income falling by 23%. The Drilling and Evaluation segment experienced a 6% drop in revenue and a 12% decrease in operating income, mainly due to reduced drilling services in Mexico and the Middle East.
Geographically, North America revenue decreased by 12%, driven by declining stimulation activity in the U.S. and lower tool sales in the Gulf of America. International markets saw an overall decline of 2%, with notable drops in Latin America, but growth in Europe/Africa and the Middle East/Asia segments.
Despite these challenges, Halliburton's management highlighted recent contract successes and technological achievements, such as the introduction of autonomous hydraulic fracturing technology Octiv® Auto Frac, as key positives amid ongoing macroeconomic pressures.
Looking Ahead
Halliburton remains optimistic about international tender activities, particularly in offshore opportunities extending through 2026. The company plans to continue focusing on international market expansion and enhancing technological capabilities.
Management has emphasized maintaining a strong capital allocation framework, including ongoing share repurchases and dividend distributions. Investors should keep an eye on Halliburton's ability to navigate fluctuating demand across global markets and its strategic focus on operational efficiency.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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