Release Date: July 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Halliburton Co (HAL, Financial) reported a 2% increase in total company revenue for Q2 2025, reaching $5.5 billion.
- The company demonstrated strong performance in international markets, with revenue growth in Latin America and Europe, Africa.
- Halliburton Co (HAL) secured key wins in offshore frontier basins, highlighting their technology and operational excellence.
- The company expects international artificial lift revenue to grow over 20% this year, with plans to double the installed base of their Intelivate platform.
- Halliburton Co (HAL) is strategically aligned with growth engines such as unconventionals, drilling, production services, and artificial lift, positioning them for future growth.
Negative Points
- The oilfield services market is expected to be softer than previously anticipated, with activity reductions in North America and international markets.
- Halliburton Co (HAL) anticipates a decline in North America revenue in the second half of 2025 due to lower drilling and completion activity.
- The company faces pricing headwinds in US land, particularly in the pressure pumping and artificial lift segments.
- Activity reductions in Saudi Arabia and Mexico are expected to drive a mid-single-digit contraction in international revenue for the full year 2025.
- Tariffs impacted Halliburton Co (HAL)'s business by $27 million in Q2, with an expected negative impact of about $35 million in Q3.
Q & A Highlights
Q: Can you explain the softer Completion & Production (C&P) margins in Q2 and the outlook for Q3?
A: Eric Carre, CFO, explained that Q2 margins were slightly below guidance due to reduced activity in Saudi Arabia and North American artificial lift, alongside pricing headwinds in US land. For Q3, a 1% to 3% revenue reduction and a 150 to 200 basis point margin decline are expected, driven by reduced activity and pricing softness in North America and Saudi Arabia.
Q: What are your expectations for North American frac activity in the second half of 2025 and early 2026?
A: Jeff Miller, CEO, noted that customers are cautious and conserving budgets, with technology and service quality being key. While it's early to predict 2026, he expects activity to pick up earlier in the year compared to Q3 and Q4 of 2025, but significant increases depend on catalysts affecting price outlook.
Q: How significant is the international unconventional market for Halliburton, and what is its growth potential?
A: Jeff Miller highlighted that international unconventionals, such as in Argentina and Saudi Arabia, are growing, with double-digit year-on-year growth in non-US frac business. The market is expanding beyond these countries, driven by gas demand and technological advancements.
Q: How is Halliburton positioned in the Middle East unconventional market, particularly regarding the Jafurah tender?
A: Jeff Miller stated that Halliburton is well-positioned in the Middle East with strong technical capabilities. While he did not comment specifically on the Jafurah tender, he emphasized a disciplined approach to bidding, focusing on long-term returns rather than just volume.
Q: Given the updated market outlook, what are Halliburton's expectations for free cash flow and shareholder returns in 2025?
A: Eric Carre indicated that despite market softening, Halliburton expects free cash flow between $1.8 billion and $2 billion for 2025. The company remains committed to its cash return framework, having already returned over 50% to shareholders by mid-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
