Houston-based Halliburton Company (NYSE:HAL) announced solid financial results for the fourth quarter of 2025, finishing the year on a positive note with earnings and revenue that exceeded market forecasts. The company posted a net income of $589 million for the quarter, equivalent to 70 cents per diluted share. Adjusted net income, which excludes impairments, tax adjustments, and other charges, stood at $576 million or 69 cents per diluted share.
Total revenue for the quarter increased marginally to $5.66 billion from $5.61 billion in the same period last year. Operating income reached $746 million, while adjusted operating income, which excluded specific charges, came to $829 million. These figures correspond to operating and adjusted operating margins of 13% and 15%, respectively.
Halliburton's adjusted earnings per share surpassed analyst forecasts, which anticipated 55 cents. Likewise, revenue outpaced expectations, with the company reporting $5.657 billion compared to the $5.412 billion consensus estimate.
Performance by Business Segment
The company’s Completion and Production division generated $3.27 billion in revenue during the quarter and contributed an operating income of $570 million. Meanwhile, the Drilling and Evaluation segment reported revenues of $2.39 billion and operating income of $367 million.
Geographically, North American revenue declined by 7% sequentially to $2.21 billion, whereas international revenues increased by 7% quarter-over-quarter to $3.50 billion. Within international operations, Latin America accounted for $1.07 billion, Europe, Africa, and the Commonwealth of Independent States amassed $928 million, and the Middle East and Asia region contributed $1.46 billion.
During this period, Halliburton generated operating cash flow of $1.17 billion and free cash flow of $875 million. The company actively deployed capital for shareholder returns and operational enhancement. It repurchased $250 million of its common stock and redeemed $382 million of its senior notes bearing a 3.8% coupon maturing in November 2025. Additionally, it distributed dividends amounting to 17 cents per share and invested $42 million in migrating to SAP S/4HANA enterprise resources planning technology.
By the end of 2025, the firm held $2.21 billion in cash and equivalents, while its long-term debt stood at $7.16 billion.
Strategic Alliances and Contracts
Halliburton expanded its operational footprint through several noteworthy agreements in the fourth quarter. It entered into a partnership with VoltaGrid aimed at deploying distributed power generation solutions tailored for data centers, with an initial market focus on the Middle East. The project targets delivering 400 megawatts of modular natural gas power systems by 2028.
Further technological advancement was underscored by a framework agreement with Shell, focusing on umbilical-less tubing hanger services leveraging Halliburton's ROCS (Remote Operated Controlled Systems) technology. The company also launched new products including the StreamStar wired drill pipe interface system and the LOGIX unit vitality.
Moreover, Halliburton secured an Integrated Drilling Services contract awarded by Shell Nigeria Exploration and Production Company, partnering with Sunlink Energies to support offshore projects for the HI gas field and Nigeria LNG Train 7 development.
Jeff Miller, CEO of Halliburton, expressed satisfaction with the final quarter’s results and overall yearly performance, highlighting how the company’s strategies and value offerings have yielded differentiated outcomes. He emphasized ongoing commitment to its Maximize Value strategy in North America, anticipating the region to respond positively when broader economic conditions improve.
Stock Activity
Following the earnings announcement, Halliburton's shares showed gains, rising by 3.71% to $33.25 in premarket trading. Trading levels approached a 52-week high of $33.72, suggesting bullish investor sentiment tied to the company's strong operating and financial execution.