Halliburton Co.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 21 October 2025: press release. Guidance figures: 1 new. The quarter’s numbers.

Key takeaways

Net income and adjusted EPS: Net income attributable to the company was $18 million, or $0.02 per diluted share, against $472 million, or $0.55, in the second quarter. Adjusted net income was $496 million, or $0.58 per diluted share. Source
Adjusted operating margin reached 13%: Adjusted operating income, excluding impairments and other charges, was $748 million, giving an adjusted operating margin of 13%. Source
Completion and Production revenue rose 2%: Completion and Production revenue was $3.2 billion, up $52 million. Operating income was $514 million, flat, and further adversely impacted by rig reductions in Saudi Arabia. Source
North America revenue up 5%: North America revenue was $2.4 billion, up 5%, driven by stimulation in US Land and Canada, and by higher completion tool sales and wireline activity in the Gulf of America. Source
Charges of $392 million recorded: Impairments and other charges of $392 million included $169 million of severance costs, $115 million of fixed and other asset write-offs, and $96 million of assets held for sale. Source
Free cash flow was $276 million: Operating cash flow was $488 million and capital expenditures were $261 million, giving free cash flow of $276 million. Nine-month free cash flow was $982 million. Source

“I am pleased with Halliburton’s third quarter performance.”
Jeff Miller, Chairman, President and CEO

Guidance

Area	Period	Figure	Against last quarter
Cost savings Source	per quarter, estimated	$100 million dollars per quarter	New

What changed from last quarter

New: Management said it reset the 2026 capital budget and idled equipment that no longer meets its return expectations. Source
New: Halliburton announced a contract award for completions and downhole monitoring on the Northern Endurance Partnership carbon capture and storage system in northeast England. Source
New: Halliburton was awarded a stimulation services contract by ConocoPhillips Skandinavia AS. Source

Results and growth drivers

Net income and adjusted EPS: Net income attributable to the company was $18 million, or $0.02 per diluted share, against $472 million, or $0.55, in the second quarter. Adjusted net income was $496 million, or $0.58 per diluted share. Source
Revenue rose to $5.6 billion: Total revenue was $5.6 billion, compared with $5.5 billion in the second quarter. Source
Adjusted operating margin reached 13%: Adjusted operating income, excluding impairments and other charges, was $748 million, giving an adjusted operating margin of 13%. Source
Reported operating income was lower: Operating income was $356 million, against $727 million in the second quarter, giving an operating margin of 6%. Source

Segments and regions

Completion and Production revenue rose 2%: Completion and Production revenue was $3.2 billion, up $52 million. Operating income was $514 million, flat, and further adversely impacted by rig reductions in Saudi Arabia. Source
Completion tools and lift drove results: Higher completion tool sales and artificial lift activity in North America, and better cementing in Africa and Latin America, were partly offset by lower international completion tool sales. Source
Drilling and Evaluation profit rose 12%: Drilling and Evaluation revenue was $2.4 billion, up 2%, and operating income was $348 million, up 12%, driven by higher project management and wireline activity in Latin America. Source
North America revenue up 5%: North America revenue was $2.4 billion, up 5%, driven by stimulation in US Land and Canada, and by higher completion tool sales and wireline activity in the Gulf of America. Source
International revenue flat at $3.2 billion: International revenue was $3.2 billion, flat. Latin America rose 2% to $996 million, and Europe/Africa/CIS was flat at $828 million. Source
Middle East/Asia revenue down 3%: Middle East/Asia revenue was $1.4 billion, down 3%, on lower activity across multiple product service lines in Saudi Arabia. Source

“We are committed to returning cash to shareholders, maintaining cost and capital discipline, and investing in differentiated technologies that drive long-term performance,”
Jeff Miller, Chairman, President and CEO

Products and technology

LOGIX automated geosteering launched: LOGIX automated geosteering combines automation, machine learning and geological insights to position the wellbore and maximize reservoir contact. Source
Turing control system launched: The Turing electro-hydraulic control system, the next generation of SmartWell completions, provides zonal optimization through integrated position sensors and is described as reducing rig time. Source
SK Well Pages digital workspace: The next-generation Summit Knowledge ecosystem includes SK Well Pages, an all-in-one ESP workspace with dashboards for real-time pump performance and production data. Source

Customers and contracts

ConocoPhillips five-year stimulation contract: The ConocoPhillips Skandinavia stimulation services contract runs five years and includes three optional extension periods. Source
Tidewater vessel to be converted: Tidewater’s North Pomor vessel will be transformed into an advanced stimulation vessel for North Sea offshore stimulation work, using Octiv digital fracturing services. Source
Northern Endurance carbon storage equipment: Most of the equipment for the Northern Endurance Partnership carbon capture and storage project will be manufactured at the Arbroath facility in the U.K. Source

Costs and charges

Charges of $392 million recorded: Impairments and other charges of $392 million included $169 million of severance costs, $115 million of fixed and other asset write-offs, and $96 million of assets held for sale. Source
Nine-month charges tied to environmental costs: Nine-month charges of $748 million included items primarily related to increases in legacy environmental remediation cost estimates. Source
SAP S4 upgrade expense: SAP S4 upgrade expense was $50 million in the quarter, against $28 million in the third quarter of 2024 and $32 million in the second quarter of 2025. Source

Demand and strategy

North America Maximize Value strategy: Management said North America is executing a Maximize Value strategy that prioritizes returns, technology leadership and work with leading operators. Source
International value proposition: Management said its value proposition is winning with customers in the international market, with differentiated performance both on and offshore. Source
Further North America outperformance expected: Management said it is confident that its strategy execution will drive further outperformance. Source

Capital, cash and shareholder returns

Free cash flow was $276 million: Operating cash flow was $488 million and capital expenditures were $261 million, giving free cash flow of $276 million. Nine-month free cash flow was $982 million. Source
Buybacks and dividends in quarter: The company repurchased approximately $250 million of its common stock and paid dividends of $0.17 per share during the quarter. Source
Cash balance and debt: Cash and equivalents were $2.0 billion at September 30, 2025, against $2.6 billion at December 31, 2024. Long-term debt was $7.2 billion. Source
Equity investment outflows in nine months: Nine-month investing cash flows included $343 million for a purchase of an equity investment and $175 million for payments to acquire businesses. Source

Figures management reported

Figure	Reported
Capital expenditure Source	$261 million in the third quarter of 2025; $917 million for nine months
Share repurchases Source	approximately $250 million in the third quarter of 2025
Dividends per share Source	$0.17

Risks management discussed

Operational: Rig reductions in Saudi Arabia further reduced Completion and Production operating income in the quarter. Source

Earlier plans management reported on

On track: Management said its international growth engines are on track. Source
Not stated: Management said it is committed to returning cash to shareholders. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Forward-looking statements notice

HALLIBURTON COMPANY FOOTNOTE TABLE 1 FOOTNOTE TABLE 2 FOOTNOTE TABLE 3 FOOTNOTE TABLE 4 FOOTNOTE TABLE 5 Conference Call Details Condensed Consolidated Statements of Operations HALLIBURTON COMPANY HALLIBURTON COMPANY HALLIBURTON COMPANY HALLIBURTON COMPANY HALLIBURTON COMPANY Exhibit 99.1 Europe/Africa/CIS revenue in the third quarter of 2025 was $828 million, flat sequentially. •Halliburton unveiled an evolution in oilfield intelligence: the next generation Summit Forward-looking Statements (Millions of dollars and shares except per share data) HALLIBURTON COMPANY HALLIBURTON COMPANY HALLIBURTON COMPANY HALLIBURTON COMPANY HALLIBURTON COMPANY Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Revenue and Operating income Comparison Revenue and Operating income Comparison Knowledge® (SK™) digital ecosystem. SK Well Pages features an all-in-one electric These results were primarily driven by improved completion tool sales in Norway, and Halliburton Company (NYSE: HAL) will host a conference call on Tuesday, October 21, (Unaudited) Reconciliation of Operating Income to Adjusted Operating Income Reconciliation of Operating Income to Adjusted Operating Income Reconciliation of Net Income to Adjusted Net Income Reconciliation of Net Income to Adjusted Net Income Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Millions of dollars and shares except per share data) (Millions of dollars) (Millions of dollars) By Operating Segment and Geographic Region By Operating Segment and Geographic Region The statements in this press release that are not historical statements are forward-looking Operating Segments submersible pump (ESP) workspace and equips operators with insight to make agile increased drilling-related services in Namibia. Offsetting these increases were lower Three Months EndedSeptember 30,June 30,202520242025Revenue:Completion and Production$3,223$3,299$3,171Drilling and Evaluation2,3772,3982,339Total revenue$5,600$5,697$5,510Operating income:Completion and Production$514$669$513Drilling and Evaluation348406312Corporate and other(64)(60)(66)SAP S4 upgrade expense(50)(28)(32)Impairment and other charges (a)(392)(116) - Total operating income356871727Interest expense, net(88)(85)(92)Other, net (b)(49)(52)(24)Income before income taxes219734611Income tax provision (c)(199)(154)(131)Net income$20$580$480Net income attributable to noncontrolling interest(2)(9)(8)Net income attributable to Company$18$571$472Basic and diluted net income per share$0.02$0.65$0.55Basic weighted average common shares outstanding849881857Diluted weighted average common shares outstanding850881857 (Millions of dollars) (Millions of dollars) (Millions of dollars and shares except per share data) (Millions of dollars and shares except per share data) (Millions of dollars) 2025, to discuss its third quarter 2025 financial results. The call will begin at 8:00 a.m. (Unaudited) (Unaudited) (Unaudited) (Millions of dollars) (Millions of dollars) statements within the meaning of the federal securities laws. These statements are subject decisions for optimal production. SK Well Pages draws on deep ESP experience and (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) completion tool sales in the Caspian Area and lower fluid services across Europe. Nine Months EndedSeptember 30,20252024Revenue:Completion and Production$9,514$10,073Drilling and Evaluation7,0137,261Total revenue$16,527$17,334Operating income:Completion and Production$1,558$2,080Drilling and Evaluation1,0121,207Corporate and other(196)(190)SAP S4 upgrade expense(112)(91)Impairment and other charges (a)(748)(116)Total operating income1,5142,890Interest expense, net(266)(269)Other, net (b)(112)(180)Income before income taxes1,1362,441Income tax provision (c)(433)(539)Net income$703$1,902Net income attributable to noncontrolling interest(9)(16)Net income attributable to Company$694$1,886Basic and diluted net income per share$0.81$2.13Basic weighted average common shares outstanding857885Diluted weighted average common shares outstanding858886 September 30,December 31,20252024AssetsCurrent assets: Cash and equivalents$2,026$2,618Receivables, net5,1615,117Inventories3,0953,040Other current assets1,3561,607Total current assets11,63812,382Property, plant, and equipment, net5,1745,113Goodwill2,9382,838Deferred income taxes2,2602,339Operating lease right-of-use assets9721,022Other assets2,1821,893Total assets$25,164$25,587Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable$3,182$3,189Accrued employee compensation and benefits745711Current maturities of long-term debt382381Current portion of operating lease liabilities294263Other current liabilities1,3511,506Total current liabilities5,9546,050Long-term debt7,1577,160Operating lease liabilities734798Employee compensation and benefits421414Other liabilities652617Total liabilities14,91815,039Company shareholders’ equity10,20310,506Noncontrolling interest in consolidated subsidiaries4342Total shareholders’ equity10,24610,548Total liabilities and shareholders’ equity$25,164$25,587 Nine Months EndedThree Months EndedSeptember 30,September 30, 202520242025 Cash flows from operating activities:Net income$703$1,902$20Adjustments to reconcile net income to cash flows from operating activities:Depreciation, depletion, and amortization846804285Impairments and other charges748116392Working capital (a)(111)(645)(211)Other operating activities(425)2322Total cash flows provided by operating activities1,7612,409488Cash flows from investing activities:Capital expenditures(917)(1,016)(261)Purchase of an equity investment(343)(101)2Payments to acquire business(175)(27)(13)Purchases of marketable securities(128)(320)(13)Sales of marketable securities228137163Proceeds from sales of property, plant, and equipment13814949Sale of an equity investment120 - - Other investing activities(49)(32)(13)Total cash flows used in investing activities(1,126)(1,210)(86)Cash flows from financing activities:Stock repurchase program(757)(696)(250)Dividends to shareholders(436)(452)(144)Other financing activities(23)(37)(11)Total cash flows used in financing activities(1,216)(1,185)(405)Effect of exchange rate changes on cash(11)(100)(9)Decrease in cash and cash equivalents(592)(86)(12)Cash and equivalents at beginning of period2,6182,2642,038Cash and equivalents at end of period$2,026$2,178$2,026 (Unaudited) (Unaudited) CT (9:00 a.m. ET). Three Months EndedSeptember 30,June 30,202520242025Operating income$356$871$727Impairments and other charges:Severance costs16963 - Fixed and Other assets write-offs115 - - Impairment of assets held for sale9649 - Cybersecurity incident(10)35 - Gain on investment(6)(43) - Other2812 - Total impairments and other charges (a)392116 - Adjusted operating income (b) (c)$748$987$727 Nine Months EndedSeptember 30,20252024Operating income$1,514$2,890Impairments and other charges:Severance costs27663Impairment of assets held for sale20049Fixed and Other assets write-offs115 - Impairment of real estate facilities53 - Cybersecurity incident(10)35Gain on investment(6)(43)Other12012Total impairments and other charges (a)748116Adjusted operating income (b) (c)$2,262$3,006 Three Months EndedSeptember 30,June 30,202520242025Net income attributable to company$18$571$472Adjustments:Impairments and other charges (a)392116 - Other, net (b)23 - - Total adjustments, before taxes415116 - Tax valuation allowance (c)125(41) - Tax adjustment (c)(62)(5) - Total adjustments, net of taxes (d)47870 - Adjusted net income attributable to company (d)$496$641$472Diluted weighted average common shares outstanding850881857Net income per diluted share (e)$0.02$0.65$0.55Adjusted net income per diluted share (e)$0.58$0.73$0.55 Nine Months EndedSeptember 30,20252024Net income attributable to company$694$1,886Adjustments:Impairments and other charges (a)748116Other, net (b)2382Total adjustments, before taxes771198Tax valuation allowance (c)125(41)Tax adjustment (c)(105)(14)Total adjustments, net of taxes (d)791143Adjusted net income attributable to company (d)$1,485$2,029Diluted weighted average common shares outstanding858886Net income per diluted share (e)$0.81$2.13Adjusted net income per diluted share (e)$1.73$2.29 Nine Months EndedThree Months EndedSeptember 30,September 30,202520242025Total cash flows provided by operating activities$1,761$2,409$488Capital expenditures(917)(1,016)(261)Proceeds from sales of property, plant, and equipment13814949Free cash flow (a)$982$1,542$276 to numerous risks and uncertainties, many of which are beyond the company's control, Three Months EndedSeptember 30,June 30,Revenue202520242025By operating segment:Completion and Production$3,223$3,299$3,171Drilling and Evaluation2,3772,3982,339Total revenue$5,600$5,697$5,510By geographic region:North America$2,364$2,386$2,259Latin America9961,053977Europe/Africa/CIS828722820Middle East/Asia1,4121,5361,454Total revenue$5,600$5,697$5,510Operating IncomeBy operating segment:Completion and Production$514$669$513Drilling and Evaluation348406312Total operations8621,075825Corporate and other(64)(60)(66)SAP S4 upgrade expense(50)(28)(32)Impairments and other charges(392)(116) - Total operating income$356$871$727 Nine Months EndedSeptember 30,Revenue20252024By operating segment:Completion and Production$9,514$10,073Drilling and Evaluation7,0137,261Total revenue$16,527$17,334By geographic region:North America$6,859$7,413Latin America2,8693,258Europe/Africa/CIS2,4232,208Middle East/Asia4,3764,455Total revenue$16,527$17,334Operating IncomeBy operating segment:Completion and Production$1,558$2,080Drilling and Evaluation1,0121,207Total operations2,5703,287Corporate and other(196)(190)SAP S4 upgrade expense(112)(91)Impairments and other charges(748)(116)Total operating income$1,514$2,890 advanced data science techniques to revolutionize data visibility with customizable Completion and Production which could cause actual results to differ materially from the results expressed or implied by and intuitive dashboards for proactive monitoring of real-time pump performance, Middle East/Asia revenue in the third quarter of 2025 was $1.4 billion, a decrease of 3% Please visit the Halliburton website to listen to the call via live webcast. A recorded HALLIBURTON ANNOUNCES THIRD QUARTER 2025 RESULTS the statements. These risks and uncertainties include, but are not limited to: changes in the surface sensors, and production data. Completion and Production revenue in the third quarter of 2025 was $3.2 billion, an increase sequentially. This decrease was primarily driven by lower activity across multiple product version will be available for seven days under the same link immediately following the demand for or price of oil and/or natural gas, including as a result of development of of $52 million, or 2%, when compared to the second quarter of 2025, while operating income service lines in Saudi Arabia. Partially offsetting this decrease were improved pressure conclusion of the conference call. You can also pre-register for the conference call and

Net income of $0.02 per diluted share. alternative energy sources, general economic conditions such as inflation and recession, the •Halliburton was awarded a contract from ConocoPhillips Skandinavia AS to deliver in the third quarter of 2025 was $514 million, flat when compared to the second quarter of pumping services in Qatar, increased artificial lift activity in Kuwait, and higher completion obtain your dial in number and passcode by clicking here. •Adjusted net income of $0.58 per diluted share. ability of the OPEC+ countries to agree on and comply with production quotas, and other comprehensive well stimulation services to improve well performance and reservoir 2025. Higher completion tool sales and increased artificial lift activity in North America, tool sales and improved fluids services in Asia.
Revenue of $5.6 billion and operating margin of 6%. causes; changes in capital spending by our customers; the modification, continuation or productivity. The contract spans five years and includes three optional extension improved cementing activity in Africa and Latin America were partially offset by lower
Adjusted operating margin of 13%. suspension of our shareholder return framework, including the payment of dividends and periods. Under the agreement, Tidewater’s vessel, North Pomor, will be transformed completion tool sales internationally, decreased well intervention services in Middle East/ •Cash flow from operations of $488 million and free cash flow of $276 million. purchases of our stock, which will be subject to the discretion of our Board of Directors and into an advanced stimulation vessel designed to efficiently deliver offshore well Asia, and lower cementing activity in North America. Operating income was further Other Financial Items
Approximately $250 million of share repurchases. CONTACTS may depend on a variety of factors, including our results of operations and financial (a)Free Cash Flow is a non-GAAP financial measure which is calculated as “Total cash flows provided by operating activities” less “Capital expenditures” plus “Proceeds from sales of property, plant, and equipment.” Management believes that Free Cash Flow is a key measure to assess liquidity of the business and is consistent with the disclosures of Halliburton's direct, large-cap competitors. stimulation services in the North Sea. The improvements will include Octiv® digital adversely impacted by rig reductions in Saudi Arabia. condition, growth plans, capital requirements and other conditions existing when any fracturing services to maximize stimulation equipment performance and operational During the third quarter of 2025, Halliburton: HOUSTON - October 21, 2025 - Halliburton Company (NYSE: HAL) announced today net Investor Relations Contact Media Relations payment or purchase decision is made; potential catastrophic events related to our efficiency. Drilling and Evaluation income of $18 million, or $0.02 per diluted share, for the third quarter of 2025 and adjusted David Coleman Alexandra Franceschi operations, and related indemnification and insurance; protection of intellectual property
Repurchased approximately $250 million of its common stock. net income, excluding “Impairments and other charges” and other items, of $496 million, or Investors@Halliburton.com PR@Halliburton.com rights; cyber-attacks and data security; compliance with environmental laws; changes in •Halliburton launched the Turing® electro-hydraulic control system, the next generation Drilling and Evaluation revenue in the third quarter of 2025 was $2.4 billion, an increase of $0.58 per diluted share. This compares to net income for the second quarter of 2025 of $472 government regulations and regulatory requirements, particularly those related to oil and 281-871-2688 281-871-2601 of SmartWell® intelligent completions technology. This system sets a new standard in
Paid dividends of $0.17 per share. $38 million, or 2%, when compared to the second quarter of 2025, while operating income in million, or $0.55 per diluted share. Halliburton’s total revenue for the third quarter of 2025 natural gas exploration, the environment, radioactive sources, explosives, chemicals, reservoir flow control suitable for all completion applications. It improves recovery and (a)During the three months ended September 30, 2025, Halliburton recognized a pre-tax charge of $392 million as a result of severance costs, fixed and other assets write-offs, an impairment of assets held for sale, and other items. During the three months ended September 30, 2024, Halliburton recognized a pre-tax charge of $116 million as a result of severance costs, an impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on a fair value adjustment of an equity investment, and other items.(b)Adjusted operating income is a non-GAAP financial measure which is calculated as: “Operating income” plus “Total impairments and other charges” for the respective periods. Management believes that operating income adjusted for impairments and other charges is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items.(c)We calculate operating margin by dividing operating income by revenue. We calculate adjusted operating margin, a non-GAAP financial measure, by dividing adjusted operating income by revenue. Management believes adjusted operating margin is useful to investors to assess and understand operating performance. the third quarter of 2025 was $348 million, an increase of $36 million, or 12%, when was $5.6 billion, compared to total revenue of $5.5 billion in the second quarter of 2025. hydraulic fracturing services, and climate-related initiatives; assumptions regarding the reduces well count. The Turing electro-hydraulic control system facilitates fast zonal (a)During the nine months ended September 30, 2025, Halliburton recognized a pre-tax charge of $748 million as a result of severance costs, an impairment of assets held for sale, fixed and other assets write-offs, an impairment on real estate facilities, and other items, primarily related to legacy environmental remediation cost estimate increases. During the nine months ended September 30, 2024, Halliburton recognized a pre-tax charge of $116 million as a result of severance costs, an impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on a fair value adjustment of an equity investment, and other items.(b)Adjusted operating income is a non-GAAP financial measure which is calculated as: “Operating income” plus “Total impairments and other charges” for the respective periods. Management believes that operating income adjusted for impairments and other charges is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes operating income without the impact of these items as an indicator of performance, to identify underlying trends in the business, and to establish operational goals. The adjustments remove the effect of these items.(c)We calculate operating margin by dividing operating income by revenue. We calculate adjusted operating margin, a non-GAAP financial measure, by dividing adjusted operating income by revenue. Management believes adjusted operating margin is useful to investors to assess and understand operating performance. •Spent $50 million on SAP S4 migration. Operating income was $356 million in the third quarter of 2025, compared to operating compared to the second quarter of 2025. These results were primarily driven by higher generation of future taxable income, and compliance with laws related to and disputes with (a)See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended September 30, 2025 and September 30, 2024.(b)During the three months ended September 30, 2025, Halliburton incurred a charge of $23 million due to the impairment of an investment in Argentina. (c)The adjustments in the table above include a $125 million tax expense associated with a valuation allowance recorded against our deferred tax assets, which resulted from the impact on the realizability of our United States foreign tax credits due to the “One Big Beautiful Bill Act” (OBBBA), as well as the tax effect on impairments and other charges and the impairment of an investment in Argentina recorded during the three months ended September 30, 2025. During the three months ended September 30, 2024, the adjustments include a $41 million tax benefit associated with a partial release of a valuation allowance on deferred tax assets based on market conditions, as well as the tax effect on impairments and other charges.(d)Adjusted net income attributable to company is a non-GAAP financial measure which is calculated as: “Net income attributable to company” plus “Total adjustments, net of taxes” for the respective periods. Management believes net income adjusted for impairments and other charges and Argentina investment impairment, along with the tax adjustment, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in the business and to establish operational goals. Total adjustments remove the effect of these items.(e)Net income per diluted share is calculated as: “Net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Adjusted net income per diluted share is a non-GAAP financial measure which is calculated as: “Adjusted net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Management believes adjusted net income per diluted share is useful to investors to assess and understand operating performance. optimization through integrated position sensors that help operators manage well income of $727 million in the second quarter of 2025. Adjusted operating income in the third project management and improved wireline activity in Latin America, increased drilling taxing authorities regarding income taxes; risks of international operations, including risks performance with speed, precision, and confidence. Its simplified, flexible design
Incurred a total charge of $540 million related to “Impairments and other charges” quarter of 2025, excluding “Impairments and other charges”, was $748 million. services in North America and Europe/Africa, and higher software sales in Europe/Africa. relating to unsettled political conditions, war, the effects of terrorism, foreign exchange rates (a)See Footnote Table 2 for details of the impairments and other charges recorded during the nine months ended September 30, 2025 and September 30, 2024.(b)During the nine months ended September 30, 2025, Halliburton incurred a charge of $23 million due to the impairment of an investment in Argentina. During the nine months ended September 30, 2024, Halliburton incurred a charge of $82 million in March 2024, primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt.(c)The adjustments in the table above include a $125 million tax expense associated with a valuation allowance recorded against our deferred tax assets, which resulted from the impact on the realizability of our United States foreign tax credits due to the OBBBA, as well as the tax effect on impairments and other charges and the impairment of an investment in Argentina, recorded during the nine months ended September 30, 2025. During the nine months ended September 30, 2024, the adjustments include a $41 million tax benefit associated with a partial release of a valuation allowance on deferred tax assets based on market conditions, the tax effects on impairments and other charges, the impairment of an investment in Argentina, and Egypt currency impact.(d)Adjusted net income attributable to company is a non-GAAP financial measure which is calculated as: “Net income attributable to company” plus “Total adjustments, net of taxes” for the respective periods. Management believes net income adjusted for the impairments and other charges, Egypt currency impact, and Argentina investment impairments, along with the tax adjustment, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Management analyzes net income without the impact of these items as an indicator of performance to identify underlying trends in the business and to establish operational goals. Total adjustments remove the effect of these items.(e)Net income per diluted share is calculated as: “Net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Adjusted net income per diluted share is a non-GAAP financial measure which is calculated as: “Adjusted net income attributable to company” divided by “Diluted weighted average common shares outstanding.” Management believes adjusted net income per diluted share is useful to investors to assess and understand operating performance. reduces rig time, operational risk, and production delays to deliver measurable value and other items. Partially offsetting these increases were lower activity across multiple product service lines and controls, international trade and regulatory controls, tariffs, and sanctions, and doing to our customers. “I am pleased with Halliburton’s third quarter performance. We delivered total company in the Middle East and decreased fluid services in North America and Europe/Africa. business with national oil companies; weather-related issues, including the effects of (1)Adjusted net income per diluted share is a non-GAAP financial measure; please see definition of Adjusted Net Income Per Diluted Share in Footnote Table 3 and 4.(2)Adjusted operating margin is a non-GAAP financial measure; please see reconciliation of Operating Income to Adjusted Operating Income in Footnote Table 1 and 2.(3)Free cash flow is a non-GAAP financial measure; please see reconciliation of Cash Flows from Operating Activities to Free Cash Flow in Footnote Table 5.(4)Adjusted net income is a non-GAAP financial measure; please see reconciliation of Net Income to Adjusted Net Income in Footnote Table 3 and 4.(5)Adjusted operating income is a non-GAAP financial measure; please see reconciliation of Operating Income to Adjusted Operating Income in Footnote Table 1 and 2. Selective Technology & Highlights revenue of $5.6 billion dollars and adjusted operating margin of 13%. We also took steps hurricanes and tropical storms; delays or failures by customers to make payments owed to that will deliver estimated savings of $100 million dollars per quarter, reset our 2026 capital us; infrastructure issues in the oil and natural gas industry; availability and cost of highly
Halliburton launched LOGIX™ automated geosteering, a part of the LOGIX™ budget and idled equipment that no longer meets our return expectations,” commented Jeff Geographic Regions skilled labor and raw materials; completion of potential dispositions, and acquisitions, and automation and remote operations family of solutions, that optimizes geological Miller, Chairman, President and CEO. integration and success of acquired businesses and joint ventures. Halliburton's Form 10-K interpretation and well placement. The service combines automation, machine for the year ended December 31, 2024, Form 10-Q for the quarter ended June 30, 2025, North America (a)See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended September 30, 2025 and September 30, 2024.(b)During the three months ended September 30, 2025, Halliburton incurred a charge of $23 million due to the impairment of an investment in Argentina. (c)The income tax provision during the three months ended September 30, 2025, includes a $125 million tax expense associated with a valuation allowance recorded against our United States foreign tax credits, as well as the tax effect on impairments and other charges and the impairment of an investment in Argentina. The income tax provision during the three months ended September 30, 2024, includes a $41 million tax benefit associated with a partial release of a valuation allowance on deferred tax assets based on market conditions, as well as the tax effect on impairments and other charges. See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income.See Footnote Table 3 for Reconciliation of Net Income to Adjusted Net Income. See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income. "In the international market, our value proposition is winning with customers, we are learning, and advanced geological insights to position the wellbore and maximize recent Current Reports on Form 8-K and other Securities and Exchange Commission filings demonstrating differentiated performance both on and off-shore, and our growth engines are reservoir contact. The service updates and projects geological models to enable well discuss some of the important risk factors identified that may affect Halliburton's business, North America revenue in the third quarter of 2025 was $2.4 billion, an increase of 5% when See Footnote Table 2 for Reconciliation of Operating Income to Adjusted Operating Income. (a)See Footnote Table 2 for details of the impairments and other charges recorded during the nine months ended September 30, 2025 and September 30, 2024.(b)During the nine months ended September 30, 2025, Halliburton incurred a charge of $23 million due to the impairment of an investment in Argentina. During the nine months ended September 30, 2024, Halliburton incurred a charge of $82 million in March 2024, primarily due to the impairment of an investment in Argentina and currency devaluation in Egypt.(c)The income tax provision during the nine months ended September 30, 2025, includes a $125 million tax expense associated with a valuation allowance recorded against our United States foreign tax credits, as well as the tax effect on impairments and other charges and the impairment of an investment in Argentina. The tax provision during the nine months ended September 30, 2024, includes a $41 million tax benefit associated with a partial release of a valuation allowance on deferred tax assets on market conditions, as well as the tax effects on impairments and other charges, the impairment of an investment in Argentina and Egypt currency impact.See Footnote Table 2 for Reconciliation of Operating Income to Adjusted Operating Income.See Footnote Table 4 for Reconciliation of Net Income to Adjusted Net Income. on track. trajectory optimization in real time. Advanced algorithms and machine learning results of operations, and financial condition. Halliburton undertakes no obligation to revise compared to the second quarter of 2025. These results were primarily driven by increased technology help provide uniform, repeatable, and unbiased geological interpretations or update publicly any forward-looking statements for any reason. stimulation activity in US Land and Canada, and higher completion tool sales and increased “In North America, we are executing our strategy to Maximize Value - this means we are that empower customers with accurate data and faster diagnosis. wireline activity in the Gulf of America. Partially offsetting these increases were lower prioritizing returns, technology leadership, and working with leading operators. I am cementing activity in US Land and decreased stimulation activity in the Gulf of America.
Halliburton announced a contract award to provide completions and downhole confident that our strategy execution will drive further outperformance. About Halliburton monitoring services for the Northern Endurance Partnership (NEP) carbon capture

International

and storage (CCS) system in northeast England’s East Coast Cluster (ECC). “We are committed to returning cash to shareholders, maintaining cost and capital discipline, Halliburton is one of the world’s leading providers of products and services to the energy (a)Working capital includes receivables, inventories, and accounts payable.See Footnote Table 5 for Reconciliation of Cash Flows from Operating Activities to Free Cash Flow. Halliburton will manufacture and deliver the majority of the equipment required for this and investing in differentiated technologies that drive long-term performance,” concluded International revenue in the third quarter of 2025 was $3.2 billion, flat when compared to the industry. Founded in 1919, we create innovative technologies, products, and services that project from its U.K. completion manufacturing facility in Arbroath. For more than 50 Miller. second quarter of 2025. help our customers maximize their value throughout the life cycle of an asset and advance a years, the center has supported North Sea operations and provides on-site product sustainable energy future. Visit us at www.halliburton.com; connect with us on LinkedIn, development and testing resources alongside advanced manufacturing capabilities to Latin America revenue in the third quarter of 2025 was $996 million, an increase of 2% YouTube, Instagram, and Facebook. support efficient production and the delivery of equipment. sequentially. This increase was primarily driven by higher project management activity across the region and increased drilling services in Argentina. Partially offsetting these increases were decreased activity across multiple product service lines in Mexico and lower completion tool sales in Brazil.