Halliburton Co.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 21 April 2026: press release. The quarter’s numbers.

Key takeaways

Net income up on prior-year impairments: Net income attributable to the company was $461 million, or $0.55 per diluted share. The prior-year quarter reported $204 million, or $0.24, after $356 million of impairments and other charges. Source
Completion revenue and income declined: Revenue was $3.0 billion, down $104 million or 3%, and operating income was $439 million, down $92 million or 17%. Lower North America stimulation and Middle East completion tool and pumping activity drove the decline. Source
North America revenue declined: North America revenue was $2.1 billion, down 4%. Lower US Land and Gulf of America stimulation, along with US Land artificial lift and Gulf of America fluid services, drove the decline. Source
Latin America revenue grew 22%: Latin America revenue was $1.1 billion, up 22%, led by Ecuador, the Caribbean and Brazil, with improved stimulation activity in Mexico and Argentina. Source
Middle East and Asia revenue fell 13%: Middle East/Asia revenue was $1.3 billion, down 13%, mainly on lower activity across several product lines in Saudi Arabia and lower drilling services in Qatar. Asia completion tools and fluid services were higher. Source
Operating cash flow and free cash flow: Cash flow from operations was $273 million, against $377 million a year earlier. Free cash flow was $123 million, against $124 million. Working capital used $252 million. Source
Buybacks and dividends paid: About $100 million of stock was repurchased, against $250 million in the first quarter of 2025. Dividends of $0.17 per share were paid, totaling $142 million. Source

“In North America, I see clear signs that we are in the early innings of a recovery.”
Jeff Miller, Chairman, President and CEO

What changed from last quarter

New: Halliburton and A*STAR announced a joint lab in Singapore for well completion technology. Source

Results and profitability

Net income up on prior-year impairments: Net income attributable to the company was $461 million, or $0.55 per diluted share. The prior-year quarter reported $204 million, or $0.24, after $356 million of impairments and other charges. Source
Revenue flat, operating income higher: Revenue was $5.4 billion, flat year over year. Operating income was $679 million against $431 million a year earlier, and operating margin was 13%. Source
Revenue and earnings below fourth quarter: Revenue was $5,402 million against $5,657 million in the fourth quarter of 2025. Diluted net income per share was $0.55 against $0.70. Source

Completion and Production segment

Completion revenue and income declined: Revenue was $3.0 billion, down $104 million or 3%, and operating income was $439 million, down $92 million or 17%. Lower North America stimulation and Middle East completion tool and pumping activity drove the decline. Source
Western Hemisphere tools and Africa pumping: Higher completion tool sales in the Western Hemisphere and improved pressure pumping in Africa partly offset the declines. Source

“In international markets, our performance around the world outpaced disruptions from the Middle East conflict.”
Jeff Miller, Chairman, President and CEO

Drilling and Evaluation segment

Drilling revenue up, income flat: Revenue was $2.4 billion, up $89 million or 4%, while operating income was $351 million, flat year over year. Latin America project management and Europe and Western Hemisphere drilling services drove the increase. Source
Middle East and wireline activity lower: Activity across several Middle East product lines, Eastern Hemisphere wireline and Gulf of America fluid services was lower, partly offsetting the gains. Source

Regional revenue

North America revenue declined: North America revenue was $2.1 billion, down 4%. Lower US Land and Gulf of America stimulation, along with US Land artificial lift and Gulf of America fluid services, drove the decline. Source
Latin America revenue grew 22%: Latin America revenue was $1.1 billion, up 22%, led by Ecuador, the Caribbean and Brazil, with improved stimulation activity in Mexico and Argentina. Source
Europe and Africa revenue rose 11%: Europe/Africa revenue was $858 million, up 11%, on drilling services and completion tool sales in Norway and pressure pumping in Angola. Caspian completion tools and Namibia drilling were lower. Source
Middle East and Asia revenue fell 13%: Middle East/Asia revenue was $1.3 billion, down 13%, mainly on lower activity across several product lines in Saudi Arabia and lower drilling services in Qatar. Asia completion tools and fluid services were higher. Source

“I expect that our consistent focus on returns and capital discipline will drive long-term success for Halliburton and its shareholders,”
Jeff Miller, Chairman, President and CEO

Costs, tax and impairments

SAP migration and corporate costs: SAP S4 upgrade expense was $42 million, against $30 million a year earlier. Corporate and other costs were $69 million, against $66 million. Source
No impairment charges this quarter: No impairments and other charges were recorded in the first quarter of 2026, against $356 million in the first quarter of 2025, which included severance and asset impairments. Source
Tax benefit from allowance release: The income tax provision was $105 million, which includes a $32 million tax benefit from a valuation allowance release. Source

Cash flow and shareholder returns

Operating cash flow and free cash flow: Cash flow from operations was $273 million, against $377 million a year earlier. Free cash flow was $123 million, against $124 million. Working capital used $252 million. Source
Buybacks and dividends paid: About $100 million of stock was repurchased, against $250 million in the first quarter of 2025. Dividends of $0.17 per share were paid, totaling $142 million. Source
Capital expenditure fell: Capital expenditures were $192 million, against $302 million a year earlier. Proceeds from sales of property, plant and equipment were $42 million. Source
Cash balance lower: Cash and equivalents ended the quarter at $2,003 million, down from $2,206 million at December 31, 2025. Long-term debt was $7,070 million, against $7,158 million. Source

Technology and projects

HyperSteer MX drill bit launched: A shankless matrix-body directional drill bit intended for longer runs, fewer trips and resistance to erosion in high-flow, abrasive environments. Source
CO2 injection safety valve launched: A wireline-retrievable safety valve for carbon capture, utilization and storage wells, with a non-elastomeric design intended to minimize leak paths. Source
Geothermal well placement service: The RangeStar geothermal service supports detection distances up to 130 meters and reduces ranging decision time from hours to minutes. Source
Automated well placement offshore Guyana: With ExxonMobil Guyana, Sekal and Noble, Halliburton delivered fully automated geological well placement with complete rig automation offshore Guyana. Source

Figures management reported

Figure	Reported
Capital expenditure Source	$192 million (Q1 2026) vs $302 million (Q1 2025)
Free cash flow Source	$123 million
Shareholder returns Source	$100 million stock repurchases; $142 million dividends

Risks management discussed

External: The Middle East conflict affected both divisions, with an impact of about 2 to 3 cents of net income per diluted share. Source
Demand: North America stimulation and artificial lift activity in US Land declined during the quarter. Source
Demand: Activity across multiple Middle East product lines, particularly in Saudi Arabia, declined year over year. 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 2 FOOTNOTE TABLE 3 Conference Call Details Condensed Consolidated Statements of Operations HALLIBURTON COMPANY HALLIBURTON COMPANY HALLIBURTON COMPANY FOOTNOTE TABLE 1 Exhibit 99.1 Drilling and Evaluation Other Financial Items •Halliburton, in collaboration with ExxonMobil Guyana, Sekal, and Noble, delivered a Forward-looking Statements (Millions of dollars and shares except per share data) HALLIBURTON COMPANY HALLIBURTON COMPANY Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Revenue and Operating Income Comparison groundbreaking step forward in digital well construction to achieve the deepwater Halliburton Company (NYSE: HAL) will host a conference call on Tuesday, April 21, (Unaudited) Reconciliation of Net Income to Adjusted Net Income Reconciliation of Cash Flows from Operating Activities to Free Cash Flow (Millions of dollars) (Millions of dollars) By Operating Segment and Geographic Region HALLIBURTON COMPANY Drilling and Evaluation revenue in the first quarter of 2026 was $2.4 billion, an increase of During the first quarter of 2026, Halliburton: industry’s first fully automated geological well placement with complete rig automation The statements in this press release that are not historical statements are forward-looking Three Months EndedMarch 31, December 31, 202620252025Revenue:Completion and Production$3,016$3,120$3,268Drilling and Evaluation2,3862,2972,389Total revenue$5,402$5,417$5,657Operating income:Completion and Production$439$531$570Drilling and Evaluation351352367Corporate and other(69)(66)(66)SAP S4 upgrade expense (42)(30)(42)Impairments and other charges (a) - (356)(83)Total operating income679431746Interest expense, net(82)(86)(86)Other, net(28)(39)(25)Income before income taxes569306635Income tax provision (b)(105)(103)(46)Net income$464$203$589Net (income) loss attributable to noncontrolling interest(3)1 - Net income attributable to Company$461$204$589Basic and diluted net income per share$0.55$0.24$0.70Basic weighted average common shares outstanding837866839Diluted weighted average common shares outstanding839866840 (Millions of dollars and shares except per share data) (Millions of dollars) 2026, to discuss its first quarter 2026 financial results. The call will begin at 8:00 a.m. (Unaudited) (Unaudited) (Millions of dollars) Reconciliation of Operating Income to Adjusted Operating Income (Unaudited) (Unaudited) $89 million, or 4%, when compared to the first quarter of 2025, while operating income was statements within the meaning of the federal securities laws. These statements are subject in offshore Guyana. The project combined rig automation, automated subsurface March 31, December 31,20262025AssetsCurrent assets: Cash and equivalents$2,003$2,206Receivables, net5,1974,942Inventories3,0192,976Other current assets1,3161,274Total current assets11,53511,398Property, plant, and equipment, net5,1825,261Goodwill2,9922,938Deferred income taxes2,3392,298Operating lease right-of-use assets895938Other assets2,1992,177Total assets$25,142$25,010Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable$3,211$3,133Accrued employee compensation and benefits622767Current portion of operating lease liabilities243263Current maturities of long-term debt90 - Other current liabilities1,3711,425Total current liabilities5,5375,588Long-term debt7,0707,158Operating lease liabilities678712Employee compensation and benefits395428Other liabilities637619Total liabilities14,31714,505Company shareholders’ equity10,78010,461Noncontrolling interest in consolidated subsidiaries4544Total shareholders’ equity10,82510,505Total liabilities and shareholders’ equity$25,142$25,010 Three Months EndedMarch 31, 20262025Cash flows from operating activities:Net income$464$203Adjustments to reconcile net income to cash flows from operating activities:Depreciation, depletion, and amortization295277Impairments and other charges - 356Working capital (a)(252)(154)Other operating activities(234)(305)Total cash flows provided by operating activities273377Cash flows from investing activities:Capital expenditures(192)(302)Payments to acquire businesses(97)(116)Purchases of marketable securities(2)(96)Proceeds from sales of property, plant, and equipment4249Sales of marketable securities2741Purchase of an equity investment - (345)Other investing activities(21)(15)Total cash flows used in investing activities(243)(784)Cash flows from financing activities:Dividends to shareholders(142)(147)Stock repurchase program(100)(250)Other financing activities5(9)Total cash flows used in financing activities(237)(406)Effect of exchange rate changes on cash4(1)Decrease in cash and equivalents(203)(814)Cash and equivalents at beginning of period2,2062,618Cash and equivalents at end of period$2,003$1,804 (Unaudited) (Millions of dollars) CT (9:00 a.m. ET). Three Months EndedMarch 31, December 31, 202620252025Net income attributable to company$461$204$589Adjustments:Impairments and other charges (a) - 35683Total adjustments, before taxes - 35683Tax benefit from prepayment (b) - - (86)Tax adjustment (b) - (43)(10)Total adjustments, net of taxes (c) - 313(13)Adjusted net income attributable to company (c)$461$517$576Diluted weighted average common shares outstanding839866840Net income per diluted share (d)$0.55$0.24$0.70Adjusted net income per diluted share (d)$0.55$0.60$0.69 Three Months EndedMarch 31, December 31,202620252025Total cash flows provided by operating activities$273$377$1,165Capital expenditures(192)(302)(337)Proceeds from sales of property, plant, and equipment424947Free cash flow (a)$123$124$875 Three Months EndedMarch 31, December 31, Revenue202620252025By operating segment:Completion and Production$3,016$3,120$3,268Drilling and Evaluation2,3862,2972,389Total revenue$5,402$5,417$5,657By geographic region:North America$2,136$2,236$2,207Latin America1,0908961,066Europe/Africa/CIS858775928Middle East/Asia1,3181,5101,456Total revenue$5,402$5,417$5,657Operating IncomeBy operating segment:Completion and Production$439$531$570Drilling and Evaluation351352367Total operations790883937Corporate and other(69)(66)(66)SAP S4 upgrade expense(42)(30)(42)Impairments and other charges - (356)(83)Total operating income$679$431$746 (Unaudited) •Repurchased approximately $100 million of its common stock. to numerous risks and uncertainties, many of which are beyond the company's control, $351 million, flat when compared to the first quarter of 2025. These results were primarily interpretation and well placement, and real-time hydraulics to establish a new Three Months EndedMarch 31, December 31, 202620252025Operating income$679$431$746Impairments and other charges:Severance costs - 10723Impairment of assets held for sale - 10424Impairment of real estate facilities - 53 - Equity in earnings loss - - 50Other - 92(14)Total impairments and other charges (a) - 35683Adjusted operating income (b) (c)$679$787$829 which could cause actual results to differ materially from the results expressed or implied by driven by higher project management activity in Latin America and increased drilling-related benchmark for well construction performance, reservoir contact, and execution Please visit the Halliburton website to listen to the call via live webcast. A recorded HALLIBURTON ANNOUNCES FIRST QUARTER 2026 RESULTS

Paid dividends of $0.17 per share. the statements. These risks and uncertainties include, but are not limited to: changes in the services in Europe and the Western Hemisphere. Partially offsetting these increases were efficiency. 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 lower activity across multiple product service lines in the Middle East, lower wireline activity conclusion of the conference call. You can also pre-register for the conference call and •Net income of $0.55 per diluted share.
Spent $42 million on SAP S4 migration. alternative energy sources, general economic conditions such as inflation and recession, the in the Eastern Hemisphere, and decreased fluid services in the Gulf of America. (1)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 3.(2)Adjusted net income is a non-GAAP financial measure; please see reconciliation of Net Income to Adjusted Net Income in Footnote Table 2. (3)Adjusted operating income is a non-GAAP financial measure; please see reconciliation of Operating Income to Adjusted Operating Income in Footnote Table 1. obtain your dial in number and passcode by clicking here. •Revenue of $5.4 billion and operating margin of 13%. ability of the OPEC+ countries to agree on and comply with production quotas, and other
Cash flow from operations of $273 million and free cash flow of $123 million. causes; changes in capital spending by our customers; the modification, continuation or In the first quarter of 2026, the geopolitical conflict in the Middle East affected both divisions,
Approximately $100 million of share repurchases. Selective Technology & Highlights suspension of our shareholder return framework, including the payment of dividends and with an impact of approximately 2 to 3 cents of net income per diluted share. (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. purchases of our stock, which will be subject to the discretion of our Board of Directors and HOUSTON - April 21, 2026 - Halliburton Company (NYSE: HAL) announced today net CONTACTS
Halliburton launched the HyperSteer™ MX directional drill bit, an industry-first may depend on a variety of factors, including our results of operations and financial Geographic Regions income of $461 million, or $0.55 per diluted share, for the first quarter of 2026. This shankless matrix-body bit that improves durability and maximizes directional control. condition, growth plans, capital requirements and other conditions existing when any compares to net income for the first quarter of 2025 of $204 million, or $0.24 per diluted Investor Relations Contact Media Relations The bit delivers longer runs and fewer trips, resists erosion and abrasion, and payment or purchase decision is made; potential catastrophic events related to our North America share, and adjusted net income, excluding impairments and other charges, of $517 million, David Coleman Alexandra Franceschi performs reliably in high-flow, abrasive environments. HyperSteer™ MX directional operations, and related indemnification and insurance; protection of intellectual property or $0.60 per diluted share, in the first quarter of 2025. Halliburton’s total revenue for the first Investors@Halliburton.com PR@Halliburton.com drill bits utilize advanced matrix materials to resist erosion and abrasion, extend bit About Halliburton rights; cyber-attacks and data security; compliance with environmental laws; changes in quarter of 2026 was $5.4 billion, flat when compared to the first quarter of 2025. Operating North America revenue in the first quarter of 2026 was $2.1 billion, a 4% decrease when 281-871-2688 281-871-2601 life in abrasive, high-flow environments, and improve efficiency and reliability during government regulations and regulatory requirements, particularly those related to oil and income was $679 million in the first quarter of 2026, compared to operating income of $431 compared to the first quarter of 2025. This decline was primarily driven by lower stimulation operations. natural gas exploration, the environment, radioactive sources, explosives, chemicals, Halliburton is one of the world’s leading providers of products and services to the energy million in the first quarter of 2025, and adjusted operating income, excluding impairments activity and decreased artificial lift activity in US Land, and lower stimulation activity and hydraulic fracturing services, and climate-related initiatives; assumptions regarding the industry. Founded in 1919, we create innovative technologies, products, and services that (a)During the three months ended March 31, 2025, Halliburton recognized a pre-tax charge of $356 million as a result of severance costs, an impairment of assets held for sale, an impairment on real estate facilities, and other items, primarily related to legacy environmental remediation cost estimate increases. During the three months ended December 31, 2025, Halliburton recognized a pre-tax charge of $83 million as a result of an equity in earnings loss, an impairment of assets held for sale, severance costs, 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. and other charges, of $787 million in the first quarter of 2025. decreased fluid services in the Gulf of America. Partially offsetting these decreases were generation of future taxable income, and compliance with laws related to and disputes with help our customers maximize their value throughout the life cycle of an asset and advance a •Halliburton and the Agency for Science, Technology and Research (A*STAR), increased drilling-related services in US Land and higher completion tool sales in the region. (a)See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended March 31, 2025 and December 31, 2025.(b)During the three months ended March 31, 2025, the tax adjustment includes the effect on impairments and other charges. During the three months ended December 31, 2025, the adjustments include an $86 million discrete tax benefit from the FDII deduction attributable to a royalty prepayment as well as the tax effect on impairments and other charges.(c)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, along with the tax adjustments 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.(d)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. taxing authorities regarding income taxes; risks of international operations, including risks sustainable energy future. Visit us at www.halliburton.com; connect with us on LinkedIn, Singapore's lead public sector research and development agency, announced the “I am pleased with Halliburton’s performance this quarter,” commented Jeff Miller, Chairman, relating to unsettled political conditions, war, including the current conflict in Iran, the effects YouTube, Instagram, and Facebook. launch of the Next-Generation Energy Xccelerator Joint Lab. This initiative aims to President and CEO. International of terrorism, foreign exchange rates and controls, international trade and regulatory controls, accelerate the development and commercialization of advanced well completion tariffs, and sanctions, and doing business with national oil companies; weather-related technologies for the energy industry. The project is also supported by the Singapore “In North America, I see clear signs that we are in the early innings of a recovery. International revenue in the first quarter of 2026 was $3.3 billion, an increase of 3% when issues, including the effects of hurricanes and tropical storms; delays or failures by Economic Development Board. compared to the first quarter of 2025. customers to make payments owed to us; infrastructure issues in the oil and natural gas “In international markets, our performance around the world outpaced disruptions from the industry; availability and cost of highly skilled labor and raw materials; completion of •Halliburton launched the XTR™ CS injection system, a wireline-retrievable safety Middle East conflict. Latin America revenue in the first quarter of 2026 was $1.1 billion, an increase of 22% year potential dispositions, and acquisitions, and integration and success of acquired businesses valve solution engineered for CO₂ injection in carbon capture, utilization, and storage (a)See Footnote Table 1 for details of the impairments and other charges recorded during the three months ended March 31, 2025 and December 31, 2025.(b)The income tax provision during the three months ended March 31, 2026 includes a $32 million tax benefit associated with a valuation allowance release. The income tax provision during the three months ended March 31, 2025 includes a tax effect on impairments and other charges. The income tax provision during the three months ended December 31, 2025 includes an $86 million discrete tax benefit from the Foreign-Derived Intangible Income (FDII) deduction attributable to a royalty prepayment, 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 2 for Reconciliation of Net Income to Adjusted Net Income. over year. This increase was primarily driven by higher activity across multiple product and joint ventures. Halliburton's Form 10-K for the year ended December 31, 2025, Current See Footnote Table 1 for Reconciliation of Operating Income to Adjusted Operating Income. wells. The system provides flexibility as a primary or contingency safety valve or as a “I expect that our consistent focus on returns and capital discipline will drive long-term service lines in Ecuador, the Caribbean, and Brazil, and improved stimulation activity in Reports on Form 8-K and other Securities and Exchange Commission filings discuss some deep-set reservoir fluid-flowback prevention device. Unlike traditional surface- Mexico and Argentina. Partially offsetting these increases were lower project management of the important risk factors identified that may affect Halliburton's business, results of success for Halliburton and its shareholders,” concluded Miller. controlled wireline valves, the XTR injection system’s non-elastomeric design helps operations, and financial condition. Halliburton undertakes no obligation to revise or update activity and decreased drilling-related services in Mexico. minimize leak paths and eliminate reliance on hydraulic operation systems. This publicly any forward-looking statements for any reason, except as required by law. Operating Segments system remains at steady performance at any setting depth, to simplify operations Europe/Africa revenue in the first quarter of 2026 was $858 million, an increase of 11% year and inventory management. Completion and Production over year. This increase was primarily driven by increased drilling-related services and higher completion tool sales in Norway, and improved pressure pumping services in Angola.
Halliburton launched the RangeStar™ Geothermal Well Spacing and Intercept (a)Working capital includes receivables, inventories, and accounts payable.See Footnote Table 3 for Reconciliation of Cash Flows from Operating Activities to Free Cash Flow. Completion and Production revenue in the first quarter of 2026 was $3.0 billion, a decrease Partially offsetting these increases were lower completion tool sales in the Caspian Area and Service, a part of the family of RangeStar™ magnetic ranging services, a nextof $104 million, or 3%, when compared to the first quarter of 2025, while operating income decreased drilling-related services in Namibia. generation solution that supports geothermal development through faster, more was $439 million, a decrease of $92 million, or 17%, when compared to first quarter of 2025. accurate, and fully integrated well placement. Designed for complex geothermal These results were primarily driven by lower stimulation activity in North America, and lower Middle East/Asia revenue in the first quarter of 2026 was $1.3 billion, a decrease of 13% environments, the RangeStar Geothermal Well Spacing and Intercept Service completion tool sales and decreased pressure pumping services in the Middle East. Partially year over year. This decrease was primarily driven by lower activity across multiple product delivers reliable performance that reduces uncertainty and simplifies operations. offsetting these decreases were higher completion tool sales in the Western Hemisphere, service lines in Saudi Arabia and decreased drilling-related services in Qatar. Partially Rapid ranging determination reduces decision time from hours to minutes, supports and improved pressure pumping services in Africa. offsetting these decreases were higher completion tool sales and improved fluid services in detection distances up to 130 meters, and improves accuracy within formations and Asia. depths.