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Halliburton Company (HAL)
NYSE:HAL
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Halliburton
(NYSE:HAL)
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Rating:66Neutral
Price Target:
$36.00
â–²(4.83% Upside)
The score is held back most by weakening 2025 profitability/cash conversion and cautious 2026 guidance (near-term revenue and margin compression, especially in North America, plus SAP cost headwinds). These are partly offset by a clear technical uptrend, improved leverage versus 2020, and ongoing shareholder returns (dividend and buybacks).
Positive Factors
Technology and product leadership
Halliburton’s push into autonomous drilling, digital products and automated completion tools represents a durable competitive advantage. Broader customer adoption and novel product launches increase long‑term service differentiation, higher margin services, and stickier client relationships across international markets.
Strong cash generation and capital returns
Consistent positive operating and free cash flow through the cycle funds buybacks, dividends, and selective capex without depending solely on external financing. This cash generation supports capital allocation flexibility and de‑risking through deleveraging or reinvestment in tech and international growth engines.
Improved leverage since 2020
Material deleveraging since 2020 strengthens financial resilience and reduces interest burden sensitivity. A lower leverage ratio provides capacity to absorb cyclical downturns, supports investment in strategic initiatives, and enhances ability to maintain shareholder returns during moderate commodity or activity softening.
Negative Factors
North America 2026 rebalancing
North America is a large, higher‑margin market; a sustained high‑single‑digit revenue decline materially pressures consolidated margins and cash flow. Prolonged land activity weakness or stacked fleets would reduce pricing power, elongate recovery time, and limit near‑term reinvestment capacity.
SAP migration cost and delay
Ongoing multi‑quarter SAP expenses directly depress operating margins and cash flow while delaying expected $100M run‑rate savings. Execution risk and delayed benefits reduce near‑term efficiency gains, complicate cost structure planning and free cash flow forecasts for the next several quarters.
2025 profitability and cash-conversion step-down
A meaningful decline in 2025 margins and free cash flow conversion lowers the company’s cyclical cushion and increases sensitivity to weaker activity. With sizable remaining debt, reduced cash conversion constrains the pace of deleveraging and limits optionality for capex, M&A, or sustained shareholder returns if weakness persists.
Halliburton (HAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.90B
Dividend Yield2.41%
Average Volume (3M)12.92M
Price to Earnings (P/E)22.5
Beta (1Y)0.90
Revenue Growth-4.06%
EPS Growth-47.41%
CountryUS
Employees48,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.69
Shares Outstanding841,626,600
10 Day Avg. Volume15,763,922
30 Day Avg. Volume12,921,328
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)2.26
Price to Sales (P/S)1.07
P/FCF Ratio14.18
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit10.15
Enterprise Value/Ebitda10.75
Forecast
1Y Price Target
$36.00Price Target Upside4.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)2.22
Revenue Forecast (FY)$21.65B
Halliburton Business Overview & Revenue Model
Company DescriptionHalliburton Company provides products and services to the energy industry worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, and service tools, as well as liner hanger, sand control, and multilateral systems; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; and pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning. This segment also provides electrical submersible pumps, as well as artificial lift services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; oilfield completion, production, and downstream water and process treatment chemicals and services; drilling systems and services; wireline and perforating services consists of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services. Halliburton Company was founded in 1919 and is based in Houston, Texas.
How the Company Makes MoneyHalliburton generates revenue through a diverse array of services and products tailored to the oil and gas sector. Its primary revenue streams come from drilling services, which include well construction and drilling fluids, as well as completion services, which involve technologies and equipment for well completion and production enhancement. The company also earns income from consulting and project management services that help optimize energy production. Significant partnerships with major oil companies and independent operators allow Halliburton to secure long-term contracts, which provide a steady income stream. Additionally, the company's investment in innovative technologies, such as digital solutions and automation, enhances its service offerings, positioning it to benefit from the industry's shift toward efficiency and sustainability.
Halliburton Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, highlighting where Halliburton is performing well and where it may encounter challenges or opportunities due to regional market dynamics or geopolitical factors.
Breaks down revenue across different regions, highlighting where Halliburton is performing well and where it may encounter challenges or opportunities due to regional market dynamics or geopolitical factors.
Data provided by:
The Fly
The FlyHalliburton Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The call balanced strong operational and financial execution (solid Q4 margins, robust cash generation, aggressive share repurchases, international resilience, and multiple technology and power-growth initiatives) against clear near-term headwinds (North America revenue declines, Q1 guidance with margin compression, SAP costs and delays, and an uncertain commodity backdrop). Management is optimistic about medium-term rebalancing and longer-term secular tailwinds driven by technology and international growth engines, but near-term guidance and regional weaknesses temper the tone.Q4-2025 Updates
Positive Updates
Strong Full-Year Revenue and Margins
Total company revenue of $22.2 billion for FY2025 with adjusted operating margin of 14% for the year; Q4 revenue $5.7 billion (flat Q/Q) and Q4 adjusted operating margin of 15% (adjusted operating income $829 million).
Solid Cash Generation and Capital Returns
Generated $2.9 billion of cash flow from operations and $1.9 billion of free cash flow in 2025; repurchased $1.0 billion of common stock during the year (including $250 million in Q4) and returned 85% of free cash flow to shareholders; full-year repurchases ~42 million shares at an average $23.80.
International Resilience and Outperformance
International revenue $13.1 billion (down 2% YoY) outperformed a 7% decline in rig count; excluding notable declines in Saudi Arabia and Mexico, the remainder of international business grew ~7%; Q4 international revenue up 7% sequentially.
Record & Expanding International Product Lines
Artificial lift delivered record international quarterly revenue and is now active in 15 countries; unconventionals tech deployed in seven countries (simulfrac, continuous pumping, auto frac, sensory).
Technology and Operational Achievements
Completed the first fully autonomous geosteering run (Caribbean); customer adoption of ZEUS IQ, sensory, and auto frac increased 8% this quarter; drilling services grew meaningfully despite a 6% decline in rig count in North America (benefitting from iCruise and Logix automation).
Power Opportunity (VoltaGrid) Momentum
Strategic collaboration with VoltaGrid secured manufacturing capacity for 400 megawatts of modular power systems, with an expanding international pipeline and potential for a sizable long-term business.
Segment Profitability Improvements
Completion & Production Q4 operating income $570 million (+11% Q/Q) with a 17% margin; Drilling & Evaluation Q4 operating income $367 million (+5% Q/Q) with a 15% margin—both benefiting from favorable activity mix and year-end software/completion tool sales.
Free Cash Flow Strength in Q4
Q4 cash flow from operations $1.2 billion and free cash flow $875 million, supporting ongoing buybacks and deleveraging.
Negative Updates
North America Revenue Decline and 2026 Outlook
Full-year North America revenue $9.1 billion, down 6% YoY; Company expects North America revenue to decline high single digits in 2026 due to reduced land activity, stacked fleets, and timing of Gulf of Mexico programs.
Near-Term Guidance: Q1 Revenue and Margin Pressure
Q1 2026 guidance calls for sequential revenue declines and margin compression: Completion & Production revenue down 7%–9% sequentially with ~300 basis points margin decline; Drilling & Evaluation revenue down 2%–4% with margins down 25–75 basis points.
International Market Pockets of Weakness
Notable declines during 2025 in Saudi Arabia and Mexico contributed to the international revenue decline; management is cautious on timing/pace of Saudi recovery.
Challenging Commodity Environment
Management expects 2026 to be a rebalancing year with abundant near-term supply (OPEC spare capacity, higher non-OPEC production) and commodity prices unlikely to rise absent geopolitical disruptions—near-term softness anticipated, especially in North America.
SAP Project Costs and Delay
Q4 SAP migration spend $42 million; guidance of $40–45 million per quarter through 2026 with project completion shifted to Q4 2026 (later than prior guidance), creating near-term expense headwinds despite expected $100 million annual savings post-completion.
Q4 to Q1 Activity Mix Roll-Offs
A larger-than-normal roll-off of year-end completion tool sales accounted for over half of the guided margin decline into Q1; Q4 completion tool sales increase was ~3x prior years, making Q1 comparisons unfavorable.
Uncertainty Around Venezuela Reentry
Management emphasized opportunity in Venezuela but noted reentry requires resolution of commercial and legal terms (including payment certainty); timing uncertain—mobilization could be quick once resolved but remains dependent on external negotiations.
Company Guidance
Management guided that 2026 should be a rebalancing year with North America revenue expected to decline high-single-digits while international revenue is projected to be flat to modestly up; for Q1 they forecast Completion & Production revenue down 7–9% sequentially with margins falling ~300 basis points and Drilling & Evaluation revenue down 2–4% with margins down 25–75 bps, and they expect H2 to be stronger than H1. They reiterated full‑year 2026 capital expenditures of about $1.1 billion (Q4 capex was $337 million), an effective tax rate of ~21% for Q1 and FY2026 (Q4 normalized ETR was 19.8%), and Q1 increases of roughly $5 million in corporate expense and $5 million in net interest expense (Q4 net interest was $86 million); other net expense is expected to be about $35 million in Q1. SAP migration spending will run about $40–45 million per quarter through the project (completion in Q4) with expected run‑rate savings of ~$100 million per year thereafter; cash guidance context included Q4 revenue of $5.7 billion, adjusted operating income of $829 million (15% margin), Q4 cash from operations $1.2 billion and free cash flow $875 million, and full‑year 2025 totals of $22.2 billion revenue, $2.9 billion cash from operations, $1.9 billion free cash flow, ~$1.0 billion of share repurchases (42 million shares at $23.80 avg), and a plan to exclude any Venezuela reentry capex from the $1.1 billion guidance.Halliburton Financial Statement Overview
Summary
Financials reflect a strong cyclical recovery through 2022–2024 and improved leverage (debt-to-equity below 1.0x), but 2025 shows a clear step-down in margins, net income, and weaker cash conversion (lower operating/free cash flow vs. 2024). Ongoing debt remains meaningful, raising sensitivity if conditions weaken further.Income Statement
Revenue rebounded strongly from 2021–2024 (notably 2022 and 2023), but 2024 was roughly flat and 2025 declined despite a reported positive growth rate. Profitability improved substantially versus 2020’s loss year, with solid operating and net margins through 2022–2024; however, 2025 shows a meaningful step-down in margins and net income (roughly halved vs. 2024), indicating a softer earnings cycle and higher sensitivity to pricing/activity.72
Positive
Balance Sheet
Leverage has improved materially since 2020: debt-to-equity moved down from very high levels (~2.18x in 2020) to under 1.0x by 2023–2025, while equity expanded. That said, debt remains sizable (about $8.1B in 2025) and returns on equity, while healthy in 2022–2024, cooled notably in 2025—consistent with the earnings pullback and leaving less cushion if the cycle weakens further.68
Positive
Cash Flow
Cash generation is consistently positive across the period, with operating cash flow and free cash flow remaining solid even in the 2020 downturn. However, 2025 shows clear weakening: operating cash flow and free cash flow fell versus 2024 and free cash flow growth turned sharply negative, with free cash flow covering only a bit over half of net income—suggesting higher working-capital/CapEx demands or less efficient cash conversion in the latest year.64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.18B | 22.94B | 23.02B | 20.30B | 15.29B |
| Gross Profit | 3.50B | 4.30B | 4.36B | 3.31B | 2.02B |
| EBITDA | 3.04B | 4.76B | 4.94B | 3.54B | 2.69B |
| Net Income | 1.28B | 2.50B | 2.64B | 1.57B | 1.46B |
Balance Sheet | |||||
| Total Assets | 25.01B | 25.59B | 24.68B | 23.25B | 22.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.21B | 2.62B | 2.26B | 2.35B | 3.04B |
| Total Debt | 8.85B | 8.77B | 8.81B | 8.94B | 10.22B |
| Total Liabilities | 14.51B | 15.04B | 15.25B | 15.28B | 15.59B |
| Stockholders Equity | 10.51B | 10.51B | 9.39B | 7.95B | 6.71B |
Cash Flow | |||||
| Free Cash Flow | 1.67B | 2.42B | 2.08B | 1.23B | 1.11B |
| Operating Cash Flow | 2.93B | 3.87B | 3.46B | 2.24B | 1.91B |
| Investing Cash Flow | -1.32B | -1.65B | -1.66B | -967.00M | -534.00M |
| Financing Cash Flow | -1.99B | -1.73B | -1.67B | -1.80B | -838.00M |
Halliburton Technical Analysis
Positive
34.34
Price Trends
29.95
Positive
27.38
Positive
24.17
Positive
Market Momentum
1.14
Positive
65.57
Neutral
38.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAL, the sentiment is Positive. The current price of 34.34 is above the 20-day moving average (MA) of 33.05, above the 50-day MA of 29.95, and above the 200-day MA of 24.17, indicating a bullish trend. The MACD of 1.14 indicates Positive momentum. The RSI at 65.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAL.
Halliburton Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $58.39B | 22.31 | 14.42% | 2.04% | 1.51% | 30.09% | |
76 Outperform | $22.87B | 25.70 | 28.72% | 0.44% | 11.73% | 45.70% | |
75 Outperform | $24.64B | 12.42 | 11.69% | 4.43% | -9.76% | -18.94% | |
73 Outperform | $76.79B | 21.19 | 14.28% | 2.98% | -2.13% | -16.76% | |
72 Outperform | $7.07B | 18.75 | 5.93% | 3.24% | -1.43% | -63.13% | |
66 Neutral | $28.90B | 22.52 | 12.24% | 2.41% | -4.06% | -47.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
HAL
Halliburton
34.34
9.60
38.80%
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Halliburton Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Halliburton Reports Strong Q4 2025 Results, Highlights Technology Initiatives
Positive
Jan 21, 2026
On January 21, 2026, Halliburton reported strong fourth-quarter 2025 results, with net income surging to $589 million, or $0.70 per diluted share, compared with $18 million in the previous quarter, and adjusted net income of $576 million, or $0.69 per share. Quarterly revenue edged up to $5.7 billion, operating income more than doubled sequentially to $746 million, and adjusted operating margin reached 15%, supported by robust international performance, particularly in Europe/Africa/CIS and Latin America, even as North America revenue declined 7% on weaker stimulation activity. For full-year 2025, revenue slipped to $22.2 billion from $22.9 billion in 2024 and adjusted operating income fell to $3.1 billion from $3.9 billion, but the company generated $1.2 billion in operating cash flow and $875 million in free cash flow, returning 85% of free cash flow to shareholders through $1 billion in share repurchases and dividends while also retiring $382 million of debt. Segment results showed flat revenue but higher operating income in both Completion and Production and Drilling and Evaluation, driven by improved activity mix and higher completion tool, wireline, and software sales across key regions. Halliburton also highlighted strategic and technological initiatives, including a collaboration with VoltaGrid to deliver distributed natural gas power solutions for data centers, a framework agreement with Shell for its ROCS umbilical-less control technology, the launch of the StreamStar wired drill pipe interface system and LOGIX unit vitality cementing automation, and an Integrated Drilling Services contract offshore Nigeria, underscoring its emphasis on technology-led growth and international expansion.
The most recent analyst rating on (HAL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Halliburton stock, see the HAL Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Halliburton Appoints Maxwell Western Hemisphere President
Positive
Jan 14, 2026
On January 13, 2026, Halliburton’s board appointed Casey (Michael Casey) Maxwell as president, Western Hemisphere, effective February 1, 2026, succeeding Mark Richard, who will become senior advisor to chairman, president, and CEO Jeff Miller. Maxwell, 44, has spent about 20 years at Halliburton in progressively senior roles across North America and Argentina, most recently as senior vice president, North America Land, and his new role is backed by an executive employment agreement that aligns his compensation and benefits with those of other top executives, underscoring the company’s emphasis on experienced internal leadership to steer its Western Hemisphere operations and customer relationships.
The most recent analyst rating on (HAL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Halliburton stock, see the HAL Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Halliburton Appoints New COO Amid Leadership Changes
Neutral
Dec 4, 2025
On December 3, 2025, Halliburton announced the appointment of Jeffrey Shannon Slocum as Executive Vice President and Chief Operating Officer, effective January 1, 2026. Slocum, who has been with Halliburton since 2005, will also join the company’s board of directors, expanding it from 12 to 13 members. His extensive experience in global operations and business development is expected to bolster Halliburton’s strategic execution and operational efficiency. Concurrently, Rami Yassine will take over as President of the Eastern Hemisphere, succeeding Slocum. These leadership changes are part of Halliburton’s strategy to enhance its global operations and maintain its competitive edge in the energy sector.
The most recent analyst rating on (HAL) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Halliburton stock, see the HAL Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Halliburton Appoints Timothy Leach to Board of Directors
Positive
Dec 2, 2025
On December 2, 2025, Halliburton announced the appointment of Timothy A. Leach to its board of directors, expanding the board from 11 to 12 members. Mr. Leach, who retired from ConocoPhillips in August 2025 after a 40-year career in the oil and gas industry, brings extensive experience in upstream operations and corporate governance. His leadership background is expected to enhance Halliburton’s strategic planning and value delivery to customers and shareholders.
The most recent analyst rating on (HAL) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Halliburton stock, see the HAL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.