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1. Company Snapshot

1.a. Company Description

Halliburton 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.

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1.b. Last Insights on HAL

Halliburton's recent performance was driven by strong Q3 earnings, beating estimates with $0.58 per share. The company's product performance and new VoltaGrid partnership fueled an 11% surge. Analysts raised forecasts, citing improved cost efficiency. A "Moderate Buy" rating from 24 research firms, with 16 issuing a buy rating, supports growth prospects. Additionally, Fisher Asset Management LLC increased its position by 5.0%, indicating confidence in the company's outlook.

1.c. Company Highlights

2. Halliburton's Q4 2025 Earnings: A Strong Performance Amidst a Challenging Environment

Halliburton's fourth-quarter 2025 financial performance was impressive, with the company reporting total revenue of $5.7 billion, flat compared to Q3 2025. The company's adjusted net income per diluted share was 69¢, beating estimates of 54¢. For the full year 2025, Halliburton reported total revenue of $22.2 billion and an adjusted operating margin of 14%. The company's earnings per share (EPS) came in at 70¢, with adjusted EPS at 69¢. Halliburton's financial performance was driven by stronger activity and solid execution in North America and international completion and production businesses.

Publication Date: Jan -22

📋 Highlights
  • 2025 Revenue and Margin Performance:: Halliburton reported total revenue of $22.2 billion and an adjusted operating margin of 14% for 2025, with $2.9 billion in cash flow from operations and $1.9 billion in free cash flow.
  • 2026 Revenue Outlook:: North America revenue is expected to decline high single digits in 2026, while international revenue is projected to remain flat to modestly up, with EBITDA guidance of $4 billion.
  • International Growth Drivers:: Latin America (Brazil, Argentina, Guyana) and West Africa are key growth regions, alongside $400 megawatts committed to VoltaGrid technology, signaling expansion in power markets.
  • Financial Priorities and Stock Buybacks:: The company repurchased $1 billion of common stock in 2025 and aims to balance returns over market share in North America, leveraging differentiated technologies for margin improvement.
  • Venezuela Market Potential:: Halliburton sees a rapid revenue rebound in Venezuela, citing existing infrastructure and operator relationships, though commercial and legal terms must be resolved first.

Segmental Performance

International revenue was $13.1 billion, down 2% year-over-year, while North America revenue was $9.1 billion, a decrease of 6% year-over-year. The company's international business is strong, with a collaborative value proposition that is winning, and technology delivering results. Halliburton expects growth in unconventional development drilling, intervention, and artificial lift.

Outlook for 2026

For 2026, Halliburton expects a rebalancing year with moderate softness in some key markets, particularly North America, and stable international activity. The company anticipates North America revenue to decline high single digits compared to 2025. International revenue is expected to be flat to up modestly. Halliburton is optimistic about its growth prospects, driven by its value proposition, technology, and growth engines.

Valuation and Growth Prospects

Halliburton's current valuation metrics indicate a reasonable price for the stock. The company's P/E Ratio is 21.82, P/B Ratio is 2.66, and EV/EBITDA is 11.32. Analysts estimate next year's revenue growth at 4.1%. The company's free cash flow yield is 5.88%, indicating a decent return for investors. Halliburton's ROIC is 9.83%, and ROE is 12.34%, indicating a relatively efficient use of capital.

Growth Drivers

Halliburton's growth drivers include its international business, particularly in Latin America, where the company expects growth in Brazil, Argentina, Ecuador, and Guyana. The company's power markets business, including its investment in VoltaGrid, is also expected to grow, particularly in the Middle East. Halliburton is working on emerging technologies like lightweight proppant and surfactants, which could be needle movers for the company.

Challenges and Opportunities

The US land market is at maintenance levels, but Halliburton expects technology to drive better recovery. The company's drilling services business is strengthening, driven by technology such as its Logix automation platform. Halliburton is waiting for commercial and legal terms to be resolved in Venezuela before growing its business, but the company can mobilize quickly once these conditions are met.

3. NewsRoom

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Halliburton Lands Major Indonesia Deal To Revive Aging Oil Fields

10:05

Source: feeds.benzinga.com

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Pertamina and Halliburton Sign an Integrated Unconventional Fracturing MOU in Indonesia

Feb -22

Source: businesswire.com

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Halliburton (NYSE:HAL) Stock Unloaded Rep. Gilbert Ray Cisneros, Jr.

Feb -22

Source: defenseworld.net

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135,800 Shares in Halliburton Company $HAL Purchased by Alberta Investment Management Corp

Feb -20

Source: defenseworld.net

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Halliburton (NYSE:HAL) Hits New 1-Year High After Dividend Announcement

Feb -20

Source: defenseworld.net

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Why Halliburton Looks Fully Priced After a 65% Run in 6 Months

Feb -19

Source: zacks.com

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Halliburton Announces Dividend

Feb -18

Source: businesswire.com

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Halliburton Unveils XTR CS Injection Valve for CCUS Wells

Feb -16

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.60%)

6. Segments

Completion and Production

Expected Growth: 1.8%

The Completion and Production segment is expected to grow at a rate slightly higher than the global average, driven by increasing demand for efficient completion and production operations. The segment's diverse offerings and strong presence in major markets will likely contribute to its growth. As operators continue to focus on optimizing production, Halliburton's Completion and Production segment is well-positioned to benefit. Its commitment to innovation and customer satisfaction will also drive growth.

Drilling and Evaluation

Expected Growth: 1.4%

The Drilling and Evaluation segment is expected to grow at a rate slightly lower than the global average, driven by a more cautious approach to drilling and evaluation activities. While the segment's diverse offerings and strong presence in major markets will continue to support its business, the slower growth rate is expected due to potential fluctuations in drilling activity. However, Halliburton's commitment to innovation and customer satisfaction will help the segment remain competitive.

7. Detailed Products

Drilling and Formation Evaluation

Provides drilling services, including directional drilling, logging-while-drilling, and measurement-while-drilling, to help operators optimize well placement and improve drilling efficiency.

Well Construction

Offers a range of services, including cementing, casing and tubing, and completion systems, to help operators construct and complete wells efficiently and effectively.

Well Intervention

Provides a range of services, including coiled tubing, wireline, and stimulation, to help operators optimize well performance and extend the life of their wells.

Production Enhancement

Offers a range of services, including artificial lift, production optimization, and sand control, to help operators maximize oil and gas production.

Project Management

Provides project management services to help operators plan, execute, and deliver complex oil and gas projects on time and within budget.

Landmark Software and Services

Offers a range of software and services, including exploration and production software, data management, and consulting services, to help operators optimize their operations.

8. Halliburton Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Halliburton's services are specialized and require significant expertise, making it difficult for substitutes to emerge. However, the increasing trend of digitalization and automation in the oil and gas industry may lead to the development of new technologies that could potentially substitute some of Halliburton's services.

Bargaining Power Of Customers

Halliburton's customers are primarily large oil and gas companies, which have limited bargaining power due to their dependence on Halliburton's specialized services. Additionally, the complexity of Halliburton's services makes it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Halliburton relies on a diverse range of suppliers for equipment, materials, and services. While some suppliers may have significant bargaining power due to their specialized products or services, Halliburton's large scale and diversified supply chain mitigate the overall bargaining power of suppliers.

Threat Of New Entrants

The oil and gas industry is highly capital-intensive, and new entrants would require significant investment to establish themselves. Additionally, Halliburton's established relationships with customers, expertise, and proprietary technology create significant barriers to entry for new competitors.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with several established players competing for market share. Halliburton faces intense competition from companies such as Schlumberger, Baker Hughes, and Weatherford, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.40%
Debt Cost 8.29%
Equity Weight 51.60%
Equity Cost 14.06%
WACC 11.27%
Leverage 93.80%

11. Quality Control: Halliburton Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Kinder Morgan

A-Score: 6.2/10

Value: 3.9

Growth: 3.6

Quality: 5.3

Yield: 9.0

Momentum: 6.0

Volatility: 9.7

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ConocoPhillips

A-Score: 6.0/10

Value: 7.0

Growth: 5.0

Quality: 6.7

Yield: 7.0

Momentum: 2.5

Volatility: 7.7

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Baker Hughes

A-Score: 5.7/10

Value: 5.1

Growth: 4.2

Quality: 6.1

Yield: 4.0

Momentum: 8.0

Volatility: 7.0

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Phillips 66

A-Score: 5.7/10

Value: 4.8

Growth: 4.1

Quality: 3.7

Yield: 8.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

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Schlumberger

A-Score: 5.3/10

Value: 5.6

Growth: 4.9

Quality: 6.0

Yield: 5.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

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Halliburton

A-Score: 5.0/10

Value: 5.5

Growth: 5.2

Quality: 4.8

Yield: 5.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.35$

Current Price

35.35$

Potential

-0.00%

Expected Cash-Flows