Halliburton Company (HAL) | Investment Case

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 stronger-than-expected Q3 earnings, with quarterly earnings of $0.58 per share beating the Zacks Consensus Estimate. The company's improved cost efficiency and execution also contributed to the positive results. A new VoltaGrid partnership and strong product performance were key factors. Despite North American market weakness, international growth and innovative Zeus frac pumps provide long-term catalysts. The company's leaner spending strategy targets higher returns. Analysts raised their forecasts following the better-than-expected earnings report.

1.c. Company Highlights

Last Price	28.45
Change Percentage	2.23%
Open	27.89
Previous Close	27.83
Market Cap ( Millions)	24495
Volume	11691095
Year High	30.4
Year Low	18.72
M A 50	25.63
M A 200	23.04

FCF Yield	7.65%
Dividend Yield	2.39%
ROE	12.59%
Debt / Equity	83.97%
Net Debt / EBIDTA	188.61%
Price To Book	2.39
Price Earnings Ratio	18.63
Price To FCF	13.07
Price To sales	1.11
EV / EBITDA	8.95

2. Halliburton Posts Resilient Q2 Results Amid Mixed Market Conditions

Halliburton delivered a steady financial performance in the second quarter of 2025, with revenue rising 2% sequentially to $5.5 billion. The company reported net income per diluted share of $0.55, aligning with analyst estimates. Operating income reached $727 million, with a healthy operating margin of 13%. Cash flow from operations was robust at $896 million, while free cash flow came in at $582 million. The company also returned $250 million to shareholders through stock repurchases, underscoring its commitment to capital returns.

Publication Date: Jul -23

                                    📋 Highlights
                                    Revenue Growth:
                                                Halliburton's Q2 2025 revenue reached $5.5 billion, a 2% increase from Q1, driven by international markets.
Profitability:
                                                Net income per diluted share was $0.55, with operating income of $727 million and a 13% operating margin.
Cash Flow:
                                                Generated $896 million in cash flow from operations and $582 million in free cash flow, with $250 million returned to shareholders through buybacks.
International Outlook:
                                                International revenue grew 2% sequentially to $3.3 billion, but 2025 revenue is expected to contract mid-single digits due to reduced activity in Saudi Arabia and Mexico.
North America Challenges:
                                                North America revenue was flat at $2.3 billion, with expectations of a low double-digit decline in the second half of 2025 due to lower activity.

                                

International Markets Show Mixed Trends

Halliburton's international revenue grew 2% sequentially to $3.3 billion, driven by strong activity in Latin America and Europe, Africa, though partially offset by reduced activity in Saudi Arabia. Management flagged expectations for international revenue to contract by mid-single digits year-over-year in 2025, primarily due to softer activity in Saudi Arabia and Mexico. However, Brazil and Norway are poised for growth, with the company highlighting its artificial lift business, which is expected to grow over 20% this year. CEO Jeffrey Miller emphasized, "Our international artificial lift business continues to be a bright spot, driven by technology adoption in conventional wells."

North America Faces Headwinds

In North America, revenue remained flat at $2.3 billion compared to the first quarter. The company anticipates a low double-digit decline in full-year North America revenue, reflecting lower drilling and completion activity. Halliburton is proactively addressing near-term softness by idling uneconomic equipment, reducing costs, and prioritizing free cash flow. This strategic focus is critical as the region navigates a challenging environment.

Valuation Reflects Balancing Act

At current levels, Halliburton trades at a P/E ratio of 8.06 and an EV/EBITDA of 8.27, reflecting a balanced view of its growth prospects and operational resilience. The stock's dividend yield of 3.11% and free cash flow yield of 11.43% highlight its attractive income characteristics. While near-term challenges persist, the company's ability to generate strong free cash flow and its disciplined capital allocation suggest it is well-positioned to navigate the cyclical downturn.

3. NewsRoom

Halliburton (HAL) Surpasses Market Returns: Some Facts Worth Knowing

Dec -04

Source:

Halliburton Appoints Shannon Slocum as Executive Vice President and Chief Operating Officer

Dec -04

Source: businesswire.com

Fisher Asset Management LLC Boosts Position in Halliburton Company $HAL

Dec -04

Source: defenseworld.net

Halliburton Appoints Timothy A. Leach to Board of Directors

Dec -02

Source: businesswire.com

Cash Dividend On The Way From Halliburton

Dec -01

Source: forbes.com

Halliburton Announces Dividend

Nov -19

Source: businesswire.com

Halliburton Company $HAL Shares Bought by Banco Bilbao Vizcaya Argentaria S.A.

Nov -16

Source: defenseworld.net

Arcadia Investment Management Corp MI Has $810,000 Stock Holdings in Halliburton Company $HAL

Nov -15

Source: defenseworld.net

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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Kinder Morgan

A-Score: 6.4/10

Value: 4.0

Growth: 3.6

Quality: 5.2

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

Baker Hughes

A-Score: 5.9/10

Value: 4.8

Growth: 4.3

Quality: 6.2

Yield: 5.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

ConocoPhillips

A-Score: 5.6/10

Value: 6.0

Growth: 5.1

Quality: 6.5

Yield: 6.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

Phillips 66

A-Score: 5.1/10

Value: 4.2

Growth: 4.2

Quality: 3.1

Yield: 7.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

Schlumberger

A-Score: 5.0/10

Value: 5.5

Growth: 4.9

Quality: 6.0

Yield: 5.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

Halliburton

A-Score: 4.5/10

Value: 5.5

Growth: 5.2

Quality: 4.9

Yield: 4.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.79%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.27%

Halliburton Company - US4062161017

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on HAL

1.c. Company Highlights

Medium Volatility

Fairly Valued

Average Growth

Earnings Beats

Revenues Beats

Revenues Miss

Stable Momentum

Earnings Miss

Average Quality

Average Yield

Weak Momentum

2. Halliburton Posts Resilient Q2 Results Amid Mixed Market Conditions

International Markets Show Mixed Trends

North America Faces Headwinds

Valuation Reflects Balancing Act

3. NewsRoom

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%

Drilling and Evaluation

Expected Growth: 1.4%

7. Detailed Products

Drilling and Formation Evaluation

Well Construction

Well Intervention

Production Enhancement

Project Management

Landmark Software and Services

8. Halliburton Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

28.45$

Current Price

28.45$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA