NYSE:HAL
HALLIBURTON CO
A premier global energy services firm delivering comprehensive drilling, completion, and production technologies to upstream oil and gas operators worldwide.
Key Metrics
Investment Thesis
Bull Case
Halliburton offers exposure to the essential infrastructure of global energy production with a strong historical track record of capital returns via buybacks and dividends. The company's diversified portfolio across drilling and completion services provides stability against cyclical downturns in specific sub-sectors, supported by a robust cash position that allows for strategic acquisitions.
Bear Case
The sharp decline in net income from 2024 to 2025 raises concerns about the sustainability of current earnings quality and margin resilience. High levels of total liabilities ($14.51B) relative to equity ($10.51B) alongside significant accumulated other comprehensive losses suggest potential balance sheet fragility during a prolonged period of low oil prices.
About HALLIBURTON CO
Halliburton Company is a leading provider of energy services to the global oil and gas industry, offering drilling, completion, and production enhancement solutions. The company serves operators in onshore and offshore markets across North America, Europe, Asia, and the Middle East through its core segments including Drilling & Production Services, Completion Services, and Integrated Well Services.
Analysis
Management Discussion
While revenue remained relatively stable at $22.18B compared to the prior year, net income declined significantly from $2.52B in 2024 to $1.29B in 2025, indicating potential margin compression or non-operating headwinds. The company returned substantial capital to shareholders through $1.01B in repurchases and $579M in dividends, yet cash flow from financing was negative due to these outflows combined with significant debt repayments ($389M).
Industry Overview
The energy services industry is cyclical, closely tied to capital expenditure budgets in the upstream oil and gas sector which fluctuate with crude oil prices and geopolitical events. Companies in this space are currently navigating a transition toward lower-carbon solutions while maintaining efficiency in traditional hydrocarbon extraction methods.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $20.30B | $23.02B | $22.94B | $22.18B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $20.30B | $23.02B | $22.94B | $22.18B |
| Operating Expenses | $17.59B | $18.93B | $19.12B | $19.92B |
| Operating Income | $2.71B | $4.08B | $3.82B | $2.26B |
| R&D | $345.0M | $408.0M | $426.0M | $411.0M |
| G&A | $240.0M | $226.0M | $239.0M | $239.0M |
| D&A | $940.0M | $998.0M | $1.08B | $1.14B |
| Other OpEx | $17.00B | $18.30B | $18.46B | $19.27B |
| Non-Operating Income | $-597.0M | $-720.0M | $-588.0M | $-489.0M |
| Interest Income | $117.0M | $81.0M | $97.0M | $88.0M |
| Pre-Tax Income | $2.11B | $3.36B | $3.23B | $1.77B |
| Income Tax | $515.0M | $701.0M | $718.0M | $479.0M |
| Continuing Ops | $1.59B | $2.66B | $2.52B | $1.29B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.59B | $2.66B | $2.52B | $1.29B |
| Minority Interest | $23.0M | $24.0M | $15.0M | $9.0M |
| Net to Common | $1.57B | $2.64B | $2.50B | $1.28B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $10.95B | $11.54B | $12.38B | $11.40B |
| Cash & Equivalents | $2.35B | $2.26B | $2.62B | $2.21B |
| Inventory | $2.92B | $3.23B | $3.04B | $2.98B |
| Other Current Assets | $5.68B | $6.05B | $6.72B | $6.22B |
| Long-Term Assets | $12.30B | $13.14B | $13.21B | $13.61B |
| PP&E (Net) | $4.35B | $4.90B | $5.11B | $5.26B |
| Goodwill | $2.83B | $2.85B | $2.84B | $2.94B |
| Operating Leases | $913.0M | $1.09B | $1.02B | $938.0M |
| Other LT Assets | $4.21B | $4.30B | $4.23B | $4.47B |
| Total Assets | $23.25B | $24.68B | $25.59B | $25.01B |
| Current Liabilities | $5.34B | $5.61B | $6.05B | $5.59B |
| Accounts Payable | $3.12B | $3.15B | $3.19B | $3.13B |
| Current Debt | — | — | $381.0M | $0 |
| Current Leases | $224.0M | $262.0M | $263.0M | $263.0M |
| Taxes Payable | $294.0M | $390.0M | $449.0M | $375.0M |
| Other Current Liab | $1.71B | $1.81B | $1.77B | $1.82B |
| Long-Term Liabilities | $9.93B | $9.64B | $8.99B | $8.92B |
| Long-Term Debt | $7.93B | — | $7.54B | $7.16B |
| LT Operating Leases | $791.0M | $911.0M | $798.0M | $712.0M |
| Other LT Liab | $1.21B | $8.73B | $650.0M | $1.05B |
| Total Liabilities | $15.28B | $15.25B | $15.04B | $14.51B |
| Shareholders' Equity | $7.98B | $9.43B | $10.55B | $10.51B |
| Retained Earnings | $10.57B | $12.54B | $14.33B | $15.04B |
| AOCI | $-230.0M | $-331.0M | $-353.0M | $-363.0M |
| Treasury Stock | $5.11B | $5.54B | $6.21B | $6.98B |
| Total L&E | $23.25B | $24.68B | $25.59B | $25.01B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.59B | $2.66B | $2.52B | $1.29B |
| Non-Cash Adjustments | $-2.00B | $187.0M | $1.12B | $1.97B |
| Working Capital Changes | $2.65B | $609.0M | $227.0M | $-340.0M |
| Cash from Operations | $2.24B | $3.46B | $3.87B | $2.93B |
| Cash from Investing | $-967.0M | $-1.66B | $-1.65B | $-1.32B |
| Debt Issuances | $0 | — | — | — |
| Debt Repayments | $1.24B | $305.0M | $100.0M | $389.0M |
| Share Buybacks | $250.0M | $800.0M | $1.00B | $1.01B |
| Dividends Paid | $435.0M | $576.0M | $600.0M | $579.0M |
| Cash from Financing | $-1.80B | $-1.67B | $-1.73B | $-1.99B |
| FX Effect | $-175.0M | $-210.0M | $-127.0M | $-26.0M |
| Net Change in Cash | $-698.0M | $-82.0M | $354.0M | $-412.0M |
| Beginning Cash | $3.04B | $2.35B | $2.26B | $2.62B |
| Ending Cash | $2.35B | $2.26B | $2.62B | $2.21B |
Frequently Asked Questions
How does HALLIBURTON CO make money?
The company's revenue is driven by three primary segments: Drilling & Production Services (DPS) which covers rig construction and operational support; Completion Services (CS) focused on well stimulation and reservoir management; and Integrated Well Services (IWS) providing end-to-well solutions. Additionally, the financial data reflects significant goodwill assets ($2.94B) suggesting a portfolio of acquired specialized technology firms and strong balance sheet liquidity ($2.21B cash).
What are the main risks for HAL?
Profitability is highly sensitive to volatile commodity prices which can lead to rapid demand fluctuations in the energy services sector. Regulatory changes regarding hydraulic fracturing or environmental standards could impact operational costs and project approvals. The company faces intense competition from both traditional service companies and emerging digital-native competitors offering lower-cost alternatives.
What is HAL's competitive advantage?
Halliburton possesses deep proprietary technology in well stimulation and reservoir modeling that reduces operational risk for clients. The company benefits from high barriers to entry due to its extensive global rig fleet, specialized engineering expertise, and a diversified customer base across multiple geological plays.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.