Halliburton Company is one of the world's largest providers of products and services to the energy industry, operating in more than 70 countries with over 46,000 employees representing 146 nationalities. The company serves major, national, and independent oil and natural gas producers worldwide, and its business is organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. The industries served are highly competitive, with competitive factors including price, service delivery, health safety and environmental standards, service quality, global talent retention, understanding geological characteristics, product quality, and technical proficiency. In 2025, 39% of consolidated revenue was from the United States, and no other country accounted for more than 10% of consolidated revenue during the periods presented.

Halliburton describes itself as one of the world's largest diversified energy services companies. The filing names no specific competitors but states the industries served are highly competitive with many substantial competitors in each segment of the business. The company's competitive advantages include its global scale, technology portfolio, and culture of service to major, national, and independent oil and natural gas producers. The company's value proposition is to collaborate and engineer solutions to maximize asset value for customers, and it strives to achieve strong cash flows and returns for shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production.

Halliburton generates revenue from the sale of services and products to the energy industry, with no single customer representing more than 10% of consolidated revenue in any period presented. Revenue is split between services and product sales, with services revenue of $15.729 billion ¹ and product sales of $6.455 billion ² in 2025. The company operates under two divisions that form the basis for its two operating segments: Completion and Production and Drilling and Evaluation. Revenue is transactional in nature, driven by customer spending on upstream exploration, development, and production programs, and is significantly impacted by oil and natural gas prices and worldwide rig activity.

The Completion and Production segment delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. Its product service lines include Artificial Lift, Cementing, Completion Tools, Multi-Chem, Pipeline & Process Services, Production Enhancement, and Production Solutions. In 2025, the segment generated revenue of $12.782 billion ³ and operating income of $2.128 billion ⁴, with an operating margin of 17% ⁵. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore placement solutions, with product service lines including Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating. In 2025, the segment generated revenue of $9.402 billion ⁶ and operating income of $1.379 billion ⁷, with an operating margin of 15% ⁸.

The Completion and Production segment's revenue decreased 4% ⁹ in 2025 compared to 2024, driven by decreased pressure pumping services in U.S. Land, lower completion tool sales in the Western Hemisphere, the Middle East, and Africa, and decreased well intervention services in Middle East/Asia, partially offset by higher year-end completion tool sales in Europe and increased well intervention services in Latin America. The Drilling and Evaluation segment's revenue decreased 3% ¹⁰ in 2025 compared to 2024, driven by lower drilling activity in the Middle East and Latin America, lower wireline activity in Middle East/Asia, and decreased testing services internationally, partially offset by improved fluids services and higher project management activity in Latin America and increased drilling activity in Europe/Africa.

During 2025, Halliburton retired $382 million ¹¹ of its 3.8% senior notes due November 2025. The company returned $1.6 billion ¹² of capital to shareholders through dividends and share repurchases, repurchasing 42.4 million ¹³ shares of common stock for $1.0 billion ¹⁴. The company paid $579 million ¹⁵ of dividends to shareholders, with a quarterly dividend rate of $0.17 ¹⁶ per common share. Halliburton continued progress toward a sustainable energy future by maintaining Halliburton Labs' 38 ¹⁷ participant and alumni organizations and achieving the milestone of 50% ¹⁸ of its North American fracturing fleet transitioned to Zeus electric pumps. The company also made a strategic decision to market for sale a portion of its chemical business, expecting the sale to be completed in the first half of 2026.

Total company revenue in 2025 was $22.184 billion ¹⁹, a 3% decrease from $22.944 billion ²⁰ in 2024. International revenue decreased 2% ²¹ and North America revenue decreased 6% ²² in 2025 compared to 2024. Total company operating income was $2.260 billion ²³, including impairments and other charges of $831 million ²⁴, compared to $3.822 billion ²⁵, including impairment and other charges of $116 million ²⁶, in 2024. Net income attributable to the company was $1.283 billion ²⁷ in 2025, compared to $2.501 billion ²⁸ in 2024. Diluted net income per share was $1.50 ²⁹ in 2025 versus $2.83 ³⁰ in 2024. Cash flows from operations were $2.9 billion ³¹ in 2025.

Halliburton provided specific guidance for 2026 capital expenditures of approximately $1.1 billion ³². The company stated its goal to return over 50% ³³ of annual free cash flow to shareholders through dividends and share repurchases. Management expects international activity to be stable year over year, with revenue to be flat to up modestly, led by Latin America. The company anticipates moderate softness in North America and expects revenue to decline year over year compared to 2025, reflecting the full year impact of reduced customer activity in land operations, the decision to stack uneconomic fleets, and the timing of customer programs in the Gulf of America.

Halliburton's international growth strategy focuses on consistently increasing growth in directional drilling, unconventionals, well intervention, and artificial lift businesses. The company has secured manufacturing capacity for 400 megawatts ³⁴ of modular natural gas power systems for delivery in 2028 to support the development of data centers in the Eastern Hemisphere through its strategic collaboration with VoltaGrid. The company also plans to develop its strategic collaboration with VoltaGrid around behind-the-meter power generation. In North America, the company aims to maximize value by utilizing its Zeus IQ electric fracturing platform, iCruise rotary steerable systems, and LOGIX automation. The company continues to monitor developments in Venezuela and plans to grow its business once commercial and legal terms are resolved, including payment certainty.

Halliburton's digital growth vector focuses on continuing to drive differentiation and efficiencies through the deployment of digital and automation technologies, both internally and for customers. The company's Landmark Software and Services provides cloud-based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management. The company expects that increased oil and natural gas production requirements will create demand for its products and services, and believes the combination of long-cycle international investments and emerging structural demand for natural gas, driven by data centers, electrification, and power reliability, positions the business for growth opportunities over the medium and long term.

Halliburton's capital expenditures were approximately 6% ³⁵ of revenue in 2025, which matched the company's target. The company expects capital spending for 2026 to be approximately $1.1 billion ³⁶, which management believes will enable continued investment in core strategic technologies and businesses, including the international expansion of artificial lift, well intervention, unconventionals, and drilling technologies. The company will continue to maintain capital discipline and monitor rapidly changing market dynamics, and may adjust capital spend accordingly. Due to new tariffs imposed during 2025 by the United States, the incremental expense was approximately $89 million ³⁷.

Halliburton manufactures most of its own equipment, which provides flexibility to increase or decrease capital expenditures based on market conditions. The company began its migration to SAP S4 in 2023, which it expects to complete in the fourth quarter of 2026. During 2025, the company incurred $154 million ³⁸ in expense on its SAP S4 migration, and due to the extension of the project announced in the second quarter of 2025, the estimated total cost will be approximately $45 million ³⁹ per quarter going forward. The company believes the new system will provide important efficiency benefits, cost savings, enhanced visibility to operations, and advanced analytics. As of December 31, 2025, the company employed over 46,000 people worldwide, with approximately 22% ⁴⁰ of employees subject to collective bargaining agreements.

Halliburton's capital allocation framework includes a goal of returning at least 50% ⁴¹ of annual free cash flow to shareholders through dividends and share repurchases. The company's Board of Directors has authorized a program to repurchase common stock, with approximately $2.0 billion ⁴² remaining authorized for repurchases as of December 31, 2025. The company repurchased 42.4 million ⁴³ shares of common stock during 2025 under this program. The quarterly dividend rate was $0.17 ⁴⁴ per common share, or approximately $145 million ⁴⁵ in aggregate. The company expects to pay approximately $505 million ⁴⁶ for contractual purchase obligations in 2026, with another $315 million ⁴⁷ due through 2028, $378 million ⁴⁸ of interest on debt, and $418 million ⁴⁹ under leasing arrangements.

Halliburton faces headwinds from lower commodity pricing and declining rig counts. The West Texas Intermediate crude oil price averaged approximately $65 ⁵⁰ per barrel for the full year of 2025, and the Brent crude oil price averaged approximately $69 ⁵¹ per barrel. The average U.S. Land rig count was 546 ⁵² in 2025 compared to 580 ⁵³ in 2024, and the international rig count was 1,080 ⁵⁴ in 2025 compared to 1,162 ⁵⁵ in 2024. The company expects commodity prices are unlikely to rise absent geo-political disruptions. Trade tensions and tariffs continue to shape the demand outlook, and the company continues to monitor and assess the impact of tariffs on goods being imported into the United States.

Halliburton faces constraints from extended supply chain lead times for the supply of select raw materials and inflationary cost increases primarily related to chemicals, cement, and logistics costs. The company generally tries to pass much of those increases on to customers. The company may face challenges to source sufficient electric power or adequate infrastructure to support the operation of its Zeus electric fracturing systems. The company also faces risks from foreign currency exchange rate fluctuations, with a hypothetical 10% adverse change in the value of all foreign currency positions relative to the U.S. dollar as of December 31, 2025 potentially resulting in an $81 million ⁵⁶ pre-tax loss for net monetary assets denominated in currencies other than U.S. dollars.

Management's tone in the 2025 Highlights and 2026 Focus sections is forward-looking and strategic, emphasizing capital discipline, shareholder returns, and technology-driven growth. Key forward-looking statements include the expectation that international activity will be stable year over year with revenue flat to up modestly led by Latin America, and that North America revenue will decline year over year compared to 2025. Management stated the goal to return over 50% ⁶² of annual free cash flow to shareholders through dividends and share repurchases, and to maintain capital expenditures at about $1.1 billion ⁶³. The three strategic priorities emphasized for the period ahead are: consistently increasing international growth in directional drilling, unconventionals, well intervention, and artificial lift businesses; maximizing value in North America through the Zeus IQ electric fracturing platform, iCruise rotary steerable systems, and LOGIX automation; and continuing to drive differentiation and efficiencies through the deployment of digital and automation technologies.

Total revenue was $22.184 billion ⁶⁴ in 2025, compared to $22.944 billion ⁶⁵ in 2024, a decrease of 3% ⁶⁶. Net income attributable to the company was $1.283 billion ⁶⁷ in 2025, compared to $2.501 billion ⁶⁸ in 2024. Diluted net income per share was $1.50 ⁶⁹ in 2025 versus $2.83 ⁷⁰ in 2024. Total operating income was $2.260 billion ⁷¹ in 2025, including impairments and other charges of $831 million ⁷², compared to $3.822 billion ⁷³ in 2024, including impairment and other charges of $116 million ⁷⁴. The impairments and other charges in 2025 were primarily related to severance costs, an impairment of assets held for sale, fixed and other assets write-offs, an impairment of facility closures and lease terminations, an equity in earnings loss, and other items primarily related to legacy environmental remediation cost estimate increases. Cash flows from operations were $2.9 billion ⁷⁵ in 2025. Capital expenditures were $1.3 billion ⁷⁶ in 2025. The company had $2.206 billion ⁷⁷ of cash and equivalents as of December 31, 2025, compared to $2.618 billion ⁷⁸ as of December 31, 2024. Total debt was $7.158 billion ⁷⁹ as of December 31, 2025, compared to $7.541 billion ⁸⁰ as of December 31, 2024 (including current maturities). The Completion and Production segment reported operating income of $2.128 billion ⁸¹ on revenue of $12.782 billion ⁸², and the Drilling and Evaluation segment reported operating income of $1.379 billion ⁸³ on revenue of $9.402 billion ⁸⁴. The income tax provision was $479 million ⁸⁵ on pre-tax income of $1.771 billion ⁸⁶, resulting in an effective tax rate of 27.0% ⁸⁷, which was impacted by a $125 million ⁸⁸ additional valuation allowance on deferred tax assets due to the One Big Beautiful Bill Act and an $86 million ⁸⁹ discrete tax benefit from the Foreign-Derived Intangible Income deduction attributable to a royalty prepayment.

Halliburton's business is highly sensitive to trends in oil and natural gas prices, which directly affect customer exploration, development, and production activity and capital spending. The company faces material risk from the IRS Notice of Proposed Adjustment reclassifying approximately 95% ⁵⁷ of the $3.5 billion ⁵⁸ termination fee paid to Baker Hughes in 2016 from an ordinary expense deduction to a capital loss, which could result in cash taxes due of approximately $640 million ⁵⁹ plus interest if the IRS position prevails. The company has significant exposure to foreign currency and repatriation risks, particularly in Argentina where currency controls limit access to U.S. dollars, and the allowance for credit losses of $805 million ⁶⁰ as of December 31, 2025 is primarily comprised of accounts receivable from the primary customer in Venezuela. The company also faces material risk from cybersecurity incidents, having previously disclosed a material incident in 2024 that caused disruptions and required significant costs and management attention. Additionally, the company is subject to risks from tariffs and trade policies, with incremental expense of approximately $89 million ⁶¹ from new tariffs imposed during 2025.