Halliburton Beats on Q3 Earnings, Trims 2026 Capex Plan

Halliburton Company (HAL) reported third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives.However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in the North American region.Revenues of $5.6 billion declined 1.7% year over year but beat the Zacks Consensus Estimate by 4%.Halliburton Company Price, Consensus and EPS Surprise Halliburton Company price-consensus-eps-surprise-chart | Halliburton Company QuoteInside Halliburton’s Regions & SegmentsNorth American revenues edged down 0.9% year over year to $2.4 billion but beat our projection by more than $246 million. Revenues from Halliburton’s international operations decreased 2.3% from the year-ago period to $3.2 billion and fell short of our estimate of $3.3 billion.The Completion and Production segment earned $514 million in operating income, lower than last year’s $669 million but topped our estimate of $449.5 million. The year-over-year decline was due to weaker completion tool demand overseas, reduced well intervention work in the Middle East and Asia, and lower cementing activity in North America. Additionally, fewer active rigs in Saudi Arabia weighed on operating income. However, stronger completion tool sales and higher artificial lift activity in North America, along with improved cementing work in Africa and Latin America, helped the segment beat our estimate.The Drilling and Evaluation unit's profit fell to $348 million in the third quarter of 2025 from $406 million in the same period in 2024, though the figure outperformed our estimate of $339 million. The downtick was caused by reduced activity across several service lines in the Middle East and lower fluid services in North America and Europe/Africa. This was partly offset by stronger project management and wireline activity in Latin America, higher drilling demand in North America and Europe/Africa, and better software sales in Europe/Africa.Balance SheetHalliburton reported third-quarter capital expenditure of $261 million, well below our projection of $323.8 million. As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1. HAL bought back $250 million worth of its stock during the July-September period. The Zacks Rank #5 (Strong Sell) company generated $488 million of cash flow from operations in the third quarter, leading to a free cash flow of $276 million.You can see the complete list of today’s Zacks #1 Rank stocks here.Management Remarks & OutlookDuring the recently reported quarter, Halliburton implemented measures expected to generate about $100 million in quarterly savings, lowered its 2026 capital budget by around 30% to $1 billion and idled underperforming equipment. Management noted that international operations continue to perform strongly, with Halliburton’s value proposition resonating with customers and driving both onshore and offshore growth. In North America, the company is focusing on maximizing value through disciplined returns, advanced technologies and partnerships with top operators. Halliburton remains committed to returning cash to shareholders, maintaining strict cost and capital discipline, and investing in technologies aimed at sustaining long-term growth.Important Earnings at a GlanceWhile we have discussed Halliburton’s third-quarter results in detail, let’s take a look at two other key reports in the Oil/Energy space.Halliburton’s larger rival SLB (SLB) reported adjusted earnings per share of 69 cents, beating the Zacks Consensus Estimate of 66 cents. It recorded total quarterly revenues of $8.9 billion, which was roughly in line with the Zacks Consensus Estimate. SLB’s robust numbers reflect growth in the Digital segment and two months of contribution from the ChampionX acquisition.SLB reported a free cash flow of $1.1 billion in the third quarter. As of Sept. 30, 2025, the company had approximately $3.6 billion in cash and short-term investments. It registered a long-term debt of $10.8 billion at the end of the quarter.Meanwhile, another North American oilfield services company, Liberty Energy (LBRT), reported adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. Liberty Energy's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.Ahead of the earnings release, Liberty Energy’s board of directors increased the quarterly cash dividend by 13% to 9 cents per share, beginning in the fourth quarter of 2025. As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SLB Limited (SLB): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Liberty Energy Inc. (LBRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks