Halliburton 2025 Q2 Earnings Misses Targets as Net Income Declines 32.7%

Halliburton (HAL) reported its fiscal 2025 Q2 earnings on Jul 21st, 2025. The total revenue of Halliburton decreased by 5.5% to $5.51 billion in 2025 Q2, down from $5.83 billion in 2024 Q2. Halliburton's EPS declined 31.3% to $0.55 in 2025 Q2 from $0.80 in 2024 Q2, while the company's net income declined to $480 million in 2025 Q2, down 32.7% from $713 million reported in 2024 Q2. The company's mixed financial performance reflects the challenges it faces in the current market environment, with EPS figures indicating weaker profitability.

Revenue
Halliburton's revenue in the second quarter of 2025 amounted to $5.51 billion, a decline from the previous year. The Completion and Production segment generated $3.17 billion, while the Drilling and Evaluation segment contributed $2.34 billion. The overall decrease highlights the pressures faced across its operational segments.

Earnings/Net Income
Halliburton's earnings per share fell significantly by 31.3%, reaching $0.55 compared to $0.80 in the previous year. Net income also saw a substantial downturn, dropping to $480 million from $713 million. This performance signals challenging market conditions and the impact on the company's profitability.

Price Action
The stock price of Halliburton has edged down 0.89% during the latest trading day, has dropped 3.81% during the most recent full trading week, and has dropped 7.95% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Halliburton (HAL) shares following a revenue increase quarter-over-quarter and holding for 30 days has historically delivered moderate returns, yet it underperformed the market. The strategy's compound annual growth rate (CAGR) was 10.63%, falling short of the benchmark by 23.39 percentage points. Despite a maximum drawdown of 0% and a Sharpe ratio of 0.24, indicating minimal risk, the strategy yielded conservative returns. This approach may appeal to investors prioritizing stability over aggressive market gains, though it underscores the need for cautious investment amid fluctuating market dynamics.

CEO Commentary
Halliburton Company (NYSE: HAL) reported a net income of $472 million, or $0.55 per diluted share, in Q2 2025, up from $204 million in Q1 2025. CEO Jeff Miller highlighted that Halliburton is now more differentiated with advanced technology and collaborative approaches to enhance customer asset value. However, he acknowledged a softer oilfield services market than previously anticipated in the short to medium term and emphasized a commitment to shareholder returns despite near-term challenges. Miller expressed confidence in their growth strategies across various segments, particularly in North America, where he believes Halliburton's capabilities will continue to surpass competitors.

Guidance
The company anticipates near-term softness in the oilfield services market and will take actions to address this. CEO Jeff Miller emphasizes that their strategy remains sound, focusing on growth engines such as unconventionals and production services. He indicated that Halliburton expects to leverage its technological advantages and service execution to maintain a competitive edge, particularly in North America, despite potential challenges in international markets due to reduced activity in some large regions.

Additional News
In a strategic move, Halliburton announced the appointment of Stephanie Holzhauser as the new Senior Vice President and Chief Accounting Officer, effective July 16, 2025. Holzhauser, who started her career at Halliburton as an intern in 2004, has held various leadership roles, reflecting the company's commitment to nurturing internal talent. Additionally, Halliburton declared a quarterly dividend of $0.17 per share for Q2 2025, payable on June 25, 2025, which demonstrates its ongoing focus on shareholder returns. Furthermore, Halliburton has committed to a five-year contract with Repsol Resources UK, providing comprehensive well lifecycle support in the UK's North Sea, showcasing its strategic partnerships to enhance operational capabilities.