Halliburton's Q1 2025 Earnings Call: Unraveling Contradictions in U.S. Activity, Mexico's Oil Outlook, and iCruise Adoption

U.S. activity and oil price impact, Mexico's oil and gas situation, Mexico's recovery outlook, North America activity forecast, and iCruise technology adoption are the key contradictions discussed in Halliburton's latest 2025Q1 earnings call.



Revenue and Profit Performance:
- Halliburton reported total company revenue of $5.4 billion for Q1 2025, a 7% decrease from the previous year, with an adjusted operating margin of 14.5%.
- The decline in revenue was primarily due to decreased pressure pumping activity and lower completion tool sales, particularly in Mexico and Saudi Arabia.

North America Market Challenges:
- North America revenue was $2.2 billion, a 12% decrease from Q1 2024, primarily due to lower stimulation activity and completion tool sales.
- The decrease was attributed to uncertain commodity prices and reduced customer activity amid pricing volatility.

International Market Dynamics:
- International revenue was $3.2 billion, a 2% year-over-year decrease, with growth excluding Mexico by mid-single digits.
- The decline was due to decreased activity in Mexico, while growth areas like Norway and Kuwait showed improvement.

Technological Innovation and Strategic Focus:
- Halliburton achieved significant milestones in technology, including the successful deployment of closed-loop autonomous fracturing operations and closed-loop drilling systems in Norway and the Middle East.
- Technology innovation, along with strategic collaborations, is expected to drive long-term growth and customer value creation.