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- **Revenue Resilience**: Q3 revenue of $5.6 billion with 13% operating margin, despite North America flat YoY. North America ZEUS fleet now >50% active.
- **Cost Efficiency**: $100M quarterly savings from labor cuts, idling 30% CapEx reduction to $1B. Free cash flow of $276M used for $250M buybacks.
- **Strategic Partnerships**: VoltaGrid deal to expand into international data center power, with first 2.3GW Middle East project. 
- **Tech Leadership**: ZEUS IQ closed-loop fracturing adoption accelerating; iCruise CX drilling system seeing rapid Permian adoption.
- **2026 Outlook**: CapEx disciplined at $1B, with focus on R&D and strategic equipment. North America expected 12-13% Q4 revenue decline, but tech-driven recovery anticipated.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Total revenue of $5.6 billion, with adjusted operating margin of 13%. North America revenue grew 5% sequentially, driven by reduced completions white space and Gulf of Mexico activity. International revenue remained flat at $3.2 billion.
- **Cost Actions**: Announced $100 million quarterly savings through labor cost reductions, idling uneconomic equipment, and resetting 2026 capital budget to $1 billion (30% decline). 
- **Strategic Investments**: Expanded ZEUS electric fleet to over 50% of active North America fleet; introduced iCruise CX in Permian Basin. Partnered with VoltaGrid for international distributed power solutions, targeting data centers outside North America.
- **Technology Focus**: Emphasized AI-driven solutions like ZEUS IQ for closed-loop fracturing and iCruise automation in drilling. Won major contracts in international growth engines (e.g., North Sea stimulation platform, Kuwait ESP expansion).

**【CFO Financial Commentary】**
- **Q3 Financials**: Adjusted net income per share of $0.58, cash flow from operations of $488 million, and free cash flow of $276 million. Repurchased $250 million of common stock.
- **Segment Results**: Completion & Production division revenue up 2% Q/Q to $3.2 billion, driven by North America artificial lift and international tool sales. Drilling & Evaluation division revenue up 2% to $2.4 billion, supported by Latin America project management and North America drilling growth.
- **2026 Outlook**: Guided for CapEx of $1 billion (6% of revenue), with focus on R&D and strategic equipment. Anticipates sequential revenue decline in Q4 for both divisions due to seasonal North America slowdown and international white space.

**【Q&A Highlights】**
- **VoltaGrid Collaboration**: Halliburton will co-invest in international distributed power projects, leveraging its global reach and VoltaGrid's technical expertise. First project: 2.3 GW data center in Middle East, with potential for multiyear growth.
- **North America Strategy**: Idling uneconomic fleets, prioritizing returns through ZEUS IQ and iCruise. Expect 12-13% Q4 revenue decline due to seasonal slowdown, but confident in long-term tech differentiation.
- **International Growth**: Strength in artificial lift (Kuwait, Colombia), unconventionals (Vaca Muerta record), and deepwater automation. Middle East activity expected to stabilize in 2026 after 3% Q/Q decline.
- **CapEx Discipline**: 2026 budget of $1 billion excludes power projects, which will be funded on a project-by-project basis. Maintains focus on R&D and strategic equipment while returning cash to shareholders.

Halliburton Company (HAL) Q3 2025 Earnings Call Transcript

- **Market Softness**: North America frac calendars showing white space; international activity down in Saudi Arabia/Mexico.
- **Tech Differentiation**: ZEUS IQ adoption target 1/3 of US frac fleet; iCruise/LOGIX driving drilling margins.
- **Free Cash Flow**: $582M in Q2; 2025 CapEx 6% of revenue.
- **Growth Engines**: Artificial lift revenue >20% YoY; Brazil/Norway/Argentina expansion.
- **Risk Management**: Uneconomic fleets stacked; tariffs adding $0.04/share Q3.

**【CEO Opening Remarks】**
- Market softness expected in North America and international markets due to reduced operator activity and pricing pressures.
- North America frac calendars showing white space; international activity reductions in Saudi Arabia and Mexico offset by growth in Brazil and Norway.
- Strategic focus on high-margin unconventional plays, production services, and artificial lift.

**【CEO Strategic Outlook】**
- Unconventional growth engines: Argentina (record stage count), Australia (67-stage job), Middle East (longest unconventional well).
- Drilling tech adoption (iCruise, LOGIX) driving double-digit revenue growth despite rig count declines.
- Artificial lift revenue expected to grow >20% YoY, with Intelevate installed base doubling.

**【CFO Financial Summary】**
- Q2 revenue: $5.5B (2% QoQ), operating margin 13%, free cash flow $582M.
- C&P division: $3.2B revenue, 16% margin; D&E division: $2.3B, 13% margin.
- Q3 guidance: C&P revenue down 1-3%, margin down 150-200bps; D&E margin up 125-175bps.
- 2025 CapEx: 6% of revenue; tariffs expected to impact Q3 by $35M.

**【Q&A Highlights】**
- **C&P Margins**: Q2 miss due to US pricing headwinds and Saudi activity decline; Q3 margin decline driven by frac white space.
- **International Growth**: Brazil artificial lift contract, Norway coiled tubing expansion, Middle East ESP wins.
- **Fleet Management**: ZEUS IQ adoption target 1/3 of US frac fleet by year-end; uneconomic fleets stacked or retired.
- **2026 Outlook**: Activity timing uncertain; Halliburton focused on returns vs. market share.


Halliburton Company (HAL) Q2 2025 Earnings Call Transcript

- **Q1 Financial Highlights**: Revenue of $5.4 billion, adjusted margin of 14.5%, and $124 million free cash flow. North America revenue down 12% YoY, international flat excluding Mexico.
- **Technology Differentiation**: Zeus IQ autonomous fracturing system achieves milestone, driving productivity and customer value in unconventional plays.
- **International Growth Engines**: Unconventional, artificial lift, and intervention services show strong progress, with examples in Middle East and Brazil.
- **Shareholder Returns**: On track to return $1.6 billion in 2025, despite $0.02-$0.03 EPS impact from tariffs in Q2.
- **Mexico Recovery**: Uncertain timing but long-term demand driven by Mexico's economic reliance on oil and gas.
- **Saudi Arabia Expansion**: Growth expected through Jafurah projects and other growth engines like artificial lift.


**【CEO Summary Section】**
- Total revenue for Q1 2025 was $5.4 billion, with adjusted operating margin of 14.5%. International revenue decreased 2% YoY due to lower activity in Mexico, while North America revenue fell 12% YoY. Free cash flow was $124 million, and $250 million of stock was repurchased.
- Emphasized Halliburton's focus on technology, collaboration, and service quality to drive long-term success. Zeus IQ closed-loop autonomous fracturing system achieved a significant milestone, demonstrating the ability to optimize reservoir response in real-time.
- International growth engines (unconventional, artificial lift, intervention, directional drilling) showed strong progress, with examples including Zeus equipment trials in the Middle East and Optime Subsea acquisition for deepwater interventions.
- North America strategy remains focused on maximizing value through differentiated technology, term-contracted fleets, and operational efficiency. Despite market uncertainty, Halliburton expects to outperform the North America services market.

**【CFO Financial Commentary】**
- Q1 GAAP net income per diluted share was $0.24, while adjusted net income was $0.60. Adjusted operating margin of 14.5% reflected strong cost control despite $356 million in pre-tax charges for severance, asset impairments, and environmental reserves.
- Segment performance: Completion & Production (C&P) revenue decreased 8% YoY to $3.1 billion, driven by lower pressure pumping activity. Drilling & Evaluation (D&E) revenue declined 6% YoY to $2.3 billion due to reduced activity in Mexico and Saudi Arabia.
- Q2 guidance: C&P revenue expected to increase 1-3% sequentially with flat margins, while D&E revenue may decline 0-2% with margin contraction of 125-175 basis points due to seasonal factors and mobilization costs.
- Free cash flow for 2025 is on track to return at least $1.6 billion to shareholders through buybacks and dividends. Tariffs are estimated to impact Q2 EPS by $0.02-$0.03, with full-year impact to be updated next quarter.

**【Q&A Key Highlights】**
- **Mexico Market Impact**: Q1 Latin America revenue declined 19% YoY due to lower activity in Mexico. While timing of recovery is uncertain, Halliburton expects long-term demand driven by Mexico's economic reliance on oil and gas.
- **Saudi Arabia Growth**: Halliburton anticipates growth in Saudi Arabia through Jafurah unconventional projects and other growth engines like artificial lift and intervention services.
- **Tariff Mitigation**: Halliburton is diversifying supply chains and optimizing operations to minimize tariff impacts, with 60% of Q2 tariff-related costs affecting C&P and 40% affecting D&E.
- **Zeus IQ Adoption**: Zeus IQ technology is gaining traction with customers focused on long-term productivity improvements, with multiple deployments underway.
- **Cash Flow Management**: Despite macroeconomic uncertainty, Halliburton remains committed to returning cash to shareholders, with Q1 free cash flow of $124 million and $250 million in buybacks.



Halliburton (HAL)-22 Apr 25-2025 Q1 Earnings call transcript

- **2024 Financial Strength**: $22.9B total revenue, $2.6B free cash flow, 60% of FCF returned to shareholders. International growth (6% YoY) offset North America decline (8% YoY).
- **2025 Outlook**: Flat international revenue (excluding Mexico), low-single-digit North America decline. Long-term growth engines ($2.5-3B+ annual) driven by drilling tech, unconventionals, and automation.
- **Key Trends**: Fully contracted North America fleet, 50% e-fleets by 2025, and strong adoption of Octiv Auto Frac (50% of e-fleets). Mexico market reset but Halliburton maintains leadership.
- **Financial Discipline**: 6% capex/revenue ratio, flat 2025 free cash flow, and 25.5% effective tax rate reflecting global growth strategy.

**【CEO Summary Section】**
- **Full Year 2024 Performance**: Total revenue of $22.9 billion, with international business growing 6% YoY (led by Middle East/Asia at 8%). North America revenue declined 8% YoY but outperformed rig count trends. Free cash flow reached $2.6 billion, with $1.6 billion returned to shareholders via buybacks and dividends.
- **2025 Outlook**: International revenue expected flat YoY (excluding Mexico, growth of low to mid-single digits). North America revenue projected to decline low to mid-single digits YoY, driven by pricing pressures but offset by strong technology adoption (e.g., Zeus e-fleets, Octiv Auto Frac). Long-term growth engines (drilling tech, unconventionals, well intervention, artificial lift) could add $2.5-$3 billion annually in 3-5 years.
- **Strategic Focus**: Continued investment in electrification, automation, and digital solutions. Expansion of customer alliances (e.g., Norway) to drive collaborative value creation. North America fleet fully contracted for 2025, with 50% e-fleets expected by year-end.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Total revenue $5.6 billion (-2% sequentially), operating margin 17%. Completion & Production (C&P) division revenue $3.2 billion (-4% sequentially), Drilling & Evaluation (D&E) $2.4 billion (flat). International revenue up 3% sequentially, driven by Africa/Middle East. North America revenue $2.2 billion (-7% sequentially) due to lower stimulation activity.
- **2025 Guidance**: Q1 revenue decline 3-5% for C&P, 8-10% for D&E. Full-year capital expenditures ~6% of revenue. Free cash flow expected flat with 2024. Effective tax rate rising to 25.5% in 2025 due to Pillar Two taxes and geographic mix shifts.

**【Q&A Highlights】**
- **North America Pricing**: 2025 margin impact from price renegotiations concentrated in Q1, but financial performance expected to outpace peers via technology (e.g., Octiv Auto Frac adoption on 50% of e-fleets). Long-term margin resilience from efficiency gains and customer value creation.
- **Mexico Market**: 2025 activity reset due to Pemex leadership changes, but Halliburton maintains strong market position and expects eventual recovery driven by oil/gas criticality to Mexico's economy.
- **International Growth**: Offshore activity pipeline solid, with D&E division benefiting from FIDs in 2025-2027. Intervention and artificial lift businesses poised for outsized growth.
- **Power Services**: Halliburton's VoltaGrid partnership positions it as leader in Permian power generation, with no plans to vertically integrate power costs into frac fleets.


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