What were the key takeaways from Halliburton’s earnings call?

What were the key takeaways from Halliburton's earnings call?

What is the market's earnings forecast for Halliburton next quarter?

What factors drove the changes in Halliburton's revenue and profit?

What is Halliburton's latest dividend and current dividend yield?

What does Halliburton do and what are its main business segments?

What guidance did Halliburton's management provide for the next earnings period?

Did Halliburton beat or miss consensus estimates last quarter?

- **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.

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