Halliburton | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 5.6 B

Revenue: As of FY2025 Q3, the actual value is USD 5.6 B, beating the estimate of USD 5.389 B.

EPS: As of FY2025 Q3, the actual value is USD 0.02, missing the estimate of USD 0.4944.

EBIT: As of FY2025 Q3, the actual value is USD 444 M.

Completion and Production Segment

Revenue

Q3 2025: $3,223 million
YTD 2025: $9,514 million

Operating Income

Q3 2025: $514 million
YTD 2025: $1,558 million

Operating Expenses

Cost of products, materials, and supplies: $1,361 million (Q3 2025), $3,980 million (YTD 2025)
Compensation: $492 million (Q3 2025), $1,449 million (YTD 2025)
Depreciation, depletion, and amortization: $156 million (Q3 2025), $462 million (YTD 2025)
Other: $700 million (Q3 2025), $2,065 million (YTD 2025)

Drilling and Evaluation Segment

Revenue

Q3 2025: $2,377 million
YTD 2025: $7,013 million

Operating Income

Q3 2025: $348 million
YTD 2025: $1,012 million

Operating Expenses

Cost of products, materials, and supplies: $911 million (Q3 2025), $2,715 million (YTD 2025)
Compensation: $489 million (Q3 2025), $1,435 million (YTD 2025)
Depreciation, depletion, and amortization: $123 million (Q3 2025), $368 million (YTD 2025)
Other: $506 million (Q3 2025), $1,483 million (YTD 2025)

Corporate and Other

Operating Income

Q3 2025: -$64 million
YTD 2025: -$196 million

SAP S4 Upgrade Expense

Q3 2025: $50 million
YTD 2025: $112 million

Impairments and Other Charges

Q3 2025: $392 million
YTD 2025: $748 million

Total Operating Income

Q3 2025: $356 million
YTD 2025: $1,514 million

Interest Expense, Net of Interest Income

Q3 2025: -$88 million
YTD 2025: -$266 million

Other, Net

Q3 2025: -$49 million
YTD 2025: -$112 million

Income Before Income Taxes

Q3 2025: $219 million
YTD 2025: $1,136 million

Income Tax Provision

Q3 2025: $199 million
YTD 2025: $433 million

Net Income

Q3 2025: $20 million
YTD 2025: $703 million

Net Income Attributable to Company

Q3 2025: $18 million
YTD 2025: $694 million

Basic and Diluted Net Income Per Share

Q3 2025: $0.02
YTD 2025: $0.81

Cash Flow

Operating Cash Flow

YTD 2025: $1,761 million

Free Cash Flow

YTD 2025: -$592 million

Future Outlook and Strategy

Core Business Focus

Increase international growth in directional drilling, unconventionals, well intervention, and artificial lift businesses.
Maximize value in North America by increasing utilization of Zeus electric fracturing platform and iCruise rotary steerable systems, and incorporating automation technologies.
Drive differentiation and efficiencies through digital and automation technologies.
Maintain capital expenditures at approximately 6% of revenue while enhancing capital utilization efficiency.
Return over 50% of annual free cash flow to shareholders through dividends and share repurchases.

Non-Core Business

Continue to develop technologies and solutions to help lower emissions intensity, participate in carbon capture, utilization, and storage, and geothermal projects globally.
Support Halliburton Labs early-stage company participants.

Priority

Reduce capital expenditures in 2026 by 30% to approximately $1.0 billion.
Focus on generating free cash flow and returns, and capital discipline.