Halliburton posts stronger Q4 margins as international activity offsets North America slowdown
(WO) - Halliburton reported a sharp sequential improvement in fourth-quarter 2025 earnings, driven by higher international activity and improved operating margins, even as North American stimulation activity declined.
The oilfield services provider posted net income of $589 million, or $0.70 per diluted share, on revenue of $5.7 billion. Adjusted operating margin rose to 15%, reflecting improved activity mix and year-end tool and software sales. Operating income more than doubled from the prior quarter to $746 million.
International markets were the primary growth driver. Revenue outside North America rose 7% sequentially to $3.5 billion, with gains across Latin America, Europe/Africa/CIS, and the Middle East/Asia. Strong completion tool sales, increased wireline and well intervention activity, and improved well construction work supported results in Brazil, the North Sea, Africa, Saudi Arabia and Indonesia.
By contrast, North America revenue declined 7% sequentially to $2.2 billion, pressured by lower stimulation activity across U.S. land and Canada, along with reduced fluid services in the Gulf of America. Improved cementing activity and higher completion tool sales partially offset the decline.
Segment results reflected similar trends. Completion and Production operating income increased 11% to $570 million on flat revenue, benefiting from higher-margin completion tools, cementing and international well intervention work. Drilling and Evaluation operating income rose 5% to $367 million, supported by increased wireline activity and year-end software sales.
For the full year, Halliburton generated $22.2 billion in revenue and returned 85% of free cash flow to shareholders, including $1 billion in share repurchases. Fourth-quarter operating cash flow totaled $1.2 billion.
Looking ahead, CEO Jeff Miller said international momentum remains strong, while North America is positioned to respond first when macro conditions improve. The company highlighted continued demand for integrated services, digital well construction, and offshore developments, alongside new technology deployments in wired drill pipe, automation, cementing intelligence and umbilical-less subsea operations.
