Halliburton Q1 Earnings Meet Estimates, Revenues Beat Forecast

Core Insights - Halliburton Company reported first-quarter 2025 adjusted net income per share of 60 cents, matching the Zacks Consensus Estimate but down from 76 cents in the previous year, reflecting softer North American activity offset by international growth [1] - Revenues for the quarter were $5.4 billion, a decrease of 6.7$5.3 billion [1] Segment Performance - North American revenues fell 12% year over year to $2.2 billion, missing projections of$2.4 billion [2] - International revenues decreased 2.4% to $3.2 billion but surpassed estimates of$2.8 billion [2] - The Completion and Production segment reported operating income of $531 million, down from$688 million last year and below the estimate of $541.5 million, primarily due to weaker pressure pumping services [3] - The Drilling and Evaluation unit's profit declined to$352 million from $398 million year over year, falling short of the estimate of$360.8 million, attributed to reduced drilling services in Mexico and the Middle East [4] Financial Position - Halliburton's first-quarter capital expenditure was $302 million, lower than the projected$318.2 million [5] - As of March 31, 2025, the company had approximately $1.8 billion in cash and$7.2 billion in long-term debt, resulting in a debt-to-capitalization ratio of 40.8% [5] - The company generated $377 million in cash flow from operations, leading to a free cash flow of$124 million [5] Management Outlook - Management emphasized strong international contract wins and increasing demand for advanced technologies, including the first closed-loop, autonomous fracturing operation [6] - Despite challenges in the broader energy market, Halliburton remains optimistic about long-term growth driven by technology and service quality [6] Investment Considerations - Halliburton currently holds a Zacks Rank 3 (Hold) [7] - Other companies in the Oil and Gas - Field Services sector include Helix Energy Solutions Group (Zacks Rank 1), Flotek Industries (Zacks Rank 2), and Nine Energy Service (Zacks Rank 2) [7]