Halliburton Company

What they do

Halliburton provides products and services to the energy industry, helping customers maximize asset value throughout the reservoir lifecycle—from locating hydrocarbons, drilling and formation evaluation, to well construction, completion, and production optimization. It operates in two segments: Completion and Production (cementing, stimulation, artificial lift, completion tools) and Drilling and Evaluation (drilling, fluids, evaluation, wellbore placement). The company has over 46,000 employees and major manufacturing in the US, Malaysia, Singapore, and the UK.

Revenue drivers

• Completion and Production — Largest segment, generating $3.2 billion in Q2 2026 revenue (56% of total), driven by stimulation activity in the Western Hemisphere and well intervention in Asia.
• Drilling and Evaluation — Second segment, $2.5 billion in Q2 2026 revenue (44% of total), driven by drilling-related services and wireline activity in North America and Europe/Africa.
• International markets — International revenue was $3.4 billion in Q2 2026, up 5% sequentially, with growth across Latin America, Europe/Africa, and Middle East/Asia regions.
• North America — North America revenue was $2.3 billion in Q2 2026, up 7% sequentially, supported by higher stimulation and well construction activity in US Land.

Recent performance

In Q2 2026, Halliburton reported revenue of $5.7 billion, up from $5.4 billion in Q1, and net income of $534 million ($0.64 diluted EPS). Operating income was $778 million, with a 14% operating margin. Cash flow from operations was $824 million and free cash flow $668 million. The company completed the sale of a portion of its chemical business during the quarter, which impacted specialty chemicals activity.

Strategy

Halliburton aims to grow internationally in directional drilling, unconventionals, well intervention, and artificial lift, and is developing behind-the-meter power generation with Voltagrid. In North America, it leverages the Zeus IQ electric fracturing platform, iCruise rotary steerable systems, and LOGIX automation. The company maintains capital expenditures at about $1.1 billion and targets returning over 50% of annual free cash flow to shareholders via dividends and buybacks. It also focuses on digital technologies and lowering emissions intensity.

Risks

• Commodity price volatility — Demand for services is highly sensitive to oil and natural gas prices, which are volatile and can reduce customer capital spending.
• Geopolitical conflict — Ongoing Middle East conflict disrupted activity in certain markets and affected operations across both segments in Q2 2026.
• Tariffs and trade tensions — Trade policies and tariffs influence global demand outlook and could impact goods imported into the US; the company recognized a $57 million government refund recovery in Q2 2026.
• Inflationary cost pressures — Cost increases in logistics, chemicals, and cement continue to pressure margins, managed through global procurement.

Outlook

Management expressed confidence in the global outlook, expecting revenue growth and margin expansion driven by technology and value proposition. They see demand growth for services across all international regions and expect incremental improvements in North America through the year. The focus on returns and capital discipline is expected to drive long-term success.