Halliburton Company Q3 FY2025 earnings call

• Halliburton delivered total company revenue of $5.6 billion and adjusted operating margin of 13% in Q3. - Took cost reduction actions expected to save approximately $100 million per quarter. - Reset 2026 capital expenditures target to around $1 billion, a ~30% decline. - International growth engines (production services, artificial lift, unconventionals, drilling) performing well, e.g., won a major 5-year contract from ConocoPhillips in the North Sea. - In North America, ZEUS electric fleets now make up over half of the active fleet and iCruise CX is driving performance in key basins. - Partnered with VoltaGrid for international distributed power solutions for data centers.

Completion and Production division: Q3 revenue was $3.2 billion, an increase of 2% compared to Q2 2025. Operating income was $514 million, flat compared to Q2 2025, and operating income margin was 16%. Drilling and Evaluation division: Q3 revenue was $2.4 billion, an increase of 2% compared to Q2 2025. Operating income was $348 million, an increase of 12% sequentially, and operating income margin was 16%. Geographic results: International revenue in Q3 was flat compared to Q2 2025. North America Q3 revenue was $2.4 billion, a 5% increase sequentially.

• Completion and Production division anticipates sequential revenue to decrease 4% to 6% and margins to be down 25 to 75 basis points in Q4. - Drilling and Evaluation division expects sequential revenue to be flat to down 2% and margins to increase 50 to 100 basis points in Q4. - 2026 capital expenditures expected to be around $1 billion, a ~30% decline from prior plans. - Tariffs impact in Q4 currently expected to be about $60 million, increasing quarter-on-quarter due to Section 232 tariffs.

• Oil price volatility impacting the near-term macro environment. - Supply chain tightness concerns related to international projects. - Section 232 tariffs posing a risk to business, with Q4 tariffs expected to have a gross impact of about $60 million.

Q: Arun Jayaram asked about VoltaGrid's evolution and the strategic collaboration, Jeffrey Miller responded about VoltaGrid's growth opportunity and Halliburton's role.

A: Jeffrey Miller said Halliburton has global reach, execution skills, manufacturing, and scale, and is excited about the partnership.

Q: Neil Mehta asked about the Middle East opportunity and 2026 outlook, Jeffrey Miller responded about Middle East's attractiveness and North America's potential recovery.

A: Jeffrey Miller mentioned Middle East's energy and capital availability and North America's potential improvement in 2026.

Q: John Anderson asked about Halliburton's role in the VoltaGrid partnership and project size/timeline, Jeffrey Miller responded about Halliburton's industrial scale and alignment with VoltaGrid on project size.

A: Jeffrey Miller said Halliburton brings industrial scale and international experience, and is aligned with VoltaGrid on project size and scale.

Q: Saurabh Pant asked about CapEx funding for VoltaGrid collaboration and North America market targeting, Eric Carre and Jeffrey Miller responded about CapEx funding on a project-by-project basis and North America's targeted customers.

A: Eric Carre said CapEx for VoltaGrid is on a project basis, and Jeffrey Miller said North America targets customers valuing technology.

Q: Doug Becker asked about growth engines' progress and outgrowing the industry, Jeffrey Miller responded about growth engines on track and differential growth opportunity.

A: Jeffrey Miller said growth engines are on track with strategic opportunities gaining traction.

Q: Scott Gruber asked about idling equipment and CapEx budget, Jeffrey Miller responded about idling equipment and CapEx budget for strategic investments.

A: Jeffrey Miller said idling equipment is for non-economic returns and CapEx budget supports strategic investments.

Q: Marc Bianchi asked about VoltaGrid collaboration exclusivity and Halliburton's investment, Jeffrey Miller responded about exclusive partnership and investment alongside VoltaGrid.

A: Jeffrey Miller said Halliburton is the partner and will invest alongside VoltaGrid.

Q: Derek Podhaizer asked about idling equipment color and free cash flow, Eric Carre responded about idling equipment focus on non-economic and free cash flow outlook.

A: Eric Carre said idling focuses on non-economic and free cash flow has $800M additional liquidity potential.

Q: Stephen Gengaro asked about 2026 E&P reactions and competitive landscape in growth areas, Jeffrey Miller responded about E&P actions and competitive advantage in growth areas.

A: Jeffrey Miller said E&Ps act as needed and Halliburton has competitive advantage in growth areas.

Q: Keith MacKey asked about CapEx guide and drilling vs completion upswing, Eric Carre and Jeffrey Miller responded about CapEx as dollar number and upswing timing.

A: Eric Carre said CapEx is a dollar number, and Jeffrey Miller said upswing timing less clear with better supply chain.