Research · Sep 3, 2026
[HAL] Halliburton Thesis 2026: International Growth Tests North America Completion Cycle Weakness
Halliburton Company (NYSE: HAL) FY2025 revenue ~$22-23B (-3 to 0%) with adj. EPS ~$2.20-2.80 reflecting continued post-2024 North America completion + drilling cycle weakness offset by selected International growth (~$11B; +5-10% YoY on Middle East + Latin America NOC capex tailwind) + selected ~30%+ global pressure pumping market share leadership + selected ~3-year continuous dividend track post-2020 reset under continued CEO Jeff Miller (~8-year tenure since June 2017). Leading global oilfield services firm focused on completion + production + drilling services for upstream oil + gas customers. Founded 1919 by Erle Halliburton as New Method Oil Well Cementing Company in Wilson Oklahoma (~106-year heritage; selected initial focus on selected oil well cementing + drilling services); selected various rebrands and acquisitions through history including 1962 Brown & Root acquisition + 1998 Dresser Industries merger + 2017-2020 Macondo settlement period. Headquartered in Houston Texas; ~50,000+ employees globally with ~$22-23B revenue. Two reporting segments: Completion & Production (C&P) ~60% revenue ($13B — pressure pumping + completion fluids + cementing + ~30%+ global pressure pumping market share leadership; major customers Chevron + ExxonMobil + ConocoPhillips + Saudi Aramco), Drilling & Evaluation (D&E) ~40% ($9B — drilling services + drilling fluids + Sperry Drilling rotary steerable + wireline + formation evaluation). International ~50% revenue (~$11B FY2025): Middle East ~$4B (Saudi Aramco + ADNOC + Qatar Petroleum + selected major NOC customers), Latin America ~$3B (Petrobras + Mexico + Argentina), Europe/Africa/CIS ~$2B (post-2022 Russia exit + Africa + European North Sea), Asia Pacific ~$2B (China + India + Indonesia + Australia). Selected post-2024 NOC capex tailwind: Saudi Aramco maximum sustainable capacity (MSC) expansion + unconventional gas program + ADNOC Crude oil capacity expansion (~$50B+ capex 2024-2027) + Petrobras pre-salt continued development + Qatar LNG expansion (post-2024 LNG super-cycle FIDs). North America ~50% revenue (~$11B FY2025; -5 to 0% YoY): post-2024 US Permian completion + drilling cycle weakness reflecting E&P discipline + commodity price compression driving rig count decline ~5-10%; major Permian customers ConocoPhillips + Chevron + ExxonMobil + post-2024 EOG + Devon + selected E&P consolidation reducing service vendor count; pressure pumping pricing pressure (US frac fleet ~250 fleets; pricing erosion ~5-10%); FY2026 expected NA stabilization toward $11-11.5B. CEO Jeff Miller since June 2017 (succeeded Dave Lesar CEO 2000-June 2017 retired). Capital return: ~$0.68-0.72 annual dividend FY2025 (~3-year track post-2020 dividend reset from $0.18 to $0.045 then recovery to $0.17-0.18); $1-2B buyback program FY2025 (aggressive post-2024 capital return on $2-2.5B FCF); investment-grade A3/A- credit ratings. FY2026 thesis: International continued growth + NA cycle stabilization + ~4-year dividend track + capital return acceleration. Risks: major NA E&P capex deceleration, major International project delays, Schlumberger competitive substitution, major oil price decline.