Abstract
Halliburton will report its quarter results on October 21, 2025, Pre-Market. This preview summarizes consensus expectations for revenue, margins, and adjusted EPS, reviews last quarter’s performance, and discusses the current quarter outlook and prevailing analyst opinions from January 01, 2025 to October 21, 2025.
Market Forecast
For the current quarter, Halliburton’s revenue is projected at USD 5.41 billion, implying a forecast year-over-year decline of 3.81%. Forecast EBIT is USD 0.74 billion with an estimated year-over-year decline of 20.91%, and forecast adjusted EPS is USD 0.54 with an estimated year-over-year decline of 21.62%. Margin expectations point to pressure versus last year; detailed gross profit margin and net profit margin guidance are not formally provided, but last quarter’s margin context indicates caution into the print.
Main business highlights suggest Completion and Production should remain the larger revenue contributor, while Drilling and Evaluation demand shows resilience but is exposed to international pricing discipline. The most promising segment remains Completion and Production with revenue of USD 3.22 billion last quarter and stable activity indicators, though year-over-year growth for the segment should be watched due to mixed capital spending signals.
Last Quarter Review
Halliburton’s previous quarter delivered revenue of USD 5.60 billion, a gross profit margin of 15.29%, GAAP net profit attributable to the parent company of USD 18.00 million, a net profit margin of 0.32%, and adjusted EPS of USD 0.58, with year-over-year adjusted EPS down 20.55%. The quarter’s earnings beat consensus on both revenue and EPS, reflecting stronger-than-expected execution relative to subdued international pricing trends.
Main business highlights: Completion and Production generated USD 3.22 billion and Drilling and Evaluation generated USD 2.38 billion; revenue mix skewed to completion services, aligning with customer spending in North America and internationally, albeit with uneven growth year-over-year across geographies.
Current Quarter Outlook
Completion and Production
Completion and Production is Halliburton’s primary revenue engine and the segment most closely tied to well construction and stimulation activity. Sequential activity trends and pricing stability determine near-term margin performance, especially for pressure pumping fleets and completion tools. Customer capital allocation indicates selective programs focused on cash returns, which may constrain large volume growth but support service intensity on existing projects. If efficiency gains from technology adoption hold, the segment can sustain mid-teens gross margins despite softer revenue, although any downtime in North American fleets or slower international tendering could compress utilization. The mix of high-value completion tools over commoditized services will be a key factor in stabilizing EBIT and EPS.
Drilling and Evaluation
Drilling and Evaluation benefits from longer-cycle international and offshore projects, yet near-term revenue is sensitive to bid timing and pricing. With the forecast indicating a 20.91% decline in EBIT and a 21.62% decline in adjusted EPS year-over-year, segment-level efficiency and backlog conversion will be crucial to offset the pressure. Tool reliability, digital subsurface solutions, and higher service intensity can help preserve margin even if activity is delayed. Any improvement in rig utilization internationally can bolster revenue, but the quarter’s guidance implies prudent expectations. The segment’s contribution is likely steady rather than expansive this quarter, serving as a ballast to overall company results.
Stock Price Drivers This Quarter
The stock’s reaction will hinge on three elements: margin trajectory, capital returns, and order visibility. Investors will look closely at gross profit margin relative to last quarter’s 15.29% to assess cost discipline and pricing in core services; a modest sequential margin uptick could temper EPS declines. Capital return signals through dividends and buybacks often influence sentiment when revenue growth is sluggish, and any incremental authorization or repurchase pacing may cushion valuation. Order visibility—particularly in international markets where projects are multi-quarter—will shape the medium-term narrative; clearer backlog conversion and stable bid pipelines can offset the headline decline in revenue and EPS.
Analyst Opinions
Across collected institutional commentary, opinions tilt cautiously positive, with a majority expecting solid operational execution despite year-over-year declines in headline metrics. Analysts emphasize the durability of Completion and Production and the role of disciplined cost control in mitigating margin compression. The prevailing view points to an in-line to slight-beat setup if pricing remains stable and utilization avoids unexpected disruptions. Several well-known institutions note that backlog conversion in longer-cycle markets and technology-led efficiency gains could help counter softer revenue, keeping the quarter’s narrative centered on margin resilience rather than top-line expansion. The consensus majority expects Halliburton to navigate this period by protecting profitability, while acknowledging that a clean beat on EPS would require firmer activity levels than currently implied by forecasts.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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