Halliburton Co (NYSE:HAL) reported an EBITDA beat for its third quarter on the back of more substantial revenues.
The focus will now shift to "forward activity and power strategy," according to Goldman Sachs analyst Neil Mehta.
The Halliburton Analyst: Mehta reiterated a Buy rating and price target of $25.
The Halliburton Thesis: The company reported adjusted EBITDA of $1,033 million, 5% higher than consensus estimate of $980 million.
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North America revenues came in significantly higher than expected, while international revenue was slightly higher, the analyst stated.
Overall, third-quarter 2025 net income hovered at around $18 million, 2 cents per share. Some $540 million in impairments and other charges weighed down the company.
Excluding those items, adjusted net income rose to $496 million, or 58 cents per share. That’s up from $472 million in the prior quarter. Revenue edged up to $5.6 billion, compared with $5.5 billion in Q2.
In a prepared statement, CEO Jeff Miller said the company delivered an adjusted operating margin of 13%, implemented $100 million in quarterly cost savings, and "idled equipment that no longer meets return expectations."
- By segment, Completion and Production revenue climbed 2% to $3.2 billion
- Drilling and Evaluation revenue rose 2% to $2.4 billion.
- North America led with a 5% sequential increase to $2.4 billion, driven by stronger U.S. and Canadian stimulation activity.
- International revenue held steady at $3.2 billion, as growth in Latin America offset softness in the Middle East.
During the quarter, Halliburton repurchased $250 million in stock, paid a 17 cent dividend, and spent $50 million on its SAP S4 migration.
The company also highlighted new technology launches, including LOGIX automated geosteering, the Turing electro-hydraulic control system, and the Summit Knowledge digital ecosystem.
Halliburton secured new contracts for carbon capture in the U.K. and well stimulation services in the North Sea, underscoring its growing footprint in next-generation energy technologies.
HAL Price Action: Shares of Halliburton had risen by 9.73% to $24.82 at the time of publication on Tuesday.
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