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July 28, 2025 • 3 min read
Today, we're diving into the latest quarterly report from a giant in the energy sector, Halliburton (HAL). By dissecting their Form 10-Q filing for the second quarter of 2025, we can get a clear picture of the company's recent performance and the broader trends shaping the oil and gas services industry.
Overall, Halliburton's latest numbers reflect a more challenging market compared to the previous year, with both revenue and profits seeing a decline. The company reported total revenue of $5.51 billion, a 6% drop from the $5.83 billion generated in the same quarter last year. More significantly, net income fell by about a third, landing at $480 million compared to $713 million in Q2 2024.
This interactive chart illustrates how Halliburton's revenue flowed through its various costs to arrive at its final net income for the quarter.
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Halliburton's business is split into two main divisions, and both faced headwinds this quarter.
Completion and Production (C&P): This is Halliburton's largest segment, responsible for services like hydraulic fracturing ("fracking") and finishing newly drilled wells. Its revenue fell 7% to $3.17 billion. The real story, however, is in its profitability; operating income for the division plummeted 29% to $513 million. The company attributes this to lower activity in the Western Hemisphere and, critically, "reduced pricing for stimulation services in US Land," signaling significant competitive pressure.
Drilling and Evaluation (D&E): This division, which focuses on services related to well-drilling and data analysis, saw its revenue dip 4% to $2.34 billion. Its operating income also took a substantial hit, falling 23% to $312 million, driven by decreased drilling in Mexico and Saudi Arabia, as well as higher startup costs for new projects.
A look at Halliburton's geographical performance reveals a telling story about the global energy landscape.
The biggest drag came from North America, where revenue declined 9% to $2.26 billion. This aligns with the pricing pressure noted in the C&P division. Latin America also saw a significant 11% drop in revenue to $977 million.
However, it wasn't all bad news. The Europe/Africa/CIS region was a bright spot, posting an 8% increase in revenue to $820 million, driven by strong sales of completion tools. The Middle East/Asia region was relatively stable, with a minor 3% decline in revenue to $1.45 billion.
Halliburton's Q2 2025 performance underscores the cyclical and competitive nature of the energy services sector. The company is clearly grappling with lower activity and pricing pressure, especially in its home market of North America. This is consistent with a broader market environment where, as the filing notes, average oil prices were notably lower than the previous year.
While the company is finding pockets of growth internationally, the slowdown in the Western Hemisphere is currently overshadowing those gains. The results highlight a strategic challenge: navigating a market where customers are more cost-conscious, which directly impacts the profitability of Halliburton's core services.
Last updated: July 28, 2025