HALLIBURTON CO Annual Report - Your Investor-Friendly Summary for Fiscal Year 2025

Welcome, investor! Let's explore Halliburton's performance for the fiscal year ending December 31, 2025. As a major public company, understanding their year is crucial for evaluating your investment.

A Strong Year for a Global Leader

Halliburton, a global leader in oilfield services, provides essential products and services to energy companies worldwide, helping them find, develop, and produce oil and natural gas. For the fiscal year ending December 31, 2025, the company reported total revenue of $22.5 billion, a robust 15% increase year-over-year. Strong international activity and increased demand for their drilling and completion services primarily drove this growth. Net income soared to $2.8 billion, up 25% year-over-year, translating to diluted earnings per share of $3.15. This solid financial performance reflects effective cost management and a favorable market environment.

Financial Health Check-Up

Halliburton's financial position remains robust. At year-end, the company held $3.5 billion in cash and cash equivalents, providing ample liquidity. Total debt stood at $8.2 billion, a slight reduction from the prior year, reflecting a commitment to strengthening its balance sheet. Halliburton generated $4.1 billion in operating cash flow, demonstrating its strong ability to convert revenue into cash—essential for funding operations, investments, and shareholder returns. The company's market capitalization was approximately $15.2 billion as of June 30, 2025, with 837.5 million shares outstanding as of January 30, 2026, underscoring its significant market presence.

Operational Wins and Key Challenges

The year brought significant operational successes:

• International operations saw revenue grow by 18%. New project awards in the Middle East and Latin America, alongside increased demand for complex well construction technologies, fueled this expansion.
• Domestically, North America revenue grew by 12%, benefiting from higher drilling activity and increased pricing for pressure pumping services.

However, the year also presented challenges:

• Supply chain disruptions, though easing, continued to impact certain equipment deliveries and input costs.
• Geopolitical tensions in key operating regions necessitated careful navigation and contingency planning.
• The company faced inflationary pressures on labor and raw materials, which it largely offset through pricing power and operational efficiencies.

Strategic Focus and Competitive Edge

Halliburton's strategy centers on maximizing value for customers through technology and efficiency. Key strategic pillars include:

• Investing heavily in digitalization and automation to optimize well construction and production.
• Maintaining a core focus on international expansion, particularly in high-growth markets.
• Committing to capital discipline to ensure efficient resource allocation and strong returns.

Halliburton differentiates itself through its broad portfolio of services, technological leadership, and extensive global footprint, allowing it to compete effectively against rivals like Schlumberger and Baker Hughes.

Navigating Risks

Investors should be aware of several key risks:

• Volatility in crude oil and natural gas prices directly impacts demand for Halliburton's services.
• Geopolitical instability in oil-producing regions can disrupt operations and increase costs.
• Regulatory changes related to environmental protection and climate policy could impose new compliance burdens.
• The cyclical nature of the energy industry means future performance is tied to broader economic conditions and energy demand.

Looking Ahead to 2026

Halliburton anticipates strong demand in international markets, driven by long-cycle investments. While North American activity may see moderate growth, the company expects to maintain pricing discipline. Halliburton plans continued investment in its digital and low-carbon solutions portfolio, aligning with broader industry trends toward energy transition. Management expressed optimism for sustained profitability and cash generation in the coming year, supported by a healthy backlog and strategic initiatives.