Halliburton Company (NYSE:HAL) shares are trading lower after the company reported first-quarter 2025 results. The decline follows CEO Jeff Miller’s commentary during the earnings call, during which he noted that international revenue is expected to be flat or slightly lower year-over-year.
Additionally, he projected a second-quarter earnings impact of $0.02 to $0.03 per share due to ongoing trade challenges.
The company reported a revenue decline of 6.7% year-over-year to $5.417 billion, beating the consensus of $5.283 billion. Adjusted EPS came in at $0.60, down from $0.76 a year earlier and in line with analyst expectations, according to Benzinga Pro.
Operating income stood at $431 million (-56.3% YoY), with an operating margin of about 7.9%, down 905 bps YoY.
Completion and Production revenue fell 7.5% YoY to $3.12 billion, with $531 million operating income. The decline was driven by weaker pressure pumping and tool sales in the Western Hemisphere, partially offset by gains in the Middle East.
Drilling and Evaluation revenue declined 6% YoY to $2.3 billion, with operating income down 12% YoY to $352 million. Lower drilling and project activity in Mexico and the Middle East drove the drop, partly offset by stronger fluid services in the region.
HAL’s North American revenue fell 12% to $2.2 billion in Q1 2025, driven by lower U.S. stimulation and Gulf tool sales, partly offset by stronger artificial lift and drilling activity.
International revenue slid 2% sequentially to $3.2 billion. Latin America dropped 19% YoY to $896 million, driven by lower activity in Mexico and weaker tool sales, partly offset by stronger drilling services in Argentina, Brazil, and the Caribbean.
Europe/Africa revenue increased 6% year-over-year to $775 million, supported by stronger activity in Norway, Namibia, and the Caspian region, partially offset by lower activity in Senegal and Italy.
Middle East/Asia revenue also rose 6% to $1.5 billion, driven by increased operations in Kuwait, Saudi Arabia, and the UAE, with some offset from reduced activity in Australia, Malaysia, and Oman.
During the quarter, Halliburton repurchased $250 million in stock, paid a $0.17 dividend, spent $30 million on SAP, and recorded $356 million in pre-tax charges.
Operating cash flow for the quarter was $377 million, and free cash flow was $124 million. Cash and cash equivalents totaled $1.804 billion as of March 31, 2025.
Halliburton CEO Jeff Miller highlighted strong international tender activity and key offshore wins extending into 2026: “Customers awarded Halliburton several contracts that demonstrate the strength of our value proposition and the power of our service quality execution.”
Price Action: HAL shares traded lower by 4.77% at $20.88 at the last check on Tuesday.
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