Fri, Apr 25, 3:21 PM (28 days ago)
**Halliburton Company (HAL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $5.417 billion, down 7% from Q1 2024 ($5.804 billion). - **Operating Income:** $431 million, significantly impacted by $356 million in impairments and other charges, down from $987 million in Q1 2024. - **Net Income:** $203 million, down from $609 million in Q1 2024. - **Earnings per Share (EPS):** $0.24, down from $0.68 in Q1 2024. **Segment Performance:** - **Completion and Production:** Revenue down 8% to $3.120 billion, operating income down 23% to $531 million. - **Drilling and Evaluation:** Revenue down 6% to $2.297 billion, operating income down 12% to $352 million. **Geographic Performance:** - **North America:** Revenue down 12% to $2.236 billion. - **Latin America:** Revenue down 19% to $896 million. - **Europe/Africa/CIS:** Revenue up 6% to $775 million. - **Middle East/Asia:** Revenue up 6% to $1.510 billion. **Cash Flow:** - **Operating Cash Flow:** $377 million, down from $487 million in Q1 2024. - **Capital Expenditures:** $302 million, down from $330 million in Q1 2024. - **Share Repurchases:** $250 million, with $2.8 billion remaining authorized. - **Dividends Paid:** $147 million. **Profit Margins:** - **Operating Margin:** 7.96%, down from 17.01% in Q1 2024. - **Net Margin:** 3.75%, down from 10.49% in Q1 2024. **Future Operations and Uncertainties:** - **Capital Spending:** Expected to be approximately 6% of revenue for 2025. - **Shareholder Returns:** Aiming to return over 50% of annual free cash flow through dividends and share repurchases. - **Market Uncertainties:** Geopolitical tensions, trade tariffs, and fluctuating oil prices pose risks to future performance. - **Strategic Priorities:** Focus on international growth, digital transformation, capital efficiency, and sustainable energy solutions. **Trends and Outlook:** - **Oil Prices:** Increased in Q1 2025 but faced volatility due to geopolitical factors and OPEC production. - **Rig Counts:** Mixed trends with slight increases in the U.S. and declines internationally. - **Earnings Guidance:** Expects a negative impact on EPS in Q2 2025 due to recent oil price decreases. **Conclusion:** Halliburton's Q1 2025 performance reflects challenges from market volatility, geopolitical risks, and strategic adjustments. The company remains focused on cost management, strategic investments, and shareholder returns while navigating a complex global energy landscape.