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Halliburton Co. (HAL) stock rose Tuesday after the oilfield services company reported better-than-expected third-quarter earnings and revenue, supported by international operations despite continued weakness in North America.
The company also outlined plans to improve profitability in 2027 without relying on a recovery in North American hydraulic fracturing.
Halliburton reported third-quarter revenue of $5.703 billion, up about 2% year over year and above the $5.572 billion analyst estimate. Adjusted earnings of 60 cents per share beat the 58-cent consensus estimate.
GAAP earnings were 50 cents per share. Net income totaled $417 million, while adjusted net income reached $501 million. Adjusted EBITDA was $1 billion.
Completion and Production revenue declined 4% sequentially to $3.089 billion, while operating income fell 4% to $457 million.
Drilling and Evaluation revenue rose 4% to $2.614 billion, with operating income climbing 16% to $391 million.
North American revenue fell 5% to $2.160 billion, reflecting weaker U.S. land pressure-pumping activity. International revenue increased 3% to $3.5 billion, led by 8% growth in the Middle East and Asia.
Operating cash flow totaled $368 million, while free cash flow reached $156 million.
Halliburton ended the quarter with $1.843 billion in cash and $7.072 billion in long-term debt. The company repurchased approximately $250 million of shares.
Results included a $107 million pretax charge, primarily related to severance costs from global workforce reductions.
During Tuesday's third-quarter earnings call, Chairman, President and CEO Jeff Miller said Halliburton's growth strategy does not depend on a rebound in North American hydraulic fracturing.
Miller described any recovery in that market as additional upside rather than a requirement for achieving the company's financial goals.
He also expressed confidence in improving profitability, citing deliberate changes to Halliburton's cost structure.
Halliburton expects mid-single-digit revenue growth and operating margins of approximately 15% in 2027, an improvement of about 200 basis points, assuming North American market conditions remain flat.
Chief Financial Officer Eric Carre said the company expects cost reductions of $100 million to $150 million next year.
Halliburton is also betting on international contracts to support expansion.
The company secured an integrated services contract from Eni for the Cronos ultra-deepwater development in Cyprus and a contract from bp for the Bumerangue appraisal campaign offshore Brazil.
Chief Operating Officer Shannon Slocum said Halliburton's technical capabilities and focus on customers' total costs continue to help it win contracts.
In North America, management remains focused on profitability rather than market share.
Slocum said the company moved several hydraulic-fracturing crews to new customers at better pricing during the third quarter.
Miller warned of one of the largest energy supply disruptions in history, citing estimates that nearly 3 billion barrels of oil supply have been lost since the Middle East conflict began.
He added that about 1 billion barrels have been drawn from global inventories, while elevated commodity prices and geopolitical uncertainty persist.
Miller expects efforts to restore production, replenish inventories and strengthen energy security to drive multiyear demand for oilfield services.
He also expressed confidence that the industry is entering an upcycle, supporting Halliburton's growth outlook for 2027.
HAL Price Action: Halliburton shares were up 1.47% at $33.46 at the time of publication on Tuesday, according to market data.
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