With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Energy sector dominated this year for the first time since 2008, with 28 companies featured on the list.

100 Fastest-Growing Companies

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

F500 2021-211-Halliburton

Operating in over 70 countries with more than 40,000 employees worldwide, Halliburton is one of the world's largest oilfield services companies. The 102-year-old company dropped 69 spots on the Fortune 500 list after reporting a 36% drop in sales and a loss of nearly $3 billion for 2020.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-142-Halliburton

The world's second-largest oilfield services company.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

Fortune Global 500

This year's Fortune 500 marks the 62nd running of the list.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Fastest-growing Companies

Revenue 3 Yr Growth Rank

Revenue 3 Yr Annual Growth Rate

EPS 3 Yr Growth Rank

EPS 3 Yr Annual Growth Rate

Total Return 3 Yr Rank

Total Return 3 Yr Annual Rate

Beat S&P 500 3 Yr Return

Current Streak

Years on List

Sector

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Founded in 1919 by Erle P. Halliburton, a pioneer in oil well cementing, Halliburton is a global provider of products and services to the energy industry. Halliburton is considered one of the big three global oilfield services firms along with SLB and Baker Hughes. It operates through two main segments: completion and production, and drilling and evaluation. The completion and production segment specializes in production enhancement, cementing, sand control, and well intervention services, while the drilling and evaluation segment focuses on drilling fluid systems, directional drilling, wireline and perforating, and advanced digital solutions. Halliburton is widely viewed as the U.S. leader in hydraulic fracturing completions, better known as fracking. Halliburton’s technological innovations include achieving the world’s first closed-loop, autonomous fracturing operation, and pioneering AI tools that optimize exploration, drilling, and production workflows. Its DS365.ai platform enables data management, scalable AI/ML model deployment, and app development.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Halliburton (HAL): Company Profile, Stock Price, News, Rankings

legacy

Halliburton

halliburton

Good morning and thank you for standing by. At this time, I would like to welcome everyone to the Halliburton Company's Third Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. To withdraw your question, simply press star one again. I would now like to turn the conference over to David Coleman, Senior Director of Investor Relations. Please go ahead.

Hello, and thank you for joining the Halliburton Third Quarter 2025 Conference Call. We will make the recording of today's webcast available for seven days on Halliburton's website after this call. Joining me today are Jeff Miller, Chairman, President, and CEO, and Eric Carre, Executive Vice President and CFO. Some of today's comments may include forward-looking statements that reflect Halliburton's views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements. These risks are discussed in Halliburton's Form 10-K for the year ended December 31st, 2024, Form 10-Q for the quarter ended June 30th, 2025, recent current reports on Form 8-K, and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Our comments today also include non-GAAP financial measures.

Additional details and reconciliation to the most directly comparable GAAP financial measures are included in our Third Quarter Earnings Release and in the Quarterly Results and Presentations section of our website. Now, I'll turn the call over to Jeff.

Thank you, David, and good morning, everyone. I'm pleased with Halliburton's third quarter performance. I will begin today's discussion with our highlights from this quarter. We delivered total company revenue of $5.6 billion and adjusted operating margin of 13%. International revenue was $3.2 billion, a decrease of 2% year over year. North America revenue was $2.4 billion, flat year over year. During the third quarter, we generated $488 million of cash flow from operations, $276 million of free cash flow, and repurchased approximately $250 million of our common stock. Finally, we took cost reduction actions that we expect will save approximately $100 million per quarter going forward. Before we dive into the geographic results, let me talk about the bigger picture for oil and gas. We share the well-accepted view that oil and gas demand will continue to grow over the long term.

We also know there is a tremendous amount of investment required to maintain production at current levels, let alone to sustainably grow production. Recent estimates are that 90% of upstream spending simply offsets natural declines, underscoring the requirement for ongoing oil and gas investment. Near term, operators are navigating volatile commodity prices as OPEC+ spare capacity returns and trade concerns persist. The impact is most apparent in North America, where we expect customers to maintain the cautious posture they adopted in the second quarter. In international markets, activity remains broadly steady from here as we look forward to 2026. In this environment, we took steps to address the near-term conditions. First, we improved our cost structure by right-sizing our operations and overhead, which we expect will reduce quarterly labor costs by roughly $100 million beginning in the fourth quarter.

Second, we reset our capital expenditures target for next year, and as a result, I expect capital spending in 2026 to decline by almost 30% to around $1 billion. Third, we are actively managing our deployed capital, and we will continue to idle, relocate, or retire equipment that does not meet our return thresholds. Finally, and most importantly, we took these steps while maintaining a strong focus on our technology development, our growth engines, and our value proposition. I am super confident in the Halliburton team, our ability to execute, and the strength of our competitive position. Near-term conditions will not change our focus on delivering value for our customers and leading financial performance for our shareholders. Now let's turn to our geographic results. I'll start with the international markets, where Halliburton delivered quarterly revenue of $3.2 billion, roughly flat to the second quarter.

For the fourth quarter, we expect international revenue to increase 3% to 4% on roughly flat activity levels with typical seasonal software and completion tool sales. Let me share some progress on our international growth engines, those businesses where we expect growth outperformance by Halliburton relative to the oilfield services market. These growth engines, production services, artificial lift, unconventionals, and drilling are central to our international strategy. We made solid progress this quarter, and here are a few updates. In production services, we won a major five-year contract from ConocoPhillips in the North Sea. To deliver this contract, we will transform a conventional offshore service vessel into an advanced simulation platform, complete with the first deployment of Octiv automation to an offshore environment. This demonstrates our leading technology and execution that maximizes asset value for our customers.

In artificial lift, Kuwait Oil Company named Halliburton Service Partner of the Year and awarded Halliburton a multi-year ESP contract, which further strengthens our position in Kuwait. Additionally, in Colombia, Ecopetrol awarded Halliburton ESP contracts in nine of 11 fields. In international unconventionals, we saw further adoption of our leading completions technology and set a new continuous pumping record in the Vaca Muerta. I'm encouraged by our technology penetration in this market as we deliver leading performance and maximize asset value. Finally, in drilling, we introduced iCruise Force in the UAE and Qatar with strong results in both markets. iCruise Force maximizes rate of penetration while utilizing advanced formation evaluation tools, delivering significant value where logging requirements and rig costs are high. Beyond our growth engines, I am pleased with the performance of our international business.

Our value proposition to collaborate and engineer solutions to maximize asset value for our customers continues to win work and deliver results. We see this most clearly in deepwater. During the quarter, I met with customers in Latin America and Europe to recognize the performance we've achieved through our collaborative model. Together, we are reducing drilling times, improving well placement, and deepening our collective competitive advantage. The strength of our value proposition and the breadth of our technology offerings underpins my confidence in our offshore position, where we have leading technologies in formation evaluation, drilling automation, drilling fluids, cementing, well completions, and intervention. Offshore is roughly half our revenue outside of North America land today, and I expect that share to grow. To conclude my thoughts on the international market, our value proposition is winning with customers.

We are demonstrating differentiated performance both on and offshore, and our growth engines are delivering. I am confident in the future of our international business. Now let's turn to North America. Our third quarter revenue of $2.4 billion was above our expectations with 5% sequential growth driven by less than anticipated completions whitespace and strong activity in the Gulf of America. During the quarter, we executed our strategy to maximize value in North America. We stacked on economic frac fleets, expanded our leading automation offerings, and executed cost-out initiatives to reduce our operating costs and overhead. Looking to the fourth quarter, we expect greater than typical whitespace and seasonal activity slowdowns to result in approximately 12% to 13% lower sequential revenue. Despite softer activity in the near term, technology demand remains strong across both divisions as our customers are focused on maximizing the value of their capital dollars.

In completions, ZEUS is the recognized leader in technology and performance. Year to date, we have introduced two additional ZEUS electric fleets under contract, and today over half of our active North America fleet is Zeus, an important milestone. We also see strong demand for our ZEUS IQ closed-loop fracturing offering. We expect meaningful growth of this service in 2025 and 2026, deepening our competitive advantage and reinforcing our leadership in fracturing technology, efficiency, and execution. In drilling services, we delivered solid sequential and year-on-year growth driven by iCruise. In the third quarter, we introduced the 7 and 7/8 iCruise CX, a highly sought-after hull size for the Permian Basin, with outstanding results. The system completes curve and lateral sections in a single run, replicating the proven success we've achieved in other hull sizes.

This new offering broadens the iCruise product portfolio, and given the system's consistent performance and our advances in telemetry, automation, and rig integration, I am confident we will see rapid adoption by our customers and continued growth in our North America drilling services business. To close, North America is a tough market today. We are taking steps and executing our strategy to maximize value. This means we are prioritizing returns, technology leadership, and working with leading operators. I am confident that our strategy execution will drive further success. Now let me address our investment in VoltaGrid. As disclosed in our Form 8-K filed on October 14, Halliburton owns approximately 20% of VoltaGrid on a fully diluted basis. We invested early and increased our ownership over time because distributed power is a critical enabler for electrified oilfield services and a growing opportunity set beyond the oilfield.

Last week, VoltaGrid announced an agreement to deploy 2.3 GW of generation capacity to support Oracle's next-generation artificial intelligence data centers. This expands VoltaGrid's contracted backlog, broadens its revenue base, extends a line of sight to multi-year growth, and validates VoltaGrid's position as a leading provider of long-term behind-meter power solutions. I am also pleased to announce that we have signed an agreement with VoltaGrid to be their international partner for delivering distributed power solutions for data centers outside of North America. Through this agreement, we will combine Halliburton's global reach, design, manufacturing, and operating capabilities with VoltaGrid's distributed power expertise to deliver reliable power at scale. I expect this will be an important long-term growth opportunity for both VoltaGrid and Halliburton. Looking ahead, I'm excited by the opportunities for Halliburton and VoltaGrid. Before I turn the call over to Eric, let me close with this.

Oil price volatility is likely to impact the near-term macro environment. While I firmly believe a recovery in activity is inevitable, the timing and shape remain uncertain. Near term, we will execute our collaborative strategy and advance our technology, invest in our international growth engines, maintain cost and capital discipline, including idling equipment when returns are not economic, and finally, remain focused on returning cash to shareholders. I'm excited about Halliburton, our strategy, our team, our customer relationships, and our technology. Our portfolio is highly differentiated. We lead in critical product lines both on and offshore. Our value proposition is validated by the work we are doing today and the customer discussions we are having about future work. Our leadership team is focused on executing the strategies that deliver strong financial performance. With that, I'll turn the call over to Eric.

Thank you, Jeff, and good morning. Our Q3 reported net income per diluted share was $0.02. Adjusted net income per diluted share was $0.58. Let me start with some color on the charges taken this quarter. All the details are available in the press release, but a few items are worth highlighting. First, to address near-term market conditions, we took steps to reset our cost structure. As a result, we recorded severance and fixed and other assets write-offs of $284 million. We expect cash operational savings from the actions we took to result in approximately $100 million in quarterly savings. Second, because of the changes to U.S. tax laws, we recorded an additional valuation allowance expense of $125 million. As a result of these changes, we also expect a lower effective tax rate on our U.S. taxable income going forward.

Now, turning to operations, total company revenue for Q3 2025 was $5.6 billion, an increase of 2% when compared to Q2 2025. Adjusted operating income was $748 million, and adjusted operating margin was 13%. Our Q3 cash flow from operations was $488 million, and free cash flow was $276 million. During Q3, we repurchased approximately $250 million of our common stock. Now, turning to the segment results. Beginning with our completion and production division, revenue in Q3 was $3.2 billion, an increase of 2% when compared to Q2 2025. Operating income was $514 million, flat when compared to Q2 2025, and operating income margin was 16%. Increased completion tool sales and higher artificial lift activity in North America were partially offset by lower completion tool sales internationally and decreased well intervention services in the Middle East.

In our drilling and evaluation division, revenue in Q3 was $2.4 billion, an increase of 2% when compared to Q2 2025. Operating income was $348 million, an increase of 12% sequentially, and operating income margin was 15%. These results were primarily driven by higher project management and improved wireline activity in Latin America, increased drilling services in North America and Europe, Africa, and higher software sales in Europe, Africa. Partially offsetting these increases were lower activity across multiple product service lines in the Middle East. Now, let's move on to geographic results. Our Q3 international revenue was flat when compared to Q2 2025. Europe, Africa revenue in Q3 was $828 million, flat sequentially. Improved completion tool sales in Norway and increased drilling-related services in Namibia were offset by lower completion tool sales in the Caspian area and lower fluid services across Europe.

Middle East Asia revenue in Q3 was $1.4 billion, a decrease of 3% sequentially, primarily driven by lower activity across multiple product service lines in Saudi Arabia. Latin America revenue in Q3 was $996 million, a 2% increase sequentially. This increase was primarily driven by higher project management activity across the region and increased drilling services in Argentina. In North America, Q3 revenue was $2.4 billion, a 5% increase sequentially. This increase was primarily driven by improved stimulation activity in U.S. land and Canada, and higher completion tool sales and increased wireline activity in the Gulf of America. Moving on to other items. In Q3, our corporate and other expense was $64 million. We expect our Q4 corporate expenses to increase about $5 million. In Q3, we spent $50 million on SAP S4 migration, which included milestone payments and is included in our results.

For Q4, we expect SAP expenses to be about $40 million. Net interest expense for the quarter was $88 million. For Q4, we expect net interest expense to increase about $5 million. Other net expense in Q3 was $49 million, which included $23 million due to the impairment of an investment in Argentina and a mark-to-market gain on a derivative. We expect Q4 expense to be about $45 million. Our normalized effective tax rate for Q3 was 21.5%. Based on our anticipated geographic earnings mix, we expect our Q4 effective tax rate to be approximately flat. Capital expenditures for Q3 were $261 million. For the full year 2025, we expect capital expenditures to be about 6% of revenue. In Q3, tariffs impacted our business by $31 million. For Q4, we currently expect a gross impact of about $60 million, increasing quarter on quarter due to Section 232 tariffs.

These impacts are included in our guidance. Now, let me provide you with comments on our Q4 expectations. In our completion and production division, we expect greater than typical whitespace and seasonality in North America, partially offset by strong international results in the fourth quarter. As a result, in our completion and production division, we anticipate sequential revenue to decrease 4% to 6% and margins to be down 25 to 75 basis points. In our Drilling and Evaluation division, we expect sequential revenue to be flat to down 2% and margins to increase 50 to 100 basis points. I will now turn the call back to Jeff.

Thanks, Eric. Let me summarize the key takeaways from today's discussion. Halliburton delivered solid Q3 results with $5.6 billion in revenue. We took steps that will deliver estimated savings of $100 million per quarter, reset our 2026 capital budget, and idled equipment that no longer meets our return expectations. Our international growth engines, production services, artificial lift, unconventionals, and drilling are performing well. In North America, Halliburton is executing its strategy to maximize value. ZEUS electric fleets now make up over half of our active fleet, and iCruise CX is driving performance in key basins like the Permian, reinforcing our technology differentiation. Halliburton and VoltaGrid agreed to launch an exciting new opportunity for international growth in data centers. Finally, we are committed to returning cash to shareholders, maintaining cost and capital discipline, and investing in differentiated technologies that drive long-term performance. Now, let's open it up for questions.

Thank you. Ladies and gentlemen, once again, if you would like to ask a question, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. We kindly ask everyone to limit themselves to one question and one follow-up. Your first question comes from the line of Arun Jayaram with JPMorgan. Please go ahead.

Morning. Gentlemen, you've described how your relationship with VoltaGrid gives you a front seat to the emerging distributed power generation market. I was wondering if you could talk about your views on the evolution of that market over the last three, six, nine months, and maybe talk a little bit about the strategic collaboration you announced last night, which I believe allows you to invest in project-level economics internationally. Maybe you could provide a little bit more detail around that.

Yeah, certainly. Look, the demand for power and for AI is like nothing I've ever seen in terms of demand growth, and we've watched that. We also know that not only in the U.S., but around the world, the rest of the world is a really big opportunity set for the same level of growth. As we look ahead to what we've announced with VoltaGrid, this is where Halliburton invests in project economics. We are sharing the economic value of projects together. It's an opportunity to effectively leverage what we each do really well. From a Halliburton perspective, we've got boots on the ground in 70 countries. We've got excellent execution skills, proven manufacturing, and we also have global scale, industrial global scale, which I think is critical. At the same time, VoltaGrid has solved for how to execute these projects technically and at scale.

We've built a strong relationship over five years as that technology has developed. We've worked closely with VoltaGrid in our own business, and that gives us a great deal of confidence in how they've gone about solving the technical requirements for data centers. We are just super excited to be part of this whole venture going forward.

Great. Jeff, maybe my follow-up, you know, North American revenue was up 5% sequentially, a lot better than we had expected and maybe you'd guided to, and relatively flat on a year-over-year basis. Can you talk about some of the drivers of the outperformance in North America and thoughts on what this could mean for 2026?

We saw less whitespace than we expected in Q3, which obviously drove revenues better than what we would have thought. I think it also gets to the strength of the customers that we work with, the solid programs that they have. As I look towards 2026, it gives me a lot of confidence in Halliburton's positioning in the market, both how we execute and maybe even more importantly, the technology that we're bringing to market. As we described, puts a couple of new ZEUS fleets to work and seed demand for not only the electric fleet, which is a fantastic piece of equipment, but maybe even more so ZEUS IQ in terms of what that means to solving for EURs.

Your next question comes from the line of Neil Mehta with Goldman Sachs. Please go ahead.

Hey, Jeff and team. I want to spend more time talking about the Middle East opportunity as it relates to power. Why specifically is that the region you think makes sense to be spending time on? Talk about some of the constraints that might exist in the Middle East in terms of really scaling the AI opportunity set, and how do you intend to debottle that?

I think that it's the Middle East and the rest of the world. I think our initial focus is the Middle East. We see a lot of opportunity there. Obviously, that's an economy that is developing capabilities every single day and very much focused on looking forward to investment. The other thing is there is certainly a lot of available energy in the Middle East, and there is also a lot of capital in the Middle East. Those things all conspire to make that very attractive.

Right. Super. Given, I know it's too early to talk about 2026 at this point. We'll get more color on the fourth quarter call. Just as you look at what is still a very uncertain macro for North America in particular, any early thoughts in helping us think through the picture for 2026 and based on early customer conversations?

Yeah, look, it is really early. Customers haven't produced budgets yet at this point. We clearly are having discussions with customers. If I step back and say 2026 is overall flattish with some bright spots, that is how I would describe all of 2026. North America, we did stack some fleets in the quarter. Those probably don't come back to work. Here's what's more important to think about for 2026 in my view, and it is going to be looking at the mileposts as we go through 2026 because I think some important things are happening now. Number one, OPEC+ barrels are getting into the market. We know that. North America, in my view, is probably below maintenance level spend. Mexico stays kind of probably where it is for a little while, but that decline in production there is also meaningful.

If we think about Mexico declining, North America likely rolling over, and all the OPEC+ spare capacity in the market, that creates a real inflection point. Now, when precisely that happens is less clear, but oil demand continues to grow, and that gives me a lot of confidence. I think that with the OPEC barrels sort of behind us, it creates real tightness, that sort of undisputable tightness in the market that I think the snapback will be super strong for us.

Right. All right. Stay tuned as you have more customer conversations. Thanks, Jeff.

Your next question comes from the line of David Anderson with Barclays. Please go ahead.

Good morning. I just have a question about the margins, which are quite a bit stronger than we were expecting this quarter. You talked about taking $100 million of costs out per quarter. How much of that was in this current quarter? I'm just kind of curious as to how much it impacted the numbers.

Let me give you some color, Dave, on the Q3 margin versus guidance. The first thing, we had about half of the beat that came from reductions in labor costs that actually we realized as savings earlier than expected as our operation teams moved pretty quickly to get things done. In terms of what came out of operation between C&P and D&E, as Jeff just mentioned, there is a lot less whitespace in North America land, strong performance from the Gulf of America team. Overall, just a strong international performance, primarily from our completion tool and cementing business. On the D&E side, the strong result came from our project management business in Latin America.

Okay. Thank you. Jeff, you know I'm asking a power question here. With the partnership here, I'm curious about a couple of things. Obviously, we know VoltaGrid's bringing the power. I guess maybe if you could just sort of simplify for us what Halliburton's bringing to the table here. Secondarily, what size projects are we talking about here? VoltaGrid just announced a big 2.3 GW project. Are you talking about that size, or are you talking more like 100, 200, 400, that kind of range? Might as well throw this in there. What kind of timeline are we talking here? Are we talking like 2028? I'm just kind of wondering about supply chain tightness and how that all lines up. Thanks.

Let me start with maybe the last question. From a supply chain standpoint, VoltaGrid is in a fantastic position from a supply chain standpoint and comfortable with where they are. From a size of project, you know, we're aligned with VoltaGrid around projects of the size and scale that they're talking about. I think they, you know, I'm not going to forecast size of projects, but feel comfortable they can be pretty big. What does Halliburton bring? I think Halliburton brings some very important things, particularly, I would say, industrial scale and working internationally. We've all seen how difficult that can be for companies as they scale internationally. We've seen a lot of them, you know, less than successful as they scale.

Putting boots on the ground, managing projects, investing in projects, customer relationships, there's a long list of things that Halliburton brings to the international markets where we clearly can be additive. From a VoltaGrid perspective, clear on what they're doing.

Your next question comes from the line of Saurabh Pant with Bank of America. Please go ahead.

Oh, Jeff, maybe I'll continue with that line of questioning on the power front, but pivot a little bit on the CapEx side of things because this business is pretty CapEx intensive. Not something that you're not used to, right, Jeff, over the past, but how do you think about that? How do you think you'll fund that? Not just at the VoltaGrid level, but how does the collaboration outside the U.S., right? The Middle East, like you're targeting right now, how does that look like from a funding, from a CapEx standpoint?

Yeah, to be clear about how we're thinking about it, Saurabh, our CapEx budget for next year is $1 billion. Whatever we do around power with VoltaGrid in the international market is not included in that $1 billion. The overall intent is to share total project economics. We will be funding this on a project-by-project basis incrementally over the $1 billion or whatever baseline CapEx we have for our oil and gas business.

Okay. I got it. No, that's helpful, Eric. Then one for the North America market, right? Like somebody noted on the call, your performance has been a lot better than a lot of us were thinking. It seems like, Jeff, correct me if I'm wrong, it seems like you are not trying to be everything to everybody. You're targeting the customers, the large sophisticated customers that value what you bring to the table, right? Just maybe talk to that a little bit. How are you targeting the North American market with the aim of maximizing value like you've been trying to do?

Maximizing value means that we are focused on efficiency and technology. Electric fleets bring that, but we continue to invest in technology in North America. I think that's where the point of bifurcation happens. We have been clearly targeting customers that want to use that technology, both the electric and stepping forward into the subsurface and the control of sand and a lot of the things that ZEUS IQ and the many things that we've built along the way allow customers to do. We continue to deepen that competitive advantage in terms of how we help customers solve for EUR, sand control, measure sand performance, all of those things in the subsurface. It is very deliberate. We don't compete in the spot market. We don't want to be competing in the spot market. You've seen us stack some diesel dual fuel fleets in the quarter for that very reason.

Clearly, we are not going to be everything to everyone. We're very pleased with the technology performance and pleased with the uptake on the technology. There's really not a good reason to continue to burn up dual fuel equipment in a market that's not making returns. We have opportunities to send dual fuel equipment overseas, which we may do, we probably will do, or we just idle it and wait for later when things get tighter and we put it back to work then.

Makes sense. Makes sense. Okay, Jeff, I turn it back. By the way, as much as I like the $100 million in cost savings, I'm waiting for the day when activity is going up and we are adding labor costs. Until then, thanks a lot for that color.

Your next question comes from the line of James West with Melius Research. Please go ahead.

I want to be clear, you guys have been dancing around the VoltaGrid relationship with your questions so far, but I was hoping to just create some clarity here. We obviously know they have a distributed power technology that is going to be extremely useful. We understand the Middle East is energy-rich, but really, outside of industrial scale, is it not the relationship that you bring to the table? I mean, nobody walks into the Kingdom of Saudi Arabia and says, "Hey, guys, can I do business?

Correct. When I describe global industrial scale, I'm including customer relationships, markets, knowledge of markets, history in markets, and history of execution in markets that is well respected by most of the people in those markets, clearly by the people in those markets, customers and governments and all the rest.

Exactly. That's exactly what we see. Maybe if we think about 2026, and I know in North America, we can kind of leave that out for now because of the uncertainty, but it looks to me like Saudi is bottoming and is going to recover here in the first half, deepwater coming back in the second half. Is that consistent with what your customers are kind of alluding or telling you at this point?

Yes. I mean, our deepwater business is getting traction now and continues to strengthen as projects start. As we win projects, that's sort of the view of that into 2026 and beyond. You know, the Middle East, Saudi in particular, I expect that picks up as we go into next year. I don't think that it springs back to maybe where it was, but not declining is a form of improving. I think there will be some improvement on top of that as we go into the middle of 2026. The international business looks solid. Our technical position internationally looks very solid in terms of the growth engines I described, the contract wins we're having, and really our value proposition just continues to gain traction with customers all around the world. Very happy with that.

Your next question comes from the line of Doug Becker with Capital One. Please go ahead.

That was a good segue, Jeff. You've been highlighting the growth engines. Earlier this year, you talked about those engines could add $2.5 billion, maybe $3 billion of annual revenue three to five years. How do you think Halliburton's progressing relative to those targets? I assume you feel pretty comfortable that Halliburton should be growing, outgrowing the industry internationally given those growth engines.

Yeah, they're on track. I mean, to do what we described, I pointed out a few of the anecdotes around the progress, but the progress is really deep-rooted in our value proposition. These are strategic opportunities that continue to gain traction globally, whether intervention. You've seen the acquisition of Optyme, which is playing a more and more meaningful role. I know we've just, I think there was a press release just last night or yesterday around application of that in the North Sea with Aker BP, but that continues to, EROX gain traction really in all deepwater markets. I'm very excited about that. Artificial lift continues to gain traction throughout the Middle East, Latin America. That's very much on track. Drilling technology continues to advance, you know, with automation and drilling.

Done some just amazing work in terms of automated drilling, controlling or automating not only the rig, but the hydraulics, which is a key technical differentiator for Halliburton. In unconventionals, continue to look, we applied the technology of Sensori and continuous pumping in Argentina. Those are market firsts there. They have an impact and, you know, a positive impact for customers and for Halliburton. See the Middle East the same way. We see a lot of opportunity, even Australia, where we've done quite a bit of work, in international unconventionals. Very much on track and super excited about the differential growth opportunity that Halliburton has in these areas.

It definitely sounds encouraging. I wanted to touch base on Brazil specifically. Halliburton recently received a completion and stimulation contract, expected to start next year. We've been hearing some of the offshore drilling contractors have been having one-on-one discussions with Petrobras about reducing costs. Just what's your outlook for Brazil and has Halliburton been approached about helping to reduce costs?

Look, we're super positive about Brazil. We've got a strong position there both with IOC work and with Petrobras. We continue to develop technology specific for that market. We're in all sorts of discussions with Synthes, and in terms of the market in Brazil, we see growth in execution and technology uptake given the complexity of that deepwater market.

Your next question comes from the line of Scott Gruber with Citigroup. Please go ahead.

You guys have taken a very disciplined approach with respect to idling frack crews where you won't make a reasonable return. I'm just curious, where do you stand in that process? Was it more weighted to 3Q or would the idling be more weighted to 4Q when customers slow down? I'm just trying to think through your market comments on North America being down 12%, 13%, trying to separate the underlying market from the idling trend.

Look, I think that we idled some crews probably later in the quarter. You may see some of that in Q4. I think the idling and the whitespace in some respects go together. However, some of those crews that have been idled will stay idle until we see margins snap back on them. I think what's important as we look at the mileposts that I described is that the first thing to snap back or recover will be North America. It's been that way for a decade and a half. We've seen it through several downturns. We fully expect that the recovery will come quickly in North America when it comes, and we're going to want those fleets available to fill in gaps and actually take on some bigger work.

I appreciate the color. Turning to the CapEx budget for next year, I think at $1 billion, it's a bit below where expectations were. At the same time, your frack maintenance CapEx should be coming down a lot with the idling and investment in e-frack. Can you discuss within the budget your ability to continue to make the strategic investments in the D&E toolkit and your growth verticals within C&P? It seems like those investments have borne a lot of fruit here in terms of share gains. Just talk through the moving pieces in the budget next year and your ability to still make those strategic investments.

Look, let me start. The capital budget, the 30% reduction is still in line, I think, largely. It is, as you described, investment cycles. We just view it as we don't, and that's where we need to be. From a strategic perspective, we continue to invest in R&D. We continue to invest in the technology that's differentiating. We have quite a bit of that, but we also have the ability to manage that inside of the budget that we have. I think that driving some tightness in equipment is a good thing. I expect that you'll continue to see Halliburton investing in the technology that makes the outsized market returns.

I guess another way to kind of phrase it is, do you think you can still deliver the share gains in D&E and C&P with the billion-dollar budgets next year?

Your next question comes from the line of Marc Bianchi with TD Cowen. Please go ahead.

Thank you. I wanted to pivot back to some stuff on VoltaGrid. Is the arrangement that was announced last night, this international collaboration, an exclusive arrangement where Halliburton is sort of exclusively deploying the VoltaGrid technology, or can they go work with someone else if they choose to?

It is exclusive in parts, and I think where we're targeted, it's exclusive with certainty over a pretty good period of time. I'm not going to get into all the mechanics of the agreement, but the relationship is such that I feel confident that we are the partner. Like I said, co-investing and the work that we've done to get to where we are has all been important work. I am quite confident in where that goes. I think the more important takeaway is this is a fantastic growth opportunity for Halliburton and for VoltaGrid internationally.

Indeed, Jeff. Thank you for that. If there's some dollar of spend that needs to occur in 2026 on top of the $1 billion CapEx that you have related to this, is there a certain percentage that Halliburton would be obligated to? Is it a 50% obligation or anything like that? You can help us. If we see a press release from VoltaGrid that they're spending $1 billion, we can sort of get a sense of what that might mean for Halliburton's requirement.

I think we'll be invested. We will be investing alongside them. I think the capital, we know how to raise capital, and we know how to get capital. I think that these projects are imminently capitalizable. I don't see that as any kind of impediment whatsoever. If you see them announcing capital investment around the world, we're likely, more than likely, we are part of that.

Okay, thank you so much, Jeff. I'll turn it back.

The next question comes from the line of Derek Podhaizer with Piper Sandler. Please go ahead.

Hey, good morning. I just wanted to go back to the theme around idling equipment. If we can get a little bit more color, maybe help us understand how many fleets that you've idled, how many you expect to be permanently impaired, how many you think might go back to work. Just trying to get a sense of the total market idling equipment. We've heard that from one of your peers last week. How significant could this accelerated attrition really be for the market and create a better setup from a supply and demand perspective for 2026?

We're going to idle things that aren't economic. That's really the way we approach it. It's not so much a number of things. The way I think about attrition, and I think this is what we're really seeing in the marketplace, we, in fact, are idling things and they remain idle. They're not being bled back into the fleet to help shore up underperforming assets elsewhere for customers. I think that is really the key when we think about attrition. If we just look at the amount of horsepower on a simul-frac, for example, we're fairly disciplined about that quantity. We probably won't have more than 65,000 HP on a location like that. If we go look at competitors performing simul-frac, you know, that number could be 100,000 HP, 120,000 HP, effectively saying that that's attrition in motion.

I think when the market, it doesn't need to recover much, if any, before we'll see real tightness in pricing in North America.

Halliburton (HAL) Q3 2025 Earnings Call Transcript

Company Participants