01—Abstract
Summary
Summary of the 10-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.
Halliburton Company's 2024 Form 10-K, filed February 12, 2025, reports total 2024 revenue of $22.9 billiona, flat compared with $23.0 billion in 2023.
Completion and Production revenue decreased 3% to $13.3 billionb, while Drilling and Evaluation revenue increased 4% to $9.7 billion. North America revenue fell 8% to $9.6 billion, and international revenue improved 6%. Total operating income declined to $3.8 billion from $4.1 billion, and net income attributable to the company was $2.5 billion, or $2.83 diluted per share, versus $2.92 in 2023.
Cash flow from operations was $3.9 billionc, against capital expenditures of $1.4 billion. The company repurchased 30.5 million shares for $1.0 billion, paid $600 million in dividends, and returned $1.6 billion to shareholders in total. It also repurchased $100 million of debt and said it does not intend to incur additional debt in 2025.
Cash and equivalents rose to $2.6 billiond, and $3.5 billion of revolving credit capacity was available at year-end. The filing highlights several risks: a cybersecurity incident in 2024 that gave an unauthorized third party access to certain systems and led to $35 million in related expenses, and an IRS Notice of Proposed Adjustment on the $3.5 billion Baker Hughes termination fee deduction, which could result in cash taxes of approximately $640 million plus interest if the IRS position prevails. For 2025, management expects capital spending of about 6% of revenue, flat international revenue, and North America revenue decreasing in the low to mid-single digits.
02—Key points
Key Highlights
- Total revenue of $22.94 billion in 2024, flat versus $23.02 billion in 2023; North America down 8% and international up 6%.
- Operating income of $3.82 billion, down from $4.08 billion, including a $116 million pre-tax charge for impairments and other items.
- Net income attributable to the company of $2.50 billion, or $2.83 per diluted share, compared with $2.64 billion, or $2.92 per diluted share, in 2023.
- Cash flows from operating activities of $3.87 billion, with capital expenditures of $1.44 billion.
- Shareholder returns of $1.6 billion in 2024 through buybacks ($1.0 billion) and dividends ($600 million), with about $3.0 billion remaining under the repurchase authorization.
- Cybersecurity incident disclosed in 2024 resulted in $35 million of expenses and remains a source of unknown future impacts, regulatory actions, or potential litigation.
- Pending IRS dispute over the $3.5 billion Baker Hughes termination fee deduction; the filing estimates a possible cash tax impact of about $640 million plus interest.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 12, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $22.94B$23.02B | −0.3% |
| R&D Expenses | $426.00M$408.00M | +4.4% |
| Operating Expenses | $19.12B$18.93B | +1.0% |
| Operating Income | $3.82B$4.08B | −6.4% |
| Net Income | $2.52B$2.66B | −5.5% |
| EPS (Basic) | $2.84$2.93 | −3.1% |
| EPS (Diluted) | $2.83$2.92 | −3.1% |
| Shares Outstanding (Basic) | 882.00M899.00M | −1.9% |
| Shares Outstanding (Diluted) | 883.00M902.00M | −2.1% |
05—Questions
Frequently Asked Questions
How did Halliburton perform financially in 2024?
Total revenue was flat at $22.9 billion. Completion and Production revenue decreased 3% to $13.3 billion, while Drilling and Evaluation revenue rose 4% to $9.7 billion. Operating income fell to $3.8 billion from $4.1 billion, and diluted earnings per share were $2.83 compared with $2.92 in 2023.
How much did Halliburton return to shareholders in 2024?
The company returned $1.6 billion through share repurchases of $1.0 billion (30.5 million shares) and dividends of $600 million. Its capital return framework targets returning at least 50% of annual free cash flow, and the 2025 focus statement says it will return over 50%.
What is the outlook for 2025?
Management expects international revenue to be flat in 2025 versus 2024, with growth in most markets offset by activity reduction in Mexico. North America revenue is expected to decrease in the low to mid-single digits. Capital expenditures are expected to be approximately 6% of revenue.
What are the main legal and tax risks disclosed?
The company received a Notice of Proposed Adjustment from the IRS on September 28, 2023, proposing to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016. Halliburton disagrees and is contesting it through the IRS appeals process. If the IRS position prevails, cash taxes of about $640 million (plus interest for prior years) could be due.
What cybersecurity issue did Halliburton face in 2024?
An unauthorized third party gained access to certain company systems and exfiltrated information, which the company determined to be a material event. The incident disrupted access to portions of business applications, cost $35 million in 2024, and could lead to further regulatory actions or litigation.
06—Continue