01—Abstract
Summary
Summary of the 10-K filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Halliburton Company's 2025 Form 10-K reports total revenue of $22.2 billiona, down 3% from $22.9 billion in 2024, with North America revenue down 6% and international revenue down 2%.
Total operating income fell to $2.3 billionb from $3.8 billion, reflecting impairments and other charges of $831 million (including $299 million of severance costs and a $224 million impairment of assets held for sale related to the chemical business). Net income attributable to the company was $1.28 billion, or $1.50 per diluted share, versus $2.50 billion ($2.83 per share) in 2024. The company generated $2.9 billion of operating cash flow, spent $1.3 billion on capital expenditures, and returned $1.6 billion to shareholders through dividends and share repurchases.
Management expects 2026 capital expenditures of about $1.1 billionc and anticipates North American revenue to decline year over year while international revenue is expected to be flat to up modestly. The balance sheet remains solid, with $2.2 billion of cash and equivalents, $7.2 billion of long-term debt, and a new $3.5 billion revolving credit facility maturing in August 2030. The company has no financial covenants in its bank agreements and carries credit ratings of BBB+ (S&P) and A3 (Moody's), both with stable outlooks.
Management also notes the company is marketing a portion of its chemical business for sale, expected to close in the first half of 2026. Key open items include an IRS Notice of Proposed Adjustment related to a $3.5 billiond 2016 termination fee paid to Baker Hughes; the filing states that if the IRS position prevails, cash taxes could be approximately $640 million plus interest, though no payment is currently required. The company also discloses a 2024 cybersecurity incident that caused disruptions and significant costs, and ongoing exposure to Venezuela-related receivables, which are fully reserved in the allowance for credit losses of $805 million.
02—Key points
Key Highlights
- Total revenue decreased 3% to $22.2 billion in 2025 from $22.9 billion in 2024; North America revenue fell 6% and international revenue fell 2%.
- Operating income declined to $2.3 billion from $3.8 billion, including $831 million of impairments and other charges, primarily severance, asset held-for-sale impairment, and legacy environmental remediation cost increases.
- Net income attributable to the company was $1.28 billion ($1.50 per diluted share) versus $2.50 billion ($2.83 per diluted share) in 2024.
- Operating cash flow was $2.9 billion; capital expenditures were $1.3 billion, and 2026 capital spending is expected to be about $1.1 billion.
- Shareholder returns totaled $1.6 billion in 2025 through dividends and share repurchases; the company targets returning at least 50% of annual free cash flow.
- The 2026 outlook calls for flat to modestly higher international revenue, led by Latin America, and a year-over-year revenue decline in North America.
- A $3.5 billion revolving credit facility was entered into in August 2025 and runs through August 2030; the company reports no financial covenants in its bank agreements.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 6, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $22.18B$22.94B | −3.3% |
| R&D Expenses | $411.00M$426.00M | −3.5% |
| Operating Expenses | $19.92B$19.12B | +4.2% |
| Operating Income | $2.26B$3.82B | −40.9% |
| Net Income | $1.29B$2.52B | −48.6% |
| EPS (Basic) | $1.50$2.84 | −47.2% |
| EPS (Diluted) | $1.50$2.83 | −47.0% |
| Shares Outstanding (Basic) | 853.00M882.00M | −3.3% |
| Shares Outstanding (Diluted) | 853.00M883.00M | −3.4% |
05—Questions
Frequently Asked Questions
What drove the decline in Halliburton's 2025 operating income?
Operating income fell to $2.26 billion from $3.82 billion. The main driver was $831 million of impairments and other charges, including $299 million of severance costs, a $224 million impairment of assets held for sale related to the chemical business, and $106 million of other charges primarily tied to legacy environmental remediation cost estimate increases. Completion and Production operating income fell 21% and Drilling and Evaluation fell 14%, reflecting lower U.S. Land pressure pumping activity and reduced international drilling activity.
What is the status of the IRS dispute over the Baker Hughes termination fee?
The IRS issued a Notice of Proposed Adjustment on September 28, 2023, proposing to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an ordinary deduction to a capital loss. Halliburton strongly disagrees and has initiated the IRS administrative appeals process, which is ongoing. If the IRS position prevails, the company estimates cash taxes of approximately $640 million plus interest, but states that no payment is currently required and that it does not expect this to impair its ability to meet expected uses of cash or return cash to shareholders.
What does the 2026 outlook look like for Halliburton?
Management expects international activity to be stable year over year, with revenue flat to up modestly, led by Latin America. It anticipates moderate softness in North America, with revenue expected to decline compared to 2025, reflecting reduced land customer activity, the decision to stack uneconomic fleets, and timing of Gulf of America programs. Capital expenditures are planned at about $1.1 billion, and the company expects commodity prices are unlikely to rise absent geopolitical disruptions.
How strong is Halliburton's balance sheet and liquidity position?
As of December 31, 2025, the company had $2.2 billion of cash and equivalents and $3.5 billion of available committed bank credit under its revolving facility. Long-term debt was $7.16 billion, with only about $90 million due in February 2027 and no debt maturities in 2026. Credit ratings are BBB+ from S&P and A3 from Moody's, both with stable outlooks. Letters of credit, bank guarantees, and surety bonds outstanding totaled approximately $3.1 billion.
What cybersecurity risk does Halliburton disclose?
The company disclosed a cybersecurity incident in 2024 in which an unauthorized third party accessed certain systems and exfiltrated information. The incident caused disruptions, required significant costs, and consumed substantial management attention. Halliburton states it faces ongoing risks of unknown impacts, regulatory actions, or potential litigation related to the incident, and that a future incident could have a material adverse effect on its business.
06—Continue