Why did reported earnings decline so sharply compared with the first quarter of 2024?

Reported net income fell to $204 million from $606 million, largely because of a $356 million pre-tax charge for impairments and other charges in the first quarter of 2025. Excluding that charge, adjusted net income was $517 million, compared with $679 million in the prior-year quarter, which itself included an $82 million charge tied to an Argentina investment impairment and Egypt currency devaluation.

Which segments and regions drove the revenue decline?

Completion and Production revenue fell 8% to $3.1 billion, driven by lower pressure pumping and completion tool sales in the Western Hemisphere. Drilling and Evaluation revenue fell 6% to $2.3 billion, driven by lower drilling services in Mexico and the Middle East. North America revenue fell 12% to $2.2 billion and Latin America fell 19% to $896 million, while Middle East/Asia and Europe/Africa grew 6% each.

What did the company's cash flow and capital returns look like this quarter?

Cash flows from operating activities were $377 million and free cash flow was $124 million, compared with $487 million and $206 million in the first quarter of 2024. The company repurchased approximately $250 million of common stock and paid dividends of $0.17 per share. Cash and equivalents decreased to $1.8 billion from $2.6 billion at December 31, 2024.

What was behind the $356 million impairments and other charges?

The charge comprised severance costs of $107 million, an impairment of assets held for sale of $104 million, an impairment on real estate facilities of $53 million, and other items of $92 million. The filing states the charge was primarily related to legacy environmental remediation cost estimate increases.

What operational developments did Halliburton highlight?

The company cited the world's first closed-loop, autonomous fracturing operation, launched with Coterra Energy using the Octiv Auto Frac service on the ZEUS platform. It also reported an integrated offshore drilling contract from Petrobras in Brazil spanning three years, and the launch of the EcoStar electric tubing-retrievable safety valve.

HAL 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 22, 2025. Cited figures are marked; the original filing is the authoritative source.

Halliburton Company (NYSE: HAL) reported first-quarter 2025 results on April 22, 2025, with net income of $204 million^a, or $0.24 per diluted share, compared with $606 million, or $0.68 per diluted share, in the first quarter of 2024.

Excluding impairments and other charges of $356 million^b, adjusted net income was $517 million, or $0.60 per diluted share, versus $679 million, or $0.76 per diluted share, a year earlier. Total revenue was $5.4 billion, down from $5.8 billion, and operating income was $431 million, compared with $987 million in the prior-year quarter. Adjusted operating income was $787 million, and the company stated an adjusted operating margin of 14.5%.

By segment, Completion and Production revenue was $3.1 billion^c with operating income of $531 million, primarily reflecting lower pressure pumping activity and lower completion tool sales in the Western Hemisphere. Drilling and Evaluation revenue was $2.3 billion with operating income of $352 million, reflecting weaker drilling activity in Mexico and the Middle East. Geographically, North America revenue was $2.2 billion, down 12%, while Middle East/Asia revenue rose 6% to $1.5 billion and Europe/Africa revenue rose 6% to $775 million.

Latin America revenue fell 19% to $896 million^d. On capital returns and cash, the company repurchased approximately $250 million of common stock and paid dividends of $0.17 per share during the quarter.

Cash flow from operations was $377 million, free cash flow was $124 million, and cash and equivalents declined to $1.8 billion from $2.6 billion at year-end 2024. The $356 million pre-tax charge comprised severance costs, an impairment of assets held for sale, an impairment on real estate facilities, and other items, primarily related to legacy environmental remediation cost estimate increases.

02—Key points

Key Highlights

Net income of $204 million ($0.24 per diluted share) versus $606 million ($0.68) in Q1 2024; adjusted net income of $517 million ($0.60 per diluted share) versus $679 million ($0.76).
Total revenue of $5.4 billion versus $5.8 billion a year earlier; operating income of $431 million versus $987 million.
Pre-tax impairments and other charges of $356 million, including $107 million of severance costs and $104 million impairment of assets held for sale, primarily tied to legacy environmental remediation cost estimate increases.
Adjusted operating margin of 14.5% on adjusted operating income of $787 million.
Completion and Production operating income fell to $531 million from $688 million; Drilling and Evaluation operating income fell to $352 million from $398 million.
Free cash flow of $124 million versus $206 million in Q1 2024; cash flow from operations of $377 million.
Approximately $250 million of share repurchases and dividends of $0.17 per share during the quarter; cash and equivalents declined to $1.8 billion from $2.6 billion at December 31, 2024.

03—Questions

Frequently Asked Questions

Why did reported earnings decline so sharply compared with the first quarter of 2024?
Reported net income fell to $204 million from $606 million, largely because of a $356 million pre-tax charge for impairments and other charges in the first quarter of 2025. Excluding that charge, adjusted net income was $517 million, compared with $679 million in the prior-year quarter, which itself included an $82 million charge tied to an Argentina investment impairment and Egypt currency devaluation.
Which segments and regions drove the revenue decline?
Completion and Production revenue fell 8% to $3.1 billion, driven by lower pressure pumping and completion tool sales in the Western Hemisphere. Drilling and Evaluation revenue fell 6% to $2.3 billion, driven by lower drilling services in Mexico and the Middle East. North America revenue fell 12% to $2.2 billion and Latin America fell 19% to $896 million, while Middle East/Asia and Europe/Africa grew 6% each.
What did the company's cash flow and capital returns look like this quarter?
Cash flows from operating activities were $377 million and free cash flow was $124 million, compared with $487 million and $206 million in the first quarter of 2024. The company repurchased approximately $250 million of common stock and paid dividends of $0.17 per share. Cash and equivalents decreased to $1.8 billion from $2.6 billion at December 31, 2024.
What was behind the $356 million impairments and other charges?
The charge comprised severance costs of $107 million, an impairment of assets held for sale of $104 million, an impairment on real estate facilities of $53 million, and other items of $92 million. The filing states the charge was primarily related to legacy environmental remediation cost estimate increases.
What operational developments did Halliburton highlight?
The company cited the world's first closed-loop, autonomous fracturing operation, launched with Coterra Energy using the Octiv Auto Frac service on the ZEUS platform. It also reported an integrated offshore drilling contract from Petrobras in Brazil spanning three years, and the launch of the EcoStar electric tubing-retrievable safety valve.

04—Continue

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