# HALLIBURTON CO (HAL) Informational only - not investment advice. CIK: 0000045012 SIC: 1389 Oil & Gas Field Services, NEC SIC breadcrumb: [Mining](/division/B/) > [SIC Major Group 13](/major-group/13/) > [SIC 1389 Oil & Gas Field Services, NEC](/industry/1389/) Latest 10-K filed: 2026-02-06 SEC page: https://www.sec.gov/edgar/browse/?CIK=45012 Filing source: https://www.sec.gov/Archives/edgar/data/45012/000004501226000015/hal-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-06 · accession 0000045012-26-000015 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000045012.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 22,184,000,000 USD | 2025 | verified | | Net income | 1,283,000,000 USD | 2025 | verified | | Assets | 25,010,000,000 USD | 2025 | verified | | Free cash flow | 1,672,000,000 USD | 2025 | computed | | Net margin | 5.78% | 2025 | computed | | Operating margin | 10.19% | 2025 | computed | | Revenue YoY | -3.31% | 2025 | computed | | ROE | 12.26% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | HAL | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 5.8% | 3.7% | 71 | 15 | | Operating margin | 10.2% | 3.9% | 77 | 14 | | Revenue growth | -3.3% | -3.1% | 43 | 15 | | FCF margin | 7.5% | 4.9% | 71 | 15 | | ROE | 12.3% | 4.1% | 86 | 15 | | ROA | 5.1% | 2.8% | 86 | 15 | | Liabilities / equity | 1.39 | 0.83 | 86 | 15 | | Current ratio | 2.04 | 1.99 | 64 | 15 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 1389 Oil & Gas Field Services, NEC, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 22184000000 | USD | 2025 | 2026-02-06 | | Net income | 1283000000 | USD | 2025 | 2026-02-06 | | Assets | 25010000000 | USD | 2025 | 2026-02-06 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000045012.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 15,887,000,000 | 20,620,000,000 | 23,995,000,000 | 22,408,000,000 | 14,445,000,000 | 15,295,000,000 | 20,297,000,000 | 23,018,000,000 | 22,944,000,000 | 22,184,000,000 | | Net income | -5,763,000,000 | -463,000,000 | 1,656,000,000 | -1,131,000,000 | -2,945,000,000 | 1,457,000,000 | 1,572,000,000 | 2,638,000,000 | 2,501,000,000 | 1,283,000,000 | | Operating income | -6,770,000,000 | 1,374,000,000 | 2,467,000,000 | -448,000,000 | -2,436,000,000 | 1,800,000,000 | 2,707,000,000 | 4,083,000,000 | 3,822,000,000 | 2,260,000,000 | | Operating cash flow | -1,703,000,000 | 2,468,000,000 | 3,157,000,000 | 2,445,000,000 | 1,881,000,000 | 1,911,000,000 | 2,242,000,000 | 3,458,000,000 | 3,865,000,000 | 2,926,000,000 | | Capital expenditures | 798,000,000 | 1,373,000,000 | 2,026,000,000 | 1,530,000,000 | 728,000,000 | 799,000,000 | 1,011,000,000 | 1,379,000,000 | 1,442,000,000 | 1,254,000,000 | | Dividends paid | 620,000,000 | 626,000,000 | 630,000,000 | 630,000,000 | 278,000,000 | 161,000,000 | 435,000,000 | 576,000,000 | 600,000,000 | 579,000,000 | | Share buybacks | 0.00 | 0.00 | 400,000,000 | 100,000,000 | 100,000,000 | 0.00 | 250,000,000 | 800,000,000 | 1,005,000,000 | 1,007,000,000 | | Assets | 27,000,000,000 | 25,085,000,000 | 25,982,000,000 | 25,377,000,000 | 20,680,000,000 | 22,321,000,000 | 23,255,000,000 | 24,683,000,000 | 25,587,000,000 | 25,010,000,000 | | Liabilities | 17,552,000,000 | 16,736,000,000 | 16,438,000,000 | 17,352,000,000 | 15,697,000,000 | 15,593,000,000 | 15,278,000,000 | 15,250,000,000 | 15,039,000,000 | 14,505,000,000 | | Stockholders' equity | 9,409,000,000 | 8,322,000,000 | 9,522,000,000 | 8,012,000,000 | 4,974,000,000 | 6,713,000,000 | 7,948,000,000 | 9,391,000,000 | 10,506,000,000 | 10,461,000,000 | | Cash and cash equivalents | 4,009,000,000 | 2,337,000,000 | 2,008,000,000 | 2,268,000,000 | 2,563,000,000 | 3,044,000,000 | 2,346,000,000 | 2,264,000,000 | 2,618,000,000 | 2,206,000,000 | | Free cash flow | -2,501,000,000 | 1,095,000,000 | 1,131,000,000 | 915,000,000 | 1,153,000,000 | 1,112,000,000 | 1,231,000,000 | 2,079,000,000 | 2,423,000,000 | 1,672,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | -36.27% | -2.25% | 6.90% | -5.05% | -20.39% | 9.53% | 7.74% | 11.46% | 10.90% | 5.78% | | Operating margin | -42.61% | 6.66% | 10.28% | -2.00% | -16.86% | 11.77% | 13.34% | 17.74% | 16.66% | 10.19% | | Return on equity | -61.25% | -5.56% | 17.39% | -14.12% | -59.21% | 21.70% | 19.78% | 28.09% | 23.81% | 12.26% | | Return on assets | -21.34% | -1.85% | 6.37% | -4.46% | -14.24% | 6.53% | 6.76% | 10.69% | 9.77% | 5.13% | | Liabilities / equity | 1.87 | 2.01 | 1.73 | 2.17 | 3.16 | 2.32 | 1.92 | 1.62 | 1.43 | 1.39 | | Current ratio | 2.90 | 2.22 | 2.32 | 2.30 | 2.14 | 2.31 | 2.05 | 2.06 | 2.05 | 2.04 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000045012.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2023-Q3 | 2023-09-30 | 5,804,000,000 | 716,000,000 | | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 5,739,000,000 | 661,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 5,804,000,000 | 606,000,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 5,833,000,000 | 709,000,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 5,697,000,000 | 571,000,000 | | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 5,610,000,000 | 615,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 5,417,000,000 | 204,000,000 | 0.24 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 5,510,000,000 | 472,000,000 | 0.55 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 5,600,000,000 | 18,000,000 | 0.02 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 5,657,000,000 | 589,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 5,402,000,000 | 461,000,000 | 0.55 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 5,714,000,000 | 534,000,000 | 0.64 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from HAL's latest 10-K: [/company/HAL/business/](/company/HAL/business/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/45012/000004501226000061/hal-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-07-24 Report date: 2026-06-30 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the condensed consolidated financial statements included in Item 1. Financial Statements contained herein. EXECUTIVE OVERVIEW Organization We are one of the world’s largest providers of products and services to the energy industry. We help our customers maximize asset value throughout the lifecycle of the reservoir from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and production programs by major, national, and independent oil and natural gas companies. We report our results under two segments, the Completion and Production segment and the Drilling and Evaluation segment. •Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion Tools, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the second quarter of 2026, we completed the sale of a portion of our chemical business. •Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating. The business operations of our segments are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With over 46,000 employees, we operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas. Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers. Our strategic priorities are to: - International: Consistently increase international growth in our directional drilling, unconventionals, well intervention, and artificial lift businesses. Develop behind-the-meter power generation, independently or through collaboration with Voltagrid. - North America: Maximize value by, among other things, utilizing our Zeus IQ electric fracturing platform, our iCruise rotary steerable systems and LOGIX automation. - Digital: Continue to drive differentiation and efficiencies through the deployment of digital and automation technologies, both internally and for our customers. - Capital efficiency: Maintain our capital expenditures at about $1.1 billion, while leveraging technology and targeted process improvements to enhance utilization of existing capital. - Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share repurchases. - Advance a Sustainable Energy Future: Continue to develop technologies and solutions to help lower our customers’ and our emissions intensity, grow our low carbon energy business, and support Halliburton Labs early-stage company participants. HAL Q2 2026 FORM 10-Q | 15 [[GREPCENT_TABLE]] [["Table of Contents","","Part I. Item 2 | Executive Overview"]] [[/GREPCENT_TABLE]] The following charts depict the revenue split between our two operating segments and our four primary geographic regions for the three months ended June 30, 2026. Market conditions During the second quarter of 2026, market conditions were impacted by the ongoing geopolitical conflict in the Middle East, which disrupted activity levels in certain markets and affected operations across both of our segments. Oil prices increased in the second quarter of 2026 compared to the first quarter of 2026. The West Texas Intermediate (WTI) crude oil price averaged approximately $96 per barrel during the second quarter of 2026, compared to approximately $72 per barrel during the first quarter of 2026, or a 33% increase. The Brent crude oil price averaged approximately $103 per barrel during the second quarter of 2026, compared to approximately $80 per barrel during the first quarter, or a 29% increase. Higher commodity prices generally support customer activity and capital spending in the markets we serve, as operator investment decisions are often influenced by expectations regarding future commodity prices. Trade tensions and tariffs continue to influence the global demand outlook, with varying impacts across end markets. We continue to monitor and evaluate the effects of these on goods imported into the United States. During the second quarter of 2026, we recognized a gain of approximately $57 million related to a government refund recovery, which is included in “Impairments and other charges (credits)” on the Condensed Consolidated Statements of Operations. We continue to monitor developments related to trade policy and evaluate the potential effects of future tariff actions on our business, financial position, results of operations and cash flows. Globally, we continue to be impacted by inflationary cost increases, primarily related to logistics, chemicals, and cement. We manage these pressures through global procurement strategies, technology modifications, and sourcing efficiencies. As a standard practice, we generally seek to pass a portion of these cost increases on to our customers and believe we have effective solutions in place to minimize their operational impact. Customers remained focused on capital discipline, production optimization, operating efficiency, and expected returns on investment. Customer activity and spending decisions were influenced by the geopolitical conflict in the Middle East, higher commodity prices, uncertainty related to global trade policies and tariffs, and inflationary cost pressures. As a result, customers continued to evaluate investment opportunities while balancing growth objectives, operating priorities, and return expectations. HAL Q2 2026 FORM 10-Q | 16 [[GREPCENT_TABLE]] [["Table of Contents","","Part I. Item 2 | Executive Overview"]] [[/GREPCENT_TABLE]] Financial results The following graph illustrates our revenue and operating margins for each operating segment for the second quarter of 2025 and 2026. During the second quarter of 2026, we generated total company revenue of $5.7 billion, a 4% increase as compared to the second quarter of 2025. We reported operating income of $778 million, including a pre-tax credit on impairments and other credits of $95 million, in the second quarter of 2026, as compared to operating income of $727 million in the second quarter of 2025. Our Completion and Production segment revenue was relatively flat in the second quarter of 2026 as compared to the second quarter of 2025. Revenue improvements were primarily driven by increased stimulation activity and improved artificial lift activity in Latin America, higher completion tool sales in Europe/Africa, and improved pressure pumping services in Africa. Offsetting these increases were lower activity across multiple product service lines in the Middle East, and decreased stimulation activity and lower specialty chemicals activity resulting from the completed sale of a portion of our chemical business in North America. Operating income was further adversely impacted by activity mix and reduced pricing for stimulation services in US Land and Latin America. Our Drilling and Evaluation segment revenue increased 7% in the second quarter of 2026 as compared to the second quarter of 2025. These results were primarily driven by higher drilling-related services in North America, Europe/Africa, and Asia, and higher activity across multiple product service lines in Latin America. Partially offsetting these increases were lower drilling-related services and decreased wireline activity in the Middle East. Our North America revenue was relatively flat in the second quarter of 2026 as compared to the second quarter of 2025. These results were primarily driven by improved well construction activity and increased stimulation activity in US Land. Partially offsetting these increases were lower stimulation activity in the Gulf of America and Canada, and a decrease in well intervention services and lower specialty chemicals activity resulting from the completed sale of a portion of our chemical business in US Land. Internationally, revenue increased 6% in the second quarter of 2026 as compared to the second quarter of 2025, largely driven by improved stimulation services and higher project management activity in Latin America, increased well construction activity and higher project management activity in Africa, and higher completion tool sales in Europe/Africa. Partially offsetting these increases was lower activity across multiple product service lines in the Middle East due to conflict-related disruptions. Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and “Business Environment and Results of Operations.” HAL Q2 2026 FORM 10-Q | 17 [[GREPCENT_TABLE]] [["Table of Contents","","Part I. Item 2 | Liquidity and Capital Resources"]] [[/GREPCENT_TABLE]] LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2026, we had $2.0 billion of cash and equivalents, compared to $2.2 billion of cash and equivalents at December 31, 2025. Significant sources and uses of cash during the first six months of 2026 Sources of cash: •Cash flows from operating activities were $1.1 billion. Working capital, which consists of receivables, inventories, and accounts payable, had a negative impact of $187 million. Uses of cash: •Capital expenditures were $427 million. •We repurchased 7.9 million shares of our common stock for $308 million, which includes the excise tax payment for prior year share repurchases. •We paid $285 million of dividends to our shareholders. •We paid $101 million primarily in connection with an equity investment. Future sources and uses of cash We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our capital expenditures based on market conditions. We currently expect capital spending for 2026 to be approximately $1.1 billion. We believe this level of spending will enable continued investment in our core strategic technologies and businesses, including the international expansion of our artificial lift, well intervention, unconventionals, and drilling technologies. We will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spending accordingly. While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our shareholders. Our quarterly dividend rate is $0.17 per common share, or approximately $143 million. In 2023, our Board approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases, and we expect our returns to shareholders will be in line with our capital return framework for 2026. We may utilize share repurchases as part of our capital return framework. Our Board of Director [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/45012/000004501226000015/hal-20251231.htm Complete FY 2025 MD&A: /company/HAL/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-06 Report date: 2025-12-31 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated and combined financial statements included in Item 8. Financial Statements and Supplementary Data contained herein. EXECUTIVE OVERVIEW Market conditions In 2025, global oil and natural gas markets remained impacted by non-OPEC supply growth, slower demand recovery in certain areas around the globe, OPEC+ production, ongoing geopolitical tensions in the Middle East, and the continued impacts of the Russia-Ukraine conflict. In the U.S., oil and natural gas production in 2025 remained elevated, despite a generally declining rig count, as a result of the industry's focus on efficiencies and higher service intensity. Lower commodity pricing and U.S. land rig counts generally contributed to softness in the market for energy products and services in North America. The international rig count decreased compared to 2024. The West Texas Intermediate (WTI) crude oil price averaged approximately $60 per barrel during the fourth quarter of 2025 and approximately $65 per barrel for the full year of 2025. The Brent crude oil price averaged approximately $64 per barrel during the fourth quarter of 2025 and approximately $69 per barrel for the full year of 2025. Trade tensions and tariffs continue to shape the demand outlook amid varying market responses. We continue to monitor and assess the impact of tariffs on goods being imported into the United States. Our global supply chain organization continuously monitors market trends and works to mitigate those and other cost increases through economies of scale in global procurement, technology modifications, and efficient sourcing practices. Globally, we continue to be impacted by extended supply chain lead times for the supply of select raw materials. Also, while we have been impacted by inflationary cost increases, primarily related to chemicals, cement, and logistics costs, we generally try to pass much of those increases on to our customers and we believe we have effective solutions to minimize their operational impact. Financial results The following graph illustrates our revenue and operating margins for each operating segment over the past three years. During 2025, we generated total company revenue of $22.2 billion, a 3% decrease from the $22.9 billion of revenue generated in 2024 with our Completion and Production (C&P) segment revenue decreasing by 4% and our Drilling and Evaluation (D&E) segment revenue decreasing by 3%. Total company operating income was $2.3 billion, including impairments and other charges of $831 million, in 2025, compared to $3.8 billion, including impairment and other charges of $116 million, in 2024. Due to new tariffs imposed during 2025 by the United States, the incremental expense was approximately $89 million. Driven in large part by a decrease in the average North America rig count in 2025 as compared to 2024, our North America revenue decreased 6% in 2025, resulting from lower activity across multiple product service lines in U.S. Land and lower completion tool sales in the Gulf of America. Partially offsetting these decreases were improved stimulation activity and increased fluids services in the Gulf of America, increased drilling activity in U.S. Land, and higher completion tool sales in Canada. HAL 2025 FORM 10-K | 24 [[GREPCENT_TABLE]] [["Table of Contents","","Item 7 | Executive Overview"]] [[/GREPCENT_TABLE]] Internationally, revenue decreased by 2% in 2025 compared to 2024, due to a decline in the international average rig count and decreased activity across multiple product service lines in Mexico and Saudi Arabia. Partially offsetting these decreases were higher activity across multiple services lines in Norway and Brazil, improved fluid services in the Middle East, Argentina, and the Caribbean, and increased stimulation activity in Middle East/Asia and Africa. Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and “Business Environment and Results of Operations.” HAL 2025 FORM 10-K | 25 [[GREPCENT_TABLE]] [["Table of Contents","","Item 7 | Liquidity and Capital Resources"]] [[/GREPCENT_TABLE]] LIQUIDITY AND CAPITAL RESOURCES As of December 31, 2025, we had $2.2 billion of cash and equivalents, compared to $2.6 billion of cash and equivalents at December 31, 2024. Significant sources and uses of cash in 2025 Sources of cash: •Cash flows from operating activities were $2.9 billion. Working capital, which consists of receivables, inventories, and accounts payable, collectively had a positive impact of $196 million. •We received $444 million on the sale of investment securities. •We received $185 million on the sale of property, plant, and equipment. •We received $120 million on the sale of an equity investment. Uses of cash: •Capital expenditures were $1.3 billion. •We repurchased 42.4 million shares of our common stock for $1.0 billion, which includes excise tax payment due on 2024 share repurchases. •We paid $579 million of dividends to our shareholders. •We retired $382 million of our 3.8% senior notes due November 2025. •We paid $363 million related to a purchase of an equity investment. •We purchased $202 million of investment securities. •We paid $185 million to acquire businesses. Future sources and uses of cash We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our capital expenditures based on market conditions. We currently expect capital spending for 2026 to be approximately $1.1 billion. Despite this reduction from 2025, we believe this level of spending will enable continued investment in our core strategic technologies and businesses, including the international expansion of our artificial lift, well intervention, unconventionals, and drilling technologies. We will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spend accordingly. In 2026, we expect to pay approximately $505 million for contractual purchase obligations, with another $315 million due through 2028, $378 million of interest on debt, and $418 million under our leasing arrangements. Payments for interest on our debt are expected to remain relatively flat for the foreseeable future. See Notes to Consolidated Financial Statements, Note 6 and Note 10 for additional information on expected future payments under our leasing arrangements and debt maturities. We are not able to reasonably estimate the timing of cash outflows associated with our uncertain tax positions, in part because we are unable to predict the timing of potential tax settlements with applicable taxing authorities. As of December 31, 2025, we had $170 million of gross unrecognized tax benefits, excluding penalties and interest, of which we estimate $155 million may require us to make a cash payment. We estimate that approximately $131 million of the cash payment will not be settled within the next 12 months. While we maintain focus on liquidity, we are also focused on providing cash returns to our shareholders. In 2023, our Board approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases. We returned $1.6 billion of capital to shareholders in 2025 through dividends and share repurchases. During 2025, our quarterly dividend rate was $0.17 per common share, or approximately $145 million in aggregate. We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 42.4 million shares of common stock during the year ended December 31, 2025 under this program. Approximately $2.0 billion remained authorized for repurchases as of December 31, 2025 and may be used for open market and other share purchases. HAL 2025 FORM 10-K | 26 [[GREPCENT_TABLE]] [["Table of Contents","","Item 7 | Liquidity and Capital Resources"]] [[/GREPCENT_TABLE]] During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026. During the year ended December 31, 2025, we incurred $154 million in expense on our SAP S4 migration. Due to the extension of the project we announced in the second quarter of 2025, we expect the estimated total cost will be approximately $45 million per quarter going forward. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers. We may, from time to time, redeem, repurchase, or otherwise acquire our outstanding debt through privately negotiated transactions, open market purchases, redemptions, tender offers or otherwise, but we are under no obligation to do so. Other factors affecting liquidity Financial condition in current market. As of December 31, 2025, we had $2.2 billion of cash and equivalents and $3.5 billion of available committed bank credit under a new revolving credit facility executed on August 18, 2025, with an expiration date of August 16, 2030. We believe we have a manageable debt maturity profile, with approximately $90 million due February 2027. Furthermore, we have no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a long period of time. We believe our cash on hand, cash flows generated from operations, and our available credit facility will provide sufficient liquidity to address the challenges and opportunities of the current market and our expected global cash needs, including capital expenditures, working capital investments, shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments, in the short term and long term. Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which approximately $3.1 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2025. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however, none of these triggering events have occurred. As of December 31, 2025, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries. We have entered into credit default swaps (CDSs) with third-party financial institutions that have an aggregate notional amount outstanding as of December 31, 2025 of $592 million, compared to an aggregate notional amount outstanding as of December 31, 2024 of $739 million, related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which portions of the proceeds were utilized by this customer to pay certain of our outstanding receivables. Approximately $455 million of the outstanding amount of the CDSs reduces monthly over its remaining 9-month term and $75 million reduces monthly over its remaining 6-month term. The remaining $62 million outstanding amount reduces monthly over its remaining 2-month term. Credit ratings. Our credit ratings with Standard & Poor’s remain BBB+ for our long-term debt and A-2 for our short- term debt, with a stable outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2 for our short-term debt, with a stable outlook. Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to our customers delaying or failing to pay our inv [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/HAL/mda/fy2025/ All MD&A years: /company/HAL/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/HAL/mda/fy2024/): filed 2025-02-12; accession 0000045012-25-000010 (https://www.sec.gov/Archives/edgar/data/45012/000004501225000010/hal-20241231.htm) - [FY 2023 MD&A](/company/HAL/mda/fy2023/): filed 2024-02-06; accession 0000045012-24-000007 (https://www.sec.gov/Archives/edgar/data/45012/000004501224000007/hal-20231231.htm) - [FY 2022 MD&A](/company/HAL/mda/fy2022/): filed 2023-02-07; accession 0000045012-23-000011 (https://www.sec.gov/Archives/edgar/data/45012/000004501223000011/hal-20221231.htm) - [FY 2021 MD&A](/company/HAL/mda/fy2021/): filed 2022-02-04; accession 0000045012-22-000013 (https://www.sec.gov/Archives/edgar/data/45012/000004501222000013/hal-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 1389 Oil & Gas Field Services, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/HAL.md · JSON record: /company/HAL.json · verified financials: /company/HAL/financials.json / /company/HAL/financials.csv · machine TOC for the whole site: /llms.txt