Halliburton shares jumped 11.6% on Tuesday after the Houston-based oil service company reported its Q3 revenue of $5.6 billion, surpassing Wall Street’s estimate of $5.39 billion.
The company reported adjusted net income of $0.58 per share (diluted), with an adjusted margin of 13%, reflecting strong cost controls and stable international demand.
In the international market, our value proposition is winning with customers, we are demonstrating differentiated performance both on and off-shore, and our growth engineers are on track.
Jeff Miller, CEO of Halliburton
Regionally, North American revenue rose 5% due to increased activity in the U.S. and Canada, while international sales remained flat. Increases in Africa and Latin America offset lower activity in Saudi Arabia.
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Halliburton emphasized its focus on maximizing returns and leveraging technology, particularly artificial intelligence, to drive operational efficiency.
During the quarter, the company repurchased $250 million in stock and generated $276 million in free cash flow.
The company is also working to reset its 2026 capital budget and is taking measures to save about $100 million per quarter, including idling underperforming equipment.
Streamlining with impairments and partnerships
Despite strong adjusted results, Halliburton’s reported net income was just $18 million or $0.02 per share unadjusted for one time items.
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Last year, this number was at $571 million or $0.65 per share, resulting in a 11.8% decline in stock price over the year
The company cited $540 million in impairment and restructuring charges, tied to asset write-offs, severance costs, and other adjustments for this monumental drop in net income.
These impairments or charges reflect Halliburton’s efforts to streamline operations and improve long-term returns, though.
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Additionally, Halliburton announced a strategic partnership on Oct. 20 with VoltaGrid, a provider of distributed power and energy solutions, to deliver distributed power generation solutions for data centers worldwide. The initial implementation is targeted for the Middle East.
Through this partnership, “Halliburton will leverage its global operational footprint, local infrastructure, and regional regulatory expertise, while VoltaGrid will contribute its proprietary engineering design, technology innovation, and procurement capabilities,” read the official statement.
This partnership marks a pivotal moment for Halliburton, as the demand for reliable power solutions increases with the growing demand for data centers in emerging markets.
This initiative underscores Halliburton’s efforts to enable sustainable energy solutions through strong collaboration and operational expertise.
Jeff Miller, CEO of Halliburton
Halliburton’s stock has advanced 16% this quarter, including a 9.8% increase over the last week, which has helped trim its year-to-date decline to around 9%. As investors focus on the company’s growth prospects and strategic investments to produce returns, Halliburton’s stock has seen a notable improvement.
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