Halliburton's third-quarter profit rebounds from year-ago charges; CEO sees 2027 margins near 15%

Halliburton's third-quarter profit bounced back from a charge-heavy period a year ago, and Chairman and CEO Jeff Miller offered an early look at 2027 that calls for wider margins.

The oilfield services company reported net income attributable to the company of $417 million, or 50 cents a diluted share, up from $18 million, or 2 cents, a year earlier, according to its earnings release filed with an 8-K Tuesday. The year-ago quarter carried $392 million of impairments and other charges plus a $125 million tax valuation allowance.

Excluding impairments, other charges and tax adjustments, Halliburton earned $501 million, or 60 cents a share, compared with 58 cents a year earlier and 55 cents in the second quarter. Revenue was $5.7 billion, up from $5.6 billion a year ago and flat with the second quarter.

A first look at 2027

"Based on our early outlook for 2027, I expect mid-single digit revenue growth and operating margins of about 15%, an approximately 200 basis point improvement," Miller said. He added that the outlook assumes a flat North America market and "does not require any recovery in North America hydraulic fracturing."

Miller also said the work "to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oilfield services."

Operating margin was 10.9% in the quarter. Excluding impairments and other charges, the adjusted operating margin was 12.8%, up from 12.0% in the second quarter but below 13.4% a year earlier.

International growth, softer North America

Drilling and Evaluation revenue rose 4% from the second quarter to $2.6 billion, and its operating income jumped 16% to $391 million on stronger activity in the Middle East and Latin America and more drilling-related services in the Western Hemisphere.

Completion and Production revenue fell 4% sequentially to $3.1 billion, with operating income down 4% to $457 million, mainly because of lower stimulation activity in the Western Hemisphere.

Charges, cash and buybacks

The quarter included a $107 million pre-tax charge, primarily $107 million of severance tied to what the company called "the rationalization of our global headcount" and $25 million of inventory costs and write-downs, partly offset by a $36 million gain on selling part of an equity investment.

Cash flow from operations was $368 million and free cash flow was $156 million. Halliburton repurchased about $250 million of stock and paid dividends of 17 cents a share in the quarter.

By the numbers

• GAAP EPS: $0.50, vs. $0.02 a year earlier
• Adjusted EPS: $0.60, vs. $0.58
• Revenue: $5.7 billion
• Adjusted EBITDA: $1.0 billion
• Share repurchases: about $250 million
• Early 2027 view: operating margins of about 15%

Sources

1. Halliburton Company, Form 8-K (Items 2.02 and 7.01) with Exhibit 99.1 earnings release for the third quarter of 2026, filed Oct. 20, 2026, accession 0000045012-26-000070

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