Halliburton has projected that it will see mid-single-digit revenue growth and an operating margin of about 15 percent in 2027, indicating an improvement of nearly 200 basis points. This growth will offset the soft North American market due to international activities. The company's third-quarter revenue was $5.7 billion, remaining flat compared to the second quarter. Additionally, the company's net income was $417 million, equivalent to $0.50 per share. Excluding asset impairment and other costs, adjusted net income was reported at $501 million, or $0.60 per share.
Market Condition Analysis
Halliburton's CEO, Jeff Miller, stated: "We are three months into one of the largest energy disruptions in history. I expect that work to restore production, revive inventories, and strengthen energy security will drive multi-year demand for oilfield services. This forecast assumes a stable North American market and does not require a recovery in North American hydraulic fracturing. For us, that recovery is considered a positive potential."
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Revenue and Contract Details
Halliburton's revenue in North America decreased by 5 percent to $2.2 billion due to reduced pressure pumping activities in the U.S. In contrast, the company's international revenue increased by 3 percent to $3.5 billion. By segment, drilling and evaluation services revenue rose by 4 percent to $2.6 billion, and its operating income increased by 16 percent. However, completion and production services revenue fell by 4 percent to $3.1 billion due to reduced stimulation activities in the Western Hemisphere.
During this period, Halliburton announced several contracts and agreements that could help improve the company's financial condition. Given the current market situation, Halliburton hopes to leverage international activities to offset its dependence on the North American market and move towards sustainable growth.
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