AI Takeaway
Halliburton's FY2025 10-K reveals a significant earnings decline, with net income falling 48.7% to $1.28B and operating income dropping 40.9% to $2.26B, reflecting a challenging oilfield services environment, though the company maintained solid cash generation and a healthy balance sheet.
Operating Income
$2.26B
-40.87% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Operating income fell 40.9% year-over-year from $3.82B to $2.26B in FY2025, signaling meaningful margin compression likely driven by pricing pressure, lower activity levels, or unfavorable geographic mix in the oilfield services market.
Source: Source: 10-K Income Statement Data
Net income declined 48.7% to $1.28B from $2.50B in the prior year, a steeper drop than operating income, suggesting additional headwinds from below-the-line items such as higher interest expense, tax adjustments, or impairment charges.
Source: Source: 10-K Income Statement Data
Operating cash flow decreased 24.3% to $2.93B from $3.87B, still demonstrating the company's ability to convert earnings to cash, though the decline reflects weaker underlying business performance. Free cash flow (operating cash flow minus investing outflows) stood at approximately $1.60B.
Source: Source: 10-K Cash Flow Statement Data
2 more insights available
Upgrade to unlockHalliburton's revenues are highly sensitive to exploration and production (E&P) spending by oil and gas companies, which is itself driven by commodity prices. The 40.9% drop in operating income in FY2025 illustrates how quickly profitability can deteriorate when customers cut budgets. Sustained low oil prices or a prolonged industry downcycle could further compress margins and cash flows.
Source: Source: 10-K Income Statement & Cash Flow Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.69 versus the $0.55 analyst consensus — a +25.2% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Income | $2.26B | $3.82B | -40.87% |
Net Income | $1.28B | $2.5B | -48.70% |
R&D Expense | $411M | $426M | -3.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $25.01B | $25.59B | -2.26% |
Current Assets | $11.4B | $12.38B | -7.95% |
Total Liabilities | $14.51B | $15.04B | -3.55% |
Current Liabilities | $5.59B | $6.05B | -7.64% |
Stockholders' Equity | $10.46B | $10.51B | -0.43% |
Cash & Equivalents | $2.21B | $2.62B | -15.74% |
Long-Term Debt | $7.16B | $7.16B | -0.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.93B | $3.87B | -24.29% |
Investing Cash Flow | $-1.32B | $-1.65B | +19.89% |
Financing Cash Flow | $-1.99B | $-1.73B | -14.86% |
Share Buybacks | $1.01B | $1B | +0.20% |
D&A | $1.14B | $1.08B | +5.28% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
ROE | 12.3% | — | — |
ROA | 5.1% | — | — |
Current Ratio | $2.04 | — | — |
Debt to Equity | $1.387 | — | — |
Other companies in Oil & Gas Equipment & Services
Halliburton's FY2025 results showed a significant earnings decline, with net income falling 48.7% to $1.28B and operating income dropping 40.9% to $2.26B, reflecting a tougher oilfield services environment. Despite weaker profitability, the company maintained $2.93B in operating cash flow and continued returning capital to shareholders through approximately $1.01B in share buybacks.
Halliburton's profitability deteriorated sharply in FY2025, with operating income declining from $3.82B to $2.26B (-40.9%) and net income nearly halving from $2.50B to $1.28B (-48.7%). The steeper decline in net income versus operating income suggests additional headwinds from below-the-line items beyond core operational challenges.
Halliburton's balance sheet remained relatively stable in FY2025, with total assets of $25.01B, stockholders' equity of $10.46B, and a healthy current ratio of 2.04. However, long-term debt of $7.16B and a debt-to-equity ratio of 1.39 represent meaningful leverage that investors should monitor given the earnings decline.
Yes, Halliburton generated approximately $1.60B in free cash flow in FY2025, derived from $2.93B in operating cash flow less $1.33B in investing outflows. While this was lower than the prior year due to the 24.3% decline in operating cash flow, it still supported $1.01B in share buybacks and ongoing debt management.
Based on the financial data, key risks include cyclical exposure to oil and gas capital spending (evidenced by the 40.9% operating income decline), significant leverage with $7.16B in long-term debt, and ongoing margin compression. The 15.7% decline in cash and equivalents to $2.21B also highlights the importance of a revenue recovery to sustain current capital return levels.