Halliburton jumps after Q3 earnings beat; sees multiyear demand growth for oilfield services

Halliburton (HAL) rose 3.8% pre-market Tuesday after reporting Q3 adjusted earnings and revenue that topped expectations, as strong demand for its oilfield equipment in Latin America helped ​offset declining revenue in North America and little change in ‌the Middle East and Asia.

Q3 net profit surged to $417M, or $0.50/share, from $18M, or $0.02/share, in the year-earlier quarter, and revenue rose 1.8% Y/Y to $5.7B, as revenue from Drilling and Evaluation jumped 10% to $2.61B while revenue in Completion and Production fell 4.2% to $3.09B.

Q3 revenue in Latin America increased 13% Y/Y to $1.12B, and revenue from Europe and Africa surged 23% to $1.02B, helped by increased activity in Nigeria, but revenue from the Middle East and Asia came in roughly flat at $1.41B, led by higher activity in Saudi Arabia and Kuwait, and North American revenue ​fell 8.6% to $2.16B, primarily due to lower pressure pumping activity in ‌U.S. ⁠land operations.

Halliburton (HAL) said it expects mid-single-digit revenue growth in 2027 with operating margins of ~15%, an ​improvement of ~200 bps from this year's estimates; the ⁠forecast assumes a flat North American market and does not require a ​recovery in U.S. hydraulic fracturing activity.

"We are another three months into one of the largest energy disruptions in history," CEO Jeff Miller said, referring to the U.S.-Iran war. "I expect the work to restore production, rebuild inventories, and strengthen energy security will drive multiyear demand growth for oilfield services."

"Against a low bar of expectations, we anticipate a positive reaction to the print despite in-line results given favorable commentary on 2027 revenue and margin growth, which embeds a conservative NAM posture," according to J.P. Morgan analyst Arun Jayaram, who rates Halliburton (HAL) at Overweight.