Halliburton Company: Cash-Strong Execution, Offshore Wins, and a Premium Priced for Delivery

A clear signal: cash generation holds while revenue drifts — the numbers that matter#

Halliburton closed FY‑2024 with $22.94B in revenue and $2.52B in reported net income, while generating $2.42B of free cash flow — a profile that underpins the company’s strategic bids in Brazil, the North Sea and carbon‑capture projects even as topline momentum cooled. The tension is straightforward: cash generation and a strengthening international backlog point to better mix and higher‑margin work, but FY revenue slipped slightly and the market is pricing the company at a multiple that assumes successful execution across multiple geographies and new business lines.

The financial reality beneath that tension is one of modest contraction at the top and improving cash conversion at the bottom. Revenue for FY‑2024 of $22.94B compared with $23.02B in FY‑2023 represents a change of -0.35%, while operating income declined from $4.08B to $3.82B, a -6.37% move. By contrast, operating cash flow increased to $3.87B, up +11.85% year‑over‑year, and free cash flow expanded by +16.35% to $2.42B — an improvement that gives management flexibility to fund technology investments and return capital to shareholders. (FY figures and cash flow details from company filings and Q2 commentary.)

Financial performance: decomposing the FY‑2024 moves and quality of earnings#

Halliburton’s FY‑2024 income statement shows a modest compression in top‑line activity but resilient margin conversion. Gross profit was $4.30B in 2024 versus $4.36B in 2023 (-1.38%), and EBITDA dipped to $4.76B from $4.84B (-1.65%). Net income fell to $2.50B, a -5.30% decline versus the prior year, primarily driven by lower operating income and a slightly tighter operating‑expense dynamic.

Importantly, the company improved cash flow generation: net cash provided by operating activities rose to $3.87B (++11.85%), and free cash flow grew to $2.42B (++16.35%). That delta between accounting profit and cash metrics points to higher cash conversion and working capital stability in 2024. The balance sheet also moved in a constructive direction: cash and equivalents increased to $2.62B (++15.93%) while net debt declined to $5.98B from $6.54B (--8.56%). Those shifts reduce short‑term leverage risk and create room for continued buybacks, dividends and selective reinvestment. The company’s TTM net debt-to-EBITDA sits at ~1.63x, consistent with a financially flexible investment‑grade profile for an oilfield‑services firm.

According to company reports and market summaries, the free cash flow performance is central to Halliburton’s strategic choices: sustaining the dividend (quarterly $0.17 payments in 2024–2025) and continuing opportunistic buybacks while investing in higher‑spec offshore programs and new energy projects such as CCS. See the company Q2 press materials and sector writes ups for context. Halliburton Announces Second Quarter 2025 Results.

Income statement and balance sheet snapshot (selected years)#

(Primary figures from the company’s FY financial statements supplied in the dataset.)

Balance sheet and cash flow snapshot#

(Balance sheet and cash flow figures taken from the FY financial tables.)

Where the growth is coming from: offshore awards, Latin America and select onshore pockets#

Halliburton’s recent contract flow provides clearer directionality than aggregate revenue growth. Management highlighted sequential international gains in Q2‑2025 with international revenue at $3.3B, led by Latin America which rose to $977M sequentially (++9.00%) and Europe & Africa to $820M (++6.00%) — signals that higher‑spec offshore and basin‑specific programs are driving incremental, higher‑margin work. These geographic shifts are anchored in three visible wins.

First, the $328M Petrobras contract in the Buzios pre‑salt basin places Halliburton on marquee pre‑salt developments that tend to be long‑duration and technically demanding. That award is consistent with the Latin America sequential uptick reported in Q2 and supports an improving backlog in Brazil. Reporting on the award and its scale is available from market coverage and the company’s Q2 commentary.

Second, a five‑year well stimulation agreement with ConocoPhillips in the North Sea leans on Halliburton’s Octiv digital fracturing and integrated stimulation capabilities. The program—publicized in mid‑August 2025—includes conversion and deployment of a digital‑first stimulation vessel and optional extensions tied to field performance. This contract is notable because it combines multiyear revenue with a productized digital service offering that can improve uptime and capture more project economics than commodity stimulation jobs. See BusinessWire and Rigzone coverage for contract specifics. ConocoPhillips Awards Halliburton Multi-Year Well Stimulation Services Contract in the North Sea, Halliburton to Provide Well Stimulation Services for ConocoPhillips - Rigzone.

Third, Halliburton’s participation in the Northern Endurance Partnership (NEP) CCS project illustrates a strategic line of business expansion into decarbonization services where completions, downhole monitoring and reservoir management are directly transferable. NEP contracts are early in revenue scale but create optionality: the same well‑service platforms can be redeployed into CCS projects where operators and governments underwrite long development timelines. Coverage of the NEP award and the CCS positioning appears in sector trade press and the company’s project announcements.

Margin dynamics: why profits have been resilient despite flat revenue#

Halliburton’s margin profile shows disciplined cost control and improved mix. FY operating margin (operating income / revenue) was 16.66% in 2024, down from 17.74% in 2023 but still ahead of earlier cycle levels. The relatively small erosion in gross and operating margins occurred while EBITDA and cash margins remained stable, pointing to better resource utilization, pricing in higher‑spec offshore jobs, and continued SG&A discipline.

Two operational features underpin this margin resilience. First, higher offshore and international work — particularly multi‑year, integrated completion programs — command better pricing and capture more service scope. Second, digital tools (Octiv, ZEUS IQ) and standardization reduce non‑productive time and improve per‑job economics. The North Sea ConocoPhillips program and Brazil pre‑salt work are concrete manifestations of the margin mix shift.

Capital allocation: dividends, buybacks and balance sheet posture#

Halliburton returned capital via dividends and buybacks in FY‑2024 while reducing net debt modestly. Dividends paid totaled $600MM and share repurchases were $1.0B in 2024, funded from operating cash flow and consistent with the company’s stated capital‑return philosophy. The dividend continues at a quarterly $0.17 cadence and the payout ratio computed from FY net income and dividend outflows sits near the reported ~31.7% (dividend per share TTM $0.68), leaving headroom for buybacks or reinvestment.

Net debt moved to $5.98B at year‑end 2024, down roughly -8.56% from 2023 levels, and net debt-to-EBITDA at ~1.63x provides leverage capacity that the company can deploy for strategic hires, localized capex for vessel conversions, or selective M&A. The balance between returning cash and funding higher‑spec offshore investments will be a central execution test for management in 2025 and beyond.

Competitive and strategic implications: technology + offshore specialization as a durable wedge#

Halliburton is pushing a clear strategic play: lean into higher‑spec offshore stimulation and completions, productize digital fracturing and analytics, and seed long‑horizon CCS work that leverages existing competencies. That combination matters because it increases the company’s addressable margin pool versus purely onshore commodity services.

The North Sea ConocoPhillips contract and Brazil pre‑salt participation validate the strategy operationally and commercially. In high‑spec offshore markets, operators pay for reliability, integrated project delivery and analytics that reduce life‑of‑field costs. Halliburton’s ability to secure multiyear agreements in these environments suggests competitive credibility versus peers that remain more focused on onshore, commodity work. Trade coverage and contract announcements document these wins. Halliburton North Sea Well Stimulation Services - Offshore Technology.

That said, competitors including SLB and independent regional firms remain active in pre‑salt and North Sea markets. Halliburton’s wedge is not cost‑less: it requires continued investment in digital platforms and vessel conversions, and successful commercialization of CCS work depends on a series of external commitments (operator offtake, government frameworks) that are outside the company’s direct control.

Risks that could unwind the narrative#

The principal risks are execution and concentration. Execution risk includes failing to convert multi‑year awards into sustained margin expansion because of project execution issues, cost overruns or delays. Concentration risk is geographic: weakness in Mexico and Saudi Arabia — both noted by management — can counteract gains in Brazil and the North Sea, producing lumpy results. Commodity‑driven capex swings at major operators could withdraw spend rapidly, and competitive pressure could compress pricing in onshore markets. Finally, CCS commercialization is nascent and revenue will remain lumpy and project‑driven for the foreseeable future.

Market commentary and regional coverage have repeatedly flagged Mexico as a drag on international revenue in 2025; stakeholders will be watching management’s commentary on Mexico and Saudi exposure in upcoming updates. Mexico's Oil and Gas Slump to Weigh on Halliburton's Revenue in 2025 - BNamericas.

What this means for investors#

Investors should parse Halliburton into three linked bets: the cash‑generation base that funds dividends and buybacks; the offshore specialist strategy that can materially improve margins if executed at scale; and the optionality in CCS and digital services that could expand the company’s long‑term TAM. The most immediate read is that the company is funding this strategy from operating cash flow rather than leverage, which reduces financial fragility while still requiring operational delivery.

Near‑term KPIs to monitor include sequential international revenue trends (Brazil and Europe/Africa), margin progression in Completion & Production (the division showing recent strength), conversion of contract awards into backlog and revenue, and working capital / free cash flow consistency. Management commentary on Mexico and Saudi activity will be the primary downside trigger if those markets deteriorate further.

Key takeaways#

Halliburton enters the next phase with a mixed but actionable set of facts: FY‑2024 revenue slightly down at $22.94B (-0.35%), operating income compression to $3.82B (-6.37%), but strengthened cash generation (operating cash flow $3.87B, free cash flow $2.42B, net debt $5.98B). The company is converting that cash into dividends, buybacks, and targeted investments in offshore digital and CCS capabilities, while recent contract wins in Brazil and the North Sea validate the strategic direction. Coverage of the North Sea award and Petrobras contract can be found in trade press reporting. [BusinessWire; Rigzone; Offshore‑Technology].

Halliburton’s performance will be judged by its ability to translate contract wins into sustained margin improvement and to scale CCS work from niche project awards into repeating revenue streams. The balance sheet and cash flow give the company optionality to pursue that plan, but execution across multiple fronts is a demanding requirement.

Sources and further reading#

Selected company filings and press coverage cited in this piece include the company’s Q2 2025 results and related press materials, the ConocoPhillips North Sea award disclosures and sector reporting on regional exposure and CCS projects. For the Q2 results and cash flow figures see Halliburton’s Q2 press release and company financial tables. Halliburton Announces Second Quarter 2025 Results. For the North Sea contract see BusinessWire and Rigzone. ConocoPhillips Awards Halliburton Multi-Year Well Stimulation Services Contract in the North Sea, Halliburton to Provide Well Stimulation Services for ConocoPhillips - Rigzone. For regional headwinds in Mexico see BNamericas. Mexico's Oil and Gas Slump to Weigh on Halliburton's Revenue in 2025 - BNamericas.

(Primary financial tables and time series supplied from the company dataset embedded in this analysis.)