Cost Cuts Power Halliburton's Big Run
Shares of (NYSE: HAL) have been on a tear, climbing 55% since the oilfield services company beat third-quarter earnings estimates in October. After trading near multiyear lows throughout the summer, the stock has erased all of last year's losses as the market recognizes that management's cost initiatives are taking hold and global demand is improving.
Fourth-quarter revenue was little changed sequentially and up only 1% year over year, but profitability showed signs of life despite a declining domestic rig count. In Q4, adjusted operating margins reached 15% after falling from 17% in 2024 to 13% in Q2 2025. In addition to the recent headcount adjustments, revenue from higher-margin international contracts rose, lifting operating income.
In Q3, management announced a reduction in overhead and labor expected to save the company roughly $400 million annually. Pair this with a planned pullback in this year's capital expenditures (capex) budget, and the disciplined spending should stabilize profitability and cash flow while Halliburton navigates headwinds on its home turf.
Source Fool.com
Halliburton Co. Stock
With 38 Buy predictions and not a single Sell prediction Halliburton Co. is an absolute favorite of our community.
As a result the target price of 32 € shows a slightly positive potential of 7.85% compared to the current price of 29.67 € for Halliburton Co..
