Halliburton Cites Savings, International Growth in 2027 Margin Plan

Halliburton is counting on cost savings, international growth and less work on its SAP S4 rollout to support an operating margin of about 15% in 2027 without a recovery in North American hydraulic fracturing.

The oilfield services company also expects revenue to grow in the mid-single digits. It sees improvements in its core business as another contributor to the margin goal. A rebound in North American fracturing would add to the plan, but the company does not need one to reach its target.

The added detail follows Halliburton’s third-quarter results, which included $5.703 billion in revenue and a 12.8% adjusted operating margin. The 2027 target and the quarterly adjusted figure are stated on different bases, so they do not establish a comparable margin increase.

Halliburton’s C&P division underperformed amid weaker hydraulic fracturing activity in North America and Argentina. North American revenue also declined from a year earlier. Revenue rose in Latin America and Europe/Africa/CIS, while Middle East/Asia revenue changed little over the same period.

Compared with the second quarter, Middle East/Asia revenue increased 8%. Revenue was flat in Latin America and Europe/Africa/CIS. Halliburton expects demand for oilfield services to grow over several years, and international growth is part of its 2027 plan.

Its overseas work includes a multiyear contract awarded by Aramco in July for stimulation and well-completion services tied to unconventional gas development in Saudi Arabia’s Jafurah Basin. In September, Halliburton signed exploratory agreements with Eneva and WESCA concerning possible energy projects in Venezuela. Those agreements cover potential projects and field planning; they do not establish completed projects or revenue.