Halliburton (HAL) Stock Forecast & Price Target

Halliburton, as North America's largest oilfield-services company, maintains a leading position in the hydraulic fracturing and completions market, which constitutes nearly half of its revenue, thereby positioning itself favorably amid industry fragmentation. The company’s strong positions in service offerings such as drilling and completions fluids, along with innovations that reduce development costs for producers, contribute to a robust growth outlook supported by expected increases in exploration and production spending and service pricing. Additionally, projections indicate that Halliburton is set to generate $1.8 billion in free cash flow by 2026, reflecting a 4% year-over-year increase, while revenue estimates for the next three years are anticipated to grow by 2% to 6%, suggesting a solid trajectory for future financial performance.

Halliburton's financial outlook indicates a revenue guidance of $5.35-5.46 billion, corresponding to a projected 2% quarter-over-quarter decline at the midpoint, with adjusted EBITDA expectations dropping significantly to between $3.80 billion and $4.05 billion compared to street forecasts of $4.29 billion and $4.19 billion. Furthermore, the company anticipates a decrease in both Completion & Production (C&P) and Drilling & Evaluation (D&E) revenues and margins, with expected declines in international business driven by reduced activities in key regions. Despite plans to return at least $1.6 billion to shareholders, Halliburton is confronting challenges such as low double-digit revenue declines in North America and rising expenses, which collectively contribute to a negative outlook on its stock.