Halliburton (HAL) Stock Forecast & Price Target

Halliburton, being the largest oilfield-services company in North America, holds a dominant position in hydraulic fracturing and completions, which constitute nearly half of its revenue, while also excelling in drilling and completions fluids and directional drilling. There are several potential catalysts for growth, including higher-than-expected commodity prices, improved service pricing, and increased utilization, all of which are expected to contribute to higher revenues and margins. Additionally, Halliburton is projected to generate $1.8 billion in free cash flow in 2026, representing a 4% year-over-year increase, further underscoring the company's robust financial outlook.

Halliburton's financial outlook reflects concerning trends, with projected revenue guidance of $5.35-5.46 billion indicating a quarterly decline of approximately 2% at the midpoint, accompanied by a significant reduction in adjusted EBITDA expectations to between $3.80 billion and $4.05 billion, which falls below previous Wall Street estimates. Additionally, the company anticipates that its North America revenue will decline by low-double digits year-over-year in FY25, driven by pricing softness and operator scheduling challenges, compounded by declines in its International business. With increasing corporate expenses and a substantial impact from tariffs, along with expectations of lower activity levels affecting utilization and margins, Halliburton faces headwinds that may hinder its financial performance moving forward.