Halliburton Company
HALHalliburton’s long-term value comes from being a scale-driven service backbone to global oil and gas production.
Because if hydrocarbons remain essential for 20 years, the service companies behind them quietly collect the toll.
Business Model
Tools and services for wells
Halliburton sells drilling tools, pressure pumping, and technical services to oil and gas producers worldwide.
Economic Engine
Asset-heavy service scale
Large equipment fleets and global reach create operating leverage when drilling activity rises.
Long-Term Lens
Energy demand durability
The key question is whether oil and gas demand stays high enough to justify steady drilling for decades.
On this page
Company Story
How do Halliburton Company's business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“Halliburton is a high-cash, cyclical oil services franchise that can compound value over decades, but only if global drilling activity remains structurally resilient.”
What does Halliburton Company actually do?
Halliburton helps energy companies drill, complete, and maintain oil and gas wells.
- Provides drilling services and equipment to create wells
- Performs hydraulic fracturing and well completion work so oil and gas can flow
- Offers software and technical services to improve well productivity
Why it matters
No wells, no revenue
Halliburton only makes money when customers are actively drilling and completing wells, tying its fate to industry activity.
How does Halliburton Company make money?
Halliburton charges oil and gas producers for equipment, crews, and technical services used in drilling and completing wells.
- Earns service fees for pressure pumping and hydraulic fracturing
- Rents or sells specialized drilling tools and downhole equipment
- Provides project management and engineering expertise on complex wells
Economic clue
12.0% operating margin
With a 12.0% operating margin and 15.8% gross margin, the business earns moderate profits that expand when activity and pricing improve.
Why do long-term investors keep Halliburton Company on the radar?
If global oil and gas production remains essential, Halliburton is positioned to benefit from every new well drilled.
- Five-year average revenue growth of 9.7% shows recovery and expansion over a full cycle
- Free cash flow exceeds net income by 1.30 times, signaling solid cash generation
- A $28.7 billion market value suggests room for meaningful compounding if profits rise
Investor takeaway
Cash-backed cyclicality
Strong cash conversion gives the company resilience in downturns and firepower in upcycles.
Based on company financial statements.
Benchmark Comparison
How has Halliburton Company performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,428
+42.8% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| HAL | +42.8% | $1,428 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Halliburton Company
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- Exposure to long-term global energy demand
- A cyclical business that can surge in strong commodity environments
- Meaningful share buybacks funded by real cash generation
Be Careful If You Expect
- Stable year-to-year earnings growth
- High profit margins like software or consumer brands
- Low sensitivity to oil and gas prices
What To Watch Over Time
- Global drilling and completion activity levels
- Operating margin trend beyond the current 12.0%
- Discipline in buybacks versus large acquisitions
Key Metrics
Which metrics matter most for Halliburton Company right now?
Three durable business metrics that matter more than day-to-day price moves.
9.7% average annual growth (5 years)
-1.9% average annual growth (5 years)
15.8% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 9.7% average annual growth (5 years) | Shows the company has expanded meaningfully over a full industry cycle. |
| EPS Growth | -1.9% average annual growth (5 years) | Earnings per share have been pressured by cyclicality despite revenue growth. |
| Margin Quality | 15.8% gross margin | Indicates moderate pricing power in a competitive, asset-heavy industry. |
Based on company financial statements.
Fundamentals
What do Halliburton Company's fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
14.4% ROIC
15.8% gross margin
7.5% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 14.4% ROIC | The business is currently showing fair capital efficiency. |
| Profitability | 15.8% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 7.5% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Halliburton Company?
Halliburton Company currently appears in these ETF and fund proxies.
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Halliburton Company?
Company-specific questions readers often ask about Halliburton Company.
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
Halliburton provides the equipment, crews, and technical services that oil and gas companies need to drill and complete wells.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Global oil and gas fields naturally decline each year, requiring constant new drilling just to maintain supply, structurally supporting long-term service demand.
Scale advantages allow Halliburton to spread equipment and technology costs across a large revenue base, improving margins when activity rises.
Strong cash conversion, with free cash flow at 1.30 times net income, provides resilience in downturns and capacity for buybacks.
Integrated service offerings make Halliburton a one-stop shop for complex projects, strengthening customer relationships over multi-year development programs.
Bear case
What can break
A rapid global shift away from fossil fuels could permanently reduce drilling activity, shrinking the total market for oilfield services over 10 to 20 years.
Technological improvements that increase well productivity could mean fewer wells are needed, reducing service intensity per barrel produced.
Persistent oversupply of service equipment could keep pricing weak, capping operating margins near current 12.0% levels or lower.
Political or environmental regulations could restrict hydraulic fracturing in key markets, directly impacting a core revenue stream.
Risk Radar
Key Risks
Where downside pressure can build.
Commodity sensitivity: a prolonged drop in oil and gas prices could sharply reduce drilling activity and compress the 12.0% operating margin.
Capital intensity: $1.3 billion in annual capital spending is required to maintain fleets, and underutilized equipment can erode returns.
Energy transition risk: long-term policy shifts away from hydrocarbons could structurally reduce addressable market size.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $34.05
- Daily move
- -0.32%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.