Halliburton Forecasts 2027 Revenue Growth on Middle East Recovery

Halliburton Forecasts 2027 Growth Amid Flat North American Markets

Halliburton forecast mid-single-digit revenue growth in 2027, relying on reconstruction efforts in the Middle East to boost demand for oilfield equipment even as domestic activity remains subdued, [reuters.com] reported. Operating margins for the coming year will reach approximately 15%, representing an improvement of roughly 200 basis points, Chief Executive Jeff Miller announced on Tuesday. The company’s 2027 outlook does not assume any recovery in U.S. hydraulic fracturing activity.

Third-Quarter Earnings Beat Wall Street Expectations

Total revenue for the third quarter rose 1.8% to $5.7 billion, beating the average analyst estimate of $5.6 billion compiled by LSEG, according to [energynow.com]. Halliburton posted adjusted earnings of 60 cents per share for the three months ended September 30, topping the consensus analyst estimate of 58 cents per share. Following the earnings release, company shares rose 4.6% in premarket trading.

Regional Performance Shows Latin American and European Gains

International markets largely offset a downturn in domestic operations during the third quarter. Quarterly revenue in Latin America increased 12.6% to $1.1 billion, while revenue from Europe and Africa jumped 22.7% to $1.02 billion, bolstered by increased activity in Nigeria, [energynow.com] reported. In contrast, North American revenue fell 9% year-over-year to $2.16 billion due to weaker pressure pumping activity in U.S. land operations. Revenue in the Middle East and Asia remained broadly flat at $1.41 billion, a region that accounts for about 25% of the company’s total revenue.

Middle East Reconstruction Drives Multi-Year Demand

The ongoing U.S.-Iran conflict, now in its eighth month, has disrupted energy operations across the Middle East, delaying projects and clouding near-term spending prospects. Consultancy Rystad Energy projected as much as $58 billion in repair costs for energy-linked infrastructure. “I expect the work to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oilfield services,” Miller said in a statement reported by [energynow.com]. Citibank analyst Scott Gruber noted that the company’s forward guidance points away from domestic reliance. “This forecast includes a flat North America and no recovery in the domestic frac market, pointing to recovery in the Middle East and better margins post new contract start-ups abroad,” Gruber said, according to [reuters.com].

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