Halliburton Co. 2Q26 First Take – ALERT

Research evidence excerpt

Halliburton Co. 2Q26 First Take – ALERT

J P M O R G A N North America Equity Research

21 July 2026

Halliburton Co. Overweight

HAL, HAL US

2Q26 First Take – ALERT Price (20 Jul 26):$35.11

Oil & Gas Exploration & Production

Results: Adj. 2Q26 Operating EPS $0.55 v. JPMe/Street at $0.54/$0.54. 2Q26 Arun Jayaram AC

EBITDA of $979mm vs. JPMe/Street of $987mm/$981mm. (1-212) 622-8541

arun.jayaram@jpmchase.com

JPM View: Stock Reaction –Slightly Negative. We expect a slightly negative Jason Kim

reaction to the print, as we don't expect an in-line EBITDA print to satisfy the Bulls, (1-212) 622-1408

particularly as margins in both segments were below our expectations. HAL jason.b.kim@jpmchase.com

printed 2Q26 EBITDA of $979mm vs. JPMe/STe of $987mm/$981mm and clean Sowmya Vemulapalli

EPS of $0.55, which was a penny ahead of JPM/STe of $0.54. Top-line revenue was (1-212) 270-4660

sowmya.vemulapalli@jpmchase.com

3% ahead of our expectation on the back of a 6% increase in D&E and 1% higher J.P. Morgan Securities LLC

C&P revenue. C&P operating margin of 14.8% trailed our 15.3% expectation by

53bps, while D&E margin was also 26bps light of our forecast (13.5% vs. JPMe

of 13.7%). Despite the in-line print, FCF of $668mm was well above our $340mm

estimate, driven by greater-than-expected WC tailwinds and 19% lower capex.

Outlook comments were positive, with CEO Miller highlighting a strong global

environment for HAL, which sets the stage for top-line growth and margin

expansion. In particular, HAL noted its recent success in a number of important

international tenders and a strong tender pipeline, while the company sees further

improvements in NAM over the balance of the year. We expect the focus of the

conference call to be on the company's strong recent tender successes in Saudi