Halliburton’s Light International Mix Could Be a Growth Headwind, Analyst Says

Halliburton Co (NYSE:HAL) shares are trading lower on Wednesday after the oilfield services company reported better-than-expected third-quarter earnings on Tuesday.

The company’s preliminary 2027 outlook reflects high-single-digit international revenue growth, "with production services, drilling, unconventionals, and artificial lift highlighted as key drivers," according to RBC Capital Markets.

The Halliburton Analyst: Analyst Keith Mackey maintained an Outperform rating, while raising the price target from $45 to $46.

The Halliburton Thesis: The company reported adjusted EBITDA of $1.0 billion, missing consensus by 3%, while adjusted earnings of 60 cents per share modestly beat Street expectations, Mackey said in the note.

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Halliburton’s revenue grew 2% year-on-year, with EBITDA margin coming in at 17.5% below RBC’s estimate, he added.

Management’s fourth-quarter guidance reflects adjusted EBITDA of $1.072 billion at the midpoint, representing 7% sequential growth, the analyst stated.

2027 Outlook: "Uncharacteristically, HAL provided a preliminary 2027 outlook," which calls for mid-single-digit revenue growth and 15% operating income margins, "likely easing market concern around the softer quarter," he further wrote.

During the earnings call, management maintained a "constructive tone" on international growth, Mackey said. He added that they highlighted the following key drivers:

• Production services
• Drilling
• Unconventionals
• Artificial lift

Halliburton’s 2027 outlook reflects international revenue growth of 8% year-on-year, which is likely to be led by around 14% growth in LATAM (Latin America), the analyst stated.

"That said, the company’s international revenue mix is underweight relative to most larger peers, which is a growth headwind if NAM remains flat," he further wrote.

Mackey expects Haliburton to generate 10% revenue growth from 2026 to 2028, versus 15% by peers, "with the gap driven by relatively sluggish NAM outlook."

The company’s 2026 EBITDA margins of 18% also ranks below peers, while forward margin expansion is broadly in-line, the analyst noted.

He cut the EBITDA estimate for 2026 by 5% to $3.966 billion, while raising the 2027 estimate by 3% to 4.689 billion.

HAL Stock Price Activity: Halliburton shares are trading lower by 0.21% at $33.52 at the time of publication on Wednesday, according to Benzinga Pro data.

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