UPDATE 4-Halliburton flags flat to lower 2025 revenue on weak U.S., Mexico activity

Updates share prices in paragraph 2, adds analyst comment in paragraph 8 and 11

By Arathy Somasekhar and Seher Dareen

Jan 22 (Reuters) - Halliburton HAL.N expects flat to slightly lower revenues in 2025, the oilfield service company said on Wednesday, as it warned of softer activity in North America and Mexico.

Shares of the company, which beat analysts' estimates for fourth-quarter profit by 1 cent, were down 1% at $29.23 in midday trading.

The tepid outlook echoed that of rival SLB SLB.N, which flagged flat revenue in 2025 revenue as customers limited activity and spending due to an oversupply of oil.

Halliburton is anticipating flat revenue from international markets in 2025 due to lower activity in Mexico. Revenue from international markets had gained 2.4% in the fourth quarter.

Revenue from North America, which accounted for 39% of the company's total revenue, is set to decrease to the low to mid single digits from 2024 levels, the company said, citing lower negotiated prices for a portion of its equipment.

"We're not immune to pricing," said Jeff Miller, Chief Executive Officer of Halliburton.

North America revenue fell 9% to $2.2 billion in the reported quarter.

"We do not doubt that upstream capital spending in North America will eventually recover, but the near term is likely to be choppy," said Stewart Glickman, an energy equity analyst at CFRA Research, adding that Halliburton's challenge was its higher exposure to North America compared to SLB.

Completion and production services revenue eased 4.2% in the quarter, while revenue from drilling and evaluation rose just 0.4%.

In the first quarter, completion and production revenue is expected to decline 3% to 5% sequentially, while that from its drilling and evaluation division is forecast to decline 8% to 10%.

Based on the midpoint of Halliburton's guidance for the two divisions, first-quarter revenue forecast is about 5% to 6% below consensus, brokerage Stifel's Stephen Gengaro said.

Overall revenue of $5.61 billion was below analysts' average expectation of $5.63 billion, according to data compiled by LSEG.

Operating margins in the quarter shrank 1 percentage point to 17%.

On an adjusted basis, the Houston-based company earned 70 cents per share in the quarter, compared with the average analyst estimate of 69 cents, according to data compiled by LSEG.

(Reporting by Seher Dareen in Bengaluru; Editing by Shounak Dasgupta, Chizu Nomiyama and Nick Zieminski)

((Seher.Dareen@thomsonreuters.com; If in India call +91 74832 70128))