What Halliburton Company told the SEC could break it.

No customer is >10% of revenue, but Halliburton's primary Mexico customer (~7% of total receivables) has caused payment delays, and ongoing oil & gas industry consolidation could cut customer capex and demand.

“Receivables from our primary customer in Mexico accounted for approximately 7 % and 8 % of our total receivables as of December 31, 2025 and December 31, 2024 , respectively. While we have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer.”

With ~61% of revenue outside the U.S. across 70+ countries, Halliburton faces significant geopolitical/sanctions risk in high-risk areas (Middle East, North Africa, Angola, Argentina, Azerbaijan, Kazakhstan, Mexico, Nigeria, Venezuela, Russia, Ukraine).

“Areas where we operate that have significant risk include, but are not limited to: the Middle East, North Africa, Angola, Argentina, Azerbaijan, Brazil, Indonesia, Kazakhstan, Mexico, Mozambique, Nigeria, Papua New Guinea, and Ukraine.”

The IRS issued a NOPA proposing to reclassify ~95% of the $3.5B Baker Hughes merger-termination fee Halliburton paid in 2016 from an ordinary expense deduction to a capital loss, contrary to the IRS's long-understood position — a material tax exposure.

“The NOPA proposed an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an ordinary expense deduction to a capital loss. The termination fee was paid to Baker Hughes under the merger agreement after antitrust regulators in multiple jurisdictions failed to approve our proposed merger.”

New 2025 U.S. tariffs (10% baseline plus reciprocal tariffs, partly under Supreme Court review) added ~$89 million of incremental expense to Halliburton in 2025 and raise raw-material and cross-border cost risk.

“Due to new tariffs imposed during 2025 by the United States, the incremental expense was approximately $89 million.”

Halliburton depends on raw materials like proppants (sand), chemicals, metals, gels and electronic components — sometimes from a single supplier — plus rail/storage/trucking; high demand, supplier loss or tariffs can constrain supply.

“Shortage of raw materials because of high levels of demand or loss of suppliers during market challenges or tariffs can trigger constraints in the supply chain of those raw materials, particularly where we have a relationship with a single supplier for a particular resource. Many of the raw materials essential to our business require the use of rail, storage, and trucking services to transport the materials to our job sites.”