HAL Q2'26 Conference Call Notes
Three things from HAL's call, starting with: Equipment arbitrage to international is the real margin story, not North America recovery
Three things that matter from HAL’s Q2’26 call:
Equipment arbitrage to international is the real margin story, not North America recovery: While everyone focuses on NAM pricing, HAL is quietly redeploying fleets to international unconventionals at structurally better margins. Argentina Zeus deployment alone is ‘multibillion dollar’ with first fleet starting Q4.
Middle East disruption masks $2.5-3B international growth engine ahead of schedule: Ex-Middle East international growing ‘low double digits’ vs mid-to-high single digits guided in Q1. Management now sees ‘upside’ to their $2.5-3B growth target by 2028.
Software revenue disappeared from the guide while they pivot to ‘automation’: D&E margins guided down 3-5% on ‘seasonal’ software weakness, but no actual software revenue numbers disclosed. Meanwhile, they’re buying automation companies (Sikal, Informatic) without quantifying the revenue opportunity.
Disclosure Quality: B | Financial Quality: B
