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Revenue
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

6. Revenue

Disaggregation of Revenue

The following tables disaggregate our revenue by destinations and revenue streams, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors (in millions).

In the table below, North America includes only the U.S. and Canada:

 

 

Three Months Ended

 

 

 

June 30,

 

 

 

2025

 

 

2024

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

 

Energy

 

 

 

 

 

 

 

 

Products

 

 

Energy

 

 

 

 

 

 

 

 

 

and Services

 

 

Equipment

 

 

Eliminations

 

 

Total

 

 

and Services

 

 

Equipment

 

 

Eliminations

 

 

Total

 

North America

 

$

570

 

 

$

271

 

 

$

—

 

 

$

841

 

 

$

534

 

 

$

301

 

 

$

—

 

 

$

835

 

International

 

 

428

 

 

 

919

 

 

 

—

 

 

 

1,347

 

 

 

493

 

 

 

888

 

 

 

—

 

 

 

1,381

 

Intersegment revenue

 

 

27

 

 

 

17

 

 

 

(44

)

 

 

—

 

 

 

23

 

 

 

15

 

 

 

(38

)

 

 

—

 

 

$

1,025

 

 

$

1,207

 

 

$

(44

)

 

$

2,188

 

 

$

1,050

 

 

$

1,204

 

 

$

(38

)

 

$

2,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

737

 

 

$

418

 

 

$

—

 

 

$

1,155

 

 

$

777

 

 

$

460

 

 

$

—

 

 

$

1,237

 

Offshore

 

 

261

 

 

 

772

 

 

 

—

 

 

 

1,033

 

 

 

250

 

 

 

729

 

 

 

—

 

 

 

979

 

Intersegment revenue

 

 

27

 

 

 

17

 

 

 

(44

)

 

 

—

 

 

 

23

 

 

 

15

 

 

 

(38

)

 

 

—

 

 

$

1,025

 

 

$

1,207

 

 

$

(44

)

 

$

2,188

 

 

$

1,050

 

 

$

1,204

 

 

$

(38

)

 

$

2,216

 

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2025

 

 

2024

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

 

Energy

 

 

 

 

 

 

 

 

Products

 

 

Energy

 

 

 

 

 

 

 

 

and Services

 

 

Equipment

 

 

Elims.

 

 

Total

 

 

and Services

 

 

Equipment

 

 

Elims.

 

 

Total

 

North America

 

$

1,121

 

 

$

532

 

 

$

—

 

 

$

1,653

 

 

$

1,071

 

 

$

597

 

 

$

—

 

 

$

1,668

 

International

 

 

848

 

 

 

1,790

 

 

 

—

 

 

 

2,638

 

 

 

949

 

 

 

1,754

 

 

 

—

 

 

 

2,703

 

Intersegment revenue

 

 

48

 

 

 

31

 

 

 

(79

)

 

 

—

 

 

 

47

 

 

 

31

 

 

 

(78

)

 

 

—

 

 

$

2,017

 

 

$

2,353

 

 

$

(79

)

 

$

4,291

 

 

$

2,067

 

 

$

2,382

 

 

$

(78

)

 

$

4,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

1,492

 

 

$

819

 

 

$

—

 

 

$

2,311

 

 

$

1,549

 

 

$

887

 

 

$

—

 

 

$

2,436

 

Offshore

 

 

477

 

 

 

1,503

 

 

 

—

 

 

 

1,980

 

 

 

471

 

 

 

1,464

 

 

 

—

 

 

 

1,935

 

Intersegment revenue

 

 

48

 

 

 

31

 

 

 

(79

)

 

 

—

 

 

 

47

 

 

 

31

 

 

 

(78

)

 

 

—

 

 

$

2,017

 

 

$

2,353

 

 

$

(79

)

 

$

4,291

 

 

$

2,067

 

 

$

2,382

 

 

$

(78

)

 

$

4,371

 

In the table below, the revenue streams of the Energy Products and Services segment are categorized as services and rentals, sales of shorter-lived capital equipment, and sales of consumable products. The revenue streams of Energy Equipment are categorized as long-lived capital equipment sales and aftermarket sales and services.

 

 

Three Months Ended

 

 

 

June 30,

 

 

 

2025

 

 

2024

 

Energy Products and Services:

 

 

 

 

 

 

   Services & rental

 

$

501

 

 

$

498

 

   Capital equipment

 

 

335

 

 

 

326

 

   Product sales

 

 

162

 

 

 

203

 

   Intersegment revenue

 

 

27

 

 

 

23

 

      Total

 

 

1,025

 

 

 

1,050

 

 

 

 

Energy Equipment:

 

 

 

 

 

 

   Capital equipment

 

 

733

 

 

 

641

 

   Aftermarket

 

 

457

 

 

 

548

 

   Intersegment revenue

 

 

17

 

 

 

15

 

      Total

 

 

1,207

 

 

 

1,204

 

 

 

 

 

 

 

Eliminations

 

 

(44

)

 

 

(38

)

 

 

 

 

 

 

         Total consolidated

 

$

2,188

 

 

$

2,216

 

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2025

 

 

2024

 

Energy Products and Services:

 

 

 

 

 

 

   Services & rental

 

$

1,008

 

 

$

984

 

   Capital equipment

 

 

623

 

 

 

630

 

   Product sales

 

 

338

 

 

 

406

 

   Intersegment revenue

 

 

48

 

 

 

47

 

      Total

 

 

2,017

 

 

 

2,067

 

 

 

 

Energy Equipment:

 

 

 

 

 

 

   Capital equipment

 

 

1,374

 

 

 

1,250

 

   Aftermarket

 

 

948

 

 

 

1,101

 

   Intersegment revenue

 

 

31

 

 

 

31

 

      Total

 

 

2,353

 

 

 

2,382

 

 

 

 

 

 

 

Eliminations

 

 

(79

)

 

 

(78

)

 

 

 

 

 

 

         Total consolidated

 

$

4,291

 

 

$

4,371

 

 

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was $102 million for the six months ended June 30, 2025 primarily due to change orders.

Remaining performance obligations represent the transaction price of firm orders for all revenue streams for which work has not been performed on contracts with original expected duration of one year or more. We do not disclose the remaining performance obligations of royalty contracts, service contracts for which there is a right to invoice, and short-term contracts that are expected to have a duration of one year or less. As of June 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,675 million. Although numerous factors can affect timing of revenue recognized on performance obligations, such as customer change orders and supplier accelerations or delays, the Company expects to recognize approximately $1,043 million in revenue for the remaining performance obligations in the remainder of 2025, $1,535 million in 2026, $665 million in 2027, and $1,432 million thereafter.

Contract Assets and Liabilities

Contract assets include unbilled amounts when revenue recognized exceeds the amount billed to the customer under contracts where revenue is recognized over-time. Contract liabilities consist of customer billings in excess of revenue recognized under over-time contracts, customer advance payments and deferred revenue.

The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions):

 

 

Contract
Assets

 

 

Contract
Liabilities

 

Balance at December 31, 2024

 

$

577

 

 

$

492

 

Billings

 

 

(820

)

 

 

750

 

Revenue recognized

 

 

869

 

 

 

(745

)

Currency translation adjustments and other

 

 

29

 

 

 

16

 

Balance at June 30, 2025

 

$

655

 

 

$

513

 

Royalty Revenue

The Company recognizes royalty revenue due under various licenses for the Company’s intellectual property, including for technology related to drill bits. The Company recognized revenue for drill bit licenses of approximately $19 million and $38 million for the three and six months ended June 30, 2025, and $17 million and $33 million for the three and six months ended June 30, 2024. The Company is currently pursuing litigation against certain non-paying licensees, which will impact our ability to collect the receivables timely. As such, revenue and the related receivables are recorded at a discount to reflect the delayed timing of future cash collections. As of June 30, 2025, the receivables of $139 million, net of allowances of $44 million for credit losses and $11 million for the remaining timing related discount, are included in Other assets on the Consolidated Balance Sheets. These allowances do not impact the amount the Company is entitled to recover on its claims from the licensees in litigation. While we continue to believe it is probable the Company will collect all or substantially all of the consideration to which it is entitled pursuant to the terms of the licensing agreements, the Company will also continue to evaluate the credit quality of the receivables. See Note 15 for discussion of the ongoing litigation.

Allowance for Credit Losses

The Company estimates its allowance for credit losses using information about past events, current conditions and risk characteristics of each customer, and reasonable and supportable forecasts relevant to assessing risk associated with the collectability of receivables and contract assets. The Company’s customer base, mostly in the oil and gas industry, have generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers. As of June 30, 2025, the allowance for credit losses totaled $68 million.

The changes in the carrying amount of the allowance for credit losses are as follows (in millions):

Balance at December 31, 2024

 

$

67

 

Provision for expected credit losses

 

 

33

 

Recoveries collected

 

 

(8

)

Reclass for long-term receivables

 

 

(18

)

Write-offs

 

 

(3

)

Other

 

 

(3

)

Balance at June 30, 2025

 

$

68