v3.26.1
Revenue
 6 Months Ended
Jun. 30, 2026
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,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

Energy

 

 

Products

 

 

 

 

 

 

 

 

Energy

 

 

Products

 

 

 

 

 

 

 

 

 

Equipment

 

 

and Services

 

 

Eliminations

 

 

Total

 

 

Equipment

 

 

and Services

 

 

Eliminations

 

 

Total

 

North America

 

$

213

 

 

$

565

 

 

$

—

 

 

$

778

 

 

$

271

 

 

$

570

 

 

$

—

 

 

$

841

 

International

 

 

985

 

 

 

371

 

 

 

—

 

 

 

1,356

 

 

 

919

 

 

 

428

 

 

 

—

 

 

 

1,347

 

Intersegment revenue

 

 

20

 

 

 

38

 

 

 

(58

)

 

 

—

 

 

 

17

 

 

 

27

 

 

 

(44

)

 

 

—

 

 

$

1,218

 

 

$

974

 

 

$

(58

)

 

$

2,134

 

 

$

1,207

 

 

$

1,025

 

 

$

(44

)

 

$

2,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

397

 

 

$

713

 

 

$

—

 

 

$

1,110

 

 

$

418

 

 

$

737

 

 

$

—

 

 

$

1,155

 

Offshore

 

 

801

 

 

 

223

 

 

 

—

 

 

 

1,024

 

 

 

772

 

 

 

261

 

 

 

—

 

 

 

1,033

 

Intersegment revenue

 

 

20

 

 

 

38

 

 

 

(58

)

 

 

—

 

 

 

17

 

 

 

27

 

 

 

(44

)

 

 

—

 

 

$

1,218

 

 

$

974

 

 

$

(58

)

 

$

2,134

 

 

$

1,207

 

 

$

1,025

 

 

$

(44

)

 

$

2,188

 

 

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

Energy

 

 

Products

 

 

 

 

 

 

 

 

Energy

 

 

Products

 

 

 

 

 

 

 

 

Equipment

 

 

and Services

 

 

Elims.

 

 

Total

 

 

Equipment

 

 

and Services

 

 

Elims.

 

 

Total

 

North America

 

$

450

 

 

$

1,083

 

 

$

—

 

 

$

1,533

 

 

$

532

 

 

$

1,121

 

 

$

—

 

 

$

1,653

 

International

 

 

1,927

 

 

 

726

 

 

 

—

 

 

 

2,653

 

 

 

1,790

 

 

 

848

 

 

 

—

 

 

 

2,638

 

Intersegment revenue

 

 

31

 

 

 

62

 

 

 

(93

)

 

 

—

 

 

 

31

 

 

 

48

 

 

 

(79

)

 

 

—

 

 

$

2,408

 

 

$

1,871

 

 

$

(93

)

 

$

4,186

 

 

$

2,353

 

 

$

2,017

 

 

$

(79

)

 

$

4,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

745

 

 

$

1,386

 

 

$

—

 

 

$

2,131

 

 

$

819

 

 

$

1,492

 

 

$

—

 

 

$

2,311

 

Offshore

 

 

1,632

 

 

 

423

 

 

 

—

 

 

 

2,055

 

 

 

1,503

 

 

 

477

 

 

 

—

 

 

 

1,980

 

Intersegment revenue

 

 

31

 

 

 

62

 

 

 

(93

)

 

 

—

 

 

 

31

 

 

 

48

 

 

 

(79

)

 

 

—

 

 

$

2,408

 

 

$

1,871

 

 

$

(93

)

 

$

4,186

 

 

$

2,353

 

 

$

2,017

 

 

$

(79

)

 

$

4,291

 

In the table below, the revenue streams of Energy Equipment are categorized as long-lived capital equipment sales and aftermarket sales and services. 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.

 

 

Three Months Ended June 30,

 

 

 

2026

 

 

2025

 

Energy Equipment:

 

 

 

 

 

 

Capital equipment

 

$

751

 

 

$

733

 

Aftermarket

 

 

447

 

 

 

457

 

Intersegment revenue

 

 

20

 

 

 

17

 

Total

 

 

1,218

 

 

 

1,207

 

 

 

 

 

 

 

Energy Products and Services:

 

 

 

Services & rental

 

$

494

 

 

$

501

 

Capital equipment

 

 

282

 

 

 

335

 

Product sales

 

 

160

 

 

 

162

 

Intersegment revenue

 

 

38

 

 

 

27

 

Total

 

 

974

 

 

 

1,025

 

 

 

 

 

 

 

Eliminations

 

 

(58

)

 

 

(44

)

 

 

 

 

 

 

Total consolidated

 

$

2,134

 

 

$

2,188

 

 

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

Energy Equipment:

 

 

 

 

 

 

Capital equipment

 

$

1,497

 

 

$

1,374

 

Aftermarket

 

 

880

 

 

 

948

 

Intersegment revenue

 

 

31

 

 

 

31

 

Total

 

 

2,408

 

 

 

2,353

 

 

 

 

 

 

 

Energy Products and Services:

 

 

 

Services & rental

 

$

967

 

 

$

1,008

 

Capital equipment

 

 

534

 

 

 

623

 

Product sales

 

 

308

 

 

 

338

 

Intersegment revenue

 

 

62

 

 

 

48

 

Total

 

 

1,871

 

 

 

2,017

 

 

 

 

 

 

 

Eliminations

 

 

(93

)

 

 

(79

)

 

 

 

 

 

 

Total consolidated

 

$

4,186

 

 

$

4,291

 

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was not material for the six months ended June 30, 2026.

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, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,443 million. Although numerous factors can affect timing of revenue recognized on performance obligations, such as customer change orders, supplier accelerations or delays, and the current uncertainty and conflict in the Middle East, the Company expects to recognize approximately $1,071 million in revenue for the remaining performance obligations in the remainder of 2026, $1,588 million in 2027, $586 million in 2028, and $1,198 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. There were no impairment losses recorded on contract assets for the three and six months ended June 30, 2026 and 2025.

Contract liabilities consist of advance payments, billings in excess of revenue recognized 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, 2025

 

$

596

 

 

$

565

 

Billings

 

 

(910

)

 

 

689

 

Revenue recognized

 

 

1,023

 

 

 

(634

)

Currency translation adjustments and other

 

 

(43

)

 

 

(24

)

Balance at June 30, 2026

 

$

666

 

 

$

596

 

 

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, 2026, the allowance for credit losses on accounts receivable and contract assets totaled $52 million.

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

Balance at December 31, 2025

 

$

64

 

Provision for expected credit losses

 

 

2

 

Recoveries collected

 

 

(8

)

Write-offs

 

 

(11

)

Reclass for long-term receivables

 

 

8

 

Other

 

 

(3

)

Balance at June 30, 2026

 

$

52