v3.26.3
Revenue
 9 Months Ended
Sep. 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 September 30,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

Energy

 

 

Products

 

 

 

 

 

 

 

 

Energy

 

 

Products

 

 

 

 

 

 

 

 

 

Equipment

 

 

and Services

 

 

Eliminations

 

 

Total

 

 

Equipment

 

 

and Services

 

 

Eliminations

 

 

Total

 

North America

 

$

266

 

 

$

593

 

 

$

—

 

 

$

859

 

 

$

275

 

 

$

537

 

 

$

—

 

 

$

812

 

International

 

 

935

 

 

 

432

 

 

 

—

 

 

 

1,367

 

 

 

955

 

 

 

409

 

 

 

—

 

 

 

1,364

 

Intersegment revenue

 

 

19

 

 

 

32

 

 

 

(51

)

 

 

—

 

 

 

17

 

 

 

25

 

 

 

(42

)

 

 

—

 

 

$

1,220

 

 

$

1,057

 

 

$

(51

)

 

$

2,226

 

 

$

1,247

 

 

$

971

 

 

$

(42

)

 

$

2,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

395

 

 

$

772

 

 

$

—

 

 

$

1,167

 

 

$

379

 

 

$

700

 

 

$

—

 

 

$

1,079

 

Offshore

 

 

806

 

 

 

253

 

 

 

—

 

 

 

1,059

 

 

 

851

 

 

 

246

 

 

 

—

 

 

 

1,097

 

Intersegment revenue

 

 

19

 

 

 

32

 

 

 

(51

)

 

 

—

 

 

 

17

 

 

 

25

 

 

 

(42

)

 

 

—

 

 

$

1,220

 

 

$

1,057

 

 

$

(51

)

 

$

2,226

 

 

$

1,247

 

 

$

971

 

 

$

(42

)

 

$

2,176

 

 

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

Energy

 

 

Products

 

 

 

 

 

 

 

 

Energy

 

 

Products

 

 

 

 

 

 

 

 

Equipment

 

 

and Services

 

 

Eliminations

 

 

Total

 

 

Equipment

 

 

and Services

 

 

Eliminations

 

 

Total

 

North America

 

$

716

 

 

$

1,676

 

 

$

—

 

 

$

2,392

 

 

$

807

 

 

$

1,658

 

 

$

—

 

 

$

2,465

 

International

 

 

2,862

 

 

 

1,158

 

 

 

—

 

 

 

4,020

 

 

 

2,745

 

 

 

1,257

 

 

 

—

 

 

 

4,002

 

Intersegment revenue

 

 

50

 

 

 

94

 

 

 

(144

)

 

 

—

 

 

 

48

 

 

 

73

 

 

 

(121

)

 

 

—

 

 

$

3,628

 

 

$

2,928

 

 

$

(144

)

 

$

6,412

 

 

$

3,600

 

 

$

2,988

 

 

$

(121

)

 

$

6,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

1,140

 

 

$

2,158

 

 

$

—

 

 

$

3,298

 

 

$

1,198

 

 

$

2,192

 

 

$

—

 

 

$

3,390

 

Offshore

 

 

2,438

 

 

 

676

 

 

 

—

 

 

 

3,114

 

 

 

2,354

 

 

 

723

 

 

 

—

 

 

 

3,077

 

Intersegment revenue

 

 

50

 

 

 

94

 

 

 

(144

)

 

 

—

 

 

 

48

 

 

 

73

 

 

 

(121

)

 

 

—

 

 

$

3,628

 

 

$

2,928

 

 

$

(144

)

 

$

6,412

 

 

$

3,600

 

 

$

2,988

 

 

$

(121

)

 

$

6,467

 

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 September 30,

 

 

 

2026

 

 

2025

 

Energy Equipment:

 

 

 

 

 

 

Capital equipment

 

$

753

 

 

$

777

 

Aftermarket

 

 

448

 

 

 

453

 

Intersegment revenue

 

 

19

 

 

 

17

 

Total

 

 

1,220

 

 

 

1,247

 

 

 

 

 

 

 

Energy Products and Services:

 

 

 

Services & rental

 

$

512

 

 

$

485

 

Capital equipment

 

 

333

 

 

 

293

 

Product sales

 

 

180

 

 

 

168

 

Intersegment revenue

 

 

32

 

 

 

25

 

Total

 

 

1,057

 

 

 

971

 

 

 

 

 

 

 

Eliminations

 

 

(51

)

 

 

(42

)

 

 

 

 

 

 

Total consolidated

 

$

2,226

 

 

$

2,176

 

 

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

Energy Equipment:

 

 

 

 

 

 

Capital equipment

 

$

2,250

 

 

$

2,151

 

Aftermarket

 

 

1,328

 

 

 

1,401

 

Intersegment revenue

 

 

50

 

 

 

48

 

Total

 

 

3,628

 

 

 

3,600

 

 

 

 

 

 

 

Energy Products and Services:

 

 

 

Services & rental

 

$

1,479

 

 

$

1,493

 

Capital equipment

 

 

867

 

 

 

916

 

Product sales

 

 

488

 

 

 

506

 

Intersegment revenue

 

 

94

 

 

 

73

 

Total

 

 

2,928

 

 

 

2,988

 

 

 

 

 

 

 

Eliminations

 

 

(144

)

 

 

(121

)

 

 

 

 

 

 

Total consolidated

 

$

6,412

 

 

$

6,467

 

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was $11 million for the nine months ended September 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 September 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,272 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 $555 million in revenue for the remaining performance obligations in the remainder of 2026, $1,708 million in 2027, $778 million in 2028, and $1,231 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 nine months ended September 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

 

 

(1,285

)

 

 

1,015

 

Revenue recognized

 

 

1,471

 

 

 

(1,034

)

Currency translation adjustments and other

 

 

(46

)

 

 

(31

)

Balance at September 30, 2026

 

$

736

 

 

$

515

 

 

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, has generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers. As of September 30, 2026, the allowance for credit losses on accounts receivable and contract assets totaled $53 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

 

 

4

 

Recoveries collected

 

 

(9

)

Write-offs

 

 

(13

)

Reclass for long-term receivables

 

 

12

 

Other

 

 

(5

)

Balance at September 30, 2026

 

$

53