Financial Data and Key Metrics Changes - In Q3 2025, adjusted free cash flow was $99 million with a conversion rate of 36.8% despite not receiving payments from a key customer in Mexico [10][19] - EBITDA margin expanded by over 70 basis points due to cost initiatives, despite facing tariff and pricing pressures [10][16] - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $193 million worth of shares over the past five quarters [12][22] Business Line Data and Key Metrics Changes - North America saw a slight sequential increase due to seasonal recovery in Canada and improvement in offshore business, although U.S. land revenue declined [7] - Latin America improved revenues by 10% sequentially, primarily driven by Mexico, despite still being down approximately 60% year-over-year [8] - The MENA and Asia regions posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand [8] Market Data and Key Metrics Changes - The ESSR region remained flat quarter-on-quarter, with some countries offsetting weakness in the UK [8] - Pricing pressure was noted in commodity-type services, particularly in the Middle East, while differentiated product lines remained stable [32][34] - The company anticipates that Saudi Arabia is nearing a bottom and expects year-on-year growth in the second half of 2026 [9][38] Company Strategy and Development Direction - The company is focused on cost optimization and margin expansion rather than chasing market share at unfavorable cash outcomes [27][34] - A multiyear cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [28][75] - The company is investing in infrastructure modernization and technology adoption to drive future growth [14][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding slight improvements in Mexico and overall market conditions, despite ongoing uncertainties [15][46] - The company expects a soft market to persist in the first half of 2026, with potential recovery in the second half driven by offshore activity [16][68] - Management remains confident in the company's ability to navigate challenges and capitalize on stable or improving activity levels [17][29] Other Important Information - The company expanded its credit facility by $280 million and announced a private offering of $1.2 billion in senior notes [22] - The net leverage ratio is approximately 0.5 times, with liquidity around $1.6 billion, indicating a strong balance sheet [23] - The company launched over 20 new products at its FORWARD conference, emphasizing innovation as a key growth driver [14][78] Q&A Session Summary Question: Pricing pressure in certain markets - Management noted pricing pressure primarily in commodity-type services, especially in the Middle East, but emphasized their commitment to maintaining margins [32][34] Question: Outlook for Saudi Arabia - Management indicated that improvements in Saudi Arabia will be driven predominantly by gas, with some recovery in oil activity expected [38] Question: Stability in Mexico - Management expressed cautious optimism about stabilization in Mexico, with recent positive developments in payment collections [46][48] Question: DRE margins improvement - Management attributed margin improvements to cost structure stabilization and increased activity in Latin America [52][54] Question: Fourth quarter free cash flow guidance - Management set a conservative free cash flow guidance of $100 million, with potential for higher outcomes depending on payment collections from Mexico [58][61] Question: Overall spending outlook for 2026 - Management anticipates a soft first half of 2026, with a rebound expected in the second half driven by offshore markets and production enhancement initiatives [68][70] Question: Cost optimization impact on margins - Management highlighted ongoing cost optimization efforts and structural improvements aimed at enhancing margins in a flat to up environment [74][75] Question: ERP implementation benefits - Management discussed the long-term benefits of a cloud-based ERP implementation, expected to enhance operational efficiencies and margins [81][82]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported adjusted free cash flow of $99 million, with a conversion rate of 36.8% [19][22] - EBITDA margin expanded by over 70 basis points despite market headwinds [10] - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $193 million worth of shares over the past five quarters [12] Business Line Data and Key Metrics Changes - North America saw a slight sequential increase due to seasonal recovery in Canada, but U.S. Land experienced a decline [7] - Latin America improved revenues by 10% sequentially, primarily driven by Mexico, although revenues are still expected to be down around 60% for the year [8] - The MENA and Asia regions posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand [8] Market Data and Key Metrics Changes - The ESSR region remained relatively flat quarter on quarter, with some countries offsetting weakness in the UK [8] - Pricing pressure is rising in several markets, particularly in commodity-type services, but the company remains committed to margin expansion [9][34] Company Strategy and Development Direction - The company is focused on cost optimization and has reduced headcount by over 2,000, lowering annualized personnel expenses by more than $145 million [17] - A multiyear cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [28] - The company is optimistic about future growth opportunities, particularly in Saudi Arabia, which is seen as a significant long-term opportunity [41] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism regarding the stabilization of operations in Mexico, with recent improvements in payment collections [49][50] - The overall market remains soft, with expectations of continued pricing pressure and potential demand disruptions due to trade discussions [15][16] - The company anticipates a rebound in offshore activity and incremental onshore activity in 2026, despite a soft first half [72] Other Important Information - The company has expanded its credit facility by $280 million and announced a private offering of $1.2 billion in senior notes [22][23] - The effective tax rate is expected to remain in the mid-twenty percent range for 2025 [25] Q&A Session Summary Question: Can you elaborate on the pricing pressure mentioned? - The company is observing pricing pressure primarily in commodity-type services, particularly in the Middle East, but remains committed to margin expansion and does not participate in non-differentiated activities [34] Question: What is the outlook for Saudi Arabia's recovery? - The management believes improvements will be driven predominantly by gas, with some oil activity expected, and sees Saudi Arabia as a significant long-term growth opportunity [41] Question: What is the current situation in Mexico? - The company is cautiously optimistic about stabilization in Mexico, with recent positive developments in payment collections and government support for their largest customer [50][51] Question: How is the company managing costs and optimizing operations? - The company has implemented a series of cost improvement actions, including headcount reductions and restructuring charges, while also focusing on technology and efficiency improvements [21][78] Question: What are the expectations for free cash flow in Q4? - The company has set a conservative guidance of $100 million for Q4 free cash flow, contingent on continued payments from Mexico, with potential for higher outcomes if collections improve [62][66]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

INVESTOR PRESENTATION Q3'25 Weatherford International PLC Weatherford International Plc. 1 Disclaimer This presentation contains projections and forward-looking statements concerning, among other things, the Company's quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, ROIC*, shareholder return program, capital allocation framework, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expec ...

Core Insights - Weatherford (WFRD) reported quarterly earnings of $1.12 per share, missing the Zacks Consensus Estimate of $1.15 per share, and down from $2.06 per share a year ago, representing an earnings surprise of -2.61% [1] - The company posted revenues of $1.23 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.70%, but down from $1.41 billion year-over-year [2] - Weatherford shares have declined approximately 9.4% year-to-date, contrasting with the S&P 500's gain of 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.30 on revenues of $1.2 billion, and for the current fiscal year, it is $5.35 on revenues of $4.78 billion [7] - The estimate revisions trend for Weatherford was favorable prior to the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Oil and Gas - Field Services industry, to which Weatherford belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Kinetik Holdings Inc. (KNTK), another company in the same industry, is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year increase of +11.4%, with revenues anticipated to be $669.07 million, up 68.8% from the previous year [9][10]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Weatherford reported mixed Q3 2025 financials with sequential revenue growth but declining profitability, while strengthening its financial foundation and launching new digital technologies [Third Quarter 2025 Key Financials](index=1&type=section&id=Third%20Quarter%202025%20Key%20Financials) Weatherford reported third-quarter 2025 revenue of $1,232 million, a 2% sequential increase, but experienced sequential declines in operating income, net income, and basic income per share. Adjusted EBITDA, however, increased by 6% sequentially, with an improved margin | Metric | Q3 2025 Value | Sequential Change | YoY Change | | :-------------------------- | :------------ | :---------------- | :--------- | | Revenue | $1,232 million | +2% | -13% | | Operating Income | $178 million | -25% | -27% | | Net Income | $81 million | -40% | -48% | | Net Income Margin | 6.6% | -472 bps | -457 bps | | Adjusted EBITDA* | $269 million | +6% | -24% | | Adjusted EBITDA Margin* | 21.8% | +74 bps | -336 bps | | Basic Income Per Share | $1.13 | -40% | -48% | | Diluted Income Per Share | $1.12 | -40% | -46% | | Cash Provided by Operating Activities | $138 million | +8% | -47% | | Adjusted Free Cash Flow* | $99 million | +25% | -46% | [Strategic and Operational Achievements](index=1&type=section&id=Strategic%20and%20Operational%20Achievements) The company strengthened its financial foundation through credit facility expansion and debt refinancing, achieved credit rating upgrades, and returned capital to shareholders. Operationally, Weatherford hosted its FWRD 2025 conference, launching an AI-driven digital portfolio - Expanded credit facility by **$280 million**, reaching aggregate commitments of **$1 billion**[2](index=2&type=chunk) - Announced an offer of **$1,200 million** in **6.75% Senior Notes due 2033** and a cash tender offer to purchase **$1,300 million** of outstanding **8.625% Senior Notes due 2030**[2](index=2&type=chunk) - Received credit rating upgrades from Moody's (to '**Ba2**' Positive Outlook), S&P Global Ratings (to '**BB**' Stable Outlook), and Fitch Ratings (to '**BB**' Stable Outlook)[2](index=2&type=chunk) - Returned **$25 million** to shareholders for the quarter, comprising **$18 million** in dividends and **$7 million** in share repurchases. The Board approved a quarterly cash dividend of **$0.25 per share**[2](index=2&type=chunk) - Hosted the **2025 FWRD conference**, showcasing digital transformation and launching Weatherford's Industrial Intelligence Digital Portfolio with AI-driven, edge-enabled technologies[2](index=2&type=chunk) [Third Quarter 2025 Financial Performance](index=2&type=section&id=Third%20Quarter%202025%20Financial%20Performance) Weatherford's Q3 2025 financial performance showed sequential revenue growth but declines in operating and net income, while cash flow from operations and adjusted free cash flow improved [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Weatherford's third-quarter 2025 consolidated financial results showed sequential revenue growth but declines in profitability metrics like operating income, net income, and EPS. Adjusted EBITDA, however, improved sequentially | Metric | Q3 2025 ($M) | Sequential Change | Year-over-Year Change | | :-------------------- | :----------- | :---------------- | :-------------------- | | Revenues | 1,232 | +2% | -13% | | Operating Income | 178 | -25% | -27% | | Net Income | 81 | -40% | -48% | | Net Income Margin | 6.6% | -472 bps | -457 bps | | Adjusted EBITDA* | 269 | +6% | -24% | | Adjusted EBITDA Margin* | 21.8% | +74 bps | -336 bps | | Basic Income Per Share | $1.13 | -40% | -48% | | Diluted Income Per Share | $1.12 | -40% | -46% | [Cash Flow and Capital Expenditures](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Expenditures) Cash flow from operating activities and adjusted free cash flow both increased sequentially in Q3 2025, while capital expenditures decreased | Metric | Q3 2025 ($M) | Sequential Change | Year-over-Year Change | | :-------------------------------- | :----------- | :---------------- | :-------------------- | | Cash Provided by Operating Activities | 138 | +8% | -47% | | Adjusted Free Cash Flow* | 99 | +25% | -46% | | Capital Expenditures | 44 | -19% | -44% | [Management Commentary & Business Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Business%20Outlook) Management highlighted strong Q3 performance exceeding guidance, reinforced the company's financial foundation and innovation, and maintained a positive mid-to-long term market outlook despite anticipated muted activity in early 2026 [CEO's Remarks](index=2&type=section&id=CEO%27s%20Remarks) CEO Girish Saligram highlighted the team's strong performance in a challenging quarter, delivering improvements in margins and commercial wins that exceeded guidance, attributing success to effective operating paradigms - CEO Girish Saligram expressed pride in the team's performance, delivering across the board despite industry headwinds[6](index=6&type=chunk) - Noted noticeable improvements in Q3, including ramp-up of margins and commercial wins, with financial performance exceeding guidance[6](index=6&type=chunk) [Financial Foundation & Innovation](index=2&type=section&id=Financial%20Foundation%20%26%20Innovation) Weatherford strengthened its financial foundation through credit facility expansion, debt refinancing, and credit rating upgrades. The company also showcased innovation at its FWRD 2025 conference, launching the Weatherford Intelligence platform - Strengthened financial foundation through credit facility expansion, debt refinancing at improved terms, and recent credit rating upgrades[7](index=7&type=chunk) - Showcased innovation at the **FWRD 2025 conference**, highlighting over **20 product launches** and introducing **Weatherford Intelligence**, a platform for efficiency, automation, and smarter decision-making[8](index=8&type=chunk) [Market Outlook](index=2&type=section&id=Market%20Outlook) The company remains on track to meet its full-year 2025 guidance, despite expectations for muted activity in the first half of 2026, maintaining a positive mid-to-long term market outlook - On track to meet full-year **2025 guidance**, with Latin America collections identified as a timing factor in adjusted free cash flow projections[9](index=9&type=chunk) - Anticipates muted activity in the **first half of 2026** but remains positive on the mid-to-long term market outlook, positioning for strong performance in the coming years[9](index=9&type=chunk) [Operational & Commercial Highlights](index=3&type=section&id=Operational%20%26%20Commercial%20Highlights) Weatherford secured numerous significant contracts across various regions and services, including multi-year agreements for Tubular Running Services, real-time monitoring, Managed Pressure Drilling, Downhole Valves, Cementation Products, Drilling Fluids, Downhole Deployment Valve Technology, Fishing/Milling, Liner Hangers, and Artificial Lift Equipment - Awarded a **three-year, $147 million contract** by Petrobras for Tubular Running Services (TRS) in deepwater Brazil[10](index=10&type=chunk) - Secured an **eight-year contract** from SNGN Romgaz S.A. for real-time monitoring services in onshore Romania[10](index=10&type=chunk) - Awarded contracts by Talos Energy for Managed Pressure Drilling (MPD) and TRS in the Gulf of America, and by Crescent Petroleum Diyala West Limited for Downhole Valves and related services in Iraq[10](index=10&type=chunk) - Received a **two-year contract** from Shell for Cementation Products in offshore U.S. and a **four-year contract** from Petronas Indonesia for MPD services[10](index=10&type=chunk) - Secured a **one-year contract extension** from YPF S.A. for Drilling Fluids in Central Argentina and a **two-year contract** from Pertamina for Downhole Deployment Valve Technology in Indonesia[10](index=10&type=chunk) - Awarded a **five-year contract extension** by Brunei Shell Petroleum for Fishing, Milling and Associated Services in Brunei, and a **two-year contract** by Kuwait Energy for Fishing tools and services in onshore Iraq[10](index=10&type=chunk) - Received a **three-year contract extension** from bp for Liner Hangers, Annular Safety Valves, and Sand Screens in offshore Azerbaijan[10](index=10&type=chunk) - Secured **four six-year contracts** from Ecopetrol S.A. for Artificial Lift Equipment and Services in onshore Colombia[10](index=10&type=chunk) [Technology Highlights](index=4&type=section&id=Technology%20Highlights) Weatherford achieved significant technological advancements across its DRE, WCC, and PRI segments, including faster well evaluation, record-breaking extended-reach drilling, remote sliding sleeve installations, and integrated well testing solutions [Drilling & Evaluation (DRE)](index=4&type=section&id=Drilling%20%26%20Evaluation%20(DRE)) In the DRE segment, Weatherford achieved faster well evaluation in Kuwait with its MultiView tool and drilled the region's longest extended-reach well in Bahrain using the Magnus 675 tool, demonstrating efficiency and record-breaking capabilities - Completed the first deployment of the **MultiView tool** in Kuwait, enabling faster evaluation of three targeted barriers in a gas injection well, reducing operating time and improving efficiency[11](index=11&type=chunk) - Drilled the region's longest extended-reach well for an NOC in Bahrain, achieving over **12,000 feet** in a single run using the **Magnus 675 tool**, marking a significant milestone outside the U.S[11](index=11&type=chunk) [Well Construction and Completions (WCC)](index=4&type=section&id=Well%20Construction%20and%20Completions%20(WCC)) The WCC segment saw successful installations of the RFID OptiROSS remotely operated sliding sleeve in Brazil, reducing rig time and improving well integrity. In Kuwait, the first deployment of the Pressure Isolation Tool delivered significant cost savings and reliable performance - Completed **seven installations** of the **RFID OptiROSS remotely operated sliding sleeve** for Petrobras in Brazil, reducing rig time, minimizing personnel exposure, and optimizing acid stimulation logistics[11](index=11&type=chunk) - Achieved the first deployment of the **Pressure Isolation Tool** in Kuwait for KOC, leveraging existing liner hanger inventory for significant cost savings and ensuring reliable performance[11](index=11&type=chunk) [Production and Intervention (PRI)](index=4&type=section&id=Production%20and%20Intervention%20(PRI)) In the PRI segment, Weatherford's Advanced Formation Testing and Sampling Service in Thailand demonstrated operational advancements and reliability, providing precise reservoir fluid characterization and cost savings - Completed **two runs** of the **Advanced Formation Testing and Sampling Service** in Thailand, showcasing significant operational advancements and reliability for PTTEP[11](index=11&type=chunk) - Equipped with new fluid density and viscosity sensors, the service enabled precise characterization of reservoir fluids, improved sampling efficiency, and delivered meaningful cost savings[11](index=11&type=chunk) [Other Innovations](index=4&type=section&id=Other%20Innovations) Weatherford successfully completed well testing across four zones in Colombia's first stratigraphic well for La Luna, integrating multiple services to advance gas deliverability insights and open new market opportunities - Completed well testing across **four zones** in Colombia's first stratigraphic well for La Luna, advancing gas deliverability insights for the region[11](index=11&type=chunk) - The integrated operation combined Wireline, Pressure Pumping, Completions, ISDT, TRS, and Digital Solutions, demonstrating execution in complex scenarios and opening new opportunities in Colombia's gas markets[11](index=11&type=chunk) [Corporate Treasury & Financial Structure](index=5&type=section&id=Corporate%20Treasury%20%26%20Financial%20Structure) Weatherford enhanced its financial structure by returning capital to shareholders, expanding its credit facility, refinancing debt, and receiving multiple credit rating upgrades, significantly improving its liquidity position [Shareholder Return](index=5&type=section&id=Shareholder%20Return) Weatherford returned $25 million to shareholders in Q3 2025 through dividends and share repurchases, with a total of $148 million returned year-to-date. The Board declared a quarterly cash dividend of $0.25 per share | Shareholder Return Component | Q3 2025 ($M) | YTD Sep 30, 2025 ($M) | | :--------------------------- | :----------- | :-------------------- | | Dividends Paid | 18 | 54 | | Share Repurchases | 7 | 94 | | **Total Shareholder Return** | **25** | **148** | - On October 15, 2025, the Board declared a cash dividend of **$0.25 per share**, payable on December 4, 2025, to shareholders of record as of November 6, 2025[14](index=14&type=chunk) [Credit Facility & Debt Management](index=5&type=section&id=Credit%20Facility%20%26%20Debt%20Management) Weatherford expanded its credit facility to $1 billion, extending its maturity to 2030, and initiated a private offering of $1,200 million in new senior notes to fund a tender offer for existing senior notes, enhancing its liquidity to approximately $1.6 billion - Expanded credit facility by **$280 million** on September 18, 2025, bringing aggregate commitments to **$1 billion**, with maturity extended from 2028 to 2030[15](index=15&type=chunk) - As of September 30, 2025, the Company's pro forma liquidity stands at approximately **$1.6 billion**[15](index=15&type=chunk) - Announced a private offering of **$1,200 million** in **6.75% Senior Notes due 2033** to fund a cash tender offer for up to **$1,300 million** of **8.625% Senior Notes due 2030**, with approximately **$893 million** of the 2030 Notes tendered and paid as of the release date[15](index=15&type=chunk) [Credit Rating Upgrades](index=5&type=section&id=Credit%20Rating%20Upgrades) Weatherford received credit rating upgrades from Moody's, S&P Global Ratings, and Fitch Ratings, reflecting improved financial health and outlook - Moody's upgraded to '**Ba2**' (Positive Outlook) from 'Ba3'[15](index=15&type=chunk) - S&P Global Ratings upgraded to '**BB**' (Stable Outlook) from 'BB-'[15](index=15&type=chunk) - Fitch Ratings upgraded to '**BB**' (Stable Outlook) from 'BB-'[15](index=15&type=chunk) [Segment and Geographic Performance](index=6&type=section&id=Segment%20and%20Geographic%20Performance) Weatherford's Q3 2025 performance showed sequential revenue and adjusted EBITDA growth in DRE and WCC segments, while PRI remained flat in revenue with decreased EBITDA, and Latin America led geographic revenue growth [Drilling and Evaluation (DRE) Segment](index=6&type=section&id=Drilling%20and%20Evaluation%20(DRE)%20Segment) The DRE segment saw sequential revenue and adjusted EBITDA growth in Q3 2025, driven by higher Drilling Services activity in Latin America and Middle East/North Africa/Asia, despite year-over-year declines | Metric | Q3 2025 ($M) | Sequential Change | Year-over-Year Change | | :---------------------- | :----------- | :---------------- | :-------------------- | | Revenue | 346 | +3% | -20% | | Segment Adjusted EBITDA | 83 | +20% | -25% | | Segment Adj EBITDA Margin | 24.0% | +339 bps | -153 bps | - Sequential revenue increase primarily from higher Drilling Services activity in Latin America, and Middle East/North Africa/Asia[16](index=16&type=chunk) - Sequential adjusted EBITDA increase primarily from higher Drilling Services and Wireline activity and fall through[17](index=17&type=chunk) [Well Construction and Completions (WCC) Segment](index=6&type=section&id=Well%20Construction%20and%20Completions%20(WCC)%20Segment) The WCC segment experienced sequential increases in both revenue and adjusted EBITDA in Q3 2025, mainly due to higher Completions activity in Middle East/North Africa/Asia and North America, despite year-over-year decreases | Metric | Q3 2025 ($M) | Sequential Change | Year-over-Year Change | | :---------------------- | :----------- | :---------------- | :-------------------- | | Revenue | 468 | +3% | -8% | | Segment Adjusted EBITDA | 125 | +6% | -17% | | Segment Adj EBITDA Margin | 26.7% | +83 bps | -296 bps | - Sequential revenue increase primarily from higher Completions activity in Middle East/North Africa/Asia and North America[18](index=18&type=chunk) - Sequential adjusted EBITDA increase primarily from higher Completions and Well Services activity and fall through[19](index=19&type=chunk) [Production and Intervention (PRI) Segment](index=7&type=section&id=Production%20and%20Intervention%20(PRI)%20Segment) The PRI segment's revenue was largely flat sequentially in Q3 2025, while adjusted EBITDA decreased, primarily due to lower Sub-sea Intervention and ISDT activity, with significant year-over-year declines across all geographies | Metric | Q3 2025 ($M) | Sequential Change | Year-over-Year Change | | :---------------------- | :----------- | :---------------- | :-------------------- | | Revenue | 326 | —% | -12% | | Segment Adjusted EBITDA | 59 | -6% | -29% | | Segment Adj EBITDA Margin | 18.1% | -117 bps | -427 bps | - Sequential revenue largely flat, primarily from lower Sub-sea Intervention and ISDT activity, partly offset by higher Artificial Lift and Digital Solutions activity in Middle East/North Africa/Asia[20](index=20&type=chunk) - Sequential adjusted EBITDA decrease primarily from lower Sub-sea Intervention activity and fall through[21](index=21&type=chunk) [Revenue by Geography](index=7&type=section&id=Revenue%20by%20Geography) Total revenue increased sequentially by 2% to $1,232 million but decreased by 13% year-over-year. Latin America showed the strongest sequential growth (+10%), while North America and Middle East/North Africa/Asia also saw slight increases. Europe/Sub-Sahara Africa/Russia experienced a minor sequential decline | Region | Q3 2025 ($M) | Sequential Change | Year-over-Year Change | | :-------------------------- | :----------- | :---------------- | :-------------------- | | North America | 243 | +1% | -9% | | International | 989 | +3% | -13% | | Latin America | 214 | +10% | -40% | | Middle East/North Africa/Asia | 533 | +2% | -2% | | Europe/Sub-Sahara Africa/Russia | 242 | -1% | —% | | **Total Revenue** | **1,232** | **+2%** | **-13%** | - North America revenue increased sequentially by **1%** due to higher Completions activity in Canada, offset by lower Artificial Lift and Cementation Products activity in the U.S[23](index=23&type=chunk) - Latin America revenue increased sequentially by **10%** primarily from higher Drilling Services activity in Mexico, partly offset by lower Sub-sea intervention activity in Brazil[25](index=25&type=chunk) - Middle East/North Africa/Asia revenue increased sequentially by **2%** primarily from higher Completions and Artificial Lift activity, partly offset by lower Cementation Products activity[26](index=26&type=chunk) - Europe/Sub-Sahara Africa/Russia revenue decreased sequentially by **1%** primarily from lower activity across all segments, partly offset by higher Wireline activity in Europe[27](index=27&type=chunk) [Company Overview](index=9&type=section&id=Company%20Overview) Weatherford International plc is a global energy services company operating in approximately 75 countries with 17,000 team members. It delivers innovative energy services, integrating proven technologies with advanced digitalization to optimize resources and maximize value for customers - Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization for sustainable offerings and maximized value[28](index=28&type=chunk) - Operates in approximately **75 countries** with about **17,000 team members**, representing **110 nationalities** and **310 operating locations**[28](index=28&type=chunk) [Conference Call & Investor Information](index=9&type=section&id=Conference%20Call%20%26%20Investor%20Information) Weatherford hosted a conference call on October 22, 2025, to discuss Q3 2025 results, with details provided for live webcast and dial-in access. A telephonic replay and transcript are available until November 5, 2025 - Weatherford hosted a conference call on Wednesday, **October 22, 2025**, at **8:30 a.m. Eastern Time** to discuss Q3 2025 results[29](index=29&type=chunk) - Listeners could participate via live webcast or by dialing in, with presentation slides available on the investor relations section of the company's website[29](index=29&type=chunk)[30](index=30&type=chunk) - A telephonic replay of the conference call is available until **November 5, 2025**, and a replay and transcript will also be available on the investor relations website[31](index=31&type=chunk) [Forward-Looking Statements & Non-GAAP Measures](index=10&type=section&id=Forward-Looking%20Statements%20%26%20Non-GAAP%20Measures) This section outlines the company's forward-looking statements, which are subject to various risks and uncertainties, and defines key non-GAAP financial measures used by management to assess performance [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This news release contains forward-looking statements regarding future financial results, business outlook, and strategic plans, which are subject to significant risks, assumptions, and uncertainties, including global economic conditions, geopolitical conflicts, and industry-specific factors. Readers are cautioned not to place undue reliance on these statements, as actual results may vary materially - The news release contains forward-looking statements concerning adjusted EBITDA, adjusted free cash flow, shareholder return, business outlook, and future financial results[33](index=33&type=chunk) - Such statements are based on current beliefs and are subject to significant risks, assumptions, and uncertainties, including global political, economic, and market conditions, conflicts, cybersecurity, and climate change initiatives[33](index=33&type=chunk) - Readers are cautioned that forward-looking statements are estimates and may differ materially from actual future events or results, and the company undertakes no obligation to update them except as required by law[33](index=33&type=chunk)[34](index=34&type=chunk) [Non-GAAP Financial Measures Defined](index=14&type=section&id=Non-GAAP%20Financial%20Measures%20Defined) Weatherford provides several non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, Net Debt, and Net Leverage, which management believes offer additional meaningful comparisons for understanding operating performance and financial health, but should not be considered substitutes for GAAP results - **Adjusted EBITDA*** is defined as consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes restructuring charges, share-based compensation, and other charges/credits, used to assess normalized operating performance[44](index=44&type=chunk) - **Adjusted Free Cash Flow*** represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from asset disposition, used to understand cash generation performance[46](index=46&type=chunk) - **Net Debt*** is calculated as short and long-term debt less cash and cash equivalents and restricted cash, used to assess the level of debt in excess of cash and ability to repay debt[47](index=47&type=chunk) - **Net Leverage*** is **Net Debt*** divided by **Adjusted EBITDA*** for the trailing 12 months, used to understand the ability to repay and service debt[48](index=48&type=chunk) [Financial Statements (Unaudited)](index=11&type=section&id=Financial%20Statements%20(Unaudited)) This section presents Weatherford's unaudited selected financial statements, including statements of operations, balance sheet data, cash flow information, and reconciliations of GAAP to non-GAAP financial measures for Q3 2025 and prior periods [Selected Statements of Operations](index=11&type=section&id=Selected%20Statements%20of%20Operations) The Selected Statements of Operations provide detailed unaudited financial results for the three and nine months ended September 30, 2025, and 2024, including revenues by segment, operating income components, other expenses, income before taxes, income tax provision, and net income attributable to Weatherford | ($ in Millions, Except Per Share Amounts) | Three Months Ended Sep 30, 2025 | Three Months Ended Jun 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | **Revenues:** | | | | | | | DRE Revenues | $346 | $335 | $435 | $1,031 | $1,284 | | WCC Revenues | 468 | 456 | 509 | 1,365 | 1,471 | | PRI Revenues | 326 | 327 | 371 | 987 | 1,088 | | All Other | 92 | 86 | 94 | 246 | 329 | | **Total Revenues** | **1,232** | **1,204** | **1,409** | **3,629** | **4,172** | | **Operating Income:** | | | | | | | DRE Segment Adjusted EBITDA | $83 | $69 | $111 | $226 | $371 | | WCC Segment Adjusted EBITDA | 125 | 118 | 151 | 371 | 416 | | PRI Segment Adjusted EBITDA | 59 | 63 | 83 | 184 | 241 | | All Other | 14 | 19 | 23 | 37 | 73 | | Corporate | (12) | (15) | (13) | (42) | (45) | | Depreciation and Amortization | (67) | (64) | (89) | (193) | (260) | | Share-based Compensation | (10) | (9) | (10) | (26) | (35) | | Gain on Sale of Business | — | 70 | — | 70 | — | | Restructuring Charges | (11) | (11) | — | (51) | (8) | | Other Charges, Net | (3) | (3) | (13) | (19) | (13) | | **Operating Income** | **178** | **237** | **243** | **557** | **740** | | **Other Expense:** | | | | | | | Interest Expense, Net | (23) | (21) | (24) | (70) | (77) | | Loss on Blue Chip Swap Securities | — | (1) | — | (1) | (10) | | Other Expense, Net | (16) | (24) | (41) | (60) | (83) | | **Income Before Income Taxes** | **139** | **191** | **178** | **426** | **570** | | Income Tax Provision | (52) | (46) | (12) | (108) | (144) | | **Net Income** | **87** | **145** | **166** | **318** | **426** | | Net Income Attributable to Noncontrolling Interests | 6 | 9 | 9 | 25 | 32 | | **Net Income Attributable to Weatherford** | **$81** | **$136** | **$157** | **$293** | **$394** | | Basic Income Per Share | $1.13 | $1.87 | $2.14 | $4.04 | $5.39 | | Basic Weighted Average Shares Outstanding | 71.9 | 72.2 | 73.2 | 72.4 | 73.1 | | Diluted Income Per Share | $1.12 | $1.87 | $2.06 | $4.02 | $5.25 | | Diluted Weighted Average Shares Outstanding | 72.2 | 72.4 | 75.2 | 72.7 | 75.0 | [Selected Balance Sheet Data](index=12&type=section&id=Selected%20Balance%20Sheet%20Data) The Selected Balance Sheet Data provides unaudited financial position as of September 30, 2025, and December 31, 2024, detailing assets, liabilities, and shareholders' equity | ($ in Millions) | September 30, 2025 | December 31, 2024 | | :-------------------------- | :----------------- | :---------------- | | **Assets:** | | | | Cash and Cash Equivalents | $967 | $916 | | Restricted Cash | 64 | 59 | | Accounts Receivable, Net | 1,282 | 1,261 | | Inventories, Net | 880 | 880 | | Property, Plant and Equipment, Net | 1,118 | 1,061 | | Intangibles, Net | 294 | 325 | | **Liabilities:** | | | | Accounts Payable | 690 | 792 | | Accrued Salaries and Benefits | 281 | 302 | | Current Portion of Long-term Debt | 126 | 17 | | Long-term Debt | 1,462 | 1,617 | | **Shareholders' Equity:** | | | | Total Shareholders' Equity | 1,567 | 1,283 | [Selected Cash Flows Information](index=13&type=section&id=Selected%20Cash%20Flows%20Information) The Selected Cash Flows Information presents unaudited cash flow data for the three and nine months ended September 30, 2025, and 2024, detailing cash flows from operating, investing, and financing activities | ($ in Millions) | Three Months Ended Sep 30, 2025 | Three Months Ended Jun 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | **Cash Flows From Operating Activities:** | | | | | | | Net Cash Provided By Operating Activities | $138 | $128 | $262 | $408 | $543 | | **Cash Flows From Investing Activities:** | | | | | | | Net Cash Provided by (Used In) Investing Activities | (46) | 43 | (92) | (82) | (207) | | **Cash Flows From Financing Activities:** | | | | | | | Net Cash Used In Financing Activities | $(47) | $(97) | $(89) | $(277) | $(378) | [GAAP to Non-GAAP Financial Measures Reconciled](index=16&type=section&id=GAAP%20to%20Non-GAAP%20Financial%20Measures%20Reconciled) This section provides reconciliations of GAAP financial measures to non-GAAP measures such as Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Net Debt, and Net Leverage for the three and nine months ended September 30, 2025, and 2024, and for trailing 12 months | ($ in Millions, Except Margin in Percentages) | Three Months Ended Sep 30, 2025 | Three Months Ended Jun 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Revenues | $1,232 | $1,204 | $1,409 | $3,629 | $4,172 | | Net Income Attributable to Weatherford | $81 | $136 | $157 | $293 | $394 | | Net Income Margin | 6.6 % | 11.3 % | 11.1 % | 8.1 % | 9.4 % | | Adjusted EBITDA* | $269 | $254 | $355 | $776 | $1,056 | | Adjusted EBITDA Margin* | 21.8 % | 21.1 % | 25.2 % | 21.4 % | 25.3 % | | Adjusted Free Cash Flow* | $99 | $79 | $184 | $244 | $362 | | ($ in Millions) | September 30, 2025 | June 30, 2025 | September 30, 2024 | | :-------------------------- | :----------------- | :------------ | :----------------- | | Total Debt | $1,588 | $1,591 | $1,648 | | Total Cash | $1,031 | $1,003 | $978 | | Net Debt* | $557 | $588 | $670 | | Adjusted EBITDA* for trailing 12 months | $1,102 | $1,188 | $1,377 | | Net Leverage* (Net Debt*/Adjusted EBITDA*) | 0.51 x | 0.49 x | 0.49 x |

Core Insights - Weatherford International plc reported third quarter 2025 revenues of $1,232 million, reflecting a 2% increase sequentially but a 13% decrease year-over-year [2][7] - The company experienced a significant decline in operating income, net income, and earnings per share compared to both the previous quarter and the same quarter last year [2][3][7] - Adjusted EBITDA for the quarter was $269 million, with a margin of 21.8%, showing a sequential increase but a year-over-year decrease [2][3][7] Financial Performance - Revenues for Q3 2025 were $1,232 million, up 2% sequentially but down 13% year-over-year [2][7] - Operating income was $178 million, down 25% sequentially and 27% year-over-year [2][7] - Net income was $81 million, with a margin of 6.6%, reflecting a 40% decrease sequentially and a 48% decrease year-over-year [2][7] - Basic income per share was $1.13, down 40% sequentially and 48% year-over-year [2][7] Cash Flow and Capital Expenditures - Cash flows from operating activities were $138 million, an 8% increase sequentially but a 47% decrease year-over-year [3][7] - Adjusted free cash flow was $99 million, a 25% increase sequentially but a 46% decrease year-over-year [3][7] - Capital expenditures totaled $44 million, down 19% sequentially and 44% year-over-year [3][7] Strategic Developments - The company expanded its credit facility by $280 million, with total commitments now at $1 billion [5][16] - Weatherford announced a private offering of $1,200 million in Senior Notes due 2033 and a cash tender offer for $1,300 million of outstanding Senior Notes due 2030 [5][16] - Credit rating upgrades were received from Moody's, S&P Global Ratings, and Fitch Ratings, enhancing the company's financial standing [5][16] Operational Highlights - Weatherford showcased over 20 product launches at the FWRD 2025 conference, emphasizing innovation and digital transformation [6][7] - The company secured several significant contracts, including a $147 million contract with Petrobras for Tubular Running Services in Brazil [10][7] - Notable operational achievements included the deployment of advanced technologies in various regions, enhancing efficiency and reducing costs [10][11][20] Segment Performance - Drilling and Evaluation (DRE) segment revenue was $346 million, a 3% sequential increase but a 20% year-over-year decrease [15][17] - Well Construction and Completions (WCC) segment revenue was $468 million, up 3% sequentially but down 8% year-over-year [19][20] - Production and Intervention (PRI) segment revenue was $326 million, largely flat sequentially but down 12% year-over-year [21][22] Geographic Revenue Breakdown - North America revenue was $243 million, a 1% sequential increase but a 9% year-over-year decrease [24][7] - International revenue reached $989 million, a 3% sequential increase but a 13% year-over-year decrease [25][7] - Latin America revenue was $214 million, a 10% sequential increase but a 40% year-over-year decrease [26][7] - Middle East/North Africa/Asia revenue was $533 million, a 2% sequential increase but a 2% year-over-year decrease [27][7] - Europe/Sub-Sahara Africa/Russia revenue was $242 million, a 1% sequential decrease but flat year-over-year [28][7]

Core Viewpoint - Weatherford International plc is positioned positively in the oilfield services industry, with strong earnings expectations and a recent upgrade to a Zacks Rank 1 (Strong Buy) indicating a favorable outlook for investors [2][6]. Earnings Expectations - The company is set to release its quarterly earnings on October 21, 2025, with anticipated earnings per share (EPS) of $1.15 and revenue of approximately $1.18 billion [1][6]. Performance Track Record - Weatherford has consistently outperformed earnings estimates, achieving an average earnings surprise of 54.26% over the last two quarters [3][6]. - In the most recent quarter, Weatherford reported earnings of $1.87 per share, significantly exceeding the anticipated $0.97 per share, resulting in a surprise of 92.78% [3]. - In the previous quarter, the company surpassed the consensus estimate of $0.89 per share by reporting $1.03 per share, leading to a 15.73% surprise [4]. Valuation Metrics - The company's price-to-earnings (P/E) ratio is approximately 9.35, indicating market valuation of its earnings [4]. - Weatherford's price-to-sales ratio is about 0.87, reflecting investor willingness to pay per dollar of sales [4]. - The enterprise value to sales ratio stands at around 1.01, while the enterprise value to operating cash flow ratio is approximately 6.68 [5]. - The earnings yield is about 10.70%, suggesting a favorable return on investment based on earnings [5]. - The debt-to-equity ratio is approximately 1.16, indicating the proportion of debt used to finance the company's assets relative to shareholders' equity [5]. - Weatherford has a current ratio of about 2.21, demonstrating its ability to cover short-term liabilities with short-term assets [5].

Core Viewpoint - Weatherford (WFRD) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling actions [4]. Company Performance and Outlook - The upgrade indicates an improvement in Weatherford's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - For the fiscal year ending December 2025, Weatherford is expected to earn $5.33 per share, with a notable increase of 8.8% in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Group 1 - nLight (LASR) has seen a 50% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Photronics (PLAB) has experienced an 8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Weatherford International (WFRD) has seen a 6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - California Resources (CRC) has experienced a 5.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Dycom Industries (DY) has seen a 5.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]