First quarter revenue of $1,193 million decreased 12% year-over-yearFirst quarter operating income of $142 million decreased 39% year-over-yearFirst quarter net income of $76 million, a 6.4% margin, decreased 32% year-over-yearFirst quarter adjusted EBITDA* of $253 million, a 21.2% margin, decreased 25%, or 354 basis points, year-over-yearFirst quarter cash provided by operating activities of $142 million and adjusted free cash flow* of $66 millionRepurchased $34 million of 8.625% Senior Notes due 2030 in t ...

HOUSTON, April 21, 2025 (GLOBE NEWSWIRE) -- Weatherford International plc (NASDAQ:WFRD) ("Weatherford" or the "Company") today announced it has signed a strategic Memorandum of Understanding (MOU) with AIQ, the Abu Dhabi-based artificial intelligence (AI) champion developing innovative solutions for the energy sector. This partnership is set to bring transformative efficiency to energy production, leveraging advanced automation, data-driven insights, and the power of AI technology. The collaboration aims to ...

Group 1 - Weatherford International (NASDAQ: WFRD) has significantly improved since emerging from bankruptcy at the end of 2019 and is well-positioned to handle a potential economic slowdown [1] - The company's balance sheet is solid, indicating financial stability [1] Group 2 - Sunshine Kapital, led by Stefan, focuses on distressed situations and value opportunities, bringing twenty years of institutional experience in Research and Portfolio Management [1]

Core Viewpoint - Weatherford (WFRD) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the last reported quarter, Weatherford achieved earnings of $1.50 per share, exceeding the Zacks Consensus Estimate of $1.34 per share by 11.94% [2]. - In the previous quarter, the company reported earnings of $2.06 per share against an expected $1.65 per share, resulting in a surprise of 24.85% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Weatherford, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Weatherford is +1.50%, suggesting analysts are optimistic about its near-term earnings potential [8]. Zacks Rank and Success Rate - Weatherford holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high probability of beating consensus estimates, with a success rate of nearly 70% for stocks with this combination [6][8].

Core Viewpoint - The market anticipates Weatherford (WFRD) will report a year-over-year decline in earnings due to lower revenues, with a consensus EPS estimate of $0.89, reflecting a -40.7% change, and revenues expected at $1.23 billion, down 9.6% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for April 22, and stock movement may depend on whether actual results exceed or fall short of expectations [2]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.42% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Weatherford is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.50%, suggesting a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Weatherford currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Weatherford exceeded the expected EPS of $1.34 by delivering $1.50, resulting in a surprise of +11.94% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Weatherford is positioned as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [16].

Core Insights - Weatherford International plc released its 2024 Annual Update, highlighting financial results, technology innovations, and strategic focus areas aimed at creating long-term value for stakeholders [1][2] - The company achieved significant operational milestones in 2024, setting new records and reinforcing its position as an industry leader through strategic acquisitions and a commitment to innovation, safety, and quality [2] Company Overview - Weatherford provides innovative energy services that combine proven technologies with advanced digitalization to maximize value and return on investment [3] - The company operates in approximately 75 countries, employing around 19,000 team members from over 110 nationalities across 330 operating locations [3]

Core Viewpoint - Weatherford International plc will host a conference call on April 23, 2025, to discuss its first-quarter results for the period ending March 31, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled to begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) [2]. - Participants can join the call via a live webcast or by dialing specific numbers for U.S. and international access [3]. - A telephonic replay of the conference call will be available until May 7, 2025, at 5:00 p.m. Eastern Time [4]. Group 2: Company Overview - Weatherford provides innovative energy services that combine proven technologies with advanced digitalization to enhance value and return on investment [5]. - The company operates in approximately 75 countries, employing around 19,000 team members from over 110 nationalities across 330 locations [5].

Company Operations and Structure - Weatherford operates in approximately 75 countries with 330 operating locations, focusing on drilling, evaluation, well construction, completions, production, intervention, and responsible abandonment of wells[12]. - Weatherford's three reportable segments are Drilling and Evaluation, Well Construction and Completions, and Production and Intervention, all supported by advanced digital solutions[19]. - As of December 31, 2024, Weatherford had approximately 19,000 employees globally, with about 17% covered by union contracts[53]. - The company operates in approximately 75 countries with major service centers located in Mexico, Saudi Arabia, Argentina, UAE, Kuwait, Oman, the UK, and the US[143]. Financial Performance - Revenues totaled $5.51 billion in 2024, an increase of $378 million, or 7% compared to 2023, with product revenues increasing by 8% and service revenues by 7%[163]. - Operating income for 2024 was $938 million, a 14% increase from $820 million in 2023, driven by improved operational efficiencies and cost reduction initiatives[165]. - For the year ended December 31, 2024, total revenue was $5.513 billion, an increase of $378 million or 7.4% compared to 2023's revenue of $5.135 billion[178]. - DRE segment revenue for 2024 was $1.682 billion, up $146 million or 10% from $1.536 billion in 2023, with approximately 70% of the increase attributed to wireline activity[187]. - WCC segment revenue for 2024 reached $1.976 billion, an increase of $176 million or 10% compared to $1.800 billion in 2023, driven by higher demand in completions and liner hangers[192]. - PRI revenues for 2024 were $1.452 billion, a decrease of $20 million or 1% compared to 2023, primarily due to lower demand and activity, with approximately 65% of the decline attributed to pressure pumping[197]. - Cash provided by operating activities in 2024 was $792 million, a decrease from $832 million in 2023, primarily due to increased payments to suppliers[210]. - The company had cash and cash equivalents of $916 million at the end of 2024, down from $958 million at the end of 2023[209]. Shareholder Returns and Capital Management - Weatherford has introduced a shareholder returns program in 2024, which includes an expected annual dividend of $1 per share and a $500 million share repurchase authorization over three years[16]. - The company announced a shareholder returns program intending to pay regular quarterly cash dividends and repurchase up to $500 million in shares over a three-year period[102]. - The company paid $36 million in dividends during the twelve months ended December 31, 2024, with an additional $2 million accrued in dividend equivalent rights[150]. - The company announced a share repurchase program of up to $500 million through June 2027, with approximately $401 million remaining authorized for repurchases as of December 31, 2024[155]. Strategic Priorities and Initiatives - Weatherford aims to enhance customer experience by improving efficiency, value creation, and safety, while also investing in research and development for new energy technologies[16]. - Weatherford's strategic priorities include organizational vitality, lean operations, and financial performance to ensure sustainable profitability and cash flow generation[16]. - The company emphasizes the importance of technology in optimizing production and reducing costs for its customers, investing substantial resources in technology development[18]. - The company is focused on recruiting and developing talent through training and leadership programs to enhance employee skill sets[45]. - Weatherford's Diversity, Equity, and Inclusion Program aims to foster collaboration and support local communities, with initiatives like the Women of Weatherford group[50][51]. Risks and Challenges - The company faces potential disruptions in its supply chain due to geopolitical risks, including the Russia-Ukraine conflict, which could adversely affect operational costs and commitments to customers[62]. - The company is exposed to cybersecurity risks that could result in significant financial losses and operational disruptions[75][79]. - The company must adapt its technology portfolio to participate in the energy transition, which may affect demand for its products and services[69]. - The company may experience difficulties in completing acquisitions or integrating new businesses, which could negatively impact its financial performance[104]. - The company faces risks related to employee turnover and labor shortages, which could impede its operations and financial results[100]. Environmental and Regulatory Compliance - The company is subject to various laws and regulations related to environmental protection, which may increase compliance costs and liabilities[109]. - The company has committed to achieving net-zero emissions for Scope 1 and 2 by 2050 as part of its ESG initiatives[112]. - Climate change and ESG initiatives may lead to increased operational costs and reduced demand for products, impacting financial condition and access to capital markets[63][64]. - The need for significant capital expenditures to comply with sustainability initiatives may adversely affect financial condition and results of operations[66]. Taxation and Financial Liabilities - The company has recorded a valuation allowance on approximately 90% of its deferred tax assets, indicating potential future tax liabilities[119]. - The effective tax rate has fluctuated in the past and may continue to fluctuate due to changes in earnings composition and tax laws[119]. - The company may face increased tax liabilities if future legislation is enacted to implement the OECD accord in jurisdictions where it operates[118]. - The company’s tax expense could be materially impacted by changes in tax laws, tax treaties, or differing interpretations by tax authorities[116]. - The company’s ability to make scheduled payments on its debt obligations depends on its financial and operating performance, which is subject to economic conditions[92].

Financial Data and Key Metrics Changes - In Q4 2024, Weatherford reported a 2% sequential decline in North America revenue, primarily due to reduced U.S. land activity, while international revenue decreased by 6% sequentially and 3% year-over-year, mainly driven by Latin America, particularly Mexico [11][12] - The company achieved adjusted EBITDA margins of 24.3% in Q4, with full-year adjusted EBITDA margins at 25.1%, marking the highest full-year margin in over 15 years [12][13] - For the full year 2024, Weatherford generated $524 million of adjusted free cash flow, representing a 37.9% free cash flow conversion rate [29][33] Business Line Data and Key Metrics Changes - In the DRE segment, all major product lines exhibited significant growth, while completions in the WCC segment grew in the mid-double digits in 2024, following a year of mid-20% growth in 2023 [15][16] - The Wealth Services product line, focused on rigless intervention, has grown over 50% in three years, representing a significant growth vector with low capital intensity [17][18] Market Data and Key Metrics Changes - The international business saw a 10% growth on a full-year basis, led by the Middle East, North Africa, and Asia, which experienced a 17% year-on-year top-line growth [12][13] - The outlook for 2025 indicates a mid-single-digit decline in total international revenues, primarily due to anticipated drops in Mexico and Russia, while excluding these two countries, international revenues are expected to grow low single digits [22][24] Company Strategy and Development Direction - The company is focusing on structural cost optimization, networking capital efficiency, and identifying specific growth vectors to drive performance in a softer market [40][43] - Weatherford aims to achieve adjusted EBITDA margins in the high 20s over the next three years, despite short-term revenue declines [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the immediate outlook, particularly in Mexico, where activity levels are expected to drop significantly [21][22] - Despite challenges, management remains optimistic about growth opportunities in regions like Canada, Brazil, Kuwait, Saudi Arabia, Thailand, and Norway [22][24] Other Important Information - The company has initiated a cost containment program and expects to see substantial margin improvements in the second half of 2025 as cost and productivity programs take effect [26][27] - Weatherford has paid two quarterly dividends of $0.25 per share and repurchased approximately $99 million of shares during the second half of 2024 [14] Q&A Session Summary Question: Confirmation on Saudi growth offsetting declines in Mexico and Russia - Management confirmed that while Saudi Arabia is expected to grow, it will not fully offset the declines in Mexico and Russia, but will aid overall growth [50][51] Question: Insights on Russia's performance and future expectations - Management indicated a significant decline in Russia's business due to sanctions and operational complexities, with expectations for continued reduction in revenue contribution [72][73] Question: Future opportunities in Mexico - Management emphasized a focus on margins and cash management, expressing confidence in long-term potential despite current challenges [80] Question: Update on capital return program and share repurchases - Management stated that they are ahead of commitments regarding shareholder returns and will continue to evaluate share repurchases based on market conditions [87] Question: Growth prospects for the Wealth Services business - Management highlighted the growth driven by engineering capabilities and digital solutions, positioning it as a significant platform for future growth [118]

Core Viewpoint - Weatherford International plc is conducting its Q4 2024 and full-year 2024 earnings conference call, indicating a focus on financial performance and strategic insights for the upcoming year [1][3]. Group 1: Company Overview - The conference call features key company executives, including Girish Saligram (President & CEO) and Arun Mitra (EVP & CFO), highlighting the leadership's involvement in discussing financial results [3]. - The call is structured to begin with prepared remarks followed by a Q&A session, emphasizing a transparent communication approach with stakeholders [3]. Group 2: Financial Reporting - The company reminds participants that some comments will include forward-looking statements, which are subject to various risks and uncertainties that could impact actual results [4]. - Non-GAAP financial measures will be discussed, with details and reconciliations provided in the earnings press release available on the company's website [5].