Q2'25 Financial Performance - Weatherford's Q2'25 revenue reached $1,204 million, a 1% sequential increase[7] - Adjusted EBITDA* was $254 million, with a margin of 21.1%[7] - Adjusted Free Cash Flow* stood at $79 million, representing a 31.1% conversion on Adjusted EBITDA*[7] - Net income was $136 million, resulting in basic earnings per share of $1.87[11] Segment Performance - Drilling & Evaluation (DRE) revenue was $335 million, a 4% sequential decrease and a 22% year-over-year decrease[66] - Well Construction & Completions (WCC) revenue reached $456 million, a 3% sequential increase but a 10% year-over-year decrease[70] - Production & Intervention (PRI) revenue was $327 million, a 2% sequential decrease and an 11% year-over-year decrease[73] Capital Allocation and Balance Sheet - Weatherford repurchased $27 million of 8.625% Senior Notes due 2030 in Q2'25[8] - Shareholder return in Q2'25 totaled $52 million, including $18 million in dividends and $34 million in share repurchases[10] - The company maintains a strong liquidity position with ~$1 billion in cash and restricted cash[14] - Net leverage* is at 0.49x[11] Outlook - The company projects Q3'25 revenues between $1,165 million and $1,195 million and Adjusted EBITDA* between $245 million and $265 million[84] - For the full year 2025, Weatherford anticipates revenues of $47 billion to $49 billion and Adjusted EBITDA* of $1015 billion to $1060 billion[84]

Core Viewpoint - Weatherford (WFRD) reported quarterly earnings of $1.87 per share, significantly exceeding the Zacks Consensus Estimate of $0.97 per share, marking an earnings surprise of +92.78% [1][2] Financial Performance - The company achieved revenues of $1.2 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.94%, although this represents a decline from year-ago revenues of $1.41 billion [2] - Over the last four quarters, Weatherford has consistently surpassed consensus EPS estimates, achieving this four times [2] Stock Performance - Weatherford shares have declined approximately 25.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.2% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.44 on revenues of $1.22 billion, and for the current fiscal year, it is $4.90 on revenues of $4.82 billion [7] - The trend of estimate revisions for Weatherford was unfavorable prior to the earnings release, which may impact future stock movements [6] Industry Context - The Oil and Gas - Field Services industry, to which Weatherford belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Q2 2025 revenue was $1,204 million (up 1% sequentially), with profitability improving and $79 million adjusted free cash flow Q2 2025 Key Financial Metrics | Metric | Q2 2025 ($M) | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $1,204 M | +1% | -14% | | Operating Income | $237 M | +67% | -10% | | Net Income | $136 M | +79% | +9% | | Adjusted EBITDA* | $254 M | Flat | -30% | | Adjusted EBITDA Margin* | 21.1% | -11 bps | -488 bps | | Diluted EPS | $1.87 | +81% | +13% | | Cash from Operations | $128 M | -10% | -15% | | Adjusted Free Cash Flow* | $79 M | +20% | -18% | - The company returned **$52 million** to shareholders during the quarter, consisting of **$18 million** in dividends and **$34 million** in share repurchases[2](index=2&type=chunk) - A strategic agreement was signed with Amazon Web Services (AWS) to migrate and modernize digital platforms, aiming to enhance operational efficiency and scale cloud-based solutions[2](index=2&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management noted market slowdowns but highlighted resilient sequential performance and a focus on free cash flow - Management cited market headwinds from geopolitical events, supply-demand imbalance concerns, and trade uncertainties, leading to an activity slowdown[6](index=6&type=chunk) - The company's performance is described as resilient, with revenue and adjusted free cash flow increasing sequentially despite the divestiture of businesses in Argentina and payment delays in Mexico[6](index=6&type=chunk) - The forward-looking outlook anticipates a relatively flat revenue trajectory, with a strategic focus on driving adjusted free cash flow through portfolio optimization, cost efficiencies, and working capital management[7](index=7&type=chunk) [Business & Operational Review](index=3&type=section&id=Business%20%26%20Operational%20Review) [Operational & Commercial Highlights](index=3&type=section&id=Operational%20%26%20Commercial%20Highlights) The company secured multiple key contracts and extensions globally, demonstrating strong commercial momentum - Secured a three-year Managed Pressure Drilling (MPD) services contract with an IOC for a deepwater project in Mexico[9](index=9&type=chunk) - Awarded a one-year contract extension by Aramco for MPD services on its onshore and offshore wells[9](index=9&type=chunk) - Won a three-year contract with Petrobras to supply conventional completions equipment for pre-salt and post-salt fields in offshore Brazil[9](index=9&type=chunk) - Received multiple contracts from major operators like bp, Shell, Beach Energy, and Kuwait Oil Company for a wide range of services including Completions, Drilling Services, and Tubular Running Services (TRS)[9](index=9&type=chunk) [Technology Highlights](index=4&type=section&id=Technology%20Highlights) Successful deployments of advanced technologies across all segments improved efficiency, safety, and global adoption - **Drilling & Evaluation (DRE):** Successfully deployed combined Magnus™ and Victus™ solutions in Kuwait and completed the first Modus™ job using MPD techniques in Qatar, saving significant rig time[10](index=10&type=chunk) - **Well Construction and Completions (WCC):** Integrated multiple Tubular Running Services (TRS) technologies for bp in the Gulf of America, which improved operational speed, cost-effectiveness, and safety[10](index=10&type=chunk) - **Production and Intervention (PRI):** Witnessed continued global adoption of Rotaflex® Artificial Lift technology and completed a successful field trial of TITAN RS casing recovery technology for Equinor in Norway[10](index=10&type=chunk) [Shareholder Return](index=5&type=section&id=Shareholder%20Return) Weatherford returned $52 million to shareholders in Q2 2025 and declared a $0.25 quarterly cash dividend Shareholder Return Summary | Period | Dividends Paid ($M) | Share Repurchases ($M) | Total Return ($M) | | :--- | :--- | :--- | :--- | | Q2 2025 | $18 M | $34 M | $52 M | | H1 2025 | $36 M | $87 M | $123 M | - The Board of Directors declared a quarterly cash dividend of **$0.25 per share**, payable on September 4, 2025[12](index=12&type=chunk) [Segment & Geographic Performance](index=5&type=section&id=Segment%20%26%20Geographic%20Performance) [Results by Reportable Segment](index=5&type=section&id=Results%20by%20Reportable%20Segment) Segment performance was mixed, with WCC growing sequentially while DRE and PRI declined, and all segments down YoY [Drilling and Evaluation (DRE)](index=5&type=section&id=Drilling%20and%20Evaluation%20(DRE)) DRE revenue decreased 4% sequentially to $335 million, driven by lower Wireline activity, with EBITDA also declining DRE Financial Performance (Q2 2025) | Metric | Amount ($M) | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $335 M | -4% | -22% | | Segment Adj. EBITDA | $69 M | -7% | -47% | | Segment Adj. EBITDA Margin | 20.6% | -55 bps | -985 bps | - The sequential revenue decrease was mainly due to lower Wireline activity in North America and Latin America, partially offset by higher Drilling Services activity in Europe/Sub-Sahara Africa/Russia and Latin America[13](index=13&type=chunk) [Well Construction and Completions (WCC)](index=5&type=section&id=Well%20Construction%20and%20Completions%20(WCC)) WCC revenue grew 3% sequentially to $456 million, driven by Liner Hangers and Cementation, but EBITDA declined WCC Financial Performance (Q2 2025) | Metric | Amount ($M) | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $456 M | +3% | -10% | | Segment Adj. EBITDA | $118 M | -8% | -19% | | Segment Adj. EBITDA Margin | 25.9% | -315 bps | -289 bps | - Sequential revenue growth was driven by higher Liner Hangers and Cementation Products activity, which was partly offset by lower Completions activity, especially in Latin America[15](index=15&type=chunk) [Production and Intervention (PRI)](index=6&type=section&id=Production%20and%20Intervention%20(PRI)) PRI revenue decreased 2% sequentially to $327 million due to a divestiture, but adjusted EBITDA improved PRI Financial Performance (Q2 2025) | Metric | Amount ($M) | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $327 M | -2% | -11% | | Segment Adj. EBITDA | $63 M | +2% | -26% | | Segment Adj. EBITDA Margin | 19.3% | +70 bps | -377 bps | - The sequential revenue decline was mainly from lower Pressure Pumping activity following the sale of the Argentina business, partly offset by higher Artificial Lift and Sub-sea Intervention activity[17](index=17&type=chunk) [Revenue by Geography](index=6&type=section&id=Revenue%20by%20Geography) International revenue grew 2% sequentially, driven by Europe and Middle East, offset by Latin America's decline Q2 2025 Revenue by Geography ($ in Millions) | Region | Q2 2025 Revenue | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | | North America | $241 | -4% | -4% | | **International** | **$963** | **+2%** | **-16%** | | Latin America | $195 | -19% | -45% | | Middle East/North Africa/Asia | $524 | +4% | -3% | | Europe/Sub-Sahara Africa/Russia | $244 | +23% | -5% | | **Total Revenue** | **$1,204** | **+1%** | **-14%** | [North America](index=7&type=section&id=North%20America) North America revenue decreased 4% sequentially to $241 million, primarily due to lower Wireline activity - The 4% sequential revenue decrease was primarily from lower Wireline activity in Canada Land[20](index=20&type=chunk) [International](index=7&type=section&id=International) International revenue increased 2% sequentially to $963 million, driven by Europe and Middle East, despite Latin America's decline - Latin America revenue decreased 19% sequentially, mainly due to lower activity in Argentina following the sale of the Pressure Pumping business[22](index=22&type=chunk) - Middle East/North Africa/Asia revenue grew 4% sequentially, driven by higher Liner Hangers and Cementation Products activity[23](index=23&type=chunk) - Europe/Sub-Sahara Africa/Russia revenue saw a strong sequential increase of 23%, driven by higher activity across all segments[24](index=24&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) [Selected Statements of Operations (Unaudited)](index=10&type=section&id=Selected%20Statements%20of%20Operations%20(Unaudited)) Q2 2025 total revenues were $1,204 million, with operating income of $237 million and net income of $136 million Q2 2025 Statement of Operations Highlights ($ in Millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Revenues | 1,204 | 1,193 | 1,405 | | Gain on Sale of Business | 70 | — | — | | Operating Income | 237 | 142 | 264 | | Net Income Attributable to Weatherford | 136 | 76 | 125 | | Diluted Income Per Share | $1.87 | $1.03 | $1.66 | [Selected Balance Sheet Data (Unaudited)](index=11&type=section&id=Selected%20Balance%20Sheet%20Data%20(Unaudited)) As of June 30, 2025, cash was $943 million, long-term debt $1,565 million, and shareholders' equity increased Balance Sheet Highlights ($ in Millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 943 | 916 | | Accounts Receivable, Net | 1,177 | 1,261 | | Long-term Debt | 1,565 | 1,617 | | Total Shareholders' Equity | 1,519 | 1,283 | [Selected Cash Flows Information (Unaudited)](index=12&type=section&id=Selected%20Cash%20Flows%20Information%20(Unaudited)) Q2 2025 net cash from operations was $128 million, with investing providing $43 million and financing using $97 million Q2 2025 Cash Flow Summary ($ in Millions) | Cash Flow Activity | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Cash Provided By Operating Activities | 128 | 142 | 150 | | Net Cash Provided by (Used In) Investing Activities | 43 | (79) | (61) | | Net Cash Used In Financing Activities | (97) | (133) | (102) | [Non-GAAP Financial Measures](index=13&type=section&id=Non-GAAP%20Financial%20Measures) [Definitions of Non-GAAP Measures](index=13&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section defines key non-GAAP measures like Adjusted EBITDA, Adjusted Free Cash Flow, Net Debt, and Net Leverage - **Adjusted EBITDA:** Defined as consolidated income before interest, taxes, depreciation, amortization, and excludes items like restructuring charges and share-based compensation. Management believes it is useful for assessing normalized operating performance[41](index=41&type=chunk) - **Adjusted Free Cash Flow:** Defined as cash from operating activities, less capital expenditures, plus proceeds from asset dispositions. Management uses this to measure cash generation and capital discipline[43](index=43&type=chunk) - **Net Debt & Net Leverage:** Net Debt is total debt less cash and restricted cash. Net Leverage is Net Debt divided by trailing 12-month Adjusted EBITDA. These are used to assess the company's ability to service its debt[44](index=44&type=chunk)[45](index=45&type=chunk) [GAAP to Non-GAAP Reconciliation](index=15&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) Detailed reconciliations show Q2 2025 Net Income reconciled to Adjusted EBITDA, and Net Cash to Adjusted Free Cash Flow Reconciliation of Net Income to Adjusted EBITDA (Q2 2025, $ in Millions) | Description | Amount | | :--- | :--- | | Net Income Attributable to Weatherford | $136 | | Add back: Noncontrolling Interests, Taxes, Interest, etc. | $80 | | Operating Income | $237 | | Add back: D&A, Restructuring, Share-Based Comp, etc. | $87 | | Less: Gain on Sale of Business | ($70) | | **Adjusted EBITDA*** | **$254** | Reconciliation to Adjusted Free Cash Flow (Q2 2025, $ in Millions) | Description | Amount | | :--- | :--- | | Net Cash Provided By Operating Activities | $128 | | Capital Expenditures | ($54) | | Proceeds from Disposition of Assets | $5 | | **Adjusted Free Cash Flow*** | **$79** | Net Debt and Leverage Calculation (June 30, 2025) | Metric | Amount ($M) | | :--- | :--- | | Total Debt | $1,591 M | | Less: Total Cash | ($1,003 M) | | **Net Debt*** | **$588 M** | | Trailing 12-month Adjusted EBITDA* | $1,188 M | | **Net Leverage*** | **0.49x** |

Core Viewpoint - Weatherford International plc reported its second quarter 2025 financial results, showing a mixed performance with sequential improvements in several metrics but declines year-over-year due to market challenges and geopolitical factors. Financial Performance - Revenues for Q2 2025 were $1,204 million, a 1% increase sequentially but a 14% decrease year-over-year [2] - Operating income was $237 million, up 67% sequentially but down 10% year-over-year [2] - Net income reached $136 million with an 11.3% margin, reflecting a 79% sequential increase and a 9% year-over-year increase [2] - Adjusted EBITDA was $254 million, flat sequentially and down 30% year-over-year, with a margin of 21.1% [2] - Basic and diluted income per share were both $1.87, marking an 81% sequential increase and a 10% year-over-year increase [2] Cash Flow and Capital Expenditures - Cash flows from operating activities were $128 million, down 10% sequentially and 15% year-over-year [3] - Adjusted free cash flow was $79 million, a 20% sequential increase but an 18% year-over-year decrease [3] - Capital expenditures totaled $54 million, down 30% sequentially and 13% year-over-year [3] Operational Insights - The company faced a slowdown in core operating markets due to geopolitical events and supply-demand imbalances, yet managed to deliver results in line with expectations [4] - The sequential performance indicated strong fundamentals and operational efficiency despite market softness [4] - The company emphasized its focus on driving adjusted free cash flow conversion through portfolio optimization and cost efficiencies [5] Segment Performance - Drilling and Evaluation (DRE) segment revenue was $335 million, down 4% sequentially and 22% year-over-year [12] - Well Construction and Completions (WCC) segment revenue was $456 million, up 3% sequentially but down 10% year-over-year [14] - Production and Intervention (PRI) segment revenue was $327 million, down 2% sequentially and 11% year-over-year [18] Geographic Revenue Breakdown - North America revenue was $241 million, down 4% sequentially and year-over-year [21] - International revenue was $963 million, up 2% sequentially but down 16% year-over-year [22] - Latin America revenue decreased by 19% sequentially and 45% year-over-year to $195 million [23] - Middle East/North Africa/Asia revenue increased by 4% sequentially but decreased by 3% year-over-year to $524 million [24] - Europe/Sub-Sahara Africa/Russia revenue increased by 23% sequentially but decreased by 5% year-over-year to $244 million [25] Shareholder Returns - The company returned $52 million to shareholders in Q2 2025, including $18 million in dividends and $34 million in share repurchases [10] - A quarterly cash dividend of $0.25 per share was declared, payable on September 4, 2025 [11]

Core Insights - Weatherford International (NASDAQ: WFRD) is in a paradoxical position with solid fundamentals after years of restructuring [1] - The company has refocused its portfolio on high value-added services, demonstrating stable operating profitability and regular cash generation [1] - Financial leverage has improved, indicating a stronger financial position [1] Investment Approach - The investment approach combines macroeconomic analysis with valuation models, focusing on financial structure, free cash flow generation, and capital allocation discipline [1] - There is a particular interest in companies undergoing transformation or recovery, where the risk/reward profile is favorable over a 2–3 year horizon [1] - The aim is to publish in-depth investment theses on undervalued equities and special situation plays that may not be widely recognized by investors [1]

Group 1 - The company fulfills 3 out of 3 quality indicators and 0 out of 2 valuation indicators, resulting in a rating of 3/5 stars, which is typically insufficient for a strong investment thesis [2] - A valuation target of €140/share is established, indicating an attractive risk/reward-adjusted upside [2] - The company receives a "Hold" rating as of July 2025 based on the analysis [2] Group 2 - The company fulfills 3 out of 3 quality indicators and 1 out of 2 valuation indicators, leading to a rating of 4/5 stars, which supports a more favorable investment thesis [2] - A valuation target of €140/share is reiterated, suggesting a compelling risk/reward-adjusted upside [2] - The company is given a "Buy" rating as of July 2025 based on the improved indicators [2]

Core Points - Weatherford International plc will host a conference call on July 23, 2025, to discuss its second-quarter results for the period ending June 30, 2025 [1] - The conference call will start at 8:30 a.m. Eastern Time [2] - A press release with the results and presentation slides will be available on the Weatherford investor relations website prior to the call [2] Participation Details - Listeners can join the conference call via a live webcast or by registering in advance for a PIN [3] - The call can also be accessed by dialing +1 877-328-5344 within the U.S. or +1 412-902-6762 outside the U.S. [3] - Participants are advised to log in or dial in approximately 10 minutes before the call starts [3] Replay Information - A telephonic replay of the conference call will be available until August 6, 2025, at 5:00 p.m. Eastern Time [4] - To access the replay, the numbers are +1 877-344-7529 within the U.S. and +1 412-317-0088 outside the U.S., with the conference number 1312926 [4] Company Overview - Weatherford provides innovative energy services that combine proven technologies with advanced digitalization [5] - The company operates in approximately 75 countries with around 18,000 team members from over 110 nationalities [5] - Weatherford focuses on optimizing resources and maximizing asset potential for its customers [5]

Core Insights - Weatherford International plc has signed an agreement with Amazon Web Services (AWS) to enhance its digital capabilities and drive innovation in the energy sector [1][5] - AWS will be the preferred cloud provider for Weatherford, facilitating the migration and modernization of its software and hardware suite, including the Modern Edge Platform and CygNet control system [2][3] - The collaboration aims to develop next-generation technologies and enhance Weatherford's Unified Data Model, allowing for better integration and analysis of multi-asset data [3] - The WFRD Software Launchpad will be improved, providing customers with access to various applications while maintaining control over their data [4] Company Overview - Weatherford delivers innovative energy services that combine proven technologies with advanced digitalization to maximize value and return on investment [6] - The company operates in approximately 75 countries with around 18,000 team members from over 110 nationalities [6]

Weatherford International (WFRD) Q3 2021 Earnings Call April 29, 2025 04:48 PM ET Speaker0 Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford International Third Quarter twenty twenty one Earnings Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. As a reminder, today's event is being recorded. I would now like to turn the conference over to Muhammad Tabawala, Director, Investor Relations and M and A. Sir, ...

Financial Data and Key Metrics Changes - Revenue for Q1 2021 was $832 million, down 1% sequentially and 32% year-over-year, primarily due to increased drilling and intervention services in North America offset by declines in the Middle East, Asia, and North Africa [36][40] - Adjusted EBITDA was $102 million, with a margin of 12%, reflecting a 60 basis point improvement sequentially despite a 13% decline in product revenues [37][39] - Free cash flow was $70 million, up $72 million year-over-year, with a cash balance of $1.3 billion, an increase of $58 million sequentially [11][50][49] Business Line Data and Key Metrics Changes - In North America, revenues grew 6% sequentially, driven by a 14% increase in drilling evaluation and intervention services [40] - Latin America saw a 3% sequential revenue growth, with DEI revenue growth of 8% offsetting declines in completion and production [42] - Eastern Hemisphere revenues declined 6% sequentially, with a 17% drop in completion and production revenues, while DEI revenues increased by 5% [44][46] Market Data and Key Metrics Changes - North America experienced a meaningful increase in activity, with rig counts improving, while international logistics disruptions continued to impact operations [29][30] - There are signs of pent-up demand in key markets like the Middle East and Latin America, although the timing of recovery may extend into 2022 [31][32] Company Strategy and Development Direction - The company aims to enhance commercial traction of new technologies, leverage scale for growth, and focus on digital transformation and energy transition [26][60] - The strategy includes exiting uncompetitive markets and focusing on profitable product lines, particularly in North America [29][87] - The company is also investing in geothermal energy and carbon capture technologies as part of its long-term strategic focus [67][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable profitability and free cash flow generation, emphasizing the importance of structural changes to drive profitability at flat activity levels [59][86] - The company remains cautious about the ongoing impacts of COVID-19 on international operations and logistics, which may affect growth in the near term [54][88] Other Important Information - The company filed a registration statement with the SEC to relist on NASDAQ under the ticker symbol WFRD, expected to be completed in Q2 2021 [12][52] - Capital expenditures for 2021 are projected to be between $100 million and $130 million, with a focus on investments that provide clear returns [56][97] Q&A Session Summary Question: Potential big retenders from National Oil Companies - Management noted that most activity is in the Middle East, with product line-specific tenders expected to provide opportunities for market share recovery [72][73] Question: Pricing for service companies in the Middle East - Management acknowledged tighter capacity and potential for price increases, but emphasized the importance of maintaining margins over chasing volume [75][78] Question: Outlook for Managed Pressure Drilling (MPD) business - Management expressed excitement about MPD, noting its current adoption rate is below 10%, with significant growth potential in the coming years [80][82] Question: Guidance for Q2 2021 - Management indicated that Q2 revenues are expected to be flat compared to Q1, with a focus on profitability at current activity levels [57][86] Question: Current status of credit facility discussions - Management is in dialogue with banking partners, noting improved sentiment towards the oilfield services market, but no timeline for finalizing a facility yet [91][92] Question: Working capital expectations for the year - Management expects working capital to be a slight positive for the year, but not as favorable as in 2020 [100][101]