Weatherford International(US:WFRD)2026-02-03 21:30Financial Performance - Fourth quarter revenue was $1,289 million, a 5% increase sequentially but a 4% decrease year-over-year; full year revenue was $4,918 million, down 11% from the prior year[2] - Fourth quarter operating income reached $199 million, up 12% sequentially and 1% year-over-year; full year operating income was $756 million, a 19% decrease from the prior year[2] - Fourth quarter net income was $138 million with a 10.7% margin, a 70% sequential increase and a 23% year-over-year increase; full year net income was $431 million, down 15% from the prior year[2] - Fourth quarter adjusted EBITDA was $291 million with a 22.6% margin, an 8% sequential increase but an 11% decrease year-over-year; full year adjusted EBITDA was $1,067 million, down 23% from the prior year[2] Cash Flow and Shareholder Returns - Fourth quarter cash provided by operating activities was $268 million, a 94% sequential increase and an 8% year-over-year increase; adjusted free cash flow was $222 million, up 124% sequentially and 37% year-over-year[5] - The company returned $25 million to shareholders in the fourth quarter, including $18 million in dividends and $7 million in share repurchases; total shareholder return for the full year was $173 million[12] - The Board approved a 10% increase in the quarterly cash dividend to $0.275 per share, payable on March 5, 2026[13] Contracts and Innovations - Weatherford secured multiple contracts across various regions, including a five-year contract for Well Services in Oman and a four-year contract for Wireline services in Romania[9] - The company deployed innovative technologies, such as the Modus Managed Pressure Well Solution in Suriname and the Permanent Magnet Motor in Egypt, enhancing operational efficiency and reducing costs[11] Future Outlook - The outlook for 2026 indicates a soft activity environment in the first half, with growth opportunities expected in the second half, supported by internal cost optimization initiatives[8] Segment Performance - Fourth quarter 2025 PRI revenue was $353 million, an increase of $27 million or 8% sequentially, but a decrease of $11 million or 3% year-over-year[20] - Fourth quarter 2025 PRI segment adjusted EBITDA was $73 million, up $14 million or 24% sequentially, but down $5 million or 6% year-over-year[21] - Full year 2025 PRI revenues totaled $1,340 million, a decrease of $112 million or 8% compared to 2024, primarily due to lower ISDT and Pressure Pumping activity[22] - Full year 2025 PRI segment adjusted EBITDA was $257 million, down $62 million or 19% compared to 2024, mainly due to lower ISDT and Pressure Pumping activity[23] Regional Revenue Analysis - North America revenue for Q4 2025 was $249 million, a sequential increase of $6 million or 2%, but a year-over-year decrease of $12 million or 5%[26] - International revenue for Q4 2025 was $1,040 million, an increase of $51 million or 5% sequentially, but a decrease of $40 million or 4% year-over-year[28] - Latin America revenue for Q4 2025 was $248 million, an increase of $34 million or 16% sequentially, but a decrease of $64 million or 21% year-over-year[29] - Middle East/North Africa/Asia revenue for Q4 2025 was $556 million, an increase of $23 million or 4% sequentially, and an increase of $14 million or 3% year-over-year[31] - Europe/Sub-Sahara Africa/Russia revenue for Q4 2025 was $236 million, a decrease of $6 million or 2% sequentially, but an increase of $10 million or 4% year-over-year[33] - Full year 2025 revenue in Latin America was $898 million, a decrease of $495 million or 36% compared to 2024, primarily due to lower activity in Mexico and the sale of the Pressure Pumping business in Argentina[30] Quarterly Performance Metrics - Total revenues for the three months ended December 31, 2025, were $1,289 million, a 4.6% increase from $1,232 million in the previous quarter and a decrease of 4.0% from $1,341 million year-over-year[45] - DRE segment adjusted EBITDA was $83 million for the three months ended December 31, 2025, consistent with the previous quarter and down from $96 million year-over-year[45] - WCC segment adjusted EBITDA increased to $144 million from $125 million in the previous quarter, but decreased from $148 million year-over-year[45] - Net income attributable to Weatherford for the three months ended December 31, 2025, was $138 million, compared to $81 million in the previous quarter and $112 million year-over-year, representing a 70.4% increase quarter-over-quarter[45] - Basic income per share for the three months ended December 31, 2025, was $1.92, up from $1.13 in the previous quarter and $1.54 year-over-year[45] - Cash flows from operating activities for the three months ended December 31, 2025, were $268 million, compared to $138 million in the previous quarter and $249 million year-over-year[49] Balance Sheet Highlights - Total shareholders' equity increased to $1,696 million as of December 31, 2025, from $1,283 million year-over-year[47] - Long-term debt decreased to $1,455 million as of December 31, 2025, from $1,617 million year-over-year[47] - The company reported a net cash used in investing activities of $63 million for the three months ended December 31, 2025, compared to $46 million in the previous quarter and $86 million year-over-year[49] - Total debt as of December 31, 2025, was $1,485 million, a decrease from $1,588 million in Q3 2025 and $1,634 million in Q4 2024[62] - Cash and cash equivalents increased to $987 million as of December 31, 2025, from $967 million in Q3 2025 and $916 million in Q4 2024[62] - Net debt as of December 31, 2025, was $443 million, down from $557 million in Q3 2025 and $659 million in Q4 2024[62] - Net leverage ratio as of December 31, 2025, was 0.42x, improved from 0.51x in Q3 2025 and 0.48x in Q4 2024[62]