Weatherford Announces First Quarter 2025 Results

Core Insights - Weatherford International plc reported a revenue of $1,193 million for Q1 2025, reflecting a 12% decrease year-over-year and an 11% decrease sequentially [2][6] - The company experienced a significant decline in operating income, which was $142 million, down 39% from $233 million in Q1 2024 [2][6] - Net income for Q1 2025 was $76 million, representing a 32% decrease year-over-year, with a net income margin of 6.4% [2][6] - Adjusted EBITDA was reported at $253 million, a decrease of 25% year-over-year, with an adjusted EBITDA margin of 21.2% [2][6] - The company faced market softening in key regions, particularly in Mexico, the UK, and North America, impacting activity levels [4][5] Financial Performance - Q1 2025 cash flows from operating activities were $142 million, an increase from $131 million in Q1 2024 but down from $249 million in Q4 2024 [3][6] - Adjusted free cash flow for Q1 2025 was $66 million, a decrease of $16 million year-over-year and $96 million sequentially [3][6] - Capital expenditures in Q1 2025 were $77 million, compared to $59 million in Q1 2024 and $100 million in Q4 2024 [3][6] Shareholder Returns - The company returned $71 million to shareholders in Q1 2025, which included $18 million in dividends and $53 million in share repurchases [11][6] - A quarterly cash dividend of $0.25 per share was declared, payable on June 5, 2025, to shareholders of record as of May 6, 2025 [11][6] Operational Highlights - Weatherford secured several significant contracts, including an eight-year contract extension with an International Oil Company in Kazakhstan and a five-year Integrated Completions contract with PDO Oman [9][6] - The company completed the sale of its Pressure Pumping business in Argentina as part of its portfolio optimization strategy [6][6] Revenue by Geography - North America revenue for Q1 2025 was $250 million, down 6% year-over-year, primarily due to lower activity in DRE and WCC segments [20][21] - International revenue was $943 million, a decrease of 14% year-over-year, with Latin America revenue down 35% year-over-year to $241 million [21][22] - Middle East/North Africa/Asia revenue increased by 1% year-over-year to $503 million, while Europe/Sub-Sahara Africa/Russia revenue decreased by 11% year-over-year to $199 million [22][23]