Weatherford Announces Fourth Quarter and Full Year 2025 Results

Core Insights - Weatherford International plc reported its fourth quarter and full year results for 2025, highlighting a mixed performance with sequential growth in Q4 but a decline in annual figures [2][4]. Financial Performance - Q4 2025 revenues were $1,289 million, up 5% sequentially but down 4% year-over-year. Full year revenues totaled $4,918 million, a decrease of 11% from the previous year [2][4]. - Operating income for Q4 2025 was $199 million, reflecting a 12% sequential increase and a 1% year-over-year increase. For the full year, operating income was $756 million, down 19% from the prior year [2][4]. - Net income in Q4 2025 was $138 million, with a margin of 10.7%, marking a 70% sequential increase and a 23% increase year-over-year. Full year net income was $431 million, down 15% from the previous year [2][4]. - Adjusted EBITDA for Q4 2025 was $291 million, with a margin of 22.6%, up 8% sequentially but down 11% year-over-year. Full year adjusted EBITDA was $1,067 million, a decrease of 23% from the prior year [2][4]. Cash Flow and Capital Expenditures - Q4 2025 cash flows from operating activities were $268 million, up 94% sequentially and 8% year-over-year. Adjusted free cash flow for Q4 was $222 million, an increase of 124% sequentially and 37% year-over-year [3][4]. - Capital expenditures in Q4 2025 were $51 million, up 16% sequentially but down 49% year-over-year. Full year capital expenditures totaled $226 million, a decrease of 24% from the previous year [3][4]. Shareholder Returns - The company returned $25 million to shareholders in Q4 2025, including $18 million in dividends and $7 million in share repurchases. For the full year, total shareholder return was $173 million, comprising $72 million in dividends and $101 million in share repurchases [12][13]. - A 10% increase in the quarterly cash dividend to $0.275 per share was approved, payable on March 5, 2026 [13][7]. Operational Highlights - Weatherford secured several significant contracts, including a five-year contract for Well Services in Oman and a seven-year contract for gas-lift Completions in Oman [11]. - The company completed the first deployment of the Xpress XT liner hanger system in Kuwait, showcasing its technological capabilities [6][11]. Geographic Revenue Breakdown - Q4 2025 North America revenue was $249 million, a 2% sequential increase but a 5% year-over-year decrease. Full year revenue was $983 million, down 6% from 2024 [28][29]. - International revenue for Q4 was $1,040 million, up 5% sequentially but down 4% year-over-year. Full year international revenue was $3,935 million, a decrease of 12% from 2024 [30][31]. - Latin America revenue in Q4 was $248 million, a 16% sequential increase but a 21% year-over-year decrease. Full year revenue was $898 million, down 36% from 2024 [31][32]. - Middle East/North Africa/Asia revenue for Q4 was $556 million, a 4% sequential increase and a 3% year-over-year increase. Full year revenue was $2,116 million, largely flat compared to 2024 [33][34].