Financial Data and Key Metrics Changes - In Q3 2025, the company reported adjusted free cash flow of $99 million, with a conversion rate of 36.8% [19][22] - EBITDA margin expanded by over 70 basis points despite market headwinds [10] - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $193 million worth of shares over the past five quarters [12] Business Line Data and Key Metrics Changes - North America saw a slight sequential increase due to seasonal recovery in Canada, but U.S. Land experienced a decline [7] - Latin America improved revenues by 10% sequentially, primarily driven by Mexico, although revenues are still expected to be down around 60% for the year [8] - The MENA and Asia regions posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand [8] Market Data and Key Metrics Changes - The ESSR region remained relatively flat quarter on quarter, with some countries offsetting weakness in the UK [8] - Pricing pressure is rising in several markets, particularly in commodity-type services, but the company remains committed to margin expansion [9][34] Company Strategy and Development Direction - The company is focused on cost optimization and has reduced headcount by over 2,000, lowering annualized personnel expenses by more than $145 million [17] - A multiyear cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [28] - The company is optimistic about future growth opportunities, particularly in Saudi Arabia, which is seen as a significant long-term opportunity [41] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism regarding the stabilization of operations in Mexico, with recent improvements in payment collections [49][50] - The overall market remains soft, with expectations of continued pricing pressure and potential demand disruptions due to trade discussions [15][16] - The company anticipates a rebound in offshore activity and incremental onshore activity in 2026, despite a soft first half [72] Other Important Information - The company has expanded its credit facility by $280 million and announced a private offering of $1.2 billion in senior notes [22][23] - The effective tax rate is expected to remain in the mid-twenty percent range for 2025 [25] Q&A Session Summary Question: Can you elaborate on the pricing pressure mentioned? - The company is observing pricing pressure primarily in commodity-type services, particularly in the Middle East, but remains committed to margin expansion and does not participate in non-differentiated activities [34] Question: What is the outlook for Saudi Arabia's recovery? - The management believes improvements will be driven predominantly by gas, with some oil activity expected, and sees Saudi Arabia as a significant long-term growth opportunity [41] Question: What is the current situation in Mexico? - The company is cautiously optimistic about stabilization in Mexico, with recent positive developments in payment collections and government support for their largest customer [50][51] Question: How is the company managing costs and optimizing operations? - The company has implemented a series of cost improvement actions, including headcount reductions and restructuring charges, while also focusing on technology and efficiency improvements [21][78] Question: What are the expectations for free cash flow in Q4? - The company has set a conservative guidance of $100 million for Q4 free cash flow, contingent on continued payments from Mexico, with potential for higher outcomes if collections improve [62][66]