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Weatherford International plc Stock Price: Quote, Forecast, Splits & News (WFRD)

Perplexity Finance

Company Profile

Weatherford International plc Price & Performance (WFRD)

Stock Performance

Updated Apr 24, 8:00 PM UTC

Weatherford International plc

$41.44USD

-$0.30 (-0.72%)

Open

$41.61

Market Cap

$3.02B

Year High

$135.00

High

$42.70

P/E Ratio

6.6

Year Low

$36.74

Low

$41.24

Dividend Yield

1.81%

Volume

3.23M

Latest News

Earnings Reveal Weatherford Faces Revenue Decline but Expands Margins
Apr 23, 2025
Weatherford International reported a 12% drop in Q1 2025 revenue to $1.19 billion, with all business segments and regions affected. Despite this, the company improved its adjusted EBITDA margin by 354 basis points year-over-year to 21.2%, reflecting tighter cost control and financial discipline during a challenging market period.123
Strategic Partnership With AIQ Aims to Boost Weatherford’s Efficiency
Weatherford International has entered a strategic alliance with Abu Dhabi-based AIQ to drive operational efficiency in energy production. The collaboration will leverage automation, data analytics, and artificial intelligence, positioning Weatherford to enhance its digital capabilities and remain competitive as the oilfield services sector adopts new technologies.45
Analysts Maintain Moderate Buy as Weatherford Stock Sees Volatility
Weatherford International’s stock remains volatile, down nearly 60% over the past year, yet analysts retain a moderate buy rating. The company’s low price-to-earnings ratio and expected earnings growth of over 12% in the coming year suggest potential upside, but investor caution persists amid ongoing sector headwinds.67

What's Happening

Peers

Earnings

Report Date

Apr 22, 2025

Reported Revenue

1.2B

Miss -6.11%

Avg 1d Change

4.96%

Report Period

Q1 2025

Reported EPS

Beat +15.73%

Implied Move 1d

13.42%

Transcript

10m 23s

I'm joined today by Grease Telegram, President and CEO and Anuj Drew, Executive Vice President and CFO. We'll start today with our prepared remarks and then open it up for questions. You may download a copy of the presentation slides corresponding to today's call from our website's Investor Relations section. I want to remind everyone that some of today's comments include forward looking statements. These statements are subject to many risks and uncertainties that could cause our actual results to differ materially from any expectation expressed herein. Please refer to our latest Securities and Exchange Commission filings for risk factors and cautions regarding forward looking statements. Our comments today also include non GAAP financial measures. The underlying details and a reconciliation of GAAP to non GAAP financial measures are included in our earnings press release which can be found on our website. As a reminder, today's call is being webcast, and a recorded version will be available our website's Investor Relations section following the conclusion of this call. With that, I'd like to turn the call over to Girish.

11m 23s

Thanks, Luke, and thank you all for joining our call.

11m 27s

Before we get started, I want to update you on recent changes to our leadership team. Per our announcement yesterday, I am very pleased to welcome Anuj Dhru to Weatherford as our Executive Vice President and Chief Financial Officer. Anuj brings more than two decades of diverse experience across global finance, strategy and transformation roles the technology, energy and chemicals industries. I'm excited about partnering with Anuj to lead Weatherford through the next phase of our journey. I'd also like to thank Arun Mitra for his contribution during his time with us. He drove significant impact over the past couple of years and we wish him all the best in his next chapter. Anuj, welcome to Weatherford. Thanks, Girish. I'm very excited and humbled to be the new CFO of Weatherford.

12m 13s

The company's journey over the past several years has been remarkable and I'm excited to be a part of the next phase. I look forward to meeting with and speaking to all of you.

12m 25s

Great. I'll now start with an overview of our performance and key highlights and will then share our outlook on the markets. Luke will then cover specifics on financial performance, balance sheet and detailed guidance, and I will wrap up with some thoughts on Weatherford's operating plans for this environment, before opening for Q and A. As illustrated on slide three, our first quarter results were in line with our earlier expectations However, the pathway was slightly different than anticipated as activity levels softened further in key segments and geographies. We previously expected activity in Mexico to decline by 30% to 50% in 2025, but following a sharp drop in Q1, it now appears down around 60% on a year over year basis. North America continued its downward trend down 4% sequentially and Europe also softened driven by operator cutbacks in The UK amidst an unfavorable policy environment. On a positive note, our confidence in The Middle East and Asia regions was well placed as we saw year on year growth in this part of the world demonstrating resilience and stability. I am pleased with how the Weatherford team responded to rapidly changing conditions with a focus on customers, cost and cash.

13m 44s

This discipline is reflected in our adjusted free cash flow of $66,000,000 for the quarter driven by strong collections. Adjusted EBITDA margins for Q1 came in at 21.2% impacted by lower revenues, project startup costs and a partially under absorbed headcount which was reduced over the course of the quarter. As I stressed last quarter, we have consistently maintained that margin improvement as possible even in a flat environment But when revenues fall, the math becomes more challenging. As shown on Slide six, we have now paid three quarterly dividends of $0.25 per share and repurchased approximately $152,000,000 worth of shares over the past three quarters, which includes approximately $53,000,000 during Q1. While this amount may vary each quarter due to market conditions, we remain very committed to our buyback program and still have sufficient capacity under $500,000,000 authorization. Now turning to our segment overview on slides eight through 11. The operational and technical highlights showcase advancements in new pocket penetration technology adoption and continued innovation of our product and services portfolio. We continue to see high tendering activity and as noted in our earnings release, we continue to win high impact contracts of across key regions, which demonstrates both the strength of our technology and the trust our customers place in us.

15m 15s

In The UK North Sea, we successfully delivered logging while drilling and formation pressure services on a complex high pressure, high well drilled to a depth of 21,000 feet with a temperature of 175 degrees Celsius. Deepwater Brazil, Weatherford successfully installed the first OptiROS RFID multi cycle sliding sleeve valve for Petrobras. This system enhances asset stimulation efficiency improving production and boosting the reservoir's oil recovery factor. And in North America, are seeing strong uptake of our Foresight power regenerative variable speed drive. This technology helps customers reduce power consumption and emissions, by lowering their operating costs. These are just a few of the highlights that are a testament to our technology's differentiated value across global operations. Now turning to our outlook going forward. The overall international market has softened over the past nine months the industry has witnessed substantial drops in Mexico, along with continued reduction in U. S. Land activity levels. Lower commodity prices, while somewhat stable, have driven caution and slowdown in customer spending. Over the past several weeks, unfortunately, the market has taken a turn for the worse. Recent US tariffs along with retaliatory tariffs have added significant uncertainty in the market which if left unresolved will very likely cause demand destruction in the short to mid term.

16m 46s

Coupled with OPEC plus adding supply back to the market, we are seeing increasing pressure on the global oil supply demand balance. While we have not seen a universal cutback or definitive changes in customer spending plans, it's difficult for us to provide precise near term visibility. What is clear is that we are in a distinctly different phase of the cycle with some markets in a clear downturn. There are multiple factors that drive our industry cycle and during transitions, we share a common thread of uncertainty. That said, we have seen how spending patterns have evolved in past cycles and remain hopeful that the industry discipline of recent years will result in a milder spending reduction than the last three cycles. We have continued to adapt our cost structure over the past two quarters will further evolve as the market unfolds. Since Q3 twenty twenty four, we have reduced our headcount by over 1,000 and our annualized personnel expenses are already down by over $100,000,000 In previous cyclical shifts, the quarter in which the defining event occurred experienced minimal operational disruptions, as it took time for customers to adapt and change their plans. While we haven't seen clear direction from customers yet, it is reasonable to expect a broad based slowdown in the second half a global trade reductions and increased supply create a need for customers to be selective with their CapEx.

18m 19s

As a result, our outlook is rest granular between geo markets and product lines, reflecting a more realistic and potentially conservative stance. We believe we remain very well positioned to cap capitalize on stable or improving activity levels, or even an uptick but we are also taking steps to ensure we're not caught flat footed in the event of a more pronounced slowdown as appears to be the case. Even with a potential annual double digit revenue decline, we expect to deliver EBITDA margins in the low 20s this year which remarkably is still better than where we were two years ago. In addition to the tactical in response to current market environment, we are also continuing to position the portfolio for the future with the goal of being both highly differentiated and with lower capital intensity. As noted in our earnings release, we have divested our Argentina pressure pumping business that consisted of triplex pumps, and associated equipment And in a separate transaction, we sold our Argentine Argentina wireline business in the southern part of the country. The proceeds from these will be used to high grade the portfolio and or our return cash to shareholders. These two divestitures now allow us to focus on the Vaca Muerta with our differentiated product lines.

19m 41s

This is a significant portfolio quality improvement However, there is also revenue and EBITDA reduction from our results due to these dispositions. So while we have reduced our outlook it is important to note that this change is also built into that view. With this, we expect 2025 North America revenues will decline high single to mid double digits year on year and international will decline low double to mid double digits. In our high end case, ex Mexico international revenues would only be down low single digits despite the impact of the divestment. Second quarter revenue should be fairly flat with the Canadian breakup, U. S. Land and the Argentina divestitures being the primary headwinds. This should be mostly offset by contract startups in The Middle East, Asia and Europe. Normalized for the divestments, we will still see a revenue uptick sequentially albeit lower than our expected from our last call in February. With that, I'd like to turn the call over to Luke before I come back with closing comments on how we plan to address this phase of the cycle.

20m 51s

Thanks, Girish. Good morning, and thank you, everyone, joining us on the call. Girish has already shared an overview of our first quarter performance and an update on our capital return program. For a more detailed breakdown of the first quarter results please refer to our press release and accompanying slide deck presentation. My comments today will sit around our cash flow, working capital balance sheet, liquidity and guidance. Turning to Slide 22 for cash flows and liquidity. For the first quarter, we generated $66,000,000 of adjusted free cash flow at a 26.1% free cash flow conversion rate versus 24.4% in first quarter twenty twenty four. As you know, first quarter is typically a lighter free cash flow quarter. Net working capital efficiency measured by net working capital a percentage of revenues improved from 26.1% in 1Q twenty twenty four to 25.2% in 1Q twenty twenty five Over the last six quarters, we have maintained net working capital efficiency levels at the 25 to 26% range. And as mentioned before, regardless of the stage of the cycle, our goal is to maintain net working capital efficiency levels at 25% or better sustainably. As Girish mentioned, we have continued to execute on and initiate a series of cost actions across the company.

22m 6s

In this context, we took an additional restructuring and severance charge of 29,000,000 in Q1. Several actions have already been completed, and we anticipate initiating more actions over the balance of the year as we continue to remain agile and adapt to changing market conditions. During the first quarter, CapEx was $77,000,000 While this was outside our targeted range, this was primarily driven by CapEx for our long term subsea intervention contract in Brazil. From an absolute dollar standpoint, we fully expect the spend to slow down and land within our targeted range by year end. In Q1, we repurchased approximately $53,000,000 worth of shares and paid a $0.25 share quarterly dividend. In addition, we also bought back 34,000,000 of our 8.625% notes and intend to continue opportunistically repurchasing the open market. Our net leverage ratio remains at 0.5x, and with our liquidity at approximately 1,300,000,000.0 we feel confident in our ability to manage the company through the cycle. Turning to guidance. Let me start with Q2. We're expecting 1,165,000,000.000 to $1,195,000,000 in revenues with adjusted EBITDA of 2.45 to $265,000,000 The Q1 to Q2 change is due to the removal of the Argentina pressure pumping and wireline businesses that's mostly offset by headcount reductions and the project start ups Girish mentioned.

23m 35s

The outperformance in Q1 collections shifted some of the free cash flow from Q2 into Q1, but on a normalized basis, we expect roughly flat performance in Q2. The most significant variable in this continues to be the timing of payments out of Mexico. For 2025, we expect revenues of 4,600,000,000.0 to 5,000,000,000 adjusted EBITDA of $975,000,000 to 1,100,000,000.0 and free cash flow conversion to increase 100 to 200 basis points year on year. The revenue change and resulting EBITDA flow down is a function of the Argentina divestment what we believe is a prudent view on market expectations in the second half of the year. Our effective tax rate can vary quarter to quarter depending on the geographic mix, we anticipate this will be similar to 2024 in the mid-twenty percent range for 2025. CapEx is expected to trend down over the course of the year and land in the 3% to 5% of revenues for the whole year. Thank you for your time today, and I will pass the call back to Girish for his closing comments.

24m 34s

Thanks, Luke. While I remain very confident about Weatherford's future over the next several years, it is clear that market conditions have changed and we must continue to pivot. The market has matured and so must our approach. What we won't do is chase market share without value. Margins must be defended. I spoke earlier about the uncertainty weighing on the market And while we know the steps to take, the exact size of each measure is still to be determined. Over the past several years, we have positioned and prepared for a moment like this. First, we have dramatically strengthened the balance sheet by reducing gross debt by approximately $1,000,000,000 We now have total liquidity of $1,300,000,000 which consists of $930,000,000 in cash our net leverage ratio sits at 0.5 times trailing twelve months adjusted Secondly, our cost structure has become more scalable as we have modernized our fulfillment network and consolidated several facilities while building a more nimble supply chain. Thirdly, we set the dividend at a level that is sustainable even in a down market. The dividend is sacrosanct and will be maintained. Lastly, our share repurchase program is pragmatic and we aren't retreating. Moving forward, we will be flexible with our operating structure support costs and CapEx.

25m 58s

Adjusted as needed to match market conditions. Last quarter, I outlined our cost optimization program which has begun and goes well beyond just adjusting for volume. This is a multi year program that remains focused on achieving sustainable productivity gains through technology and lean processes versus just adjusting headcount. Secondly, working capital efficiency remains a core focus area to drive free cash flow conversion to a sustainable 50%. The new Weatherford will continue to evolve and initiatives and actions that were already in place will help us to navigate this part of the cycle. Better than the old Weatherford. While we all hope for a better market, the reality is we will have to navigate a more difficult one than previously forecasted. However, I'm confident the Weatherford team will remain agile adapt and generate a stronger company as we navigate this period. And now operator, please open the call for questions.

26m 56s

Thank you. We will now begin the question and answer session. To ask a question, may press star then 1 on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star then 2. And at this time, we'll pause momentarily to assemble our roster. And the first question will come from David Anderson with Barclays. Please go ahead.

27m 29s

Thank you and good morning, Girish. Hey, Dave. How are you doing?

27m 33s

I'm doing good. Appreciate the very sobering outlook and appreciate all the uncertainty that's in front of us. Typically, we think about international markets, we think about being longer cycle barrels can be more resilient than U. S. Onshore during periods of oil price volatility. MENA is your largest region. If I heard you right, I think you said ex Mexico, you're thinking internationally down kind of mid single digits. Could you walk us through how some of those key countries in MENA are trending Are those IOCs contemplating any shifts to plans? OPEC decisions don't usually impact spending, but this time it feels a little bit different. If you could just help us kind of understand how those major markets are trending. Thank you.

28m 13s

Sure, Dave. Look, you're absolutely right. I think it's about uncertainty right now. And the reality is the international market do tend to be more stable with Mina leading the pack. Look, as we have outlined what we have tried to do with the outlook we presented is really present a range of possibility. I wish I could give you a lot more clarity and say this is exactly what it's going to be, but I think that uncertainty right now leads to a very broad range. What we are seeing right now on the ground is continued stability We're not really seeing a shift, which is partially why again for Q2 normalized for the divestment in Latin America, we actually expect revenues to go up on a normalized basis because that's not changing. Look, as we look at places like Saudi, we'll start with that in The Middle East, Saudi has been reducing rig cancer, AMCO has been doing that over the past year or so. And we've indicated in the past that we are not immune to it, but despite that we actually believe we can actually grow the Saudi business. That view has not changed unless we see a another significant ramp down later this year.

29m 25s

And think there is a potentiality for that. So we're just trying to make sure that we are prepared for that. We see a very robust spending pattern and activity levels in places like Kuwait, in The UAE, in Oman are ISP contracts are doing extremely well. We're actually seeing positive signs emerge out of Iraq, which get us a lot more confident about 2026. So in general, I would say, look, we are not seeing anything definitive yet. What we are just trying to do is prepare for a range of outcomes as this whole situation on global trade and the resultant impact on commodity prices as well as then activity levels get sorted out. That's really what what we are trying to do. And look, as I mentioned in remarks, if everything sort of stays reasonably okay, we are well positioned for for that. We will be able to take advantage. And if you look at the high end of our guidance, we are still really only down just sort of low single digits on the international side. So again, back to that stability.

30m 30s

So Grish, you call this a distinctly different phase of the site cycle. You're saying you're expecting a slowdown in the second half of the year. [indiscernible] impossible question, I realize. But, many ways this can play out. But how do you see this downturn playing out in terms of duration or severity? Just as you sit here today, recognizing things can change all different ways.

30m 53s

Yeah. So you're right. It's a bit of an impossible question. Look, I think a couple of things though, Dave. One is, I think the industry discipline, both on the operator side, as well as on the service company side makes this a slightly different one. This isn't everything falling off a cliff and 50% reduction or something of that nature. I think it is much milder The second fundamental difference is that it is not universal. And we're seeing different causes in different places. Look, the situation in Mexico is very different from the situation in The Middle East. Places like The Middle East, I think we will see just a bit of a gradual slowdown. And I think as supply and demand come back into balance, the global trade situation gets sorted out because if it doesn't, I think they've all got bigger things to to then worry about Over the next hopefully several months by the latter part of this year, I think we'll have a little bit more clarity. We still see a lot of positivity on the offshore side going into 2026 and 2027. So we feel good about the outer years in the projection.

32m 1s

So I think it is reasonably short lived but we are just making sure that we are fully prepared. I think the other thing is you've got a lot of countries like Thailand, Malaysia, Indonesia, India that are really driving activity based on domestic needs. And if anything in this kind of an environment, that becomes far more important. So I don't think we will see a significant step off of activity in places like that either.

32m 25s

Interesting point. Thanks for the insight, Girish. Sure.

32m 29s

The next question will come from Scott Gruber with Citigroup. Please go ahead.

32m 35s

Yes. Good morning. Hey, Scott.

32m 39s

I wanna stay on the the 25 as well. So Mexico is worse. As you mentioned, but can you provide some more details on the other moving pieces What's the magnitude of the impacts on the divestitures? Are those fully out of the P and L in 2Q? And outside of Mexico, which other countries or regions did you risk adjust lower in the guidance? Thanks. Sure.

33m 5s

Sure, Scott. Look, as you said, a lot of moving piece Initially, when we gave the guidance in February, we had a slightly different view. I think look Mexico in itself is down a bit more. We've talked about it. We had expected sort 30% to 50% That's probably down closer to around give or take a couple of points, 60% or so. So that gives us order of magnitude, let's call it between 150 bps and two fifty bps of reduction. But the good news is it's a little bit flatter after this. We have taken North America down. I think that is where we see the most significant change in the market on a dynamic basis. It moves very, very fast. We are already seeing that effect. It is also the market that is likely to pick up the fastest or not change to the extent we have sort of outlined, but that's down. And then we have taken a little bit more of a prudent view in Sub Saharan Africa, Europe and slightly degraded the Middle East as well. So if you think about it, look, the divestitures again, order of magnitude 100 to 300 bps is what that drives.

34m 17s

And then we've sort of on a global basis factored in about 300 to 500 bps on the market reduction. But again, I will emphasize that if that doesn't actually play out and I hope sincerely hope we're wrong, we will be very well positioned to take advantage of the activity levels that exist. Got it.

34m 39s

And then are you able to say the size of the proceeds from the transaction? I remember [indiscernible] Argentine pumping business being a decent size. And how do you think about utilizing those proceeds? Do you keep them as dry powder for future acquisitions? Do you pay down debt? Enhance the buyback, just kind of thoughts on use of proceeds.

35m 2s

Yes. So look, what I'll say is we will have a lot more detail in the Q as it comes out tonight. I think the relevant fact though, Scott, is the revenue size is a little bit higher as I just outlined in my walk to you, but it was a very capital intensive business, especially the pressure pumping piece. So requiring the amount of CapEx that we did as we looked out into 2026 and beyond this will be a significant improvement in our ability to convert cash. What's left really now for us is the Vaca Muerta And I'm Very Excited About MPD Offerings There, Some Of Our Product Offerings, What We're Doing With Artificial Lift And Then Our Ability To Go In And Have A Much Stronger Drilling Business In That Unconventional Piece. Those Are The Things That We Are Looking Forward To Going Do Doing In Argentina. So Argentina now really transforms itself as the take hold into a growth engine for us. In terms of the proceeds, look, we don't look at it as sort of a single bucket. It adds to the overall liquidity of the company. And I think we've got plenty of dry powder to look at all of the different things as we have outlined on our capital allocation priorities.

36m 18s

We will obviously continue to pay the dividend The stock repurchase program is ongoing. As we indicated in the earnings release, we have also taken some opportunistic advantage and taken some of the the debt out albeit a little bit. And this gives us an opportunity to look at smaller tuck in acquisitions like we have done last year.

36m 45s

Great. I appreciate all the color. Thank you.

36m 49s

The next question will come from Sara Pan with Bank of America. Please go ahead.

36m 55s

Hi, good morning Girish. Sarab. Hey, Girish. I wanted to spend a little more time on Mexico.

37m 2s

Know we spoke about The Middle East, and I know you said the situation in Mexico is different, which I guess a lot of people appreciate. Right? But given the change, grace in your outlook from 30% to 50% and now 60%, maybe just give us a little more color on what's going on in the country. What's the risk that things can potentially get worse? Or on the contrary, things get a little better by the end of the year because we did see some news on potentially three suspended jackups going back to work again. Right? But just give us a little more color on Mexico. Please.

37m 31s

Sure. Look, I think all of this is still in the process of playing out, but we've got a little bit more granularity and clarity now. What I would say is, look, at this level of activity drop, we feel reasonably comfortable that it will it will stay at least flattish to this. I think you're right in that there is a potentiality of a uptick, but it's likely to bode be towards the tail end of the year. So we're not really counting on that. I think more importantly, looking into 2026, I think things will get better because all of the commentary we have heard out of various different sources in Mexico do suggest an understanding of the need to have different avenues to increase activity. So look, we've positioned our business, we've positioned the team, right sized it essentially to adapt to this activity level but also have given ourselves a little bit of leeway that if things do improve, if there are more private operators that get into the mix to be able to take advantage of that. I think the most significant thing for us will be continuing to work with and figure out the payment stream that we get out and that will really influence our ability to then modulate upwards on this.

38m 54s

But But look, at this point, we are really assuming that it get any worse and we feel pretty comfortable about maintaining activity levels at or slightly above the Q1 levels.

39m 8s

Okay, perfect. No, that's good color, Grish. And then maybe an unrelated follow-up on free cash flow. So just on a conversion basis, the hundred, 200 bps is is unchanged, but EBITDA is lower to free cash flow is going down. Can you just walk us through some of the moving pieces? Luke, I know you commented on CapEx, declining through the year, so you would fall within that range. Maybe a little bit on working capital risk from Mexico, just collections when the market slowing down, and any of the cash component of the charges you are taking for cost reduction, headcount reduction, all of that kind of stuff, maybe some some color on that?

39m 43s

Sure. Look, so we've built all of that into the guidance that we have provided. So yes, you're right, that the math would imply that it's a little bit a little bit lower, but still a very reasonable and I think a very healthy level of free cash flow generation for the year that still allows us to obviously pay the dividend make progress on the stock repurchase and then after that still give us plenty of dry powder on either debt or and A, etcetera. Look, the biggest lever continues to be working capital. Obviously, CapEx is going to go down, but that's sort of still more within that percentage realm. But the CapEx number will go down commensurately. So we'll be within three to five, probably a little bit closer to five still this year on revenue. But look, the working capital piece, the biggest chunk of it in terms of the puts and takes and the variability does continue to be payments out of Mexico. Now we are hopeful that we will see clarity on that and get more visibility into that over the next several weeks and months. But yes, that is that is the key thing.

40m 54s

Now, what is also important recognize though is as Mexico revenue levels fall down, that exposure also reduces commensurately. We've obviously got the the overhang from last year, but as that gets cleared out, the overall exposure level does go down and that that actually will become a positive once that comes to be.

41m 17s

So look, I think for us, as we look at the longer term, the pathway to 50% free cash flow conversion is still pretty much the same. It's net working capital improvements it's improvement on cash taxes and then at the right point in time a reduction in interest And we're making good progress on all of those things.

41m 37s

Okay. Perfect. No, that's fantastic, Grish. I'll turn it back. Thank you.

41m 46s

The next question will come from Jim Rollison with Raymond James. Please go ahead.

41m 52s

Hey, good morning, guys, and thanks for all the color and kind of honest assessment of things look like to your best ability at the moment. Karish, go and kind of circling back to [indiscernible] You threw out a couple numbers, headcount down by a thousand plus people, and your kind of annualized expenses, down by over a hundred million. Is it just headcount reductions that have been the driver so far or maybe a little detail on what else you've been doing to get that annualized cost cut Yeah, it's Yeah. Jim, appreciate the question. Look, it's headcount is certainly a very significant component of that. It's never easy or nice, but it's just a function of the business environment. That we have to take these actions. But look, in addition, we are really working hard on first, I'll call it the traditional levers of discretionary costs making sure that we are really spending money only on the things that matter when it comes to professional consulting services, things like travel, all of that the usual tightening down of things that happen in this environment. The other thing that we are doing is our fulfillment program that's been working for the last several years.

43m 5s

We have talked a lot about that in the the past. That's really starting to pay some dividends modernizing the network, getting more efficient, It has sort of effects on both ends The first is just reducing cost and the impact of the but at the same time also a reduction and more flexibility in meeting customer deadlines etcetera. So that that helps as well. Look, we are also looking at how do we run the company more efficiently, more shared services kinds of arrangements, better ways to run it, more technology to automate We've launched as we have talked about a multiyear ERP program, but we're not waiting for every single piece to take hold before we get some of the efficiencies. Some of these things are running in parallel of as we get the process improvements in place. So it's really sort of an all hands on deck and everything focused on running the company more efficiently I've said this before where Weatherford was never really designed to be what it is today. And so we've got a very unique opportunity to sort of redraw the blueprint and set the company up in a way that works for the business that we are today and what we are going to be which really gives us more ability to be efficient with the resources that we have.

44m 26s

Got it. Appreciate all that color. And if you think about what you kind of have in progress, some of these things you mentioned take time. Relative to the 100,000,000 of annualized that you're kind of already achieved how much more do you think you have to go? Like how much more cost? And assuming this kind of market stays here, how much more cost do think you can out of this?

44m 45s

Yeah.

44m 45s

Yeah, so look, what I would say is, again, if we just assume let's say we get to the end of this year and then we stay flat. I will get back to over the next two to three years, we should still be able to lift up margins in that 25,000,000,000 to 75 every year. So call it 150 odd bps So that would suggest that there is still order of magnitude about the same in the next three years or so that we can get just from a productivity standpoint.

45m 14s

Look forward to it. Thanks, Harish.

45m 16s

Great. Thank you.

45m 18s

Next question will come from Sean Mitchell with Daniel Energy Partners. Please go ahead.

45m 24s

Good morning. Thanks for taking my question and appreciate all the color and kudos for candor. You guys have talked in the past about your family of P and A services and products, especially in the North Sea. Can you kind of just refresh us on the outlook for that business?

45m 41s

Yes. Sean, thanks for the question. Look, this continues to be an area that we think has a lot of interesting growth prospects for us in the future. Depending upon the the environment and the market, things ebb and flow a little bit. But we've had some tremendous success both in offshore U. S. On the California side as well as the Gulf America. We've had a lot of success in places like the North Sea. Continental like Continental Europe, multiple other locations, a lot of it is within our intervention business, but it's complemented by some of our well construction products that we bring in. But probably most significantly is the umbrella that we're able to put around it on overall project management and scope to really give customers a complete solution Look, we don't have some of the elements like conveyance, etcetera, but we're able to successfully partner with other organizations to be able to provide that to customers. So we are very excited about this business. One of the acquisitions we made last year, this company Ardine, which is now part of inventions business gave us a little bit more capability with far more efficient cut and pull technology, single trip technology on that front.

47m 4s

We have deployed that extremely successful That business is doing extremely well relative to our expectations and the pro form a that we had. So a lot more to come on this. I think the key will be really to see the regulatory environment plays out and whether that gives us additional impetus. But even without that, I think operators understand the significance and the responsibility of of doing this. So over the years to come, I think this will be a very significant platform for us.

47m 35s

Great. Thanks for the color.

47m 37s

I'll turn it back.

47m 40s

The next question will come from Doug Becker with Capital One. Please go ahead.

47m 47s

Characterized the sale of the pressure pumping business in Argentina as a key milestone. In the portfolio optimization to a more capital efficient model What's left to optimize? And are there other potential divestitures on the horizon?

48m 2s

Yeah. Doug Lucas, I've said a few different times in the past, we like the overall We aren't looking at the business and saying there is a particular product line or a particular country or something like that that we want to divest or change. What we tend to do is really look at this, what we call the intersection of product line and country. And we look at what is the sustainability of that business, the return capability over time, the viability of the asset base etcetera. And I think in this particular circumstance, we had a happy confluence of circumstances where we had an opportunity to divest the business. It was going to be more capital intensive for us. I mentioned in my prepared remarks, these were triplex pumps So you can get a bit of a flavor of the capital intensity around things like that. Look, I think this was probably the most significant piece that we had from a sort of capital intensity in one particular country, one particular product line. But look, we continue to evolve and look at ways to ways to shape the portfolio. And it's not just about divestment. Look, last year, we acquired a [indiscernible] companies in the wireline technology business, Probe and ISI, and that really accelerated our pivot in wireline to be a less capital intensive business, to be a technology provider in several instances.

49m 33s

So we will continue to look at shift like that. In the pressure pumping side, we started a couple of years ago on this transition to grow what we call our engineered fluid chemistry business. It's a It's a very small part of the company today, but one that's growing extremely well. Because we we feel the value is far more in that engineered fluid chemistry portion versus in the heavy sort of machinery aspect of it. So think we will continue to look at that intersection, see where we can add value to it. And if we see circumstances where it doesn't make sense, we'll take the appropriate action.

50m 12s

And you alluded to this a little bit, but you're still looking for acquisitions and maybe in the context of uncertainty can create opportunities. That something we should be looking for? Or is it just part of the ongoing process?

50m 25s

Yeah. Look, it's not one that we are looking at and saying we just have to go do Look, it's part of the ongoing process. We always look at stuff. I think there's a lot of interesting things.

50m 35s

And [indiscernible] one of the things that I am particularly interested in frankly a little excited about is Weatherford today, it's this is a cycle change that is very different for us. In the previous couple of downturns, Weatherford has not been in a position to play offense. We've kind of been hunkered down and worried about survival and stability. It's a very, very different company today. We've got a resilient balance sheet. We have a lot more capability inside the organization. And so we're able to look at things with a broader and a longer term perspective. So I do think there is a possibility and optionality that we have, but we're always going to do it only if it makes sense.

51m 18s

Thank you.

51m 23s

The next question will come from Derek Podhaser with Piper Sandler. Please go ahead.

51m 29s

Hey, good morning, Harish. I was hoping if you can expand on potential tariff impact, maybe if you can quantify it for us we've heard for a couple of your peers this week putting a dollar figure to it, but how should we think about it maybe from a country perspective, maybe product line perspective? Just maybe some more color and comments around potential tariff impact.

51m 48s

Sure. Derek, look, I'll be very candid. I think it is very difficult to quantify right now because we don't know exactly what it's going to look like. If you look at the business itself, there's sort of three elements to it. I think there is going to be an impact from a CapEx standpoint on our service product lines, which will most significantly be felt in our DRE segment. We moved a lot of tools across different parts of the world and we've got centers of excellence in The United States, So the impact of tools coming in, I think it's something that we will have to understand once we know exactly what the tariff regime is going to be. But at the same time, how that then gets manifested in terms of pricing increases, etcetera, we'll have to see. On the well construction and completion side of the business, we think there is limited impact We do have manufacturing facilities in The U. S. Where we ship some product out to other parts of the world. That could be subject to a little bit of this retaliatory tariffs depending again on what shape or form. That takes really difficult at this stage to quantify that, but we could see a bit of a suppression in demand and that's what we have to bake into the guidance.

53m 8s

And I think the most pronounced pronounced effect will be in our Production and Intervention segment which holds our artificial lift product line. Bring a lot of product into The United States from other parts of the world. And I think on that one with the tariffs that are currently in place it likely creates a very difficult situation for [indiscernible] cost ramps up fairly dramatically even if we are able to pass on the cost fully to customers with with some of the tariff levels that we've got right now, we would not be in those product lines if we weren't able to do that. But it becomes a dramatic change. So I think customers will then look at technologies, might look at refurbished or used markets, etcetera. So [indiscernible] personally, I just think it's way too difficult to probably too early now to make pronouncements on this So what we've kind of viewed it as, we will wait a little bit to see what really happens over the next thirty, sixty, ninety days as these agreements get finalized get put into place. And in the meantime though, what we do expect is there is going to be a a degree of uncertainty, leads to a reduction in activity levels.

54m 29s

And I think that will be the most tangible change that we will see in at least the next several months.

54m 36s

Got it. Okay. That's very helpful walk through. I appreciate that.

54m 40s

So just for a follow-up, just wanted to hit on digital. I mean, you obviously announced a partnership with Abu Dhabi IQ, but maybe just kind of a bigger picture question around digital Just given the uncertainty in the macro activity levels coming down, is this really viewed as discretionary spending for your independent E and P, IOC, NOC customers? Just thinking how relatively insulated digital products could be in this type of environment or would that digital related spending just really come down in line with traditional services?

55m 10s

Just so maybe some color around that.

55m 13s

Yes. Look, I think it depends, Derek, on what element of digital, It's a very broad term. So I think things that don't have value or just sort of seen as a little bit of go experiment that might likely come down. But I actually think it's a very significant opportunity for us, as we look at the production space. In this kind of an environment, I think there is going to be a significant premium that customers place on production optimization, on finding mechanisms to do more with their data that again allows them to get more production intensity out of existing reservoirs, existing wells and that is where our suite of products and solutions starting with our SCADA system our edge devices and our production optimization platforms I think can actually have a significant opportunity to create value. So my hope is that that'll actually go up versus down.

56m 12s

Got it. Very helpful. I'll turn it back. Thank you.

56m 15s

Thanks.

56m 16s

The next question will come from Ittai Modak with Goldman Sachs. Please go ahead.

56m 22s

Hey, good morning, team. Girish, you noted in the prepared remarks that the guidance change is potentially conservative. Can you help us understand that comment a little better in terms of the factors that you've evaluated and the de risking that provides confidence there?

56m 37s

Sure. Ati, good morning. Look, again, I tried to be careful with some of our words. I say potentially conservative because again, it goes back to this notion of uncertainty because I think I pointed out a couple of times we have not seen customers definitively tell us at this point that they're going to cut back spending or they're going to change specific plans, etcetera. What we are doing is projecting forward a little bit and we want to be realistic and prudent about it. I will again say, I sincerely hope I am completely wrong on this and that everything is perfectly fine and that oil rebounds and activity levels continue. So if that does happen, then yes, the guidance would be potentially conservative and we would see an uptick. We just see the reality today as more likely to be different.

57m 31s

Got it. That's very helpful. And then maybe if I can get one for Anuj, if possible. How should we think about your as you start in this new role and thoughts you can provide on capital allocation priorities or balance sheet priorities? Anything you can provide us.

57m 47s

Yeah, sure. Thanks for the question. So, is day three for me. So I need to understand the organization in much more detail before putting together in detail my priorities.

57m 59s

However, from a capital allocation standpoint, I'll echo what Girish has mentioned, which is the dividend to sacrosanct Key is to have a strong balance sheet. I like to call it a fortress of a balance sheet. Which allows for flexibility throughout the cycle. So those things will not change. Line of sight to cash on sheet and making sure we have enough liquidity levels which I believe we are very well positioned here to withstand the uncertainty that we're seeing and to make sure that we can be opportunistic as needed through the cycle.

58m 36s

That's great. Thank you so much.

58m 41s

This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Please go ahead.

58m 49s

Great. Hey, thank you all for joining the call. I really appreciate as always your time I think we've tried to paint as clear a picture given the uncertainty in the market [indiscernible] fairly wide range of outcomes, but we feel very strong in our capability to navigate through that uncertainty and ensure that we still generate healthy margins and more significantly strong cash flow over the course of the year. So thank you for your time and we'll talk to you again in ninety days.

59m 19s

The conference has now concluded. Thank you for attending today's presentation. May now disconnect.

Key Insights

Weatherford's Q1 results were in line with expectations, but activity levels softened further than anticipated in key segments and geographies, notably with a sharper-than-expected 60% year-over-year decline in Mexico and continued softness in North America and Europe; Middle East and Asia showed resilience with year-over-year growth.
The company generated $66 million in adjusted free cash flow for Q1, with adjusted EBITDA margins at 21.2%, impacted by lower revenues and project startup costs; three quarterly dividends of $0.25/share have been paid and $152 million in shares repurchased over the past three quarters.
Weatherford has divested its Argentina pressure pumping and wireline businesses, improving portfolio quality but reducing revenue and EBITDA; proceeds will be used to high-grade the portfolio or return cash to shareholders.
2025 guidance: revenues of $4.6–$5.0 billion, adjusted EBITDA of $975 million–$1.1 billion, and free cash flow conversion to increase 100–200 bps year-over-year; Q2 revenue expected to be $1.165–$1.195 billion with adjusted EBITDA of $245–$265 million.
Management expects a broad-based slowdown in the second half of 2025 due to global trade uncertainty, tariffs, and increased oil supply, but remains committed to maintaining margins in the low 20% range, sustaining the dividend, and executing cost optimization programs; guidance is described as potentially conservative given current uncertainty.

Recent Transcripts

Weatherford expects revenue and EBITDA declines in 2025 amid market uncertainty, but maintains strong margins and cash flow.

Apr 23

Q1 2025

Revenue Outlook

$4.6B–$5.0B (down y/y)

EBITDA Margin

Low 20s% (resilient)

Weatherford expects lower 2025 revenue due to Mexico and Russia, but maintains strong margins and cash flow.

Feb 06

Q4 2024

Revenue Outlook

Down mid-single digits

EBITDA Margins

24%-25%

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$3.7B	$3.6B	$4.3B	$5.1B	$5.5B
Cost of Revenue	$2.8B	$2.7B	$3B	$3.4B	$3.6B
Gross Profit	$878M	$929M	$1.3B	$1.7B	$1.9B
Gross Profit %	24%	25%	30%	34%	35%
R&D Expenses	$97M	$85M	$90M	$112M	$123M

2020

2021

2022

2023

2024

Revenue

$3.7B

$3.6B

$4.3B

$5.1B

$5.5B

Cost of Revenue

$2.8B

$2.7B

$3B

$3.4B

$3.6B

Gross Profit

$878M

$929M

$1.3B

$1.7B

$1.9B

Gross Profit %

24%

25%

30%

34%

35%

R&D Expenses

$97M

$85M

$90M

$112M

$123M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$1.9B	-$429M	$51M	$449M	$550M
Dep. & Amort.	$503M	$440M	$349M	$327M	$343M
Def. Tax	-$5M	-$10M	$4M	-$86M	$8M
Stock Comp.	$25M	$25M	$25M	$35M	$45M
Chg. in WC	$192M	$32M	-$165M	-$79M	-$185M

2020

2021

2022

2023

2024

Net Income

-$1.9B

-$429M

$51M

$449M

$550M

Dep. & Amort.

$503M

$440M

$349M

$327M

$343M

Def. Tax

-$5M

-$10M

$4M

-$86M

$8M

Stock Comp.

$25M

$35M

$45M

Chg. in WC

$192M

$32M

-$165M

-$79M

-$185M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$1.1B	$951M	$910M	$958M	$916M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$1.1B	$951M	$910M	$958M	$916M
Receivables	$826M	$825M	$989M	$1.2B	$1.3B
Inventory	$717M	$670M	$689M	$788M	$880M

2020

2021

2022

2023

2024

Cash

$1.1B

$951M

$910M

$958M

$916M

ST Investments

Cash & ST Inv.

$1.1B

$951M

$910M

$958M

$916M

Receivables

$826M

$825M

$989M

$1.2B

$1.3B

Inventory

$717M

$670M

$689M

$788M

$880M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

Apr 22, 2025

Reported Revenue

1.2B

Miss -6.11%

Avg 1d Change

4.96%

Report Period

Q1 2025

Reported EPS

Beat +15.73%

Implied Move 1d

13.42%

Transcript

10m 23s

11m 23s

Thanks, Luke, and thank you all for joining our call.

11m 27s

12m 13s

The company's journey over the past several years has been remarkable and I'm excited to be a part of the next phase. I look forward to meeting with and speaking to all of you.

12m 25s

13m 44s

15m 15s

16m 46s

18m 19s

19m 41s

20m 51s

22m 6s

23m 35s

24m 34s

25m 58s

26m 56s

27m 29s

Thank you and good morning, Girish. Hey, Dave. How are you doing?

27m 33s

28m 13s

29m 25s

30m 30s

30m 53s

32m 1s

32m 25s

Interesting point. Thanks for the insight, Girish. Sure.

32m 29s

The next question will come from Scott Gruber with Citigroup. Please go ahead.

32m 35s

Yes. Good morning. Hey, Scott.

32m 39s

33m 5s

34m 17s

34m 39s

35m 2s

36m 18s

36m 45s

Great. I appreciate all the color. Thank you.

36m 49s

The next question will come from Sara Pan with Bank of America. Please go ahead.

36m 55s

Hi, good morning Girish. Sarab. Hey, Girish. I wanted to spend a little more time on Mexico.

37m 2s

37m 31s

38m 54s

But But look, at this point, we are really assuming that it get any worse and we feel pretty comfortable about maintaining activity levels at or slightly above the Q1 levels.

39m 8s

39m 43s

40m 54s

41m 17s

41m 37s

Okay. Perfect. No, that's fantastic, Grish. I'll turn it back. Thank you.

41m 46s

The next question will come from Jim Rollison with Raymond James. Please go ahead.

41m 52s

43m 5s

44m 26s

44m 45s

Yeah.

44m 45s

45m 14s

Look forward to it. Thanks, Harish.

45m 16s

Great. Thank you.

45m 18s

Next question will come from Sean Mitchell with Daniel Energy Partners. Please go ahead.

45m 24s

45m 41s

47m 4s

47m 35s

Great. Thanks for the color.

47m 37s

I'll turn it back.

47m 40s

The next question will come from Doug Becker with Capital One. Please go ahead.

47m 47s

48m 2s

49m 33s

50m 12s

50m 25s

Yeah. Look, it's not one that we are looking at and saying we just have to go do Look, it's part of the ongoing process. We always look at stuff. I think there's a lot of interesting things.

50m 35s

51m 18s

Thank you.

51m 23s

The next question will come from Derek Podhaser with Piper Sandler. Please go ahead.

51m 29s

51m 48s

53m 8s

54m 29s

And I think that will be the most tangible change that we will see in at least the next several months.

54m 36s

Got it. Okay. That's very helpful walk through. I appreciate that.

54m 40s

55m 10s

Just so maybe some color around that.

55m 13s

56m 12s

Got it. Very helpful. I'll turn it back. Thank you.

56m 15s

Thanks.

56m 16s

The next question will come from Ittai Modak with Goldman Sachs. Please go ahead.

56m 22s

56m 37s

57m 31s

57m 47s

Yeah, sure. Thanks for the question. So, is day three for me. So I need to understand the organization in much more detail before putting together in detail my priorities.

57m 59s

58m 36s

That's great. Thank you so much.

58m 41s

This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Please go ahead.

58m 49s

59m 19s

The conference has now concluded. Thank you for attending today's presentation. May now disconnect.

Key Insights

Weatherford's Q1 results were in line with expectations, but activity levels softened further than anticipated in key segments and geographies, notably with a sharper-than-expected 60% year-over-year decline in Mexico and continued softness in North America and Europe; Middle East and Asia showed resilience with year-over-year growth.
The company generated $66 million in adjusted free cash flow for Q1, with adjusted EBITDA margins at 21.2%, impacted by lower revenues and project startup costs; three quarterly dividends of $0.25/share have been paid and $152 million in shares repurchased over the past three quarters.
Weatherford has divested its Argentina pressure pumping and wireline businesses, improving portfolio quality but reducing revenue and EBITDA; proceeds will be used to high-grade the portfolio or return cash to shareholders.
2025 guidance: revenues of $4.6–$5.0 billion, adjusted EBITDA of $975 million–$1.1 billion, and free cash flow conversion to increase 100–200 bps year-over-year; Q2 revenue expected to be $1.165–$1.195 billion with adjusted EBITDA of $245–$265 million.
Management expects a broad-based slowdown in the second half of 2025 due to global trade uncertainty, tariffs, and increased oil supply, but remains committed to maintaining margins in the low 20% range, sustaining the dividend, and executing cost optimization programs; guidance is described as potentially conservative given current uncertainty.

Weatherford International plc Price & Performance (WFRD)

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Balance Sheet

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Latest News

Recent Transcripts

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Earnings

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