Weatherford Announces First Quarter 2025 Results
Weatherford (NASDAQ: WFRD) reported declining financial results for Q1 2025, with revenue falling 12% year-over-year to $1,193 million. The company's operating income decreased 39% to $142 million, while net income dropped 32% to $76 million with a 6.4% margin.
Key financial metrics include adjusted EBITDA of $253 million (21.2% margin), representing a 25% decrease, and adjusted free cash flow of $66 million. The company returned $71 million to shareholders through $18 million in dividends and $53 million in share repurchases.
The quarter was marked by significant market softening across key geographies, particularly in Mexico, the United Kingdom, and North America. Despite challenges, Weatherford completed the sale of its Pressure Pumping business in Argentina and secured several new contracts, including an eight-year extension in Kazakhstan and a five-year integrated completions contract with PDO Oman.
Weatherford (NASDAQ: WFRD) ha riportato risultati finanziari in calo per il primo trimestre 2025, con ricavi in diminuzione del 12% su base annua, attestandosi a 1.193 milioni di dollari. L'utile operativo della società è sceso del 39%, raggiungendo 142 milioni di dollari, mentre l'utile netto è calato del 32% a 76 milioni di dollari, con un margine del 6,4%.
I principali indicatori finanziari includono un EBITDA rettificato di 253 milioni di dollari (margine del 21,2%), che rappresenta una diminuzione del 25%, e un flusso di cassa libero rettificato di 66 milioni di dollari. La società ha restituito 71 milioni di dollari agli azionisti tramite 18 milioni in dividendi e 53 milioni in riacquisto di azioni.
Il trimestre è stato caratterizzato da un significativo indebolimento del mercato nelle principali aree geografiche, in particolare in Messico, Regno Unito e Nord America. Nonostante le difficoltà, Weatherford ha completato la vendita del suo business di Pressure Pumping in Argentina e ha ottenuto diversi nuovi contratti, tra cui un’estensione di otto anni in Kazakistan e un contratto integrato di completamento di cinque anni con PDO Oman.
Weatherford (NASDAQ: WFRD) reportó resultados financieros a la baja para el primer trimestre de 2025, con ingresos que cayeron un 12% interanual hasta 1.193 millones de dólares. El ingreso operativo de la compañía disminuyó un 39% hasta 142 millones de dólares, mientras que la utilidad neta bajó un 32% a 76 millones de dólares, con un margen del 6,4%.
Las métricas financieras clave incluyen un EBITDA ajustado de 253 millones de dólares (margen del 21,2%), representando una disminución del 25%, y un flujo de caja libre ajustado de 66 millones de dólares. La empresa devolvió 71 millones de dólares a los accionistas mediante 18 millones en dividendos y 53 millones en recompra de acciones.
El trimestre estuvo marcado por un notable debilitamiento del mercado en las principales regiones, especialmente en México, Reino Unido y Norteamérica. A pesar de los desafíos, Weatherford completó la venta de su negocio de Pressure Pumping en Argentina y aseguró varios contratos nuevos, incluyendo una extensión de ocho años en Kazajistán y un contrato integrado de terminación de cinco años con PDO Omán.
Weatherford (NASDAQ: WFRD)는 2025년 1분기 실적이 전년 동기 대비 12% 감소한 11억 9,300만 달러의 매출을 보고했습니다. 회사의 영업이익은 39% 감소한 1억 4,200만 달러였으며, 순이익은 32% 감소한 7,600만 달러로 6.4%의 마진을 기록했습니다.
주요 재무 지표로는 25% 감소한 조정 EBITDA 2억 5,300만 달러(마진 21.2%)와 조정된 잉여현금흐름 6,600만 달러가 포함됩니다. 회사는 1,800만 달러의 배당금과 5,300만 달러의 자사주 매입을 통해 주주들에게 총 7,100만 달러를 환원했습니다.
이번 분기는 멕시코, 영국, 북미 등 주요 지역에서 시장 침체가 두드러졌습니다. 어려움에도 불구하고 Weatherford는 아르헨티나의 Pressure Pumping 사업 매각을 완료했으며, 카자흐스탄에서 8년 연장 계약과 오만 PDO와 5년 통합 완성 계약 등 여러 신규 계약을 확보했습니다.
Weatherford (NASDAQ : WFRD) a annoncé des résultats financiers en baisse pour le premier trimestre 2025, avec un chiffre d'affaires en recul de 12 % en glissement annuel à 1 193 millions de dollars. Le résultat opérationnel de l'entreprise a diminué de 39 % pour atteindre 142 millions de dollars, tandis que le résultat net a chuté de 32 % à 76 millions de dollars, avec une marge de 6,4 %.
Les principaux indicateurs financiers comprennent un EBITDA ajusté de 253 millions de dollars (marge de 21,2 %), représentant une baisse de 25 %, ainsi qu'un flux de trésorerie disponible ajusté de 66 millions de dollars. La société a reversé 71 millions de dollars aux actionnaires via 18 millions de dividendes et 53 millions de rachats d'actions.
Le trimestre a été marqué par un net ralentissement du marché dans les principales zones géographiques, notamment au Mexique, au Royaume-Uni et en Amérique du Nord. Malgré les défis, Weatherford a finalisé la vente de son activité Pressure Pumping en Argentine et obtenu plusieurs nouveaux contrats, dont une extension de huit ans au Kazakhstan et un contrat intégré de complétion de cinq ans avec PDO Oman.
Weatherford (NASDAQ: WFRD) meldete rückläufige Finanzergebnisse für das erste Quartal 2025, mit einem Umsatzrückgang von 12 % gegenüber dem Vorjahr auf 1.193 Millionen US-Dollar. Das operative Ergebnis des Unternehmens sank um 39 % auf 142 Millionen US-Dollar, während der Nettogewinn um 32 % auf 76 Millionen US-Dollar mit einer Marge von 6,4 % fiel.
Wichtige Finanzkennzahlen umfassen ein bereinigtes EBITDA von 253 Millionen US-Dollar (Marge 21,2 %), was einen Rückgang von 25 % darstellt, sowie einen bereinigten freien Cashflow von 66 Millionen US-Dollar. Das Unternehmen gab 71 Millionen US-Dollar an die Aktionäre zurück, davon 18 Millionen US-Dollar in Dividenden und 53 Millionen US-Dollar in Aktienrückkäufe.
Das Quartal war geprägt von einer deutlichen Marktschwäche in wichtigen Regionen, insbesondere in Mexiko, Großbritannien und Nordamerika. Trotz der Herausforderungen schloss Weatherford den Verkauf seines Pressure Pumping-Geschäfts in Argentinien ab und sicherte sich mehrere neue Verträge, darunter eine achtjährige Verlängerung in Kasachstan und einen fünfjährigen integrierten Abschlussvertrag mit PDO Oman.
- Secured multiple new long-term contracts including an eight-year extension in Kazakhstan
- Maintained shareholder returns with $71 million distributed in Q1
- Successfully completed strategic sale of Pressure Pumping business in Argentina
- Operating cash flow increased to $142 million from $131 million year-over-year
- Revenue declined 12% year-over-year to $1,193 million
- Operating income decreased 39% year-over-year to $142 million
- Net income fell 32% year-over-year to $76 million
- Adjusted EBITDA margin decreased 354 basis points to 21.2%
- Significant market softening across key geographies affecting activity levels
Insights
Weatherford posted weak Q1 2025 results with double-digit declines across key metrics amid significant market softening and reduced customer activity.
Weatherford International's Q1 2025 results reveal substantial deterioration across all key financial metrics. Revenue fell to
Margin compression is evident throughout operations, with net income margin falling 188 basis points to
The geographic breakdown reveals significant weakness in Latin America (revenue down
Despite these headwinds, the company maintained positive free cash flow of
Management's commentary indicates further deterioration in recent weeks, with CEO Girish Saligram noting they are "scaling back expectations on activity levels" for the remainder of 2025. This suggests the challenging environment isn't merely transitory but potentially more sustained, requiring additional efficiency measures.
Weatherford faces industry-wide slowdown with strategic pivot to free cash flow generation amid deteriorating market conditions in key regions.
Weatherford's Q1 results reflect broader industry challenges as energy service providers grapple with reduced customer activity levels. The explicit mention of "significant market softening" in Mexico, UK, and North America points to regional challenges beyond company-specific factors.
The business portfolio restructuring continues with the completed sale of the Pressure Pumping business in Argentina, further advancing the company's shift toward a more capital-efficient model. This strategic divestiture, coupled with the focus on "minimizing decrementals and improving working capital efficiencies," demonstrates management's proactive approach to navigating the downturn.
Despite the challenging environment, Weatherford secured several notable contract wins, including an eight-year extension with an IOC in Kazakhstan and a five-year Integrated Completions contract with PDO Oman. The company also signed a strategic agreement with Abu Dhabi-based AIQ to leverage AI technology for production efficiency—a move that could deliver competitive advantages through digital transformation.
The segmental performance reveals concerning trends: DRE segment margins contracted by 966 basis points year-over-year to
CEO Saligram's statements about "uncertainty on customer activity levels stemming from macroeconomic factors, global trade and geopolitical tensions" highlight the complex external pressures affecting the sector. The company's pivot to prioritizing adjusted free cash flow—even with reduced activity levels—indicates a realistic assessment of market conditions and appropriate strategic adjustments.
- First quarter revenue of
$1,193 million decreased12% year-over-year - First quarter operating income of
$142 million decreased39% year-over-year - First quarter net income of
$76 million , a6.4% margin, decreased32% year-over-year - First quarter adjusted EBITDA* of
$253 million , a21.2% margin, decreased25% , or 354 basis points, year-over-year - First quarter cash provided by operating activities of
$142 million and adjusted free cash flow* of$66 million - Repurchased
$34 million of8.625% Senior Notes due 2030 in the first quarter of 2025 - Shareholder return of
$71 million for the quarter, which included dividend payments of$18 million and share repurchases of$53 million - Board approved quarterly cash dividend of
$0.25 per share, payable on June 5, 2025, to shareholders of record as of May 6, 2025 - As part of its portfolio optimization strategy, Weatherford completed the sale of its Pressure Pumping business in Argentina on April 1, 2025
- Signed a strategic agreement with Abu Dhabi-based AIQ to bring transformative efficiency to energy production, leveraging advanced automation, data-driven insights, and the power of AI technology
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
HOUSTON, April 22, 2025 (GLOBE NEWSWIRE) -- Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the first quarter of 2025.
Revenues for the first quarter of 2025 were
First quarter 2025 cash flows provided by operating activities were
Girish Saligram, President and Chief Executive Officer, commented, “The first quarter was marked by significant market softening across key geographies, especially Mexico, the United Kingdom and North America. This created headwinds for activity levels but the One Weatherford team continued to focus on the controllable elements of the business, driving execution to deliver results inline with expectations.
Over the past few weeks, the market conditions have skewed more negatively, as we continue to navigate uncertainty on customer activity levels stemming from macroeconomic factors, global trade and geopolitical tensions. However, our actions remain focused on our North Star of driving adjusted free cash flow and we are further accelerating efficiency and optimization programs to ensure that we are well positioned for any scenario that might unfold in the latter part of the year. We believe it to be prudent to scale back our expectations on activity levels through the rest of the year and are focused on minimizing decrementals and improving working capital efficiencies. Nonetheless, even at a significantly reduced level of customer activity, we remain confident in increasing our adjusted free cash flow conversion for the full year 2025, allowing progress on our capital allocation priorities.
The sale of our Pressure Pumping business in Argentina marks another key milestone in our portfolio optimization strategy to a more capital-efficient model and further builds liquidity to position us well for the upcoming period.”
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Operational & Commercial Highlights
- An International Oil Company (IOC) awarded Weatherford an eight-year contract extension to provide a comprehensive suite of services, including Intervention Services & Drilling Tools, Pipe Inspection, Managed Pressure Drilling (MPD), Tubular Running Services (TRS), Well Services, and Pipe Recovery in Kazakhstan.
- PDO Oman awarded Weatherford a five-year Integrated Completions contract consisting of Completions, Liner Hangers and Cementation Products.
- ADNOC Onshore awarded Weatherford a three-year contract for Well Services Production enhancement systems in the United Arab Emirates.
- Eni Oman awarded Weatherford an open contract for onshore MPD services.
- Petrobras awarded Weatherford a five-year contract for Liner Hangers systems and services in deepwater Brazil and amended its TRS contract, adding two Vero Mechanized Systems.
- Sierracol Energy Andina LLC awarded Weatherford a six-month contract for Artificial Lift Systems in Colombia.
- GeoPark Colombia S.A.S. awarded Weatherford a three-year contract for Wireline Open & Cased Hole Services.
- Jadestone Energy (Malaysia) PTE LTD awarded Weatherford a contract for the Autonomous Inflow Control Device Screens and associated lower Completions equipment and services for the PM323 East Belumut Phase 9 Infill Drilling campaign.
- Dragon Oil awarded Weatherford a three-year contract for Completions Equipment and Services in offshore Turkmenistan.
- An IOC awarded Weatherford a one-year contract for Artificial Lift Equipment and Centro® Well Construction Optimization Platform in Argentina.
- An IOC in Turkey awarded Weatherford a five-year contract for Open Hole Wireline Tools.
- An IOC awarded Weatherford a three-year contract for Artificial Lift Equipment in Australia.
- A major integrated energy company awarded Weatherford a three-year, multi-rig contract for Vero® Mechanized Systems in deepwater Gulf of America.
- A National Oil Company (NOC) awarded Weatherford a two-year contract for Stage Tool Cementing Equipment in the Middle East.
- An IOC awarded Weatherford a one-year contract for the SCADA Digital Platform in offshore United Arab Emirates.
Technology Highlights
- Drilling & Evaluation (“DRE”)
- In the UK, Weatherford successfully delivered Logging While Drilling and Formation Pressure Services for Shell on a high-pressure, high temperature well. The well was drilled at 175°c and reached a total depth of 21,000 feet.
- In the Middle East, Weatherford successfully deployed GuideWave® CLEAR in three wells for an NOC, enabling improved formation evaluation and more precise geo-steering.
- Well Construction and Completions (“WCC”)
- In deepwater Brazil, Weatherford successfully installed the first OptiROSS® RFID Multi-Cycle Sliding Sleeve Valve for Petrobras. This system enhances acid stimulation efficiency, improving production and boosting the reservoir’s oil recovery factor.
- In North America, Weatherford successfully completed 17 field trials of its SecureTrac™ technology with one of the largest multinational oil and gas companies. The tool’s more compact design enables a shorter shoe track, maximizing reservoir exposure and enhancing production potential.
- In the Middle East, Weatherford successfully deployed the first WidePak™ straddle solution for Gupco in Egypt. The well had been shut for 15 years due to a sustained tubing leak. Following Weatherford’s intervention, the well is now back online and delivering significant production.
- Production and Intervention (“PRI”)
- In North America, Weatherford successfully deployed the ForeSite® Regenerative Power for KODA, following a two-month pilot. The deployment delivered significant power savings, demonstrating the technology’s efficiency and value in the field.
- In North America, Weatherford deployed the ForeSite® Power Regenerative variable-speed drive across key customers, following multiple successful pilots. The implementation delivered significant power savings and reduced carbon emissions. Due to its unique ability to recycle, store, and optimize power, this innovative solution helps control operating expenses for customers.
Shareholder Return
During the first quarter of 2025, Weatherford paid dividends of
On April 17, 2025, our Board declared a cash dividend of
Results by Reportable Segment
Drilling and Evaluation (“DRE”)
| Three Months Ended | Variance | |||||||||||||||||
| ($ in Millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | Seq. | YoY | |||||||||||||
| Revenue | $ | 350 | $ | 398 | $ | 422 | (12 | )% | (17 | )% | ||||||||
| Segment Adjusted EBITDA | $ | 74 | $ | 96 | $ | 130 | (23 | )% | (43 | )% | ||||||||
| Segment Adj EBITDA Margin | 21.1 | % | 24.1 | % | 30.8 | % | (298 | )bps | (966 | )bps | ||||||||
First quarter 2025 DRE revenue of
First quarter 2025 DRE segment adjusted EBITDA of
Well Construction and Completions (“WCC”)
| Three Months Ended | Variance | |||||||||||||||||
| ($ in Millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | Seq. | YoY | |||||||||||||
| Revenue | $ | 441 | $ | 505 | $ | 458 | (13 | )% | (4 | )% | ||||||||
| Segment Adjusted EBITDA | $ | 128 | $ | 148 | $ | 120 | (14 | )% | 7 | % | ||||||||
| Segment Adj EBITDA Margin | 29.0 | % | 29.3 | % | 26.2 | % | (28) | bps | 282 | bps | ||||||||
First quarter 2025 WCC revenue of
First quarter 2025 WCC segment adjusted EBITDA of
Production and Intervention (“PRI”)
| Three Months Ended | Variance | |||||||||||||||||
| ($ in Millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | Seq. | YoY | |||||||||||||
| Revenue | $ | 334 | $ | 364 | $ | 348 | (8 | )% | (4 | )% | ||||||||
| Segment Adjusted EBITDA | $ | 62 | $ | 78 | $ | 73 | (21 | )% | (15 | )% | ||||||||
| Segment Adj EBITDA Margin | 18.6 | % | 21.4 | % | 21.0 | % | (287 | )bps | (241 | )bps | ||||||||
First quarter 2025 PRI revenue of
First quarter 2025 PRI segment adjusted EBITDA of
Revenue by Geography
| Three Months Ended | Variance | ||||||||||||||
| ($ in Millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | Seq. | YoY | ||||||||||
| North America | $ | 250 | $ | 261 | $ | 267 | (4 | )% | (6) | % | |||||
| International | $ | 943 | $ | 1,080 | $ | 1,091 | (13 | )% | (14 | )% | |||||
| Latin America | 241 | 312 | 370 | (23 | )% | (35 | )% | ||||||||
| Middle East/North Africa/Asia | 503 | 542 | 497 | (7 | )% | 1 | % | ||||||||
| Europe/Sub-Sahara Africa/Russia | 199 | 226 | 224 | (12 | )% | (11 | )% | ||||||||
| Total Revenue | $ | 1,193 | $ | 1,341 | $ | 1,358 | (11 | )% | (12 | )% | |||||
North America
First quarter 2025 North America revenue of
International
First quarter 2025 international revenue of
First quarter 2025 Latin America revenue of
First quarter 2025 Middle East/North Africa/Asia revenue of
First quarter 2025 Europe/Sub-Sahara Africa/Russia revenue of
About Weatherford
Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 18,000 team members representing more than 110 nationalities and 320 operating locations. Visit weatherford.com for more information and connect with us on social media.
Conference Call Details
Weatherford will host a conference call on Wednesday, April 23, 2025, to discuss the Company’s results for the first quarter ended March 31, 2025. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).
Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.
Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.
A telephonic replay of the conference call will be available until May 7, 2025, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 6907941. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.
Contacts
For Investors:
Luke Lemoine
Senior Vice President, Corporate Development & Investor Relations
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Kelley Hughes
Senior Director, Communications & Employee Engagement
media@weatherford.com
Forward-Looking Statements
This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only estimates and may differ materially from actual future events or results, based on factors including but not limited to: global political, economic and market conditions, political disturbances, war or other global conflicts, terrorist attacks, changes in global trade policies, tariffs and sanctions, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflicts, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations (including changes in the regulatory environment) imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to remain competitive, and to address and participate in changes to the market demands, including for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to effectively execute our capital allocation framework; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.
These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission, including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
| Weatherford International plc | ||||||||||||
| Selected Statements of Operations (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| ($ in Millions, Except Per Share Amounts) | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| Revenues: | ||||||||||||
| DRE Revenues | $ | 350 | $ | 398 | $ | 422 | ||||||
| WCC Revenues | 441 | 505 | 458 | |||||||||
| PRI Revenues | 334 | 364 | 348 | |||||||||
| All Other | 68 | 74 | 130 | |||||||||
| Total Revenues | 1,193 | 1,341 | 1,358 | |||||||||
| Operating Income: | ||||||||||||
| DRE Segment Adjusted EBITDA[1] | $ | 74 | $ | 96 | $ | 130 | ||||||
| WCC Segment Adjusted EBITDA[1] | 128 | 148 | 120 | |||||||||
| PRI Segment Adjusted EBITDA[1] | 62 | 78 | 73 | |||||||||
| All Other[2] | 4 | 11 | 27 | |||||||||
| Corporate[2] | (15 | ) | (7 | ) | (14 | ) | ||||||
| Depreciation and Amortization | (62 | ) | (83 | ) | (85 | ) | ||||||
| Share-based Compensation | (7 | ) | (10 | ) | (13 | ) | ||||||
| Restructuring Charges | (29 | ) | (34 | ) | (3 | ) | ||||||
| Other Charges, Net | (13 | ) | (1 | ) | (2 | ) | ||||||
| Operating Income | 142 | 198 | 233 | |||||||||
| Other Expense: | ||||||||||||
| Interest Expense, Net of Interest Income of | (26 | ) | (25 | ) | (29 | ) | ||||||
| Other Expense, Net | (20 | ) | (4 | ) | (22 | ) | ||||||
| Income Before Income Taxes | 96 | 169 | 182 | |||||||||
| Income Tax Provision | (10 | ) | (45 | ) | (59 | ) | ||||||
| Net Income | 86 | 124 | 123 | |||||||||
| Net Income Attributable to Noncontrolling Interests | 10 | 12 | 11 | |||||||||
| Net Income Attributable to Weatherford | $ | 76 | $ | 112 | $ | 112 | ||||||
| Basic Income Per Share | $ | 1.04 | $ | 1.54 | $ | 1.54 | ||||||
| Basic Weighted Average Shares Outstanding | 73.1 | 72.6 | 72.9 | |||||||||
| Diluted Income Per Share | $ | 1.03 | $ | 1.50 | $ | 1.50 | ||||||
| Diluted Weighted Average Shares Outstanding | 73.4 | 74.5 | 74.7 | |||||||||
| [1] | Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation, restructuring charges and other adjustments. Research and development expenses are included in segment adjusted EBITDA. |
| [2] | All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting. |
| Weatherford International plc | |||||
| Selected Balance Sheet Data (Unaudited) | |||||
| ($ in Millions) | March 31, 2025 | December 31, 2024 | |||
| Assets: | |||||
| Cash and Cash Equivalents | $ | 873 | $ | 916 | |
| Restricted Cash | 57 | 59 | |||
| Accounts Receivable, Net | 1,175 | 1,261 | |||
| Inventories, Net | 889 | 880 | |||
| Property, Plant and Equipment, Net | 1,103 | 1,061 | |||
| Intangibles, Net | 315 | 325 | |||
| Liabilities: | |||||
| Accounts Payable | 714 | 792 | |||
| Accrued Salaries and Benefits | 249 | 302 | |||
| Current Portion of Long-term Debt | 22 | 17 | |||
| Long-term Debt | 1,583 | 1,617 | |||
| Shareholders’ Equity: | |||||
| Total Shareholders’ Equity | 1,360 | 1,283 | |||
| Weatherford International plc | ||||||||||||
| Selected Cash Flows Information (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| ($ in Millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| Cash Flows From Operating Activities: | ||||||||||||
| Net Income | $ | 86 | $ | 124 | $ | 123 | ||||||
| Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||||||
| Depreciation and Amortization | 62 | 83 | 85 | |||||||||
| Foreign Exchange Losses (Gain) | 13 | (2 | ) | 15 | ||||||||
| Gain on Disposition of Assets | (1 | ) | (2 | ) | (7 | ) | ||||||
| Deferred Income Tax Provision | 7 | — | 14 | |||||||||
| Share-Based Compensation | 7 | 10 | 13 | |||||||||
| Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits | (17 | ) | 24 | (152 | ) | |||||||
| Other Changes, Net | (15 | ) | 12 | 40 | ||||||||
| Net Cash Provided By Operating Activities | 142 | 249 | 131 | |||||||||
| Cash Flows From Investing Activities: | ||||||||||||
| Capital Expenditures for Property, Plant and Equipment | (77 | ) | (100 | ) | (59 | ) | ||||||
| Proceeds from Disposition of Assets | 1 | 13 | 10 | |||||||||
| Business Acquisitions, Net of Cash Acquired | — | — | (36 | ) | ||||||||
| Proceeds from Sale of Investments | — | — | 41 | |||||||||
| Other Investing Activities | (3 | ) | 1 | (10 | ) | |||||||
| Net Cash Used In Investing Activities | (79 | ) | (86 | ) | (54 | ) | ||||||
| Cash Flows From Financing Activities: | ||||||||||||
| Repayments of Long-term Debt | (39 | ) | (23 | ) | (172 | ) | ||||||
| Distributions to Noncontrolling Interests | — | (20 | ) | — | ||||||||
| Tax Remittance on Equity Awards | (20 | ) | (22 | ) | (8 | ) | ||||||
| Share Repurchases | (53 | ) | (49 | ) | — | |||||||
| Dividends Paid | (18 | ) | (18 | ) | — | |||||||
| Other Financing Activities | (3 | ) | (1 | ) | (7 | ) | ||||||
| Net Cash Used In Financing Activities | $ | (133 | ) | $ | (133 | ) | $ | (187 | ) | |||
| Weatherford International plc |
| Non-GAAP Financial Measures Defined (Unaudited) |
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
Adjusted EBITDA* - Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Adjusted EBITDA margin* - Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Adjusted Free Cash Flow* - Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Net Debt* - Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.
Net Leverage* - Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
*Non-GAAP - as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled
| Weatherford International plc | ||||||||||||
| GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| ($ in Millions, Except Margin in Percentages) | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| Revenues | $ | 1,193 | $ | 1,341 | $ | 1,358 | ||||||
| Net Income Attributable to Weatherford | $ | 76 | $ | 112 | $ | 112 | ||||||
| Net Income Margin | 6.4 | % | 8.4 | % | 8.2 | % | ||||||
| Adjusted EBITDA* | $ | 253 | $ | 326 | $ | 336 | ||||||
| Adjusted EBITDA Margin* | 21.2 | % | 24.3 | % | 24.7 | % | ||||||
| Net Income Attributable to Weatherford | $ | 76 | $ | 112 | $ | 112 | ||||||
| Net Income Attributable to Noncontrolling Interests | 10 | 12 | 11 | |||||||||
| Income Tax Provision | 10 | 45 | 59 | |||||||||
| Interest Expense, Net of Interest Income of | 26 | 25 | 29 | |||||||||
| Other Expense, Net | 20 | 4 | 22 | |||||||||
| Operating Income | 142 | 198 | 233 | |||||||||
| Depreciation and Amortization | 62 | 83 | 85 | |||||||||
| Other Charges, Net[1] | 13 | 1 | 2 | |||||||||
| Restructuring Charges | 29 | 34 | 3 | |||||||||
| Share-Based Compensation | 7 | 10 | 13 | |||||||||
| Adjusted EBITDA* | $ | 253 | $ | 326 | $ | 336 | ||||||
| Net Cash Provided By Operating Activities | $ | 142 | $ | 249 | $ | 131 | ||||||
| Capital Expenditures for Property, Plant and Equipment | (77 | ) | (100 | ) | (59 | ) | ||||||
| Proceeds from Disposition of Assets | 1 | 13 | 10 | |||||||||
| Adjusted Free Cash Flow* | $ | 66 | $ | 162 | $ | 82 | ||||||
| [1] | Other Charges, Net in the three months ended March 31, 2025 primarily includes fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico. |
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
| Weatherford International plc | ||||||||||
| GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited) | ||||||||||
| ($ in Millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||
| Current Portion of Long-term Debt | $ | 22 | $ | 17 | $ | 101 | ||||
| Long-term Debt | 1,583 | 1,617 | 1,629 | |||||||
| Total Debt | $ | 1,605 | $ | 1,634 | $ | 1,730 | ||||
| Cash and Cash Equivalents | $ | 873 | $ | 916 | $ | 824 | ||||
| Restricted Cash | 57 | 59 | 113 | |||||||
| Total Cash | $ | 930 | $ | 975 | $ | 937 | ||||
| Components of Net Debt | ||||||||||
| Current Portion of Long-term Debt | $ | 22 | $ | 17 | $ | 101 | ||||
| Long-term Debt | 1,583 | 1,617 | 1,629 | |||||||
| Less: Cash and Cash Equivalents | 873 | 916 | 824 | |||||||
| Less: Restricted Cash | 57 | 59 | 113 | |||||||
| Net Debt* | $ | 675 | $ | 659 | $ | 793 | ||||
| Net Income for trailing 12 months | $ | 470 | $ | 506 | $ | 457 | ||||
| Adjusted EBITDA* for trailing 12 months | $ | 1,299 | $ | 1,382 | $ | 1,253 | ||||
| Net Leverage* (Net Debt*/Adjusted EBITDA*) | 0.52 | x | 0.48 | x | 0.63 | x | ||||
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
FAQ
What caused Weatherford's (WFRD) revenue decline in Q1 2025?
How much did Weatherford (WFRD) return to shareholders in Q1 2025?
What is Weatherford's (WFRD) dividend payment schedule for Q2 2025?
What strategic moves did Weatherford (WFRD) make in Q1 2025?
