Weatherford International Plc ((WFRD)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Weatherford International Plc’s recent earnings call showcased a resilient performance amidst a challenging market environment. The company achieved sequential growth in key regions and secured significant contracts, although it faced revenue declines in North America and Latin America. The sentiment during the call was cautiously optimistic, with an acknowledgment of market softness and pricing pressures that could persist into 2026.
Strong Performance Amid Market Headwinds
Weatherford demonstrated a robust performance despite facing significant market headwinds and the impact of divestitures in Argentina. The company achieved notable success in the Middle East and North Africa regions, highlighting its ability to navigate challenging conditions effectively.
Sequential Growth in Key Regions
The company reported sequential growth in the Kingdom of Saudi Arabia, with noteworthy performances in the Middle East and North Africa. This growth underscores Weatherford’s long-term opportunities in these regions, positioning it for future success.
Notable Contracts Secured
Weatherford secured high-impact contracts, including a 1-year agreement with bp in the U.K. and a 3-year contract with Shell in the Gulf of America. These contracts are expected to contribute positively to the company’s future revenue streams.
Shareholder Returns
Weatherford has been committed to returning value to its shareholders, paying four quarterly dividends of $0.25 per share and repurchasing approximately $186 million worth of shares over the past year.
Strong Balance Sheet
The company’s financial health remains strong, with a net leverage ratio of less than 0.5x. Weatherford holds approximately $1 billion in cash and restricted cash, with liquidity at around $1.3 billion, providing a solid foundation for future investments.
Market Softness and Pricing Pressures
Weatherford is experiencing market softness in Saudi Arabia, with further declines anticipated. The company is also facing rising pricing pressures and margin dilution due to tariff cost pass-throughs, which could impact profitability.
Revenue Declines in North America and Latin America
Both North America and Latin America saw sequential revenue declines, with Mexico expected to experience a significant downturn of approximately 60% for the year, affecting overall financial performance.
Uncertain Market Outlook
The international market has softened, and this trend could continue into 2026. Weatherford is exercising increased caution due to a slowdown in customer spending, which may impact future growth prospects.
Minimal Payments from Mexico
The company reported minimal collections from Mexico during the quarter, which has negatively impacted cash flows and highlights the challenges faced in this region.
Forward-Looking Guidance
Weatherford provided guidance for the remainder of 2025, expecting revenues between $4.7 billion and $4.9 billion and adjusted EBITDA between $1.015 billion and $1.06 billion. The company anticipates a revenue decline in North America by high single digits year-on-year, with international revenues expected to decline by low double to mid-double digits. Adjusted EBITDA for Q3 is projected to be between $245 million and $265 million, with a slight increase in margins.
In summary, Weatherford International Plc’s earnings call reflected a resilient performance amid challenging market conditions. While the company achieved growth in key regions and secured significant contracts, it faces ongoing challenges with revenue declines and market softness. The forward-looking guidance suggests cautious optimism, with expectations for revenue and EBITDA within specified ranges, despite anticipated declines in certain regions.