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Weatherford International (WFRD)
NASDAQ:WFRD
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Weatherford International (WFRD) AI Stock Analysis

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WFRD

Weatherford International

(NASDAQ:WFRD)

Rating:74Outperform
Price Target:
$63.00
â–²(0.53% Upside)
Weatherford International's solid financial performance and attractive valuation are key strengths, but mixed earnings call sentiment and technical indicators suggest caution. Corporate events provide additional support for strategic initiatives.
Positive Factors
Financial Performance
Weatherford's 2Q Adjusted Free Cash Flow of $79 million beat the consensus estimate of $67 million, indicating better cash generation than expected.
Guidance and Valuation
Weatherford raised the low end of its prior FY25 EBITDA guidance by 4% while maintaining the mid-point, which is considered a positive development for the stock.
Revenue Growth
Weatherford saw a significant revenue increase of 23% quarter-over-quarter in Europe, Sub-Sahara Africa, and Russia on higher activity across all segments.
Negative Factors
Market Exposure
Weatherford’s weakness tied to outsized Mexico exposure continues to plague near-term results as Pemex activity has declined by more than originally expected.

Weatherford International (WFRD) vs. SPDR S&P 500 ETF (SPY)

Weatherford International Business Overview & Revenue Model

Company DescriptionWeatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. The company operates in two segments, Western Hemisphere and Eastern Hemisphere. It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing, cementing, and coiled-tubing intervention; and drill stem test tools, surface well testing, and multiphase flow measurement services. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high-temperature and high-pressure sensors, drilling reamers, and circulation subs; rotating control devices and advanced automated control systems, as well as closed-loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open hole and cased-hole logging services; and intervention and remediation services. Further, the company provides tubular handling, management, and connection services; and re-entry, fishing, wellbore cleaning, and well abandonment services, as well as patented bottom hole, tubularhandling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 and is based in Houston, Texas.
How the Company Makes MoneyWeatherford International generates revenue through multiple key streams, primarily focusing on the provision of oilfield services and technologies. The company's revenue model is built around service contracts and project-based work with oil and gas companies, where it charges for its expertise in drilling, completion, and production services. A significant portion of its earnings comes from its advanced technologies, which are essential for maximizing production and minimizing operational costs for clients. Additionally, Weatherford has entered into strategic partnerships and alliances with other industry players to enhance its service offerings and expand its market reach. Factors such as fluctuating oil prices, demand for energy, and technological advancements in oilfield services also play a crucial role in influencing its revenue generation.

Weatherford International Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. Weatherford highlighted strong cash flow, successful capital return, and a robust balance sheet as positives. However, significant revenue declines, market softness, and challenges with tariffs and payments from Mexico presented notable concerns.
Q2-2025 Updates
Positive Updates
Strong Adjusted Free Cash Flow
Weatherford generated $79 million of adjusted free cash flow in Q2, with a free cash flow conversion rate of 31.1%, up from 26.1% in Q1 2025.
Successful Capital Return Program
Weatherford paid four quarterly dividends of $0.25 per share and repurchased approximately $186 million worth of shares over the past four quarters.
New High-Impact Contracts
Weatherford secured significant contracts including a 1-year contract with bp in Offshore U.K. and a 3-year contract with Shell in the Gulf of America.
Strong Balance Sheet
Weatherford has approximately $1 billion in cash and liquidity of $1.3 billion, the highest level since emergence, with a net leverage ratio of less than 0.5x.
Improved Cost Structure
Weatherford reduced its headcount by over 1,500 and lowered personnel expenses by more than $125 million, excluding divestitures.
Negative Updates
Revenue Declines in Key Markets
North America and Latin America were down sequentially, with Mexico expected to be down approximately 60% this year.
Market Softness in Saudi Arabia
The market in the Kingdom of Saudi Arabia has softened with a sequential decline expected, and rig count decreases affecting performance.
International Market Slowdown
The overall international market has softened, with expected revenue declines in the low double to mid-double digits for 2025.
Challenges with Tariffs
Weatherford expects a greater impact from tariffs on both margins and demand in the second half of 2025.
Minimal Payments from Mexico
Weatherford faced challenges with minimal cash payments from Mexico, impacting working capital efficiency.
Company Guidance
During the Weatherford International Second Quarter 2025 Earnings Conference Call, significant guidance was provided, highlighting both the challenges and strategic initiatives for the year ahead. The company reported adjusted EBITDA margins of 21.1% for Q2, a slight decline from Q1, with adjusted free cash flow of $79 million. Despite market headwinds, including divestitures in Argentina and minimal payments from Mexico, Weatherford remains focused on cash generation. The guidance for 2025 projects revenues between $4.7 billion and $4.9 billion, with adjusted EBITDA ranging from $1.015 billion to $1.06 billion. The company anticipates a high single-digit revenue decline in North America and a low to mid-double-digit decline internationally. However, when adjusted for declining activity in Mexico and Argentina divestitures, international revenues are expected to decrease by low to mid-single digits. Weatherford is also committed to its share repurchase program, having repurchased approximately $186 million worth of shares over the past four quarters. They have paid four quarterly dividends of $0.25 per share, indicating continued shareholder returns despite the challenging market environment.

Weatherford International Financial Statement Overview

Summary
Weatherford International shows strong financial recovery with robust profitability and revenue growth. The income statement and cash flow metrics are solid, though there are concerns about slowing revenue growth and moderate financial leverage.
Income Statement
85
Very Positive
Weatherford International has demonstrated a strong recovery in its income statement, with a significant improvement in profitability and revenue growth. The TTM Gross Profit Margin is robust at 48.36%, and the Net Profit Margin is healthy at 8.79%. Revenue growth from 2022 to 2023 was 18.54%, showcasing a positive trend. EBIT and EBITDA Margins are also solid, indicating efficient cost management. However, the slight decline in revenue from 2024 to 2025 suggests potential challenges in maintaining growth momentum.
Balance Sheet
75
Positive
The balance sheet reflects a strengthening financial position, with a reduction in total debt and an increase in stockholders' equity, leading to a lower Debt-to-Equity Ratio of 1.16 in TTM. The Return on Equity for the TTM period is impressive at 34.56%, indicative of effective capital utilization. The Equity Ratio of 31.23% suggests moderate financial leverage, but the industry-standard could be higher for stability. Continued improvement in equity levels would enhance financial stability.
Cash Flow
80
Positive
Weatherford's cash flow shows healthy operational cash generation with an Operating Cash Flow to Net Income Ratio of 1.71 in TTM, indicating strong cash conversion. The Free Cash Flow to Net Income Ratio of 1.20 suggests solid free cash flow generation. While the Free Cash Flow Growth Rate is negative due to a decrease from the prior year, the company still maintains a positive free cash flow, which is crucial for reinvestment and debt reduction.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.15B5.51B5.13B4.33B3.65B3.69B
Gross Profit1.29B1.91B1.74B1.31B929.00M878.00M
EBITDA1.02B1.24B1.01B697.00M357.00M-1.06B
Net Income481.00M506.00M417.00M26.00M-450.00M-1.92B
Balance Sheet
Total Assets0.005.16B5.07B4.72B4.77B5.43B
Cash, Cash Equivalents and Short-Term Investments1.00B916.00M958.00M910.00M951.00M1.12B
Total Debt1.59B1.79B2.06B2.41B2.62B2.86B
Total Liabilities0.003.88B4.15B4.17B4.28B4.50B
Stockholders Equity1.52B1.28B924.00M535.00M472.00M907.00M
Cash Flow
Free Cash Flow472.00M493.00M623.00M217.00M237.00M56.00M
Operating Cash Flow781.00M792.00M832.00M349.00M322.00M210.00M
Investing Cash Flow-214.00M-293.00M-289.00M-54.00M-83.00M-75.00M
Financing Cash Flow-452.00M-511.00M-514.00M-248.00M-403.00M348.00M

Weatherford International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.67
Price Trends
50DMA
56.51
Positive
100DMA
51.34
Positive
200DMA
58.49
Positive
Market Momentum
MACD
2.22
Negative
RSI
61.31
Neutral
STOCH
77.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFRD, the sentiment is Positive. The current price of 62.67 is above the 20-day moving average (MA) of 59.14, above the 50-day MA of 56.51, and above the 200-day MA of 58.49, indicating a bullish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 61.31 is Neutral, neither overbought nor oversold. The STOCH value of 77.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WFRD.

Weatherford International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$15.43B17.7829.27%0.50%12.15%91.88%
77
Outperform
$54.05B11.9919.78%3.14%0.94%-4.63%
75
Outperform
$19.35B10.6218.16%3.03%-4.08%-29.26%
74
Outperform
$44.72B14.8418.32%1.94%2.13%54.69%
74
Outperform
$4.50B9.5935.14%1.60%-5.35%-4.15%
70
Outperform
$4.86B10.767.31%3.82%-1.21%-54.44%
66
Neutral
$15.26B7.303.22%5.27%4.16%-60.82%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WFRD
Weatherford International
62.67
-25.89
-29.23%
BKR
Baker Hughes Company
46.32
13.12
39.52%
FTI
TechnipFMC
39.65
15.79
66.18%
HAL
Halliburton
22.47
-5.32
-19.14%
NOV
NOV
13.36
-2.30
-14.69%
SLB
Schlumberger
36.01
-3.42
-8.67%

Weatherford International Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Weatherford International Shareholders Approve Key Resolutions
Positive
Jun 13, 2025

On June 11, 2025, Weatherford International held its Annual Meeting where shareholders approved several key resolutions. These included the election of six directors for a one-year term, the ratification of KPMG LLP as the company’s auditor, and the approval of the Fourth Amended and Restated 2019 Equity Incentive Plan to increase the number of ordinary shares by 1,286,000. The shareholders also granted the Board of Directors the authority to issue shares and opt-out of statutory preemption rights under Irish law, reflecting strong shareholder support for the company’s strategic initiatives.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025