Weatherford International (WFRD) investor relations material

Executive summary

• Q2 2025 revenue was $1.2B, up 1% sequentially but down 14% year-over-year, with international revenue comprising ~80% of the total.

• Net income was $136M, up 79% sequentially and 9% year-over-year, aided by a $70M gain from the Argentina business sale.

• Adjusted EBITDA was $254M (21.1% margin), flat sequentially and down 30% year-over-year.

• Strong operational performance and cost discipline offset market headwinds, divestitures, and minimal Mexico payments.

• Shareholder returns in Q2 totaled $52M, including $18M in dividends and $34M in share repurchases.

Financial highlights

• Gross margin for Q2 2025 was 31%, down from 37% in Q2 2024.

• Basic and diluted EPS were $1.87, up 81% sequentially and 10–13% year-over-year.

• Adjusted free cash flow was $79M, with a 31.1% conversion rate, up from 26.1% in Q1.

• Net leverage ratio improved to 0.49x, with $1B in cash and $1.3B in liquidity.

• CapEx for Q2 was $54M, down from $77M in Q1, and in line with the 3–5% of revenue target.

Outlook and guidance

• 2025 revenue guidance is $4.7B–$4.9B, with adjusted EBITDA of $1.015B–$1.06B.

• Q3 2025 revenue expected at $1.165B–$1.195B, with adjusted EBITDA of $245M–$265M and slightly higher margins.

• Free cash flow conversion expected to improve by 100–200 bps, with a significant ramp in Q4 from customer payments.

• CapEx to remain within 3–5% of revenues for the full year.

• Market headwinds and uncertainty expected to persist through 2025, with sluggish activity in North America and international markets.