Weatherford International (WFRD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $1.193 billion, down 12% year-over-year and 11% sequentially, with declines across all segments and most geographies, notably Mexico and North America, while Middle East and Asia showed resilience.

• Net income was $76 million, a 32% decrease year-over-year; operating income fell 39% to $142 million.

• Adjusted EBITDA was $253 million (21.2% margin), down 25% year-over-year and 22% sequentially.

• Portfolio optimization advanced with divestitures in Argentina, focusing on higher-margin, less capital-intensive businesses.

• Leadership transition with Anuj Dhruv appointed as CFO, bringing extensive experience in global finance and transformation.

Financial highlights

• Adjusted free cash flow reached $66 million in Q1, with a 26.1% conversion rate, up from 24.4% in Q1 2024.

• Gross margin was 31.3%, down 355 bps year-over-year; adjusted EBITDA margin was 21.2%, down 354 bps year-over-year.

• Basic EPS was $1.04, down from $1.54 in Q1 2024; diluted EPS was $1.03.

• Shareholder returns totaled $71 million in Q1, including $18 million in dividends and $53 million in share repurchases.

• Net leverage ratio at 0.5x; liquidity at $1.3 billion, including $930 million in cash.

Outlook and guidance

• 2025 revenue expected at $4.6–$5 billion, with adjusted EBITDA of $975 million–$1.1 billion.

• Free cash flow conversion projected to improve by 100–200 basis points year-over-year.

• Q2 revenue guidance: $1.165–$1.195 billion; adjusted EBITDA: $245–$265 million.

• Management expects continued market uncertainty and has scaled back activity level expectations for the remainder of 2025, especially in Latin America and North America.

• Capital spending for 2025 is projected at 3–5% of revenue.