Weatherford International (WFRD) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $1.152 billion, down 3% year-over-year and 11% sequentially, with 80% international exposure and 62% service revenue.

• Net income rose 42% year-over-year to $108 million, with basic EPS of $1.50 and diluted EPS of $1.49; adjusted EBITDA was $233 million, down 8% year-over-year with a 20.2% margin.

• Operating income decreased 13% to $123 million, impacted by divestitures and market disruptions, partially offset by lower restructuring and R&D costs.

• The company announced a proposal to redomesticate from Ireland to Texas, aiming to simplify structure, reduce costs, and enhance capital management, with completion expected in Q3 2026.

• Shareholder returns totaled $30 million in Q1 2026, including $20 million in dividends and $10 million in share repurchases.

Financial highlights

• Adjusted free cash flow was $85 million, with a 36.5% conversion rate, up from 26.1% in Q1 2025, driven by strong collections, especially in Mexico.

• CapEx was $54 million (4.7% of revenues), down $23 million year-over-year.

• Gross margin was 29.5%, down 184 bps year-over-year; cost of products and services rose as a percentage of revenue to 71%.

• Net leverage improved to 0.41x trailing 12-month adjusted EBITDA; net debt at quarter-end was $434 million.

• Cash and cash equivalents at quarter-end were $1.05 billion, with $38 million in restricted cash.

Outlook and guidance

• Q2 2026 revenue expected between $1.017 billion and $1.110 billion; adjusted EBITDA between $195 million and $220 million.

• Full-year 2026 revenue guidance refined to $4.5–$4.95 billion, adjusted EBITDA $945 million–$1.075 billion, and adjusted free cash flow conversion in the mid-40% range.

• H2 2026 expected to show growth as contract awards and project startups ramp up, contingent on normalization in the Middle East.

• Capital spend for 2026 projected at 3–5% of revenue.

• Effective tax rate for 2026 expected in the low- to mid-20% range.