Weatherford International (WFRD) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $1.204 billion, up 1% sequentially but down 14% year-over-year, with international revenue comprising about 80% of the total.

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

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

• Activity slowdown and broad-based declines across all segments and geographies, especially in Latin America, due to market softening and reduced activity.

• Continued cost reduction initiatives and operational efficiency, with digital modernization and notable contract wins.

Financial highlights

• Gross margin for Q2 2025 was 31.1%, down 544 bps year-over-year.

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

• Adjusted free cash flow was $79 million, with a 31.1% conversion rate.

• Cash and cash equivalents at June 30, 2025 were ~$1 billion, with total liquidity of $1.3 billion.

• Net leverage improved to 0.49x, the lowest since Q4 2021.

Outlook and guidance

• 2025 revenue guidance is $4.7–$4.9 billion, with adjusted EBITDA of $1.015–$1.06 billion and free cash flow conversion to rise 100–200 bps year-over-year.

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

• Management anticipates continued downward pressure on demand through 2025 due to macroeconomic uncertainty, trade policy impacts, and reduced customer activity, especially in Mexico and the Middle East.

• Capital spending for 2025 expected to remain within the 3–5% of revenue framework.

• Over the mid to long term, demand for advanced technology and new energy platforms is expected to support long-cycle growth.