Weatherford International (WFRD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $1.105 billion, down 4% sequentially and 8% year-over-year, with 81% from international markets and 61% from services; operating income was $107 million, down 55% year-over-year.

• Net income was $39 million (3.5% margin), with basic and diluted EPS of $0.55; adjusted EBITDA was $223 million (20.2% margin), down 4% sequentially but up 12% year-over-year.

• Adjusted free cash flow reached $139 million, with a 62.3% conversion rate on adjusted EBITDA, up 64% sequentially and 76% year-over-year.

• Announced acquisition of NCS Multistage to expand completions portfolio and unconventional resource exposure, expected to close in H2 2026 with at least $15 million in annual cost synergies.

• Proposed redomestication to Delaware after initial Texas proposal fell short, targeting $20–$30 million annual cash savings from 2027.

Financial highlights

• Adjusted EBITDA margin held at 20.2%, essentially flat sequentially; adjusted free cash flow conversion improved to 62.3%.

• Operating cash flow was $175 million; capital expenditures were $42 million (3.8% of revenue), down 22% year-over-year.

• Gross margin was about 30%, down 101 bps year-over-year; net income margin was 3.5%.

• Adjusted net working capital was $1.29 billion, representing 27% of trailing twelve-month revenue.

• Net leverage ratio improved to 0.34x, maintaining investment-grade equivalent ratios.

Outlook and guidance

• Q3 2026 revenue expected between $1.105 billion and $1.155 billion; adjusted EBITDA between $235 million and $265 million.

• Full-year 2026 revenue guidance: $4.54–$4.80 billion; adjusted EBITDA: $951–$1.046 billion.

• Adjusted free cash flow conversion outlook raised to mid-to-high 40% range for 2026.

• Margins expected to improve in the second half, but at a slightly reduced pace due to ongoing Middle East conflict; gradual recovery expected as geopolitical stability returns.

• Capital spending expected to remain at 3–5% of revenue over the next 12–18 months.