Weatherford International (WFRD) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue grew 7% to $5.51B, with net income up 21% to $506M and adjusted EBITDA up 17% to $1.38B, driven by 10% international growth, especially in MENA.

• Q4 2024 revenue was $1.34B, down 2% YoY and 5% sequentially, with net income at $112M, down 20% YoY.

• Adjusted EBITDA margin for 2024 reached 25.1%, the highest in over 15 years, and adjusted free cash flow was $524M.

• North America revenue declined 2% for the year, but margins improved year-over-year.

• Shareholder returns totaled $135M in 2024, including $36M in dividends and $99M in share repurchases.

Financial highlights

• Q4 adjusted EBITDA was $326M (24.3% margin), up 2% YoY but down 8% sequentially; full-year margin was 25.1%.

• Adjusted free cash flow for 2024 was $524M, with a 37.9% conversion rate.

• Working capital as a percentage of revenue improved to 24.5% from 25.8% year-over-year.

• CAPEX for 2024 was $299M, or 5.4% of revenues.

• Liquidity at year-end was approximately $1B, with cash and equivalents at $916M.

Outlook and guidance

• 2025 revenues expected at $5.1–$5.35B, with adjusted EBITDA of $1.2–$1.35B and 100–200 bps improvement in free cash flow conversion.

• Q1 2025 revenue guidance: $1.17–$1.21B, with adjusted EBITDA of $245–$265M; free cash flow to be approximately break-even.

• Margins expected to improve in the second half of 2025 as cost and productivity programs take effect.

• International revenues (excluding Mexico and Russia) projected to be up low single digits in 2025; total international revenues down mid-single digits due to Mexico and Russia.

• Management targets high-20s EBITDA margins over the next few years and continued strong cash flow generation.