Weatherford International (WFRD) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $1,289M, up 5% sequentially, with operating income and adjusted EBITDA margins above 22%, and net income of $138M (10.7% margin); basic EPS was $1.92.

• Full year 2025 revenue was $4,918M, down 11% year-over-year, with net income of $431M (8.8% margin) and adjusted EBITDA of $1,067M (21.7% margin); operational execution remained strong despite market challenges.

• Dividend increased by 10% to $0.275 per share, reflecting confidence in long-term prospects.

• Shareholder returns in 2025 totaled $173M, including $72M in dividends and $101M in share repurchases.

Financial highlights

• Q4 2025 adjusted EBITDA was $291M (22.6% margin), up 8% sequentially; adjusted free cash flow was $222M, with a 76.3% conversion rate.

• Full year adjusted free cash flow was $466M (43.7% conversion), a 576 basis point improvement over 2024.

• Net leverage reduced to 0.42x, with $1 billion in cash and $1.6 billion in total liquidity; net debt at year-end was $443M.

• Gross margin for Q4 was 30.8%, down 69 bps sequentially and 112 bps YoY.

• 2025 ROIC was 21.6%; ROA was 8.3%.

Outlook and guidance

• 2026 revenues expected between $4.6B and $5.05B, with adjusted EBITDA between $980M and $1.12B; midpoint guidance is $4.825B revenue and $1.05B EBITDA.

• Adjusted free cash flow conversion for 2026 projected in the low-to-mid 40% range.

• Q1 2026 revenue guidance: $1.125–$1.165B; adjusted EBITDA: $230–$240M.

• Management expects a soft first half of 2026, with growth opportunities and improved performance in the second half and into 2027.

• Internal initiatives to optimize costs and productivity are expected to support performance in subdued market conditions.