Weatherford International plc

What they do

Weatherford provides equipment and services used in drilling, evaluation, well construction, completion, production, intervention and abandonment of oil and natural gas wells, plus new energy platforms. It operates 302 locations including manufacturing, research and development, service and training facilities. The company is organized into Drilling and Evaluation, Well Construction and Completions, and Production and Intervention.

Revenue drivers

• Drilling and Evaluation (DRE) — Offers managed pressure drilling, drilling services, wireline and drilling fluids, from early well planning through reservoir management; one of the company's three reporting segments.
• Well Construction and Completions (WCC) — Provides tubular running services, cementation products, completions, liner hangers and well services for well integrity across the well life cycle; one of the three reporting segments.
• Production and Intervention (PRI) — Offers reservoir stimulation designs, intervention services and drilling tools, artificial lift, digital solutions, sub-sea intervention and pressure pumping in select markets; one of the three reporting segments.
• Geographic demand exposure — Revenue tracks customer exploration and production spending, which the company ties to oil and natural gas prices and rig counts; Q2 2026 results were affected by Middle East disruption from the Iran Conflict.

Recent performance

Second quarter 2026 revenue was $1,105 million, down 4% sequentially and 8% year-over-year. Operating income was $107 million, down 13% sequentially and 55% year-over-year, and net income was $39 million, a 3.5% margin, down 64% sequentially. Adjusted EBITDA was $223 million at a 20.2% margin, down 4% sequentially. Cash provided by operating activities was $175 million and adjusted free cash flow was $139 million, up 64% sequentially. The company returned $36 million to shareholders in the quarter via $20 million of dividends and $16 million of repurchases.

Strategy

Weatherford is pursuing portfolio strengthening and structural simplification, including a definitive merger agreement signed May 31, 2026 to acquire NCS Multistage Holdings, Inc. in a stock-and-cash transaction expected to close in the second half of 2026. It plans two shareholder meetings on September 3, 2026 to consider redomesticating the parent from Ireland to Delaware, expected to complete in the fourth quarter of 2026 after an earlier Texas proposal failed to receive requisite approval despite over 60% support. Management expects at least $15 million of cost synergies from NCS Multistage and $20 to $30 million of annual cash savings from the redomestication and related restructuring. The company maintains a shareholder returns program announced in 2024 with regular quarterly dividends and authorization to repurchase up to $500 million of shares over three years.

Risks

• Customer capital spending cycles — Demand is tied to exploration and production spending by oil and gas companies, which is greatly affected by oil and natural gas price volatility and the availability and cost of capital.
• Geopolitical and Middle East disruption — The Iran Conflict has adversely impacted exploration and production spending in the Middle East, disrupted global energy supplies and supply chains, and created short-term activity headwinds for the company.
• Acquisition integration — The planned NCS Multistage acquisition may not achieve anticipated benefits or cost savings, and integration risks include loss of key customers and diversion of management attention.
• Dividend and buyback discretion — Dividends and share repurchases are authorized and determined by the Board at its sole discretion and depend on financial results, cash requirements, covenants and other factors, with no assurance of continuation at current levels.

Outlook

Management said the Middle East situation remains volatile and creates short-term activity headwinds, with a return to pre-conflict operating levels expected to be gradual and contingent on continued regional stability and no further geopolitical escalation. The second half 2026 outlook was adjusted to reflect these dynamics, and total year outlook slightly reduced. Management expects the second half to represent a significant ramp up in margin contribution versus the first half. It also cited an improved outlook on cash conversion and expects the NCS acquisition and redomestication to contribute cost synergies and annual cash savings.