Executive Summary

Q2 2025 revenue of $1.20B rose 1% sequentially but fell 14% YoY; adjusted EBITDA margin was 21.1% (flat sequentially), and diluted EPS was $1.87, with net income margin of 11.3% .
Versus Wall Street consensus (S&P Global), Weatherford delivered a revenue beat (~$35M, ~~3%) and a Primary EPS beat (~~$0.15), while guidance for Q3 and full-year 2025 was tightened with midpoints unchanged; dividend maintained at $0.25 . Values retrieved from S&P Global.
Call commentary highlighted headwinds: tariffs pressuring margins and demand, Saudi softness, and minimal Mexico cash collections; still, liquidity reached ~$1.3B, net leverage ~0.49x, and adjusted free cash flow conversion improved sequentially .
Strategic actions: Argentina pressure pumping divestiture (benefited capital efficiency), MPD multi‑year deepwater award at Woodside Trion, and AWS digital modernization partnership—supporting technology-led differentiation and cash-focused execution .

What Went Well and What Went Wrong

What Went Well

“Despite structural headwinds, the One Weatherford team delivered second-quarter results in line with expectations… Revenues increased and adjusted EBITDA was flat despite the previously announced divestiture of certain businesses in Argentina” .
Free cash flow conversion improved (adjusted FCF $79M; conversion ~31%), with liquidity at ~$1.3B and net leverage ~0.49x, underscoring balance sheet strength and capital return capacity .
Commercial momentum: multi-year MPD award for Woodside Trion in Mexico and contract wins/renewals across bp UK, Aramco, Petrobras, OMV, and others; AWS agreement to modernize platforms, enabling data-driven operations .

What Went Wrong

Activity slowdown across core markets drove YoY declines: total revenue −14%, DRE revenue −22% YoY, WCC −10% YoY, PRI −11% YoY; EBITDA margins compressed YoY across segments .
Latin America revenue −19% sequentially and −45% YoY, with Argentina divestiture effects and Mexico payment delays building receivables; management noted minimal Q2 Mexico collections and uncertainty on timing .
Tariff-driven margin dilution and pricing pressure, notably in DRE service businesses and U.S. land; management expects softness in Saudi and flattish near-term revenue trajectory .

Financial Results

Headline P&L, EPS, Margins

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$1,341	$1,193	$1,204
Operating Income ($USD Millions)	$198	$142	$237
Net Income Attributable to Weatherford ($USD Millions)	$112	$76	$136
Diluted EPS (GAAP) ($)	$1.50	$1.03	$1.87
Adjusted EBITDA ($USD Millions)	$326	$253	$254
Adjusted EBITDA Margin (%)	24.3%	21.2%	21.1%
Net Income Margin (%)	8.4%	6.4%	11.3%

YoY vs Q2 2024	Q2 2025
Revenue YoY (%)	−14%
Operating Income YoY (%)	−10%
Net Income Margin YoY (bps)	+240 bps
Adjusted EBITDA YoY (%)	−30%
Adjusted EBITDA Margin YoY (bps)	−488 bps
Diluted EPS YoY (%)	+13%

Seq vs Q1 2025	Q2 2025
Revenue Seq (%)	+1%
Operating Income Seq (%)	+67%
Net Income Margin Seq (bps)	+493 bps
Adjusted EBITDA Seq	Flat; −11 bps margin
Diluted EPS Seq (%)	+81%

Notes: Q2 GAAP results include a $70M Gain on Sale of Business affecting operating income and net income; Adjusted EBITDA excludes this item .

Segment Breakdown

Segment	Q2 2024	Q1 2025	Q2 2025
DRE Revenue ($MM)	$427	$350	$335
DRE Segment Adj EBITDA ($MM)	$130	$74	$69
DRE Segment Adj EBITDA Margin (%)	30.4%	21.1%	20.6%
WCC Revenue ($MM)	$504	$441	$456
WCC Segment Adj EBITDA ($MM)	$145	$128	$118
WCC Segment Adj EBITDA Margin (%)	28.8%	29.0%	25.9%
PRI Revenue ($MM)	$369	$334	$327
PRI Segment Adj EBITDA ($MM)	$85	$62	$63
PRI Segment Adj EBITDA Margin (%)	23.0%	18.6%	19.3%

Geography Breakdown

Geography	Q2 2024	Q1 2025	Q2 2025
North America Revenue ($MM)	$252	$250	$241
International Revenue ($MM)	$1,153	$943	$963
Latin America ($MM)	$353	$241	$195
MENA/Asia ($MM)	$542	$503	$524
Europe/SSA/Russia ($MM)	$258	$199	$244

KPIs and Cash

KPI	Q4 2024	Q1 2025	Q2 2025
Cash from Operations ($MM)	$249	$142	$128
Adjusted Free Cash Flow ($MM)	$162	$66	$79
Capital Expenditure ($MM)	$100	$77	$54
Total Cash (Cash + Restricted) ($MM)	$975	$930	$1,003
Total Debt ($MM)	$1,634	$1,605	$1,591
Net Debt ($MM)	$659	$675	$588
Net Leverage (Net Debt/TTM Adj EBITDA) (x)	0.48x	0.52x	0.49x

Results vs Wall Street Consensus (S&P Global)

Metric	Q2 2025 Consensus	Q2 2025 Actual
Revenue ($MM)	$1,169*	$1,204
Primary EPS ($)	$1.01*	$1.1549*

Values retrieved from S&P Global. Note: Weatherford reports GAAP diluted EPS of $1.87; “Primary EPS” per S&P Global is a normalized definition and differs from GAAP diluted EPS .

Guidance Changes

Metric	Period	Previous Guidance (Q1 Call)	Current Guidance (Q2 Call)	Change
Revenue ($B)	Q2 2025	$1.165–$1.195	Actual delivered $1.204	Beat vs guide range top
Revenue ($B)	Q3 2025	N/A	$1.165–$1.195	New guide (modestly down QoQ)
Adj EBITDA ($MM)	Q3 2025	N/A	$245–$265	New guide
Revenue ($B)	FY 2025	$4.6–$5.0	$4.7–$4.9	Tightened; midpoint maintained
Adjusted EBITDA ($B)	FY 2025	$0.975–$1.10	$1.015–$1.06	Tightened; midpoint maintained
FCF Conversion (bps YoY)	FY 2025	+100–200	+100–200	Maintained
Effective Tax Rate	FY 2025	Mid‑20%	~20% range	Lowered
Capex (% of Revenue)	FY 2025	3%–5%	3%–5% (trending down)	Maintained
Dividend	Quarterly	$0.25 approved (June 5)	$0.25 approved (Sep 4)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Tariffs/Macro	Q1: Tariff uncertainty; could reduce demand and margins; prudent guidance	Expect greater tariff impact in 2H; margin dilution, pricing pressure noted	Deteriorating into 2H
Saudi/Regional Activity	Q4/Q1: Saudi rig count down; still opportunities; mixed MENA outlook	Saudi softness to persist; Q3 down vs Q2; earliest recovery 2H26	Softer near-term
Mexico Collections	Q1: Down ~60% YoY; collections key FCF risk	Minimal Q2 payments; expect ramp in 2H but timing uncertain	Timing uncertain
Cost Actions/Productivity	Q1: Headcount −1,000; annualized personnel −$100M; multi-year productivity 25–75 bps/yr	Additional $11M restructuring; aim for sustainable cost reductions, systems/automation	Ongoing execution
Balance Sheet/Refi	Q4: Net leverage ~0.48x, cash ~$975M	Liquidity ~$1.3B; net leverage ~0.49x; open-market note buys; potential 2030 refi post step-down	Strengthening / optionality
AI/Digital Initiatives	Q1: AIQ partnership; digital viewed as efficiency lever	AWS agreement: Modern Edge, Unified Data Model, Launchpad	Expanding
MPD/Technology	Q4: KOC MPD; deepwater solutions	Woodside Trion multi‑year MPD award; deepwater pipeline interest	Strengthening pipeline

Management Commentary

CEO tone: “We anticipate a relatively flat trajectory on revenues for the immediate future… focused on driving adjusted free cash flow conversion through portfolio optimization, structural cost efficiencies, optimization of working capital, and CAPEX efficiency” .
On regional dynamics: “The market in the Kingdom of Saudi Arabia has softened… while we achieved sequential growth in Q2, we think it will continue to be soft as we go through the rest of this year” .
On Mexico: “We are hopeful that the second half will see a significant change… but it is very unclear as to the precision of timing… guidance did not anticipate a significant bolus of payments” .
On cost and margins: “We expect to deliver EBITDA margins in the low 20% range this year… even with a potential annualized double-digit revenue decline” .
Strategic direction: Digital modernization (AWS), technology leadership in MPD and completions, and disciplined capital allocation with sustainable dividend and opportunistic buybacks .

Q&A Highlights

Saudi outlook: Rig count declines drive softness; WFRD is leveraging technology introduction and close partnership with Aramco; recovery more likely 2H26 .
U.S. land tariffs: Pre‑tariff inventory supported Q2; Q3 expected down with tariff impact and potential dilution; WFRD will defend margins and avoid chasing price .
Mexico payments: Activity stabilized at lower levels; expect 2H payment improvement but timing uncertain; guidance excludes substantial bolus .
FY trajectory: Q4 implied ramp from project start-ups and seasonality, though muted by tariffs; orders in hand support visibility .
M&A and portfolio: Robust pipeline focused on well construction/production; disciplined returns/cash accretion; Argentina divestiture improved capital efficiency .
Balance sheet strategy: Continued opportunistic note repurchases; considering refinancing after October step‑down to resize towers, extend maturities, and reduce interest .

Estimates Context

Period	Revenue Consensus ($MM)	Revenue Actual ($MM)	Primary EPS Consensus ($)	Primary EPS Actual ($)
Q2 2025	$1,169*	$1,204	$1.01*	$1.1549*

Weatherford beat revenue and Primary EPS vs S&P Global consensus in Q2 2025; analysts may tighten FY ranges in line with management’s unchanged midpoints but narrowed bands and lower tax rate (~20%) .
Q3 2025 guidance ($1.165–$1.195B revenue; $245–$265M adjusted EBITDA) aligns near consensus revenue (~$1,178MM*) and suggests slight margin uptick from Q2; tariff and Saudi headwinds are key swing factors . Values retrieved from S&P Global.

Values retrieved from S&P Global.

Key Takeaways for Investors

Weatherford executed well in a softer market: revenue/Primary EPS beat, resilient 21% EBITDA margins, and improved free cash flow conversion; GAAP EPS benefited from a $70M gain on sale—focus on adjusted metrics for operating trend .
Near-term setup: Q3 guide modestly down with tariff and Saudi headwinds, but project start-ups support an implied Q4 ramp; expect flattish 2H revenue trajectory .
Balance sheet and capital returns support downside protection: ~$1.3B liquidity, ~0.49x net leverage, continued buybacks/dividend; optionality to refinance 2030 notes to lower interest and extend maturities .
Regional mix shift: Latin America remains pressured (Argentina divestiture, Mexico payments), while Europe/SSA/Russia rebounded sequentially; MENA/Asia solid but price pressure in service lines .
Technology differentiation is a structural positive: deepwater MPD leadership (Woodside Trion), AWS digital modernization, and continued product innovation should support share and margin resilience through the cycle .
Watch catalysts: tariff clarity, Mexico payment timing, Saudi activity path, and Q4 project ramps; these will drive estimate revisions and stock reaction.
FY 2025 guide band tightened (midpoint unchanged): revenue $4.7–$4.9B, adjusted EBITDA $1.015–$1.06B; effective tax rate lowered to ~20%—a modest EPS tailwind if sustained .

Additional Supporting Press Releases

Dividend: $0.25 per share payable Sep 4, 2025; shareholder returns in Q2 totaled $52M (dividends $18M + share repurchases $34M) .
Woodside Trion MPD award: multi-year deepwater contract, deploying Victus™ intelligent MPD system .
AWS agreement: modernization of Modern Edge Platform and Unified Data Model; enhances Software Launchpad with data control and integration flexibility .

Weatherford International plc (WFRD)·Q2 2025 Earnings Summary