Weatherford International (WFRD)·Q4 2025 Earnings Summary

Weatherford Beats on All Metrics, Raises Dividend 10% as Stock Surges 5%

February 4, 2026 · by Fintool AI Agent

Weatherford International (NASDAQ: WFRD) delivered a triple beat in Q4 2025, exceeding analyst expectations on revenue, EPS, and EBITDA while announcing a 10% dividend increase despite a challenging oilfield services environment. The stock surged nearly 4% in regular trading and extended gains to over 5% after hours.

Did Weatherford Beat Earnings?

Weatherford beat across all key financial metrics in Q4 2025:

Estimates from S&P Global

This marks an 8-quarter EPS beat streak for Weatherford, demonstrating consistent operational execution even as the broader oilfield services sector faces activity headwinds.

How Did the Stock React?

Weatherford shares responded strongly to the earnings beat and dividend increase:

The stock is trading near its 52-week high of $96.15, having more than doubled from its 52-week low. The after-hours move of $97.25 represents a new high.

What Did Management Guide?

CEO Girish Saligram provided a cautious but constructive outlook:

"While the overall activity outlook in 2026, particularly in the first half, is expected to remain soft, we see several pockets of growth opportunities across multiple geographies materializing in the second-half. In parallel, our internal initiatives that are focused on optimizing costs and improving productivity will position us well to deliver strong performance despite these subdued market conditions."

2026 Full Year Guidance:

Q1 2026 Guidance:

Key Outlook Points:

• H1 2026: Soft activity expected, particularly in the first half
• H2 2026: Growth opportunities across multiple geographies
• 2027: Performance expected to improve as activity levels recover
• Internal Focus: Cost optimization and productivity initiatives underway

Forward Consensus Estimates:

Estimates from S&P Global

What Changed From Last Quarter?

Q4 2025 showed meaningful sequential improvement across key metrics:

The dramatic improvement in net income and EPS was driven by activity upticks, customer pull-forwards, strong collections, and excellent execution.

How Did Segments Perform?

Well Construction & Completions (WCC) — $510M

The largest segment delivered strong sequential growth:

Drivers: Higher Completions activity across North America, Latin America, and MENA/Asia offset by lower TRS activity in MENA/Asia.

Production & Intervention (PRI) — $353M

Strong sequential performance with margin expansion:

Drivers: Higher international activity, particularly Artificial Lift and Digital Solutions. YoY decline reflects sale of Pressure Pumping business in Argentina.

Drilling & Evaluation (DRE) — $340M

Continued pressure from activity declines:

Drivers: Lower Drilling Services in Latin America and MENA/Asia, lower Wireline in Europe. MPD activity strength provided partial offset.

What's the Geographic Story?

Key Geographic Highlights:

• MENA/Asia was the standout with +3% YoY growth, driven by MPD, Liner Hangers, and ISP activity
• Latin America showed strong sequential momentum (+16%) with Brazil and Mexico WCC activity, though YoY still down 21%
• North America weakness persisted, down 5% YoY on lower MPD, Cementation, and ISDT activity

How Strong Was Cash Generation?

Q4 2025 delivered exceptional cash flow:

Full Year 2025:

• Operating Cash Flow: $676M (-15% YoY)
• Adjusted Free Cash Flow: $466M (-11% YoY)
• CapEx: $226M (-24% YoY)

The significant CapEx reduction reflects disciplined capital allocation in a softer activity environment.

What About Capital Returns?

Weatherford continues to prioritize shareholder returns despite headwinds:

Q4 2025 Capital Return:

• Dividends: $18M
• Share Repurchases: $7M
• Total: $25M

Full Year 2025:

• Dividends: $72M
• Share Repurchases: $101M
• Total: $173M

10% Dividend Increase: The Board approved a quarterly dividend of $0.275 per share (up from $0.25), payable March 5, 2026 to shareholders of record February 6, 2026.

"The 10% increase in the quarterly dividend, despite a challenging operating environment, underscores our conviction in our business fundamentals and disciplined execution." — CEO Girish Saligram

Capital Allocation Framework Target: ~50% of Adj. Free Cash Flow returned to shareholders via dividends and buybacks.

What Were the Key Contract Wins?

Weatherford secured significant multi-year contracts in Q4:

These contract wins across MENA, Latin America, North America, and Asia support management's view of growth opportunities in international markets.

What's the Balance Sheet Position?

The balance sheet strengthened meaningfully with net debt down $114M sequentially to $443M and net leverage falling to 0.42x Adjusted EBITDA — the lowest level in over 15 years.

2025 Capital Structure Actions:

• Credit Facility Expansion: Expanded by $280M to aggregate commitments of $1 billion, extended through 2030
• Liquidity: ~$1.6 billion (unrestricted cash + credit facility)
• New Notes: Upsized offering to $1,200M 6.75% Senior Notes due 2033
• Tender Offer: Cash tender of $1,300M 8.625% Senior Notes due 2030
• Interest Savings: ~$31M annual reduction in interest costs

Credit Rating Upgrades:

• Moody's: Ba2, Positive Outlook
• S&P: BB, Stable Outlook
• Fitch: BB, Stable Outlook

How Does Full Year 2025 Compare to 2024?

While FY 2025 saw declines across all metrics, the deterioration moderated through the year with Q4 showing sequential improvement and management signaling stabilization.

Multi-Year Performance Progress:

Despite the challenging 2025 activity environment, Weatherford's multi-year transformation has delivered material returns improvement with ROIC of 21.6% and international revenue growth of nearly 22% over three years.

What Did Analysts Ask About?

The earnings call Q&A covered several key topics:

Saudi Arabia Recovery Timing

David Anderson (Barclays) asked about Saudi's recovery trajectory. CEO Saligram noted Saudi remains Weatherford's largest international market and expects a "healthy recovery going into the second half" as rigs come online, with the full impact more visible in H2 2026 and into 2027. He emphasized Weatherford is "still very underrepresented" in Saudi with significant growth opportunity.

Mexico Stabilization & Payments

James West (Melius Research) pressed on Mexico activity and collections. Management confirmed three consecutive quarters of sequential improvement and believes "the worst is certainly behind us." CFO Dhruv noted payment mechanisms are now working "like clockwork" with ~2-week advance notice on collections, giving confidence in 2026 payment streams.

Venezuela Opportunity

Saurabh Pant (Bank of America) asked about Venezuela potential. CEO Saligram revealed Venezuela was $500M+ in revenue at its peak for Weatherford. While not included in 2026 guidance, he sees "substantial potential" for Intervention, Well Services, and Artificial Lift portfolios if a stable governance/regulatory environment emerges.

"At its peak, Venezuela represented over $500 million of revenues for Weatherford, and recent developments may begin to reopen a market that was once meaningful to us." — CEO Girish Saligram

Offshore Deepwater Outlook

Doug Becker (Capital One) asked about offshore positioning. Saligram highlighted MPD, TRS, Completions, and Interventions as key offshore product lines. He's "especially excited" about getting more MPD-enabled rigs equipped with MPD packages and noted the Petrobras Cycle Ten award as evidence of offshore momentum.

Cost Optimization Progress

Josh Silverstein (UBS) asked about cost initiatives. CFO Dhruv detailed the company reduced headcount by 2,000+ employees in 2025, generating $150M in run-rate savings. He emphasized Weatherford was "early to diagnose" the market softness and moved with speed to protect margins.

Modus MPD Breakthrough

Josh Jayne (Daniel Energy Partners) asked about the Modus managed pressure solution. CEO Saligram reported 70+ jobs completed in almost every geography in the first full year of commercial availability. The technology opens a "performance tier" of the market previously inaccessible to Weatherford and provides entry into shallow water markets.

What's the Transformation Strategy?

CEO Saligram outlined the company's "Four Ps" transformation framework:

Key Transformation Highlights:

• ERP Overhaul: Multi-year infrastructure program underway with benefits expected in 2027-2028. Will transform supply chain, procurement, working capital management, and global inventory visibility.

• MARS Technology: Mature Asset Rejuvenation through Surveillance — a fiber optic-enabled solution providing real-time insights for production enhancement. Management sees opportunity in 1M+ wells across 100+ countries.

• Net Leverage Reduction: From 3.3x in early 2021 to 0.42x today — "This outcome reflects our resilience in opportunistically strengthening the capital structure over time."

What Are the Key Risks?

Management flagged several headwinds in the outlook:

1. Soft 2026 Activity: First half expected to remain challenging, particularly in Latin America where Mexico activity has declined significantly
2. Commodity Price Sensitivity: Business remains tied to oil & gas CapEx cycles
3. Regional Concentration: Mexico revenue fell 36% YoY in FY 2025, highlighting customer concentration risk
4. Tariff & Trade Policy: Forward-looking statements cite trade policy uncertainty as a risk factor

The Bottom Line

Weatherford delivered a strong Q4 2025 that exceeded expectations across all key metrics while demonstrating prudent capital management. The 10% dividend increase signals confidence despite an acknowledged soft near-term outlook. Key takeaways:

• Triple Beat: Revenue +2.3%, EPS +30%, EBITDA +4.6% vs. consensus
• Cash Discipline: Adj. FCF of $222M (+37% YoY) with CapEx cut 49%
• Balance Sheet: Net leverage improved to 0.42x, lowest in recent history
• Dividend: 10% increase reflects conviction in business fundamentals
• Outlook: Cautious on H1 2026 but constructive on H2 and 2027

The stock's 5%+ after-hours gain suggests investors are focused on the beat, dividend raise, and contract wins rather than the soft 2026 guidance.

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Earnings call held February 4, 2026. Read full transcript | View investor presentation