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1. Company Snapshot

1.a. Company Description

Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide.The company operates in two segments, Western Hemisphere and Eastern Hemisphere.It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing, cementing, and coiled-tubing intervention; and drill stem test tools, surface well testing, and multiphase flow measurement services.


The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services.In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high-temperature and high-pressure sensors, drilling reamers, and circulation subs; rotating control devices and advanced automated control systems, as well as closed-loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open hole and cased-hole logging services; and intervention and remediation services.Further, the company provides tubular handling, management, and connection services; and re-entry, fishing, wellbore cleaning, and well abandonment services, as well as patented bottom hole, tubularhandling equipment, pressure-control equipment, and drill pipe and collars.


The company was incorporated in 1972 and is based in Houston, Texas.

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1.b. Last Insights on WFRD

Weatherford International's recent momentum is driven by its Q4 earnings beat, with quarterly earnings of $1.91 per share surpassing the Zacks Consensus Estimate of $1.42 per share. The company's dividend payout has also increased by 10%, demonstrating its commitment to shareholder value. Additionally, institutional investors such as SG Americas Securities LLC and Cooke & Bieler LP have bolstered their positions in the company, with the former increasing its stake by 98.9% and the latter by 6.0%. According to MarketBeat, the company has an average recommendation of "Moderate Buy" from analysts.

1.c. Company Highlights

2. Weatherford International's Q4 2025 Results Exceed Expectations

Weatherford International reported a strong Q4 2025, with revenues growing 5% sequentially, driven by higher activity in Latin America. The company's adjusted EBITDA margins were 22.6%, representing a sequential improvement of 74 basis points. The earnings per share (EPS) came in at $1.91, significantly beating analyst estimates of $1.42. Free cash flow conversion was 76%, with adjusted free cash flow of $222 million. For the full year, the company returned $173 million to shareholders through dividends and share repurchases.

Publication Date: Feb -14

📋 Highlights
  • Sequential Revenue Growth:: 5% increase driven by Latin America, with WCC and PRI segments leading growth in completions and artificial lift.
  • EBITDA Margin Improvement:: Adjusted EBITDA margins rose 74 bps to 22.6%, despite macro headwinds, reflecting operational efficiency.
  • Free Cash Flow Generation:: 76% conversion ratio, producing $222M adjusted free cash flow and $173M returned to shareholders in 2025.
  • 2026 Guidance:: Full-year revenue projected at $4.6–$5.05B and adjusted EBITDA of $980M–$1.12B, with 40–45% free cash flow conversion.
  • Cost Optimization & CapEx Focus:: $150M cost cuts in 2025, 2026 CapEx of $190–$230M prioritizing IT, and $21%+ annual EBITDA margin target maintained.

Segment Performance

The company's revenue growth was driven by its WCC and PRI segments, with strong performance in completions and artificial lift. Despite macro headwinds, the company's EBITDA margins improved, and it generated significant free cash flow. The company's balance sheet was also fortified, with improvements in leverage, interest costs, credit ratings, and total liquidity.

Outlook for 2026

Looking ahead to 2026, the company expects customer spending to increase, but with legacy pricing variability needing to be mitigated. North America spending is expected to decline, while the international outlook is a tale of two halves, with the first half experiencing seasonal declines and the second half seeing noticeable growth. The company expects 2026 international activity levels to be flat to slightly down compared to the prior year.

Margin Expansion and Cash Flow Generation

The company is taking proactive measures to strengthen margins, including cost optimization efforts and investments in digital platforms and artificial intelligence. With a current P/E Ratio of 16.9 and EV/EBITDA of 8.23, the company's valuation appears reasonable, considering its strong cash flow generation and return on invested capital (ROIC) of 16.68%. Analysts estimate next year's revenue growth at 5.0%, which is in line with the company's guidance.

Operational Highlights

The company is making structural changes to complement potential future tailwinds, with a focus on continuous improvement and evaluating its portfolio to drive changes in revenue mix over time. The new ERP system will provide automation, AI enablement, and seamless integration, allowing the company to navigate cycles differently. The Modus Managed Pressure Wells Solution has seen success, with 70 jobs in almost every geography, and is expected to drive growth in 2026 and beyond.

3. NewsRoom

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Weatherford International PLC (NASDAQ:WFRD) Receives Average Recommendation of “Moderate Buy” from Analysts

Feb -14

Source: defenseworld.net

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Weatherford Awarded Multi-Year Integrated Completions Contract in Denmark

Feb -12

Source: globenewswire.com

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Girish Saligram Sells 100,000 Shares of Weatherford International (NASDAQ:WFRD) Stock

Feb -12

Source: defenseworld.net

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Weatherford International plc (WFRD) Q4 2025 Earnings Call Transcript

Feb -04

Source: seekingalpha.com

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Weatherford (WFRD) Surpasses Q4 Earnings and Revenue Estimates

Feb -03

Source: zacks.com

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Weatherford Announces Fourth Quarter and Full Year 2025 Results

Feb -03

Source: globenewswire.com

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Weatherford International PLC $WFRD Holdings Decreased by Federated Hermes Inc.

Jan -29

Source: defenseworld.net

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Weatherford Announces Quarterly Dividend, Increases Payout by 10%

Jan -27

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.77%)

6. Segments

Well Construction and Completions

Expected Growth: 5.5%

Weatherford International plc's Well Construction and Completions segment growth of 5.5% is driven by increasing demand for drilling and completion services, driven by rising oil prices, growing shale gas production, and increasing investment in exploration and production activities. Additionally, the company's focus on technology innovation, operational efficiency, and strategic partnerships also contribute to the segment's growth.

Drilling and Evaluation

Expected Growth: 5.8%

Weatherford International plc's Drilling and Evaluation segment growth of 5.8% is driven by increasing demand for drilling services, improved operational efficiency, and strategic investments in digital technologies. Additionally, the company's focus on expanding its presence in the Middle East and North Africa regions, as well as its efforts to enhance its well construction and completion offerings, are contributing to the segment's growth.

Production and Intervention

Expected Growth: 6.2%

Weatherford International plc's 6.2% growth in Production and Intervention is driven by increasing demand for oilfield services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization and automation has improved operational efficiency, leading to cost savings and increased profitability.

All Other

Expected Growth: 5.2%

Weatherford International plc's 5.2% growth in All Other segment is driven by increased demand for drilling and intervention services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization and automation has improved operational efficiency, leading to higher revenue and profitability.

7. Detailed Products

Drilling Services

Weatherford provides drilling services including directional drilling, logging-while-drilling, and measurement-while-drilling to help operators optimize their drilling operations.

Well Construction

Weatherford offers well construction services including cementing, casing and tubing, and completion systems to help operators build and complete wells safely and efficiently.

Intervention and Abandonment

Weatherford provides intervention and abandonment services including coiled tubing, wireline, and abandonment to help operators optimize production and extend the life of their wells.

Production Optimization

Weatherford offers production optimization services including artificial lift, production enhancement, and digital oil field solutions to help operators maximize production and reduce costs.

Reservoir and Geological Services

Weatherford provides reservoir and geological services including reservoir modeling, geological modeling, and petrophysical analysis to help operators understand and optimize their reservoirs.

Digital Oil Field Solutions

Weatherford offers digital oil field solutions including data analytics, IoT, and AI-powered solutions to help operators optimize their operations and reduce costs.

8. Weatherford International plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Weatherford International plc faces moderate threat from substitutes, as there are limited alternatives to its oilfield services. However, the company's focus on innovation and technology helps it to stay ahead of potential substitutes.

Bargaining Power Of Customers

Weatherford International plc's customers, primarily oil and gas companies, have significant bargaining power due to their large scale of operations and ability to negotiate prices.

Bargaining Power Of Suppliers

Weatherford International plc has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's scale of operations also gives it negotiating power over suppliers.

Threat Of New Entrants

The threat of new entrants in the oilfield services industry is low due to high barriers to entry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The oilfield services industry is highly competitive, with several established players competing for market share. Weatherford International plc faces intense rivalry from companies such as Schlumberger, Halliburton, and Baker Hughes.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 69.03%
Debt Cost 9.96%
Equity Weight 30.97%
Equity Cost 13.08%
WACC 10.92%
Leverage 222.94%

11. Quality Control: Weatherford International plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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USA Compression Partners

A-Score: 6.8/10

Value: 6.0

Growth: 5.2

Quality: 5.9

Yield: 10.0

Momentum: 6.0

Volatility: 7.7

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Archrock

A-Score: 5.6/10

Value: 3.9

Growth: 4.9

Quality: 5.9

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

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NOV

A-Score: 5.4/10

Value: 7.7

Growth: 5.4

Quality: 5.0

Yield: 4.0

Momentum: 5.0

Volatility: 5.0

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Liberty Energy

A-Score: 5.0/10

Value: 7.8

Growth: 8.1

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 2.3

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Weatherford

A-Score: 4.7/10

Value: 5.9

Growth: 7.2

Quality: 6.1

Yield: 1.0

Momentum: 4.0

Volatility: 4.0

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Cactus

A-Score: 4.4/10

Value: 5.5

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

104.85$

Current Price

104.85$

Potential

-0.00%

Expected Cash-Flows