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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 plc's recent performance has been driven by several positive factors. The company has launched innovative products, such as Weatherford Industrial Intelligence, a digital portfolio unveiled at its flagship FWRD 2025 Technology Conference. Additionally, it has expanded its credit facility to $1 billion, enhancing its financial flexibility. Weatherford has also received credit rating upgrades from Moody's, S&P, and Fitch, reflecting its strengthened financial profile. Furthermore, the company has partnered with Maersk Training to develop IADC-accredited Managed Pressure Drilling training programs. Its strong buy rating, as cited by Zacks, also underscores its growth potential.

1.c. Company Highlights

2. Weatherford International's Q3 2025 Earnings: A Resilient Performance Amidst Market Headwinds

Weatherford International reported a robust third-quarter 2025 performance, with revenues coming in at $1.26 billion, slightly above expectations. The company's adjusted EBITDA margin expanded by over 70 basis points, demonstrating its ability to maintain profitability despite a challenging market environment. Earnings per share (EPS) was $1.12, marginally below the estimated $1.15. The company's adjusted free cash flow was $99 million, with a conversion rate of 36.8%. As Girish Saligram, President and CEO, noted, "Despite market headwinds, we delivered strong performance...and adjusted free cash flow of $99 million."

Publication Date: Oct -27

📋 Highlights
  • Q3 Performance Exceeds Expectations: Despite market headwinds and a soft macro environment, results were above expectations.
  • EBITDA Margin Expansion and Adjusted Free Cash Flow: Achieved over 70 bps EBITDA margin growth and $99 million adjusted free cash flow (36.8% conversion).
  • Share Repurchases and Dividends: Repurchased $193 million shares and paid $0.25/share dividends over five quarters under $500 million authorization.
  • High-Impact Contracts Driving Growth: Secured $147 million 3-year Petrobras contract in Brazil and an 8-year Romgaz contract in Romania.

Segmental Performance

North America revenues were slightly up sequentially, driven by a rebound in Canada and improvement in North America offshore, partially offset by a decline in U.S. land. Latin America saw a 10% sequential revenue increase, primarily due to improvements in Mexico. The ESSR region remained relatively flat, while the MENA and Asia region posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand. The company's diversified portfolio and ability to navigate market challenges contributed to its resilience.

Cash Flow and Balance Sheet

Weatherford generated $99 million in adjusted free cash flow, with a 36.8% conversion rate. Net working capital efficiency improved to 29.6% in Q3 2025 from 26.7% in Q2 2025. The company expects fourth-quarter adjusted free cash flow to be at or above third-quarter levels. With a strong balance sheet and a net debt-to-EBITDA ratio of 0.65, Weatherford is well-positioned to weather the current market challenges.

Outlook and Valuation

Weatherford's outlook remains cautious, with customer spending trends uncertain and pricing pressure in certain pockets. However, the company is optimistic about a potential improvement in the second half of 2026, driven by offshore activity and incremental onshore activity. Analysts estimate next year's revenue growth at -1.3%. Weatherford's current valuation metrics, including a P/E ratio of 9.83, P/B ratio of 3.23, and EV/EBITDA of 7.23, suggest that the market is pricing in some level of caution. The company's dividend yield of 1.42% and free cash flow yield of 8.44% may provide a floor for the stock.

Operational Highlights and Future Prospects

The company secured high-impact contracts, including a 3-year $147 million contract with Petrobras in deepwater Brazil, and launched over 20 new products and extensions, driving the next phase of growth based on innovation. With a focus on achieving sustainable productivity gains through technology and lean processes, Weatherford is well-positioned to deliver value to customers and shareholders. The company's commitment to maintaining margins and not chasing market share at unfavorable cash outcomes is expected to drive long-term success.

3. NewsRoom

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Weatherford International PLC (NASDAQ:WFRD) Given Consensus Rating of “Moderate Buy” by Brokerages

Dec -01

Source: defenseworld.net

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Commonwealth of Pennsylvania Public School Empls Retrmt SYS Raises Stake in Weatherford International PLC $WFRD

Nov -24

Source: defenseworld.net

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Best Value Stocks to Buy for Nov. 13

Nov -13

Source: zacks.com

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Best Income Stocks to Buy for Nov. 13

Nov -13

Source: zacks.com

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Best Value Stocks to Buy for Nov. 7

Nov -07

Source: zacks.com

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Earnings Estimates Moving Higher for Weatherford (WFRD): Time to Buy?

Nov -03

Source: zacks.com

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Weatherford and Maersk Training Announce Strategic Partnership to Advance MPD Training, Offering the Industry's First All-Level IADC-Accredited Programs

Oct -27

Source: globenewswire.com

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Weatherford International plc (WFRD) Q3 2025 Earnings Call Transcript

Oct -22

Source: seekingalpha.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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Quality: 5.9

Yield: 1.0

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Volatility: 3.7

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Growth: 7.9

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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

76.43$

Current Price

76.43$

Potential

-0.00%

Expected Cash-Flows