In This Article:
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Adjusted Free Cash Flow: $66 million for Q1 2025.
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Adjusted EBITDA Margin: 21.2% for Q1 2025.
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Share Repurchase: Approximately $53 million worth of shares repurchased in Q1 2025.
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Dividend: $0.25 per share for the third consecutive quarter.
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Net Leverage Ratio: 0.5x.
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Liquidity: Approximately $1.3 billion.
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Q2 2025 Revenue Guidance: $1.165 billion to $1.195 billion.
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Q2 2025 Adjusted EBITDA Guidance: $245 million to $265 million.
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2025 Revenue Guidance: $4.6 billion to $5 billion.
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2025 Adjusted EBITDA Guidance: $975 million to $1.1 billion.
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CapEx for Q1 2025: $77 million.
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Net Working Capital Efficiency: Improved to 25.2% in Q1 2025 from 26.1% in Q1 2024.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Weatherford International PLC (NASDAQ:WFRD) reported adjusted free cash flow of $66 million for the first quarter, demonstrating strong collections and financial discipline.
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The company achieved adjusted EBITDA margins of 21.2% despite lower revenues, indicating effective cost management.
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Weatherford International PLC (NASDAQ:WFRD) has successfully paid three quarterly dividends of $0.25 per share and repurchased approximately $152 million worth of shares over the past three quarters.
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The company reported year-on-year growth in the Middle East and Asia regions, showcasing resilience and stability in these markets.
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Weatherford International PLC (NASDAQ:WFRD) continues to win high-impact contracts across key regions, demonstrating the strength of its technology and customer trust.
Negative Points
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Activity levels in key segments and geographies, such as Mexico and North America, have softened, impacting overall performance.
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The company expects a significant decline in Mexico's activity, down around 60% year-on-year, which is worse than previously anticipated.
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North America revenues are expected to decline high single to mid-double digits year-on-year, reflecting a challenging market environment.
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Recent US tariffs and retaliatory tariffs have added significant uncertainty to the market, potentially causing demand destruction in the short to mid-term.
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Weatherford International PLC (NASDAQ:WFRD) has reduced its headcount by over 1,000 and annualized personnel expenses by over $100 million, indicating cost-cutting measures in response to market conditions.
Q & A Highlights
Q: Could you walk us through how some of the key countries in MENA are trending? Are those IOCs contemplating any shifts to plans? A: Girish Saligram, President and CEO, explained that while there is uncertainty, international markets, particularly MENA, tend to be more stable. He noted that Saudi Arabia has been reducing rig counts, but Weatherford believes it can still grow its business there unless there is another significant ramp down. Other regions like Kuwait, UAE, and Oman show robust spending patterns, and positive signs are emerging from Iraq.