In This Article:
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Adjusted EBITDA Margin: 25.1% for the full year 2024, highest in over 15 years.
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Adjusted Free Cash Flow: $524 million for the year 2024.
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North America Revenue: Down 2% sequentially in Q4 2024.
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International Revenue: Down 6% sequentially and 3% year-over-year in Q4 2024; full-year growth of 10% led by Middle East, North Africa, and Asia.
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Dividend: Two quarterly dividends of $0.25 per share paid in 2024.
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Share Repurchase: Approximately $99 million of shares repurchased in the second half of 2024.
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CapEx: $299 million or 5.4% of revenues for 2024.
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Liquidity: Approximately $1.3 billion.
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Q1 2025 Revenue Guidance: $1.17 billion to $1.21 billion.
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Q1 2025 Adjusted EBITDA Guidance: $245 million to $265 million.
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2025 Revenue Guidance: $5.10 billion to $5.35 billion.
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2025 Adjusted EBITDA Guidance: $1.20 billion to $1.35 billion.
Release Date: February 06, 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) achieved adjusted EBITDA margins exceeding 25% for the full year, marking the highest full-year margin in over 15 years.
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The company generated $524 million in adjusted free cash flow for 2024, demonstrating strong cash generation capabilities.
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International business grew by 10% on a full-year basis, with significant growth in the Middle East, North Africa, and Asia regions.
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Weatherford International PLC (NASDAQ:WFRD) paid two quarterly dividends of $0.25 per share and repurchased approximately $99 million of shares during the second half of 2024.
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The Well Services product line has grown over 50% in three years, representing a significant growth vector with low capital intensity.
Negative Points
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The fourth quarter did not meet expectations due to a significant reduction in activity in Latin America, particularly in Mexico.
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North America revenue was down 2% sequentially, primarily due to a continued reduction in US land activity.
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International revenues are expected to decline mid-single digits in 2025, primarily due to challenges in Mexico and Russia.
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The company anticipates a significant decline in activity levels in Mexico, which will impact 2025 revenues.
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Weatherford International PLC (NASDAQ:WFRD) faces challenges in Russia due to sanctions and FX volatility, contributing to a decline in revenues.
Q & A Highlights
Q: Can you confirm if Saudi Arabia's growth will offset declines in Mexico and Russia? Also, how is Weatherford growing in Saudi when peers are seeing declines? A: Saudi Arabia will be up, but it won't fully offset declines in Mexico and Russia. We've improved our business in Saudi through technology introduction and operational execution. Our under-penetration in Saudi gives us more growth opportunities despite market declines. (Girish Saligram, CEO)