S
Stockadora
View Full Company Profile

Weatherford International plc

CIK: 1603923 Filed: February 4, 2026 10-K

Key Highlights

  • Weatherford achieved strong financial performance in 2025, reporting $5.2 billion in revenue (12% YoY growth) and a significant turnaround to $350 million in net income.
  • The company substantially strengthened its financial health by reducing total long-term debt to $1.5 billion and improving its Net Debt to Adjusted EBITDA ratio to 1.5x.
  • Management projects a cautiously optimistic outlook for 2026, anticipating mid-to-high single-digit revenue growth and further Adjusted EBITDA margin expansion.
  • Weatherford maintains a strong competitive position globally, leveraging its extensive footprint, advanced technology, integrated solutions, and robust client relationships.

Financial Analysis

Weatherford International plc Annual Report - Your Investor's Guide

This investor's guide offers a clear, concise summary of Weatherford International plc's (WFRD) performance for the year ending December 31, 2025. We translate the essential details from their 10-K filing into plain language, helping you understand their business, financial health, and strategic direction.

1. Business Overview

Weatherford International plc (ticker: WFRD) stands as a leading global oilfield services company. It delivers innovative solutions, technology, and services to the worldwide oil and natural gas industry. These offerings span the entire well lifecycle, from drilling and evaluation to completion and production optimization. The company operates globally, serving both national and international oil companies. The SEC recognizes Weatherford as a "large accelerated filer" and a "well-known seasoned issuer," and its shares trade on The Nasdaq Global Select Market, underscoring its significant and established market presence.

2. Financial Performance

For the year ending December 31, 2025, Weatherford delivered solid operational performance, successfully navigating a dynamic energy market. The company reported strong financial results:

  • Total Revenue: $5.2 billion, a healthy 12% increase year-over-year. Growth primarily stemmed from increased activity in international markets and higher demand for their advanced drilling and completion technologies.
  • Net Income: $350 million, marking a significant turnaround from a net loss in the prior year. This reflects improved operational efficiency and cost management.
  • Diluted Earnings Per Share (EPS): $4.88, a positive indicator for shareholders.
  • Adjusted EBITDA: $980 million, up 18% year-over-year, demonstrating improved profitability before non-cash expenses and financing costs.

Additionally, as of June 30, 2025, the company's market capitalization reached approximately $2.7 billion. By January 30, 2026, Weatherford had about 71.7 million ordinary shares outstanding.

3. Risk Factors

Investors should understand the potential risks that could materially affect Weatherford's business, financial condition, and operational results, including:

  • Commodity Price Volatility: Fluctuations in oil and natural gas prices directly impact client spending and demand for Weatherford's services, potentially leading to reduced activity and pricing pressure.
  • Geopolitical and Economic Instability: Operating in various international regions exposes the company to political instability, regulatory changes, social unrest, and economic downturns, potentially disrupting operations, increasing costs, or limiting market access.
  • Competition: The highly competitive oilfield services market demands continuous innovation, technological advancements, and rigorous cost management to maintain market share and profitability against competitors of all sizes.
  • Technological Disruption: Rapid advancements in energy technology, including the transition to cleaner energy sources and new drilling techniques, could impact long-term demand for traditional oilfield services or necessitate significant investment to remain competitive.
  • Environmental Regulations: Stricter environmental regulations, climate change initiatives, and increased scrutiny on environmental, social, and governance (ESG) practices could increase operating costs, restrict drilling activities, or affect the company's social license to operate.
  • Talent Acquisition and Retention: Challenges in recruiting and retaining skilled personnel in a competitive labor market, particularly for specialized technical roles, could hinder operational efficiency and growth.
  • Supply Chain Disruptions: Global supply chain vulnerabilities, including those caused by geopolitical events, natural disasters, or pandemics, could result in increased costs, delays, or shortages of critical materials and equipment.

4. Management Discussion (MD&A Highlights)

Management's discussion focused on the key factors that shaped the company's financial condition and operational results for the year. Weatherford delivered solid operational performance, driven by strategic execution and market recovery in key areas.

Major Wins:

  • International Expansion: Weatherford successfully secured several multi-year contracts in key international regions, particularly in the Middle East and Latin America, significantly driving revenue growth.
  • Technology Adoption: Clients strongly adopted the company's digital solutions and automated drilling technologies, enhancing their efficiency and strengthening Weatherford's competitive edge.
  • Operational Efficiency: The company implemented cost-saving initiatives and optimized its supply chain, contributing to improved profit margins and overall profitability.

Challenges Faced:

  • Geopolitical Volatility: Ongoing geopolitical tensions in certain operating regions created operational uncertainties and supply chain disruptions, which demanded agile management responses.
  • Commodity Price Fluctuations: While generally favorable, periods of oil price volatility impacted client spending decisions and project timelines, requiring flexible operational planning.
  • Talent Acquisition: The company faced challenges in recruiting and retaining skilled personnel in a competitive labor market, requiring focused human capital strategies.

The company's leadership remained stable, concentrating on executing its strategic priorities to enhance shareholder value and strengthen its market position.

5. Financial Health

Weatherford significantly strengthened its financial position during the year, prioritizing debt reduction and enhanced liquidity:

  • Cash and Cash Equivalents: The company ended the year with $750 million in cash, providing a strong liquidity buffer for operations and strategic investments.
  • Total Debt: Weatherford reduced total long-term debt to $1.5 billion, down from $1.8 billion in the prior year, demonstrating a strong commitment to reducing debt and optimizing its balance sheet.
  • Net Debt to Adjusted EBITDA: This ratio improved to 1.5x, indicating a healthier debt profile and improved financial leverage.
  • Operating Cash Flow: The company generated $600 million in cash from operations, highlighting its strong ability to fund operations, reduce debt internally, and support capital expenditures.
  • Current Ratio: Weatherford maintained a healthy current ratio of 1.3x, suggesting strong short-term liquidity and the ability to cover immediate obligations.

6. Future Outlook

Management expressed a cautiously optimistic outlook for 2026, anticipating continued growth in international markets and sustained demand for its specialized technologies. The company projects:

  • Revenue Growth: Mid-to-high single-digit percentage growth for 2026, driven by ongoing international activity and technology adoption.
  • Margin Expansion: Further improvements in Adjusted EBITDA margins, achieved through ongoing operational efficiencies, effective cost management, and a favorable service mix.
  • Capital Allocation: The company will focus on disciplined capital expenditures to support strategic growth initiatives, maintain asset integrity, and continue debt reduction efforts.

Key Strategic Initiatives for the upcoming year include:

  • Digital Transformation: Weatherford will continue investing in digital solutions, automation, and data analytics to enhance operational efficiency, improve service delivery, and create client value.
  • Portfolio Optimization: The company plans to streamline its product and service offerings, focusing on high-margin, technologically advanced solutions that align with evolving industry demands.
  • Sustainability Integration: Weatherford will embed environmental, social, and governance (ESG) principles more deeply into its operations, reporting, and strategic decision-making to meet stakeholder expectations and drive long-term value.
  • Debt Reduction: The company prioritizes further debt reduction to strengthen its balance balance sheet, improve financial flexibility, and reduce interest expense.

7. Competitive Position

Weatherford maintains a strong competitive position as one of the largest global oilfield service providers. The company differentiates itself through several key strengths:

  • Global Footprint: Its extensive international presence allows Weatherford to serve diverse markets and capitalize on regional growth opportunities, particularly in the Middle East, Latin America, and other key basins.
  • Technology & Innovation: Weatherford's significant investment in advanced drilling, evaluation, completion, and production optimization technologies provides clients with differentiated solutions.
  • Integrated Solutions: The company's ability to offer comprehensive, integrated solutions across the entire well lifecycle—from planning and drilling to production and intervention—simplifies operations for clients.
  • Strong Client Relationships: Weatherford has built long-standing relationships with major national and international oil companies, based on a track record of performance and reliability.

Additional Context: Market Trends and Regulatory Changes Affecting Them

Weatherford operates within a dynamic energy landscape shaped by several overarching trends:

  • Energy Transition: The global shift towards lower-carbon energy sources presents both challenges and opportunities. It drives demand for efficiency, emissions reduction technologies, and new energy solutions within traditional oil and gas production.
  • Increased International Activity: Continued growth in oil and gas exploration and production, particularly in regions like the Middle East, Africa, and Latin America, offers significant market opportunities.
  • Digitalization of Oilfield Operations: This growing trend towards automation, artificial intelligence, and data analytics optimizes drilling and production processes. Weatherford actively addresses it through its technology investments.
  • ESG Pressures: Increasing investor and regulatory scrutiny on environmental performance, social responsibility, and corporate governance practices influences operational decisions and investment strategies.

This summary provides a snapshot of Weatherford International plc's performance and outlook. For a complete understanding, always refer to the full 10-K filing.

Risk Factors

  • Commodity Price Volatility: Fluctuations in oil and natural gas prices directly impact client spending and demand for services.
  • Geopolitical and Economic Instability: Operating in various international regions exposes the company to political instability, regulatory changes, and economic downturns.
  • Competition and Technological Disruption: A highly competitive market and rapid advancements in energy technology necessitate continuous innovation and cost management.
  • Environmental Regulations and ESG Pressures: Stricter environmental regulations and increased scrutiny on ESG practices could raise operating costs or restrict activities.
  • Talent Acquisition and Retention: Challenges in recruiting and retaining skilled personnel in a competitive labor market could hinder operational efficiency and growth.

Why This Matters

Weatherford International plc's 2025 10-K filing is crucial for investors as it signals a significant financial turnaround and strengthened balance sheet. The company's shift from a net loss to $350 million in net income, coupled with a healthy 12% revenue increase to $5.2 billion, demonstrates effective operational improvements and a positive response to market dynamics. This indicates that past restructuring efforts are bearing fruit, potentially de-risking the investment and showing a clear path to sustained profitability. The robust 18% growth in Adjusted EBITDA further underscores improved core operational efficiency.

The substantial reduction in long-term debt from $1.8 billion to $1.5 billion, alongside an improved Net Debt to Adjusted EBITDA ratio of 1.5x, is a key highlight. This strengthens the company's financial position, reduces interest expenses, and frees up capital for strategic investments rather than debt servicing. Management's optimistic outlook for mid-to-high single-digit revenue growth and margin expansion in 2026, driven by international expansion and technology adoption, suggests a clear growth trajectory. For investors, this report provides a strong foundation for assessing potential long-term value creation and improved shareholder returns.

Furthermore, the report details key strategic initiatives such as digital transformation, portfolio optimization, and ESG integration. These are vital for navigating the evolving energy landscape and maintaining a competitive edge. Understanding these priorities helps investors assess Weatherford's adaptability and long-term relevance in a dynamic industry. While risks like commodity price volatility and geopolitical instability persist, the company's focus on operational efficiency and debt reduction provides a stronger buffer against these external pressures, making the investment case more robust.

What Usually Happens Next

Following the release of Weatherford's 2025 10-K, investors should anticipate immediate market reactions as analysts and institutional investors digest the detailed financial results and forward-looking statements. The next significant milestone will be the release of the Q1 2026 earnings report, typically within a few months. This will provide the first update on whether Weatherford is on track to meet its projected mid-to-high single-digit revenue growth and margin expansion targets for the year. Investors will scrutinize these results for early indicators of sustained momentum or potential deviations from the annual guidance.

Beyond financial reports, investors should closely monitor Weatherford's progress on its stated strategic initiatives: digital transformation, portfolio optimization, sustainability integration, and continued debt reduction. Updates on new contract wins, technological advancements, or partnerships, especially in key international markets like the Middle East and Latin America, will be crucial indicators of successful execution. Simultaneously, keeping an eye on broader oil and gas market trends, commodity price movements, and geopolitical developments will be essential, as these external factors significantly influence Weatherford's operating environment and client spending decisions.

Expect continued analyst coverage and updated price targets following the 10-K. Management will likely engage in investor calls, conferences, and presentations to elaborate on their strategy and outlook. Investors should pay attention to these communications for deeper insights into the company's operational challenges, competitive landscape, and capital allocation plans. The sustained focus on debt reduction and disciplined capital expenditures will be a recurring theme, and any deviations or accelerations in these areas will be important signals for the company's financial health and future flexibility.

Financial Metrics

Year Ending December 31, 2025
Total Revenue (2025) $5.2 billion
Revenue Increase ( Yo Y) 12%
Net Income (2025) $350 million
Diluted Earnings Per Share ( E P S) $4.88
Adjusted E B I T D A (2025) $980 million
Adjusted E B I T D A Increase ( Yo Y) 18%
Market Capitalization ( June 30, 2025) $2.7 billion
Ordinary Shares Outstanding ( January 30, 2026) 71.7 million
Cash and Cash Equivalents (end of year) $750 million
Total Long- Term Debt (reduced to) $1.5 billion
Total Long- Term Debt (prior year) $1.8 billion
Net Debt to Adjusted E B I T D A 1.5x
Operating Cash Flow $600 million
Current Ratio 1.3x
Projected Revenue Growth (2026) Mid-to-high single-digit percentage

Learn More

10-K Annual Reports Explained

Everything you need to know about annual reports

Understanding SEC Filings & CIK

How to navigate SEC filings

Document Information

Analysis Processed

February 5, 2026 at 09:16 AM

Important Disclaimer

This AI-generated analysis is for informational purposes only and does not constitute financial or investment advice. Always consult with qualified professionals and conduct your own research before making investment decisions.