WFRD

Weatherford International is taking a hit today. The stock is down about 5% in midday trading, even though Q3 2026 just delivered what management called an excellent quarter with adjusted EBITDA of US$254 million and a 22.2% margin. Traders are reacting to the headline move. Long term investors are more likely watching something else. The real story is cash and leverage. Adjusted free cash flow reached US$155 million in the quarter and net leverage sits at 0.28x. For an oilfield services group that relies on capital heavy projects, that mix of cash generation and a light debt load can matter far more than a single red day on the screen. Love Weatherford International's strong EBITDA and free cash flow but concerned about finding other oilfield services stocks with the same mix of margins and balance sheet strength? You can explore the list of solid balance sheet and fundamentals stocks (25 results) for additional ideas. - Revenue (Q3 2026 vs. Q3 2025): US$1,143 million vs. US$1,232 million (decline of about 7%) - Net Income, Excl. Extra Items (Q3 2026 vs. Q3 2025): US$120 million vs. US$81 million (increase of about 48%) - Basic EPS (Q3 2026 vs. Q3 2025): US$1.67 vs. US$1.13 (rise of about 48%) - Adjusted EBITDA Margin (Q3 2026): 22.2% (up from 21.8% in Q3 2025, a gain of about 40 basis points) Prefer clean, visual charts instead of scrolling through dense tables of Weatherford International figures? Get a full picture of the business, including how the balance sheet lines up after this quarter, in the interactive company report for Weatherford International. The optimistic view on Weatherford International hinges on execution, not headlines. "The main requirement is that Weatherford International continues to execute on capital-light portfolio shifts, free cash flow conversion and balance sheet discipline, while managing regional and geopolitical risks such as Middle East disruptions and Mexico collections." Q3 puts real points on that scoreboard. Adjusted free cash flow of US$155 million equates to 61% of adjusted EBITDA, ahead of the 50% goal. Net leverage at 0.28x backs the balance sheet claim. Offshore and MPD heavy DRE growth, plus early Venezuela and NCS contributions, show the portfolio mix tilting toward the higher margin, capital light profile the thesis calls for. One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all. Bears argue that Weatherford International's dependence on pressured regions could cap both activity and profitability. "Management is leaning on international and offshore markets such as the Middle East, Latin America and deepwater projects to drive future activity, yet recent disruptions tied to the Iran conflict, suspended work in several countries and pockets of pricing pressure indicate that international exposure could still translate into weaker revenue and net margin progression than current expectations assume." Q3 results partly validate that worry. Middle East, North Africa and Asia revenue held flat even after losing major Saudi work. Group revenue fell 7% year on year and guidance implies margins easing in Q4 as start up and integration costs bite, so international and offshore strength has not yet translated into cleaner top line progression. Weatherford International just showed how a solid quarter and a red screen can clash in plain view. The real opportunity is finding stocks that could be undervalued before the market corrects them. - Company 1 - 44% below our estimate - builds a relationship-led banking platform where lenders bring clients into tailored specialty services and digital tools. - Company 2 - 30% below our estimate - sells full-stack AI factory systems turning cloud commitments into integrated accelerator racks, software and networking. - Company 3 - 22% below our estimate - embeds AI copilots into productivity, developer and business software so existing customers deepen spending on one subscription platform. Those are three of them. See the full list of 33 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WFRD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Weatherford's third quarter results drew a positive market response, as the company delivered revenue above Wall Street expectations despite a year-over-year decline. Management credited the quarter's performance to robust cash generation, margin discipline, and ongoing strength in offshore services, especially managed pressure drilling and completions. CEO Girish Saligram highlighted the resilience of Weatherford's Middle East team amid operational disruptions, while noting that revenue stability in the region was achieved even with the loss of major contracts. Latin America saw solid sequential growth, driven by improved activity and collections in Mexico and the first revenue in Venezuela. Overall, leadership emphasized operational execution and portfolio enhancement as key contributors to the quarter. Is now the time to buy WFRD? Find out in our full research report (it's free). - Revenue: $1.14 billion vs analyst estimates of $1.13 billion (7.2% year-on-year decline, 0.8% beat) - Adjusted EPS: $1.88 vs analyst estimates of $1.27 (48.2% beat) - Adjusted EBITDA: $239 million vs analyst estimates of $249.6 million (20.9% margin, 4.3% miss) - Operating Margin: 13.4%, down from 14.4% in the same quarter last year - Market Capitalization: $6.13 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. - David Anderson (Barclays) asked about Weatherford's ability to outperform mid-single digit market growth if Middle East activity recovers. CEO Girish Saligram noted structural improvements and NCS contributions, stating margin expansion is expected even without regional recovery. - Scott Gruber (Citigroup) questioned the apparent contradiction between no Middle East recovery in the outlook and Q4 sequential growth. Saligram clarified that year-end product deliveries, not increased underlying activity, drive the Q4 uptick. - James West (Melius Research) requested details on NCS revenue synergies and cross-sell pipeline. Saligram highlighted early traction in offshore plays and the potential for the completions platform in new geographies but declined to specify targets. - Saurabh Pant (BofA) inquired about Venezuela's growth outlook and cost structure. Saligram confirmed that new contracts underpin the revenue ramp, with startup costs tied to hiring and facility upgrades. - Derek Podhaizer (Piper Sandler) probed the path to mid-20% EBITDA margin. Saligram emphasized that the target is achievable through mix shift, technology, and cost discipline, even absent Middle East normalization. In upcoming quarters, key indicators to watch include Weatherford's ability to sustain offshore contract wins and expand completions internationally, the pace and impact of NCS Multistage integration and cross-selling, and execution on Venezuela's ramp-up and its effect on regional diversification. Progress on cost optimization initiatives and free cash flow conversion will also be important measures of success. Weatherford currently trades at $83.75, up from $79.72 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. - Revenue: $1.143 billion in Q3 2026, up 3% sequentially; down 7% year over year. - Adjusted EBITDA: $254 million at a 22.2% margin; margins expanded 204 basis points sequentially and 39 basis points year over year. - Adjusted Free Cash Flow: $155 million in Q3, a 61% conversion on adjusted EBITDA (vs. 36.8% in Q3 2025); up 57% year over year. - Year-to-Date Adjusted Free Cash Flow: $379 million, up 55% year over year at a 53% conversion. - Adjusted Net Working Capital: 29.2% of trailing 12-month revenue, up ~150 basis points sequentially (NCS consolidation and receivables/inventory timing), improved year over year. - Capital Expenditures: $45 million, or 3.9% of revenues; Q4 spend expected at $70 million$80 million. - Cash and Liquidity: ~$1.2 billion cash; total liquidity ~$1.8 billion; net leverage of 0.28x. - Shareholder Returns: $47 million returned in Q3 ($19 million dividends, $28 million buybacks); total returns since program inception over $420 million. - Debt Reduction: Notice issued to redeem all $236 million of 8.625% senior notes due 2030 at par; ~$20 million annualized cash interest expense reduction; no debt maturities for seven years. - Middle East, North Africa & Asia Revenue: Flat sequentially (absorbing Saudi LSTK conclusion and Oman Marmul transition); 39% of business; Saudi Arabia at 20% of region in Q3; UAE, Oman, Kuwait ~41% of region. - Latin America Revenue: Up 14% sequentially, driven by Mexico and the Caribbean; first revenue from Venezuela in Q3. - Europe, Sub-Saharan Africa & Russia Revenue: Down 9% sequentially on lower activity and Norway labor strike; expected roughly flattish in Q4. - North America Revenue: Increased in Q3, partially driven by one month of NCS contribution. - DRE Segment: Revenue up 14% sequentially; segment margins expanded over 700 basis points. - WCC Segment: Revenue up 4% sequentially; to see full NCS acquisition impact in coming periods. - PRI Segment: Revenue essentially flat sequentially. - Q4 2026 Guidance: Revenue of $1.28 billion$1.33 billion; adjusted EBITDA of $270 million$290 million; adjusted free cash flow of more than $100 million. - Full-Year 2026 Outlook: Adjusted free cash flow conversion raised to high-40% range (from mid- to high-40% in July). - Redomestication Savings: ~$20 million$30 million annual cash savings beginning in 2027. - NCS Cost Synergies: At least $15 million committed within 18 months of closing. - Warning! GuruFocus has detected 9 Warning Signs with ONB. - Is WFRD fairly valued? Test your thesis with our free DCF calculator. Release Date: October 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Weatherford International PLC (NASDAQ:WFRD) delivered strong Q3 2026 results with revenue of $1.143 billion, adjusted EBITDA of $254 million (22.2% margin), and adjusted free cash flow of $155 million (61% conversion), demonstrating robust execution. - Adjusted EBITDA margins expanded 204 basis points sequentially and 39 basis points year over year despite a 7% decline in year-on-year revenue, proving the company's ability to expand margins even in a flat environment. - The NCS Multistage acquisition is integrating smoothly, with cost synergies tracking to at least $15 million within 18 months, and early cross-sell opportunities emerging in Argentina, the Middle East, and the North Sea. - Weatherford International PLC (NASDAQ:WFRD) raised its full-year adjusted free cash flow conversion outlook for the third time in 2026 to the high-40% range, reflecting structural improvements in working capital and capital discipline. - The company sees a constructive outlook for 2027, expecting to outperform global market activity growth of mid-single digits, driven by NCS contribution, share gains, and Venezuela reopening, with margin expansion and 50% free cash flow conversion targeted. - The Middle East operating environment has not normalized, with upstream activity not fully recovered, rig counts trending lower, tender cycles slipping, and recent escalation causing daily operational disruptions. - Weatherford International PLC (NASDAQ:WFRD) absorbed the first full quarter without the Saudi LSTK contract and the wind-down of the original Marmul contract in Oman, contributing to a 7% year-on-year revenue decline. - Latin America growth in Q3 was driven by Mexico and the Caribbean, but the region faces potential start-up costs in Venezuela in Q4, which will impact margins. - Europe, Sub-Saharan Africa, and Russia revenue declined 9% sequentially due to lower activity, including the Norway labor strike, and the region is expected to remain roughly flattish in Q4. - Fourth-quarter free cash flow is guided at more than $100 million, down from $155 million in Q3, due to increased CapEx ($70-80 million), cash interest payments, and working capital timing, with Mexico receivables remaining a large variable. Q: Derek Podhaizer (Piper Sandler) asked how Weatherford bridges from its current 22% adjusted EBITDA margin to its mid-20s% target, and whether a Middle East recovery is required to get there. A: CEO Girish Saligram said the company runs the business to reach the target on flat revenues, driving 25 to 75 basis points of margin expansion per year through structural cost savings, infrastructure modernization, technology deployment, and a mix shift toward lower-capital-intensity, higher-margin businesses. He said the mid-20s% margin is achievable in roughly three to four years at flat activity, and that revenue growth would both amplify the margin and accelerate the timeline. Q: Keith Mackey (RBC Capital Markets) asked CFO Anuj Dhruv to bridge the Q4 free cash flow guidance of more than $100 million versus Q3's $155 million, including higher CapEx and working capital, and to size the outstanding Mexico receivables. A: Dhruv said Q4 includes a cash interest payment not present in Q3 and a CapEx ramp to $70 million-$80 million to meet 2027 demand, which together account for most of the delta. He noted year-to-date free cash flow of $379 million at 53% conversion and a full-year target in the high-40% range. On Mexico, he said the largest customer's receivables are at the lowest percentage of total AR in six-plus years, collections have come "like clockwork" since Mexican structural reforms, and collections are baked into the Q4 guide, though the remaining payments are still the largest variable for quarterly free cash flow. Q: J. David Anderson (Barclays) asked how Weatherford outperforms mid-single-digit 2027 market activity growth, and whether double-digit growth is implied if the Middle East recovers. A: Saligram declined to endorse a specific double-digit figure but said 2027 gets a bigger NCS contribution across the first eight months versus four months in 2026, while the company must offset first-half 2026 LSTK contracts and higher Middle East activity. He said a 12-month view is more appropriate given quarterly movement, and emphasized confidence in year-on-year margin expansion from structural improvements, NCS synergies, and revenue fall-through, with growth ramping in the second half as it did in 2026. Q: Scott Gruber (Citigroup) asked how mid- to high-single-digit sequential Q4 growth in the Middle East, North Africa and Asia region squares with a status-quo activity assumption, and which countries are strong versus weak. A: Saligram said Q4 is typically a heavy product-delivery quarter, including year-end completions, liner hangers, and cementing product deliveries in the Middle East, with purchase orders in hand and manufacturing running flat out, while underlying service activity is assumed unchanged. On the region, he said the UAE and Oman remain strong and largely normalized, Kuwait and Saudi are somewhat down, and Iraq is substantially down, while noting Saudi fell to about 20% of the region in Q3 versus 24% of the broader geo-market in 2025. Q: Saurabh Pant (BofA) asked what underpins confidence in Venezuela ramping to triple-digit revenue in 2027 with further upside in 2028, and how to think about Q4 start-up costs. A: Saligram said customer conversations have shifted from "what if" to "how soon, how fast," with actual purchase orders received and work starting with several international operators. He said Weatherford is hiring aggressively in Venezuela and refurbishing facilities, and that Q4 carries meaningful start-up costs including hiring, facility work, and inventory, which is more of a cash impact. He said he would not use the phrase triple-digit revenue without a clear line of sight. Q: James West (Melius Research) asked about NCS revenue synergies, the cross-sell pipeline in Argentina, the Middle East, and the North Sea, timing of first meaningful international revenue, and any surprises in the first 90 days. A: Saligram said integration has gone smoothly and the biggest positive has been crystallization of the revenue synergy potential in three areas: deepwater offshore tight-play completions, NCS tracers extending the completions portfolio, and geothermal capability combined with Weatherford's high-temperature and DFOS offerings. He declined to quantify revenue synergies, reiterated at least $15 million of cost synergies within 18 months, and said he hopes to grow the NCS business at a run rate at least mid- to high-single digits above its natural rate. Q: Douglas Becker (Capital One) asked about MPD penetration, aftermarket growth, deepwater deliveries, and the opportunity in other offshore rig types. A: Saligram said MPD is in the same ballpark as other major product lines, with offshore growth far outpacing onshore this year. He estimated roughly 80%-90% of deepwater rigs are MPD-enabled depending on how they are counted, leaving another 10%-15% of systems to win, and said jack-ups and semi-submersibles are significantly under-penetrated, with managed pressure wells extending the concept across the well life cycle. He said the MPD aftermarket business should more than double this year and could double again over the next couple of years. Q: Phillip Jungwirth (BMO) asked what is driving the offshore completions win rate with TotalEnergies, ExxonMobil, Equinor, and Seplat, how completions should grow in 2027, and whether the NCS deepwater frac sleeve award is a one-off. A: Saligram credited years of disciplined technology investment plus integration and execution track record, and said completions should be in the very top tier of CAGR across the business over the next few years, though product sales make it lumpy. On the NCS deepwater frac sleeve award in the Gulf of America, he called it a new pathway and a completely new space for a differentiated offering, starting as a single award but intended to open an offshore channel for the technology. Q: Josh Silverstein (UBS) asked about the path for adjusted net working capital back to 25% of revenue from 29.2%, how much of the increase is structural from NCS versus Mexico receivables, and the inventory levers. A: Dhruv said the roughly 150 basis points from NCS is not structural, since only one month of NCS revenue was included against the full balance sheet, and should normalize as a full For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Wed, Oct. 21, 2026 - Senior Vice President, Corporate Development, and Investor Relations - Luke Lemoine - President and Chief Executive Officer - Girish Saligram - Chief Financial Officer - Anuj Dhruv Operator: Day, and welcome to the Weatherford Third Quarter 2026 Results Conference Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. Please note today's event is being recorded. I would now like to turn the conference over to Luke Lemoine, Senior Vice President, Corporate Development, and Investor Relations. Please go ahead, sir. Luke Lemoine: Welcome, everyone, to the Weatherford International Third Quarter 2026 earnings conference call. I am joined today by Girish Saligram, President and CEO, and Anuj Dhruv, CFO. We will start today with our prepared remarks and then open it up for questions. You may download a copy of the presentation slides corresponding to today's call from our website's Investor Relations section. I want to remind everyone that some of the comments today include forward-looking statements. These statements are subject to many risks and uncertainties that could cause our actual results to differ materially from any expectation expressed herein. Please refer to our latest Securities and Exchange Commission filings for risk factors and cautions regarding forward-looking statements. Our comments today also include non-GAAP financial measures. The underlying details and a reconciliation of GAAP to non-GAAP financial measures are included in our earnings press release or accompanying slide deck, which can be found on our website. As a reminder, today's call is being webcast, and a recorded version will be available on our website's Investor Relations section following the conclusion of this call. With that, I would like to turn the call over to Girish. Girish Saligram: Thanks, Luke, and thank you all for joining our call. I will start with an overview of our third quarter performance and near-term outlook, followed by a couple of key enterprise updates. Anuj will then cover specifics on financial performance, balance sheet, and detailed guidance. I will conclude with some thoughts on the current operating environment, our initial thoughts on 2027, and our priorities as we move forward before opening the call for Q&A. To summarize our Q3 2026 performance, we delivered revenue of $1.143 billion, Adjusted EBITDA of $254 million at a 22.2% margin, and adjusted free cash flow of $155 million, representing a 61% conversion on Adjusted EBITDA. Simply put, this was an excellent quarter, and I am very grateful to the One Weatherford team for continuing our track record of execution and performance. A special note of pride in our Middle East team, who continue to demonstrate resilience and customer focus in very challenging circumstances. Total revenues grew 3% sequentially while absorbing the first full quarter without the Saudi LSTK contract, the wind down of our original Marmul contract in Oman, and a Middle East activity profile that has not returned to pre-conflict levels points to the stability and growth of the contract portfolio across our segments and geographies. Adjusted EBITDA margins above 22% is a tangible proof point that our thesis of being able to expand margins in a flat environment works, and that expansion gets amplified with even a slight increase in revenue. Our Adjusted EBITDA margins expanded 204 basis points sequentially and more significantly, 39 basis points YoY on a 7% decline on year-on-year revenue. Finally, adjusted free cash flow increased 57% YoY, demonstrating our ability to generate cash in any cycle at a high conversion level. Next, I will run through some of the dynamics across our segments and regions while highlighting near-term outlook. Revenue in the Middle East, North Africa, and Asia region was flat sequentially. That flat number absorbed two significant step downs that we told you about in July. The conclusion of the Saudi LSTK contract and the transition in Oman from the original Marmul scope to the new contract, which means the rest of the business in the region grew sequentially, led by MPD, liner hangers, completions, and wireline, and regional profitability improved across all three segments on strong fall through. To put this in perspective, revenue in the Arabian Gulf countries grew 1% sequentially with these headwinds. At the same time, I want to be clear that the environment has not normalized. While the headlines might suggest normalization of oil exports from the region, upstream activity has not recovered fully. Rig counts in key countries are trending lower. Tender cycles have slipped. The recent escalation is a reminder that this remains an unsettled operating environment with daily operational disruptions. Our priority continues to be the safety of our people and business continuity for our customers, and our teams have done an exceptional job with both. We have deliberately not built a regional recovery into our near-term outlook. We are planning the business on the basis that the region stays roughly where it is today. The Middle East, North Africa, and Asia region represented 39% of our business in Q3. The Kingdom of Saudi Arabia, which was 10% of enterprise revenue and 24% of the broader geo market revenue in 2025, stood at 20% of the region in Q3, reflecting the LSTK contract step down and activity reduction. At the same time, it is worth noting that the UAE, Oman, and Kuwait collectively represented approximately 41% of this region in Q3, demonstrating the diversification of revenue within the broader region. Notably, activity levels have stayed very resilient in some countries like Oman throughout the course of the year. Latin America grew 14% sequentially, driven by Mexico and the Caribbean. In Mexico, activity with the largest customer improved, and just as importantly, collections were strong and consistent throughout the quarter. We are very encouraged now that we have had several consecutive quarters of regular payments, which is a meaningful change from where we were 18 months ago. Another highlight in the region is Venezuela, as we saw our first revenue in Q3. We will see tangible revenue contribution from Venezuela in the fourth quarter, but there will also be a significant startup cost element. Importantly, we see potential for Venezuela to ramp up in 2027 to triple-digit revenues, with further increases in 2028, and with the environment remaining stable, perhaps coming close to our prior peak in the next few years. Europe, Sub-Saharan Africa, and Russia declined 9% sequentially on lower activity across the segments, with the Norway labor strike weighing heavily on the early part of the quarter. Norway recovered as the quarter progressed, and I am especially pleased with the Equinor award, which I will come back to in a moment. This region will remain roughly flat-ish in the fourth quarter, but I am very encouraged for 2027 and beyond with a step up in the Norwegian profile, Caspian and Sub-Saharan Africa potential. North America saw an increase in Q3, partially driven by a single-month contribution from our NCS acquisition. While the rig count has gone up, we are not expecting a noteworthy increase in overall activity levels over the next few months, but we will see a step up in our reported revenue with the full-period contributions from NCS. Slides seven through nine lay out key highlights across our segments. DRE revenue grew 14% sequentially, and segment margins expanded by over 700 basis points. Our MPD capital sales were a key driver of the margin expansion, and while we recognize this will cause some lumpiness, the long-term aftermarket opportunity is something we are further developing to provide predictable high returns. WCC revenue grew 4% sequentially, and this segment will see all of the impact from the NCS acquisition in the coming periods. PRI revenue was essentially flat sequentially, and we remain encouraged on a positive inflection here when the Middle East returns to normal and there is an emphasis on interventions to restore production. Offshore continues to be the most durable theme over the next few years. Our core offshore offerings of managed pressure drilling, tubular running services, and interventions had another strong quarter of awards that are highlighted in our press release and investor presentation on slides seven through nine. The deepwater MPD systems we were awarded earlier this year are continuing to be delivered across the second half of this year, and every system we put on a deepwater rig grows an installed base that generates multiyear aftermarket spares and services revenue. What we hear from customers is consistent. Deepwater sanctioning is increasing, led by Brazil, West Africa, the Mediterranean, and Asia, and this work is longer cycle, technology-intensive, and far less exposed to the short-cycle volatility we see on land. While we estimate that around 70% of drill ships either currently have or are in the process of installing an MPD system, there is a natural question of market saturation. However, we are confident that this number will continue to climb to around 85% or 90%, giving us an opportunity for several more systems over the next few years. Additionally, there is a very significant opportunity around other offshore rigs, and the aftermarket opportunity creates a more stable revenue base. Our MPD business is projected to grow above double digits this year, with further growth in 2027. That includes an aftermarket component that will more than double this year and could further double here on in the next couple of years. Beyond these core offerings, I am very excited about our growth opportunity in offshore completions. Completions is now our largest product line, and offshore represents significant potential for the future. We announced a significant award with TotalEnergies in Denmark a couple of quarters ago, a win with Exxon in Nigeria last quarter, and in Q3, Equinor awarded us a two-year extension and a new offshore completions award to provide our integrated completions portfolio for the Norwegian Continental Shelf. Additionally, Seplat Energy awarded us a five-year contract for completions, products and services, including gas lift solutions for its shallow offshore operations in Nigeria. In the legacy NCS business, during the quarter, we secured an award in the Deepwater Gulf of America for its frac sleeves and service tools following four years of collaborative development with a major international operator. The work is expected to commence in the first quarter of 2027, an important step into the offshore market for that technology. With the NCS acquisition and our organic efforts, we now have a value proposition across the conventional, unconventional, and offshore domains in completions. With that backdrop, I will frame our outlook for Q4, and Anuj will provide more specifics. We are raising our full-year adjusted free cash flow conversion outlook again for the third time this year and are narrowing our Adjusted EBITDA range around a midpoint that is just slightly down from July. This despite a Middle East region that has weakened relative to expectations in July and the divestiture of a few small non-core product lines. Fourth quarter revenue steps up meaningfully with the full quarter of NCS, the delivery of the Brazil MPD systems, the startup in Venezuela, and seasonally higher activity in North America, and fourth quarter margins reflect the mix of that revenue and start-up costs in Venezuela. I am particularly encouraged that we have line of sight to a mid to high single-digit increase sequentially in the Middle East, North Africa, and Asia region, primarily driven by countries in the Arabian Gulf. We have been consistent that we will not chase revenue at the expense of returns, and the margin and cash performance in Q3 is the clearest evidence of that discipline. Let me now turn to a couple of enterprise updates, starting with the portfolio. As shown on slides 13 through 15, we completed the acquisition of NCS Multistage during the quarter, and I am very pleased with how the integration is going. The integration management office was in place before close. Day one went smoothly, and the key talent we wanted to retain is on board, and the cost synergy work streams are tracking to the at least $15 million we committed to within 18 months of closing. More important than the cost synergies is the prize we identified when we announced the deal. Taking differentiated technology that was built in a concentrated footprint and putting it through a sales channel that covers six continents. That thesis is fully intact, and it is already showing up. With our acquisition of NCS, we now bring into our portfolio a differentiated completions technology platform that surpassed 500,000 frac stages completed since 2009. In North America, customers have responded to the combination by asking for more joint projects and quotations, and our international teams are qualifying early cross-sell opportunities in Argentina, the Middle East, and the North Sea. NCS is a prime example of what we mean by portfolio enhancement. Differentiated technology plus global distribution. Over the past few months, we signed agreements to divest a few small non-core product lines. Individually, none of these is material, and together they will create some dislocation in reported revenue over the next couple of quarters. They are deliberate. They free up management attention and capital, they simplify the organization, and they sharpen the portfolio around the technology differentiated product lines that we are building the company around. That is the same lens we apply to M&A, adding where it strengthens the portfolio, as with NCS, and exiting where it does not. We are setting up the portfolio for the next phase of Weatherford. Our infrastructure modernization program witnessed the first major milestone on our ERP journey with the successful launch of our enterprise performance management applications. Essentially, this means that the financial consolidation of our quarter close was done in a new system, was perfectly routine, and the on-time external delivery of Q3 earnings and documentation showcases the outstanding planning and execution by the team driving it. At our special shareholder meeting in September, shareholders approved all the proposals required to redomesticate from Ireland to Delaware. The redomestication remains subject to customary closing conditions, including final approval by the Irish High Court, and we expect it to become effective during the fourth quarter. We continue to expect approximately $20 million-$30 million of annual cash savings beginning in 2027 while having no impact on our global footprint, our customer commitments, or our ongoing operations. I want to thank our shareholders for their engagement and support through this process. To recap, a weaker than expected macro environment, especially in the Middle East. Nonetheless, a terrific quarter on financial performance. Strong contract wins showcasing portfolio value. M&A is a strategic lever that is paying off, and enterprise initiatives yielding tangible improvement. That's the story of the past 90 days. With that, I'd like to turn the call over to Anuj. Anuj Dhruv: Thank you, Girish, and good morning, everyone. Girish has covered the operating performance, and the details are in our press release and slide deck. I will focus on cash flow, the balance sheet, and guidance. Turning to slide 24, adjusted free cash flow was $155 million in the third quarter, a 61% conversion on Adjusted EBITDA compared to 36.8% in the third quarter of 2025, driven by higher Adjusted EBITDA, continued collections, including from our largest customer in Mexico, and disciplined capital expenditures. Year to date, we have generated $379 million of adjusted free cash flow, up 55% YoY at a 53% conversion. This is the second consecutive quarter above 60%, and the drivers are structural. Working capital discipline, capital intensity, and asset utilization. While there will always be quarterly variances, it is very encouraging to have two consecutive quarters above 60% and provide clear proof points of our ramp to our target of sustainably achieving a 50% conversion level. Adjusted net working capital was 29.2% of trailing 12-month revenue, up sequentially with roughly 150 basis points from the consolidation of NCS and the balance from receivables and inventory timing ahead of fourth quarter deliveries. Despite that, the ratio improved YoY, and we remain committed to our goal of 25% or better. Capital expenditures were $45 million, or 3.9% of revenues within the 3%-5% range we have laid out. For the fourth quarter, capital expenditure dollars will increase as we are accelerating some spend based on the demand we see for 2027. While total year CapEx will remain within the 3%-5% of revenue range, the Q4 spend will likely be in the $70 million-$80 million range with our ERP spend captured within that. During the quarter, we returned $47 million to shareholders, $19 million in dividends, and $28 million in share repurchases, bringing total returns since the inception of the program to more than $420 million. Our focus on maintaining a fortress balance sheet remains clearly visible. We ended the quarter with approximately $1.2 billion of cash, total liquidity of approximately $1.8 billion, which includes total cash and credit facility, and net leverage of 0.28 times. S&P and Fitch upgraded their outlooks on our reaffirmed BB ratings to positive during the quarter, joining Moody's in recognizing the progress we have made in strengthening the company's credit profile. On October 20th, we issued a notice to redeem all $236 million of our 8.625% Senior Notes due 2030, using cash on hand, in line with our prior commentary of reducing gross leverage at the appropriate pricing level. This redemption is at par and will leave us with no debt maturities for the next seven years, an annualized cash interest expense reduction of approximately $20 million. Coupled with the expected cash savings from redomestication, this would represent over 400 basis points of improvement in Adjusted EBITDA to adjusted free cash flow conversion at these levels. This sets us up well to achieve our 50% target in 2027. These actions represent the next step in simplifying our capital structure, lowering our cost of capital, and positioning Weatherford with investment-grade equivalent credit metrics. Importantly, they provide greater financial flexibility to invest in organic growth, selective M&A, and shareholder returns through the cycle. Turning to guidance on slide 25. For the fourth quarter, we expect revenues of $1.28 billion-$1.33 billion, an Adjusted EBITDA of $270 million-$290 million, which is a margin that is modestly down from third quarter levels. The sequential revenue increase reflects a full quarter of NCS, Middle East product deliveries, the delivery of deep water MPD systems, seasonally higher activity in North America, and increased volumes in Latin America, including the startup in Venezuela. Fourth quarter margins reflects the mix of equipment deliveries along with start-up costs in Venezuela. At the midpoint of Q4 guidance, this will put second half Adjusted EBITDA margins over 150 basis points above the first half, validating the ramp we have discussed, despite an obvious weakening in the Middle East activity. Our productivity initiatives, technology-driven mix changes, and higher activity we expect should result in year-on-year margin improvements in 2027 and we will provide more specific quantification of that on our next call. We expect adjusted free cash flow of more than $100 million. While our AR balance for our largest customer in Mexico as a percentage of total enterprise revenues is at the lowest level it has been in the past six years, the magnitude of remaining payments is still the largest variable on quarterly free cash flow. We have raised our adjusted free cash flow conversion outlook every quarter this year, and we are again raising it for the full year to the high 40% range from mid to high 40% in July, which puts us within closing distance of our 50% target on the strength of structural improvements rather than one-time items. In connection with the effectiveness of the redomestication, we also plan to take certain restructuring actions at a subsidiary level. While the accounting and tax implications of those actions are still being evaluated, we expect they would have a material positive non-cash impact to the income tax provision in the fourth quarter. Thank you, and I will now pass the call back to Girish. Girish Saligram: Thanks, Anuj. I want to step back and share how we are thinking about 2027 and what we are doing to position Weatherford for the next several years. Let me start with the backdrop. The Middle East has not normalized and our base case is status quo on the current situation. Unfortunately, that status quo implies volatility and uncertainty versus a steady run rate, but we are planning with the run rate to be in line with the last few months of this year. Outside the Middle East, however, the picture is constructive and getting more so. Deep water sanctioning is increasing, led by Brazil, West Africa, the Mediterranean, and Asia, and our offshore MPD, TRS interventions, and completions businesses will be the drivers of impact from that theme. Latin America is growing, with Venezuela reopening to international operators and Mexico stabilizing. The international markets where NCS strengthens our position, Argentina, the Middle East, and the North Sea continue to develop, and U.S. land remains short cycle and we plan it accordingly. Here is how we think about 2027. Excluding the Middle East, international market activity levels should rise mid to high single digits, driven by Latin America and Asia. North America will likely be up low single digits. Assuming the Middle East remains at current levels, that ought to provide a global market activity increase in the mid-single digits with a more noticeable increase starting in the second quarter. For Weatherford specifically, we expect to be higher than that based on the contribution of the NCS business, share gain in some key areas, and Venezuela reopening, while simultaneously offsetting the first half 2026 headwinds of the ISP contracts and Middle East activity levels. The mantra of margin expansion is central to our operating ethos and should manifest itself driven by a structurally lower cost base, mix effects, synergies, and higher activity-driven fall-through. We are within touching distance of 50% full-year adjusted free cash flow conversion and expect to achieve that in 2027 based on the factors Anuj outlined. All in all, despite the headwinds from the Middle East, we see a constructive outlook shaping up for 2027 and the years following that. We will provide specific guidance on our next call, but wanted to paint a picture of the emerging landscape. As we think about the next phase of the company, I'd like to reiterate what we've consistently said for the past six years. Please do not judge us by words or rhetoric. Rather, let our numbers speak for us. We have consistently delivered over 20% Adjusted EBITDA margins over the past few years when rigs got cut in Saudi, when Mexico activity collapsed, with the current conflict, and so on. At the same time, we have continued to march on our path to higher free cash flow conversion and margins, focusing on our controllable elements. Performance remains our calling card, and our North Star of free cash flow remains unchanged. We are focused on driving a higher degree of absolute dollars as well as margins. We believe that achieving mid-20s Adjusted EBITDA margins with 50% conversion of free cash flow is not just achievable, it is a very clear path in the next few years and likely sooner with activity increases. To enable that performance, we now have more capability in our portfolio and are investing in further enhancing that value proposition. We are well-positioned as a technology differentiator in key segments and product lines. Our MPD, TRS, interventions, artificial lift, and cementing products businesses have leadership positions in several areas. We are further augmenting that with a continued pruning of low-return businesses and capability addition in completions, drilling services, wireline, and digital. The liquidity on the balance sheet and low leverage affords the capacity to accelerate that with inorganic growth in a thoughtful and prudent fashion. While we believe we can meaningfully expand margins through technology mix and operating efficiencies in a flat environment, the combination of unconventional growth, mature field rejuvenation, offshore resilience, and Venezuela give me a lot of confidence in revenue growth over the next few years. The most important element of the confidence in our portfolio delivering performance is the third P, our people. This is a team that has consistently adapted and delivered, and I am grateful for the experience, expertise, and energy of the leadership team that permeates all the way to the front line of the company. Thank you for your time this morning. With that, operator, please open the floor for questions. Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, we ask that you please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause for just a moment to assemble our roster. Today's first question comes from David Anderson at Barclays. Please go ahead. David Anderson: Thanks. Good morning, Girish. How are you? Girish Saligram: Hey, Dave. How you doing? Good morning. David Anderson: Good morning. So on your 27, you are kind of framing the picture for us here. There is quite a bit to unpack in there. So you are talking about mid-single digit growth activity. Weatherford is going to outperform that. So if we take sort of the second half of 2026 run rate, can you help us bridge the gap of kind of the things that are Weatherford specific in here that are going to see growth outside of that? You are not assuming any Middle East recovery in there. So should we imply that Weatherford could be up double digits if Middle East does come back? I mean, is that kind of what we are thinking about here, just based upon how the rest of the portfolio is setting up? Girish Saligram: Yeah, Dave, you are right. Look, it is a little bit complex with a lot of different moving pieces. I am not going to comment on what you could imply. I will leave that to your more than capable mind and abilities to figure that out. But look, we will have this year four months of impact from NCS, so obviously that will have a much bigger impact in the first eight months of next year. So I think that will be a bit of a positive. On the other hand, what we do have is through the first half of 2026, we have the ISP contracts in the Middle East, plus a much higher activity profile in the first half or in the first quarter of 2026. Those will need to get offset. I think it is really better to look at this on a bit of a longer-term basis and take a look at it as a total sort of 12-month view and frame it as that with some degree of movement across the quarter. I think more importantly is what Anuj alluded to in his prepared remarks on that margin expansion on a year-on-year basis. That is something we feel really good about, just given the fact that we have made some structural improvements this year. We will not have some of the natural effects of a spike in cost that we had earlier this year, as well as the synergies that we are going to get, plus fall-throughs from increased revenue. Net-net, I think it is shaping up to be very positive. It will be a bit more of a ramp in the second half. But this is now the second year in 2026 that we have had that ramp, we have delivered it. So hopefully that gives everyone a lot more confidence as we talk about it in 2027. David Anderson: Thanks, Girish. Just to clarify just on that margin improvement in 2027, is that off the full year 2026 or is that off the second half exit rate in 2026? Girish Saligram: At this point, best to take it as a full year, Dave. David Anderson: Great. Thank you. Girish Saligram: Thank you. Operator: Thank you. Our next question today comes from Scott Gruber at Citigroup. Please go ahead. Scott Gruber: Yes, good morning, Girish and Anuj. Girish, you mentioned that you are not building a Middle East recovery into the outlook. You are planning for status quo. Yet, you do see mid to high single digit sequential growth in MENA in Q4 led by the Gulf countries. Can you reconcile those two? Is Q4 mostly year-end product sales versus underlying activity? With Saudi now about 20% of the region, and I think I heard you say UAE, Oman, and Kuwait are double that at 40%. Can you kind of walk around the region and identify areas of relative strength or normalcy versus areas of continued weakness? Girish Saligram: Yeah. Morning, Scott. Look, great question. No, you are right. They do at the face value sound a little bit divergent statements. But essentially, when we talk about that activity level, we are really referring primarily to service activity on the ground. And that is in Q4, we typically have a much higher product delivery quarter. That is very true in North America, but it is also very true in the Middle East with typically year-end deliveries of completions, liner hangers, and cementing products. So, we have got the pipeline on that. We have got the purchase orders. Our manufacturing teams are working flat out to make sure those deliveries happen. And that is what gives us that confidence. But the base activity level we are assuming does not actually change. And this will feed the inventory profile for our customers as they go into 2027. So I think that is really what drives that. Look, on your second question, part of the reason we provided a little bit of that context was to give a bit of a sense of, look, there is a lot of concern, understandably, naturally, and appropriately so around the Middle East right now. But we have got a revenue profile that is fairly well diversified across the various countries. There tends to be a little bit of concern, especially just given the recent escalation in the Kingdom of things that have happened. And we have got a very strong revenue profile in places like the UAE and especially in Oman, which have remained pretty intact. So as we look at activity levels, I think UAE and Oman remain pretty strong and kind of normalized at this point. Kuwait and Saudi a little bit down, Iraq substantially so. That is sort of the mix that we see, but I think all in all, we feel pretty good about the position that we have and the ability to generate the margins and cash. Scott Gruber: I appreciate the color. I'll leave it there and turn it back. Thank you. Girish Saligram: Thank you. Operator: Thank you. Our next question today comes from James West at Melius Research. Please go ahead. James West: Hey, good morning, Girish. Girish Saligram: Morning James. James West: I'll ask a bit about the NCS acquisition. You are tracking to about $15 million of cost synergies, but you have consistently said, and I agree with this, that the revenue synergy is the real prize. Would you mind giving us some more detail on the cross-sell pipeline in Argentina, the Middle East, the North Sea, timing to kind of first meaningful international revenue, and what a reasonable revenue synergy number could be? If I can kind of throw a second one in there, has anything surprised you positively or negatively in the first 90 days since the closing? Girish Saligram: Yeah, James, let me start with maybe the latter part of the question. Acquisitions are always a little tricky regardless of the size, and sometimes whether you are buying a company with 50 people, 500 people, or 5,000 people, it sort of feels like the same amount of work. But I have been very impressed with the degree of planning our integration team has put in. They have done an outstanding job. It has gone really smoothly. I have been very excited to interact with a lot of the legacy NCS team who are excited to be part of a bigger global platform. They see the opportunities, and I think they are starting to now really come out in spades. I think the biggest positive for me has just been really a crystallization of this potential revenue synergy profile, which is the first part of your question. James West: Right. Girish Saligram: I look at it really sort of in three parts. I think the first is from an offshore standpoint, really on the deepwater side. One of the things that we get with NCS is a platform that unlocks tight plays. These were tight plays that were previously potentially non-commercial due to lower permeability in the reservoir. We have had some very interesting trials. We are now taking it into the Gulf of America. When you combine that with the rest of the capability that we have across the portfolio, it becomes a much bigger integrated completion play in offshore. That is something that is brand new and I think will add over the coming years. I have talked in the past about the tracers capability that NCS brings. That is really an extension of our overall completions portfolio, and it really allows customers to get a much deeper sense of what is happening downhole once we have actually deployed the jewelry into the well. That really becomes now a how do you use your completions to gain a view into reservoir performance. The other thing that is really exciting is on the geothermal space. I think we have got some very interesting capability there on engineered geothermal systems. Again, you combine that with what we have with our natural high-temperature capabilities, our DFOS capability, it becomes, again, a bigger offering. I have not put a specific number around it, and we will not at this point in time. We are focused on the quantification being around the cost synergies that we feel very good about getting to at least $15 million. My hope is over the coming years, we will grow this business at a run rate that is at least mid to high single digits above its natural run rate. James West: Got it. Thanks, Girish. Operator: Thank you. Girish Saligram: Sure. Operator: Our next question today comes from Saurabh Pant with BofA. Please go ahead. Saurabh Pant: Hi, good morning, Girish and Anuj. Girish Saligram: Hey, Saurabh. Morning. Saurabh Pant: Morning, Girish. I want to touch on Venezuela a little bit, Girish. Last quarter, you were getting more encouraged, and now you are talking about first revenue in the third quarter, and I think a ramp to more than $100 million revenue in 2027, further upside in 2028. That is very positive. Maybe just walk us through on what is underpinning that confidence. Is this contracted work with specific operators or activity assumption on specific product lines? How are we thinking about this? Then how should we think about the Q4 startup cost that I think Anuj was talking about in his prepared remarks? Girish Saligram: Sure. Yeah. Saurabh, look, I think if you look back at the last few calls, our tone, my excitement around Venezuela has grown very steadily on each one, and that has really been driven by the conversations that we have been having with customers. The magnitude of the conversations, the number of different customers that we have been talking to has increased significantly. Conversations have gone from sort of "what if" to now "how soon, how fast," and are on the basis of actual orders that we are getting versus sort of pie in the sky kind of concept. Really that confidence is underpinned by us having very clear line of sight to contracting work, some of which is very much in progress. We are furiously hiring people in Venezuela. Our headcount has increased substantially in the past several weeks, and we continue to add to the capability of our team. Look, I would expect that in the next few months, there will probably be more visibility and more specifics around which customers, but I think suffice to say, we are talking to several different operators. We are focused on international operators who have signed a lot of these agreements that have been in the news and are well-publicized. We have gotten purchase orders in. We are starting work, and that is really what is driving it. Now, the startup cost, look, we are not going to get into very specific quantification because we do not do that on a country and project basis. It is a little bit of a drag, but very naturally so. We have got some refurbishment of our facilities. We have got hiring costs, bringing people on board. We have got to make sure we get some inventory, which is a bit more of a cash impact more than anything else. But just making sure we are getting ready for what we see as a fairly big wave of activity that is coming upon us. And that is what. Look, we would not use words like a potential ramp to triple-digit revenue if we were not seeing a pretty clear line of sight to it. Saurabh Pant: Okay. Got it, Girish. That is very encouraging. Thank you. I will turn it back. Girish Saligram: Thank you. Operator: Thank you. Our next question today comes from Derek Podhaizer at Piper Sandler & Company. Please go ahead. Derek Podhaizer: Hey, good morning, Girish. You iterated the mid 20% EBITDA margin, 50% free cash flow conversions, clear path over the next two years. The second half margins are already at 150 points above first half. Maybe could you help us bridge today from the 22% to your mid 20% target, breaking it down, how much is structural, how much is technology like the MPD aftermarket and completions that you mentioned, and importantly, how much activity is needed? I know the underlying guidance is based on a flat Middle East, but does the path to the mid 20% require a Middle East recovery, or can you get there if the region does stay flat? Girish Saligram: Yeah. Derek, look, I'll reiterate what we have said multiple times. We really try to run the business with a focus on we're going to get to that target at flat revenues. It's going to take a lot longer, obviously, but our role really is to drive 25 basis points-75 basis points of margin expansion on flat revenue. That's kind of the way we think about it. We don't really look at how much exactly is going to come from each element because it's going to vary on a quarter-by-quarter, year-by-year basis. But we do expect that there will be a contribution from structural cost. The modernization of our infrastructure, we think, is a very significant play that will unlock a lot more cost efficiencies in the company and allow us to focus on things that are higher value added. We are continuing to develop and deploy technology, and we are very encouraged by the initial signs of that. Everything that is coming out increases that value gap, so that helps. Then a mix shift towards lower capital intensity, higher margin kinds of businesses. We talked about some of the small divestitures. In totality, it's not huge order of magnitude, less than 1% of the company, but it is lower margin. It allows us to, again, focus our time and efforts on things that actually drive higher value. So we feel very good that even in a flat environment, we should be able to get to that mid-20s. It'll probably take about three to four years if you just extrapolate it out. Now, on the flip side, if you see activity increases, and we are confident that we will see that come through and we will see revenue increases, that increases the amplitude of that margin as well as accelerates the timing of it. I think if we see that activity increase, depending on what it is, that three to four years could get accelerated a little bit. Derek Podhaizer: Great. Appreciate all the comments. I'll turn it back. Operator: Thank you. Our next question today comes from Jim Rollyson at Raymond James. Please go ahead. Jim Rollyson: Hey, good morning, gents, and thanks for all the comments so far. Girish, if we kind of circle back to Q4 guide, so you've got margins coming down just kind of modestly from the 22.2% in Q3 on a pretty big step-up in revenues. You kind of walk through some of this, but I'd love for you to decompose kind of how much of that margin delta is tied to NCS dilution, how much is kind of that MPD Middle East equipment delivery mix, and then Venezuela startup cost. Just trying to kind of understand how that flows. Girish Saligram: Yeah. So short answer, Jim, is yes. So again, look, I think it's a variety of factors, right? Let me start, though, with the third quarter. We did deliver significantly better margins than what we had expected. Some of that is just also shift between the third quarter and fourth quarter, just in terms of the projects that we had. The Venezuela startup cost is something that has ramped up and is a little bit newer in development, and we are sort of building that out on a day-to-day basis. So that, I would say, is a bit more of a reality than it was when we gave our prior guidance in July. And then, look, the rest of it is natural, I would say, seasonality. It's not just the Middle East deliveries. What's actually a bigger factor is North America. What we typically see in the fourth quarter is typical year-end bailment sales, typically lower margin, eventually leads to higher pull-throughs on an aftermarket basis later in the life cycle. So altogether, if you put it's not a huge drag and it's still significantly ahead of the first half, and that's really what we try to manage it around. And that's the bigger focus rather than trying to sort of try to time it within a 90-day window. It's are we structurally getting better? And all of this will eventually lead to higher margins, especially the Venezuela startup costs. Jim Rollyson: Got it. And just that follow-up on that MPD capital sales margin benefit- Girish Saligram: Yeah. Jim Rollyson: you referenced earlier, is that something that is a recurring thing, or do we think of DRE margins, at least in the short run, as kind of Q3 being a high-water mark? Girish Saligram: Yeah, great question. I think, let me start with the latter part. I would certainly not call it the high-water mark. We have done better on DRE margins in the past. But it clearly, in the short term, does create a little bit of an unnatural spike, if you will. Typically, when we have older equipment, used asset sales, that is a significantly higher contribution to those margin levels, as we have discussed in prior earnings calls. As we pointed out in our prepared remarks, we still see the opportunity over the next few years of a lot more MPD sales. So I do think there will be some degree of lumpiness, but I think as activity levels improve, my hope is that there is still more headroom in DRE margins. Jim Rollyson: Appreciate your thoughts. Girish Saligram: Thank you. Operator: Our next question today comes from Doug Becker at Capital One. Please go ahead. Doug Becker: Thanks. Girish, wanted to follow up on some of those MPD comments. Offshore is clearly a durable theme over the next couple of years. 70% MPD penetration among drill ships, potentially go to 90%, you mentioned. Aftermarket's doubling this year, could double again over the next couple of years. I was hoping you would size the MPD business, the aftermarket component. What do deepwater deliveries look like the rest of this year and into next year? Then finally, just what's the opportunity for other offshore rig types if we go to semis and jackups? Girish Saligram: Yeah. Hey, Doug. Good morning. Look, we don't break out, as you know, specific product line sizing, et cetera. I think suffice to say, MPD continues to be an important part of the company. It's obviously one of our leading businesses, but it's sort of in the same ballpark as a lot of our other product lines. What I am very encouraged by is the growth rates that we've seen in MPD this year, and that has been dramatically exaggerated on the offshore side. So offshore has clearly grown in a much stronger profile this year than the onshore business. Some of it is just the natural weakness of the Middle East, but I think it's more a testament to the strength of the offshore cycle. Doug, what we see is you look at, depending on how you count it, order of magnitude between 80 and 90 deepwater rigs out there. If we've got another 10%-15% opportunity, let's call it, that's still a sizable number of systems. The exact timing of that is always going to be a little bit unpredictable, but I think suffice to say, we've got very clear line of sight to a lot more in the pipeline. The conversations that we are having with the drill ship operators, the rig contractors, are very positive as they understand that MPD is now becoming just an integral part of their overall offering. It's something that customers expect, not just MPD enablement, but the capability on the rig. And then it's not just about having the hardware, it's about how do you actually make it function so that services element over the long term becomes. And then look, there is a much larger prize out there as you look at the jackup market, the semi sub market, that is significantly under-penetrated. And I think as we tend to look at more mature field rejuvenation, we look at reservoirs that are harder to drill. I think the whole notion of MPD making wells accessible that previously weren't really starts to become a theme as well as the extension from MPD into this concept of MPW or managed pressure wells across various life cycles. So, I'm very encouraged by this MPD business, really excited about the aftermarket muscle that we have built on it, and I think the next few years should be very positive for this product line. Doug Becker: Thank you. Operator: Thank you. Our next question today comes from Keith Mackey at RBC Capital Markets. Please go ahead. Keith Mackey: Hey, good morning, team, and thanks very much. Anuj, the Q4 free cash flow guidance of $100 million-plus looks conservative relative to Q3 $55 million with a higher EBITDA number. Can you just bridge the pieces there, including the increased CapEx and working capital build? Just on Mexico, you said your largest customer's AR as a percentage of revenue is at a six-year low, but remaining payments are still the largest variable. Can you just size what's outstanding and what's assumed in the Q4 guide, please? Anuj Dhruv: Hey, Keith. Good morning. Happy to. You're right. The $100 million proved to be a bit conservative, though that has been our approach given the overall macro environment. We are guiding at 100 versus 155. Just to take a step back and reiterate what we said in the prepared remarks, one, our year-to-date free cash flow generation has been $379 million, and we've converted about 53% of that to free cash. We do have quarters that are lumpier than others. We've had two quarters above 60%, we've had one quarter in the mid-30%. You do have items such as timing of collections or cash interest payment or cash bonus payments, large product sales that can swing any given quarter and free cash correspondingly. However, the key for us is to ensure we drive to the full-year target, which we've put out there, which is at the high 40%. As it relates to Q4 specifically, we do have a cash interest payment that we'll make, which we did not have in Q3. For good measure, I'll point out we did redeem, and we are in the process of redeeming our 2030 note, which will, going forward, reduce our interest expense by $20 million on an annual basis. The second piece in Q4 that Girish alluded to a bit, and so did I in the prepared remarks, is we are ramping our CapEx in Q4 to the $70 million-$80 million range, which sequentially is an increase of $25 million-$35 million. The reason we're doing that is to meet the demand we're seeing for 2027. When you couple the interest payment and the increase in CapEx, that accounts for most of the delta between the $155 million that we guided or that we hit here in Q3. From a working capital standpoint, we did build inventory in Q3, and the reason for that is we do have product deliveries, generally that are a bit lumpier in Q4. We should see some relief in Q4 as it comes to inventory, as we deliver these overall products. From a Pemex standpoint, yes, very positive that Pemex, as a percent of our total accounts receivable, is at the lowest it's been in the last six-plus years. However, they still continue to be a large variable in our quarterly free cash flow number. We have been very positive, and we've seen a lot of momentum in collections from our largest customer, really since this time last year when there were structural reform items that the government undertook in Mexico. Since then, the collections have been really coming in like clockwork. We do have collections baked into our Q4 number, and we do expect to receive this from our largest customer in Mexico. Just to summarize all of this, we've said this many times, and I hope all 16,500 of our Weatherford employees are on the call nodding their head to this. If you had to have one singular goal, our North Star is to drive free cash flow-based decisions. Our key is to continue to march towards the overall 50% target, and we're very confident in hitting the high 40% here for full year 2026. Keith Mackey: Okay. Very helpful. Thanks very much. Operator: Thank you. Our next question today comes from Phillip Jungwirth at BMO. Please go ahead. Phillip Jungwirth: Thanks. Good morning, guys. Girish, you mentioned completions is now your largest product line, and you've strung together a number of offshore completion awards here from Total, Exxon, Equinor, Seplat. Just curious what's driving this offshore win rate. Is it more technology-led or an integration story? Just how should we think about completions growth in 2027 across conventional and offshore? If I can just squeeze one more in. The NCS deep water frac sleeve award that you called out, is that a one-off or could it be the start of a real offshore channel for that technology? Girish Saligram: Yeah. Look, I'm incredibly proud of what the team has done here, and it's been a very focused and disciplined effort over several years. It started with vision, but really having the investment that went in to drive technology differentiation. You just don't win on the merits of that. There has to be integration. We have to have a track record of execution. All of those elements come in, and it's taken some time because this is not a place where customers naturally want to take a risk and they're hesitant to try new things. The team's done an outstanding job. So I'm very confident and hopeful that we will see this trend continue, and we will continue to win more. So I would expect, look, it tends to be, again, a tad bit more lumpy given its product sales, et cetera. But over the next few years, I would expect that as the offshore momentum continues to build out, this is a product line that will be in the very top tier of our CAGR across the business. On the NCS question, look, really, really focused on this as being a new pathway for us. Every time you get the first one, it is a bit of a one-off, but really the intent on this is to create a completely new space for us, where we have a differentiated offering. So very excited about that, but it's going to start as this one thing. Phillip Jungwirth: Thank you. Operator: Thank you. Our next question today comes from Josh Silverstein at UBS. Please go ahead. Josh Silverstein: Yeah, thanks. Good morning, guys. Anuj, I'll go back to you on the free cash flow side and target working capital here. It moved up to over 29% of revenue with 150 basis points from NCS and the rest from receivables and inventory timing. What's the path back towards 25%? Is that a 27% target? How much of this is structural with NCS in the mix versus Mexico's receivable? What are the specific levers on the inventory given the Q4 delivery build? Thanks. Anuj Dhruv: Hey, Josh. Morning. Thanks for the question. Just to start off, yes, 29.2% for working capital as a percent of revenue. There's an asterisk next to that number there with regards to NCS. The way it's amalgamated, as you know, is we have a month of the underlying financial cash flow revenue results, but we have the entire balance sheet that we've consolidated. It is not structural. The 150 basis points over time as the full order impact is reflected in our numbers, that should normalize. If you look at the overall progress we've made relative to the same time last year, we've had a lower revenue base, and as a percent of revenue, we've decreased our working capital even greater. There are significant actions underway in order for us to go and structurally be at that 25%. I do want to note that, which is, even in a tough environment where the denominator has come down relative to the year before, we have reduced our working capital even more so on a percentage basis. The reason I allude to this is as we look forward to 2027, you have heard the comments in the prepared remarks and the Q&A here from Girish around what we are expecting in 2027. As you start ramping the denominator higher, it naturally will allow us to start marching even faster towards the 25% number. That will help. At the same time, our ability to manage working capital will be essential. I am confident that as we start ramping into 2027 and through 2027, we can manage our working capital such that it does not increase at a higher percentage relative to what we have done in the past. To summarize the 25%, there are a lot of moving variables. We talked a bit about our largest customer in Mexico. That can be chunky here and there, and there is always some risk in the timing of those collections. However, they have been paying and we have been receiving money every quarter like clockwork. If all these variables continue on, there is some inventory optimization that we are working towards on doing. Part of your question, you talked about inventory, I believe, and what are the levers we need for inventory. Really for Q4, for inventory, it is just deliver our products. It is that simple. We have an inventory build in Q3 to deliver products in Q4. So we deliver those products, the inventory ends up coming down, and it is probably a net benefit for the quarter. Just summarizing everything, I do think that in 2027, there is potential line of sight for us to hit and march towards that 25%. But again, it is not just hitting that 25% and then being comfortable with it. It is making sure that we have the structural cadence and processes in place inside so we can remain at that 25%. That 25% of working capital is really a sub-component of our target of hitting a 50% free cash flow conversion, which as you have seen here in 2026, in various quarters, we have been well ahead of that. More to come, but the trains are on the right track, I believe. Operator: Thank you. Our next question today comes from Alexa Brenno at Goldman Sachs. Please go ahead. Alexa Brenno: Team, and thanks for taking our question. Wanted to just double-click on the opportunity set if we get a normalization in Middle East activity. I think we talk a lot about what that intervention work could look like for the PRI segment. Can you just help us size that opportunity? Girish Saligram: Yeah, Alexa, it's very hard to tell because it changes with time. I think the longer this drags on, perversely, I think it gets a little bit higher. But it's really a function of where it drags on, how long it drags on. But my expectation would be sort of a mid-single digit incremental increase over what it is. Good news is we've already got contracts in place. We're covered with a lot of capability in the region. So I think as it ramps up based on our customers' plans and what they see, we are very well-poised to support them. Alexa Brenno: Thanks so much. I'll turn it back. Operator: Thank you. Our final question today comes from Josh Jayne at Daniel Energy Partners. Please go ahead. Josh Jayne: Thanks for squeezing me in. You made a number of helpful guideposts for 2027 with respect to activity, but I just want to take a temperature a bit on operator CapEx on a relative basis. We are in an elevated crude prize environment. Everything should be economic. But just based on what you are seeing in sense of urgency on upticks, any thoughts on companies who have a diversified asset base? Are you seeing a shift of relative CapEx dollars offshore versus onshore over the next couple of years, or do you think things are sort of moving at a similar pace? Girish Saligram: Yeah, Josh, we have not seen a dramatic change. I think there has been a very clear trend towards that offshore inflection and putting more dollars in there. We have not seen that necessarily change there other than perhaps countries where you have got the situation where they are simultaneously net importers but do have reserves of their own. We are seeing perhaps a little bit more from those NOCs on focusing on their own reserves, and that is leading to a bit more of that offshore capability, if you will, over the next few years. Josh Jayne: Thanks for taking my question. Operator: Thank you. That concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Girish Saligram: Great. Hey, thank you all for joining. Appreciate it, and we will talk to you in early February about fourth quarter and total year. Thank you. Operator: Thank you, sir. That concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day. Before you buy stock in Weatherford International Plc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Weatherford International Plc wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Weatherford (WFRD) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in Weatherford International PLC? Here are five stocks we like better. - Weatherford delivered resilient Q3 results despite weaker Middle East activity, reporting $1.143 billion in revenue, $254 million in adjusted EBITDA and $155 million in adjusted free cash flow. The adjusted EBITDA margin expanded to 22.2%, while free-cash-flow conversion rose to 61%. - Management expects Q4 revenue of $1.28 billion to $1.33 billion and adjusted EBITDA of $270 million to $290 million, driven largely by year-end equipment deliveries rather than a broad Middle East recovery. Latin America, Venezuela and offshore operations are expected to support growth, while NCS Multistage integration remains on track. - Balance-sheet strength and 2027 growth investments remain priorities: Weatherford plans to redeem $236 million of senior notes, cutting annual interest expense by about $20 million, and expects international market activity to improve in 2027. The company also sees continued expansion in managed pressure drilling, offshore services and Venezuela. - 3 Oil & Gas Gear Makers With Triple-Digit EPS Growth Forecasts Weatherford International (NASDAQ:WFRD) reported third-quarter 2026 revenue of $1.143 billion, adjusted EBITDA of $254 million and adjusted free cash flow of $155 million, as the company cited resilient performance across its contract portfolio despite weaker-than-expected Middle East activity. Adjusted EBITDA margin reached 22.2%, expanding 204 basis points sequentially and 39 basis points from a year earlier, even as revenue declined 7% year over year. Adjusted free cash flow represented 61% of adjusted EBITDA, up from a 36.8% conversion rate in the third quarter of 2025. → The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway - Oilfield Services Growing Faster Than Wider Energy Sector President and CEO Girish Saligram said the quarter absorbed the first full period without the Saudi LSTK contract, the wind-down of Weatherford's original Marmul contract in Oman, and Middle East activity that remained below pre-conflict levels. "This was an excellent quarter," Saligram said, pointing to margin expansion and cash generation in a subdued operating environment. Revenue in the Middle East, North Africa and Asia was flat sequentially, but Saligram said the underlying business grew after accounting for the Saudi contract conclusion and the Oman transition. Growth was led by managed pressure drilling, liner hangers, completions and wireline, while profitability improved across all three company segments. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves - 2 Energy Mid-Caps Expected To Post Monster Earnings Growth The Middle East, North Africa and Asia region represented 39% of Weatherford's third-quarter business. Saudi Arabia accounted for 20% of the region during the quarter, while the UAE, Oman and Kuwait collectively represented about 41%. Saligram said activity remained relatively strong in the UAE and Oman, was lower in Kuwait and Saudi Arabia, and was "substantially" lower in Iraq. Management said it has not incorporated a broader Middle East recovery into its near-term outlook, citing lower rig counts in certain countries, delayed tender cycles and continued operational disruptions. However, Weatherford expects mid- to high-single-digit sequential revenue growth in the region in the fourth quarter, primarily due to year-end deliveries of completions, liner hanger and cementing products rather than a recovery in underlying service activity. → Luxury's Middle Market Is Cracking—These 3 Stocks Could Win Latin America revenue rose 14% sequentially, driven by Mexico and the Caribbean. Saligram said Weatherford continued to receive regular payments from its largest Mexican customer, marking a significant improvement from conditions 18 months earlier. The company also recorded its first Venezuela revenue in the third quarter and expects a more tangible contribution in the fourth quarter, though startup costs will weigh on results. Weatherford sees potential for Venezuela to reach triple-digit revenue in 2027, with further growth possible in 2028 if conditions remain stable. Saligram said the outlook is supported by purchase orders, ongoing contracting activity and hiring, although he did not quantify startup costs or identify customers. Europe, Sub-Saharan Africa and Russia revenue declined 9% sequentially, pressured by lower activity and a Norway labor strike early in the quarter. The company expects the region to remain roughly flat in the fourth quarter. North America increased partly because of a one-month contribution from the NCS Multistage acquisition; Weatherford expects a full-quarter contribution from NCS in the fourth quarter. For the fourth quarter, Weatherford forecast revenue of $1.28 billion to $1.33 billion and adjusted EBITDA of $270 million to $290 million. Management expects margins to decline modestly from third-quarter levels, reflecting the mix of equipment deliveries, North American year-end sales and Venezuela startup expenses. The company expects adjusted free cash flow of more than $100 million. Weatherford highlighted offshore activity as a durable multiyear growth theme, particularly in Brazil, West Africa, the Mediterranean and Asia. The company said its managed pressure drilling, tubular running services, interventions and completions offerings are positioned to benefit from rising deepwater project sanctioning. Its Drilling and Evaluation segment revenue rose 14% sequentially, while margins expanded by more than 700 basis points. Managed pressure drilling capital sales contributed to the increase. Saligram said the company expects some variability from equipment sales but sees a growing aftermarket opportunity as additional deepwater systems are installed. Weatherford estimates that about 70% of drillships either have or are installing a managed pressure drilling system, and it believes that figure could rise to 85% to 90%. The company projects its managed pressure drilling business will grow by more than 10% this year, with further growth in 2027. Its aftermarket component is expected to more than double in 2026 and could double again over the next several years. The company also cited offshore completions awards from TotalEnergies in Denmark, Exxon in Nigeria, Equinor on the Norwegian Continental Shelf and Seplat Energy in Nigeria. Weatherford said completions is now its largest product line. Separately, the legacy NCS business secured an award for frac sleeves and service tools in the Deepwater Gulf of America, with work expected to begin in the first quarter of 2027. Weatherford completed its acquisition of NCS Multistage during the quarter. Management said integration is progressing as planned and cost-synergy initiatives remain on track to deliver at least $15 million within 18 months of closing. The company also cited early cross-selling opportunities in Argentina, the Middle East and the North Sea. Year-to-date adjusted free cash flow totaled $379 million, up 55% from a year earlier, with a 53% conversion rate. CFO Anuj Dhruv said Weatherford raised its full-year adjusted free cash flow conversion outlook to the high-40% range, from a prior mid- to high-40% range. Capital expenditures were $45 million in the third quarter, or 3.9% of revenue. Fourth-quarter capital spending is expected to increase to $70 million to $80 million as Weatherford accelerates investments tied to anticipated 2027 demand, while full-year spending remains within the company's 3% to 5% of revenue target range. Weatherford ended the quarter with about $1.2 billion of cash, approximately $1.8 billion in total liquidity and net leverage of 0.28 times. The company returned $47 million to shareholders during the quarter through $19 million in dividends and $28 million in share repurchases. On Oct. 20, Weatherford issued notice to redeem all $236 million of its 8.625% senior notes due 2030 using cash on hand. Dhruv said the redemption will reduce annualized cash interest expense by about $20 million and leave the company without debt maturities for the next seven years. Looking to 2027, management expects international activity outside the Middle East to rise by mid- to high-single digits, led by Latin America and Asia, while North America activity is expected to increase by low single digits. Assuming Middle East activity remains near current levels, Weatherford expects global market activity to increase by the mid-single digits, with a more noticeable improvement beginning in the second quarter. Saligram said Weatherford expects to outperform that market backdrop through NCS contributions, share gains in selected areas and Venezuela's reopening. The company expects year-over-year margin improvement in 2027 and reiterated its longer-term goal of mid-20% adjusted EBITDA margins and 50% free cash flow conversion. Weatherford International plc is an energy services company that provides equipment, technology and services to the oil and natural gas industry. Its offerings support the life cycle of a well, from drilling and formation evaluation to completion, production, intervention and abandonment. The company's product and service portfolio includes drilling systems, well logging and evaluation tools, completion equipment, artificial-lift systems, production optimization technologies, well intervention services and digital solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Weatherford International Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Delivered 22.2% Adjusted EBITDA margins despite a 7% year-on-year revenue decline, validating the strategy of expanding margins in flat or declining activity environments. - Middle East performance remained flat sequentially as growth in managed pressure drilling (MPD) and completions offset the conclusion of the Saudi LSTK contract and Oman contract transitions. - Latin America revenue grew 14% sequentially, supported by stabilized activity and consistent payment collections from the largest customer in Mexico. - The offshore sector remains the most durable growth theme, with deepwater managed pressure drilling systems continuing to drive high-margin aftermarket spares and services revenue. - Management is actively pruning the portfolio by divesting small, non-core product lines to simplify the organization and focus capital on technology-differentiated offerings. - The integration of NCS Multistage is tracking to the committed cost synergies of at least $15 million within 18 months of closing., providing a differentiated completions platform to be scaled through Weatherford's global distribution network. - Management assumes a 'status quo' baseline for the Middle East in 2027, planning for continued volatility and uncertainty rather than a near-term recovery in activity levels. - Excluding the Middle East, international market activity is projected to rise mid to high single digits in 2027, led by growth in Latin America and Asia. - Venezuela is expected to provide tangible revenue contribution in Q4 2026, with the potential to ramp to triple-digit millions in revenue by 2027 as international operators increase activity. - The company is targeting a sustainable 50% free cash flow conversion rate in 2027, supported by structural cost reductions and lower interest expenses following debt redemptions. - Anticipated redomestication to Delaware is expected to yield $20 million to $30 million in annual cash savings starting in 2027. - Redeeming $236 million of 8.625% Senior Notes due 2030 will eliminate debt maturities for the next seven years and reduce annual cash interest by approximately $20 million. - Q4 2026 margins are expected to be modestly down from Q3 levels due to the mix of equipment deliveries and significant startup costs associated with the Venezuela market entry. - The Norway labor strike weighed heavily on the early part of Q3, though the region recovered as the quarter progressed with new awards from Equinor. - Capital expenditures are being accelerated in Q4 2026 to the $70 million to $80 million range to meet anticipated demand for 2027 projects. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Growth will be driven by the full-year impact of the NCS acquisition, share gains in key technology areas, and the reopening of Venezuela. - Margin expansion in 2027 is expected to be year-on-year relative to the full year 2026, driven by structural improvements and higher activity fall-through. - The projected mid to high single-digit growth in MENA for Q4 is driven by seasonal year-end product deliveries in the Arabian Gulf rather than a recovery in underlying service activity. - Activity levels in UAE and Oman remain normalized and strong, while Kuwait, Saudi Arabia, and Iraq remain relatively soft. - Management is confident in achieving at least $15 million in cost synergies within 18 months. - Revenue synergies are emerging in deepwater completions for tight plays and geothermal applications, with early cross-sell opportunities identified in Argentina and the North Sea. - While 70% of drill ships currently have MPD systems, management expects penetration to reach 85% to 90% over the next few years. - The MPD aftermarket business is projected to double this year and could potentially double again over the next two years as the installed base grows.

Weatherford (WFRD) came out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +37.19%. A quarter ago, it was expected that this oilfield service company would post earnings of $0.92 per share when it actually produced earnings of $0.55, delivering a surprise of -40.22%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Weatherford, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $1.14 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.03%. This compares to year-ago revenues of $1.23 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Weatherford shares have lost about 1.5% since the beginning of the year versus the S&P 500's gain of 12.4%. While Weatherford has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Weatherford was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.49 on $1.27 billion in revenues for the coming quarter and $5.15 on $4.67 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Archrock Inc. (AROC), is yet to report results for the quarter ended September 2026. This natural gas compression services business is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +9.5%. The consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level. Archrock Inc.'s revenues are expected to be $382.43 million, unchanged compared to the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weatherford International PLC (WFRD) : Free Stock Analysis Report Archrock, Inc. (AROC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Third quarter revenue of $1,143 million increased 3% sequentially - Third quarter operating income of $153 million increased 43% sequentially - Third quarter net income of $120 million increased 208% sequentially; net income margin of 10.5% - Third quarter adjusted EBITDA* of $254 million increased 14% sequentially; adjusted EBITDA margin* of 22.2% increased 204 basis points sequentially - Third quarter cash provided by operating activities of $192 million and adjusted free cash flow* of $155 million - Shareholder return of $47 million for the quarter, which included dividend payments of $19 million and share repurchases of $28 million - Completed the acquisition of NCS Multistage Holdings, Inc. ("NCS Multistage") in a stock-and-cash transaction, strengthening Weatherford's completions portfolio and expanding capabilities in reservoir diagnostics and well performance solutions - Secured shareholder approval for the redomestication to Delaware, a strategic initiative expected to generate approximately $20 million to $30 million of annual cash savings beginning in 2027, subject to previously disclosed regulatory and court approvals - Subsequent to quarter end, issued notice to redeem all of 8.625% Senior Notes due 2030 in an aggregate principal amount of $236 million, further improving gross leverage* and enhancing future adjusted free cash flow conversion* - Equinor awarded Weatherford a two-year extension and a new offshore completions award, across several strategic frame agreements to provide its integrated completions portfolio for the Statfjord and Oseberg licenses on the Norwegian Continental Shelf *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled HOUSTON, Oct. 20, 2026 (GLOBE NEWSWIRE) -- Weatherford International plc (NASDAQ: WFRD) ("Weatherford" or the "Company") announced today its results for the third quarter of 2026. Revenues for the third quarter of 2026 were $1,143 million, an increase of 3% sequentially and a decrease of 7% year-over-year. Operating income in the third quarter of 2026 was $153 million, an increase of 43% sequentially and a decrease of 14% year-over-year. Net income in the third quarter of 2026 was $120 million, with a 10.5% margin, an increase of 208%, or 697 basis points, sequentially, and an increase of 48%, or 392 basis points, year-over-year. Adjusted EBITDA* was $254 million, with a 22.2% margin*, an increase of 14% or 204 basis points, sequentially, and a decrease of 6% but an expansion of 39 basis points, year-over-year. Basic income per share in the third quarter of 2026 was $1.66, an increase of 200% sequentially and an increase of 47% year-over-year. Diluted income per share in the third quarter of 2026 was $1.66, an increase of 199% sequentially and an increase of 48% year-over-year. Third quarter 2026 cash flows provided by operating activities were $192 million, an increase of 10% sequentially and an increase of 39% year-over-year. Adjusted free cash flow* was $155 million, an increase of 12% sequentially and an increase of 57% year-over-year. Capital expenditures were $45 million in the third quarter of 2026, an increase of 7% sequentially and an increase of 2% year-over-year. Girish Saligram, President and Chief Executive Officer, commented, "The One Weatherford team delivered an excellent third quarter, with adjusted EBITDA margin* expanding 204 basis points sequentially to 22.2% and adjusted free cash flow* of $155 million. Even as conflict-related operational disruptions in the Middle East weighed on activity levels, the strength of our diversified portfolio, disciplined cost management, and outstanding execution across the organization drove margin expansion and strong cash generation. These results demonstrate the durability of our operating model, agility to pivot in any phase of the cycle and the earnings potential of the business as activity recovers. We also made significant progress on our strategic priorities during the quarter. The closing of the NCS Multistage acquisition strengthens our completions portfolio, broadens our technology capabilities, and positions us to realize meaningful cost and commercial synergies. We further enhanced our capital structure by issuing a notice to redeem the remaining $236 million principal amount of our 2030 Senior Notes, reducing future interest expense. Shareholders approved our proposed redomestication to Delaware, an important step toward a simpler, more efficient corporate structure and improved free cash flow generation. Finally, our Enterprise Resource Planning ("ERP") transformation remains on track, with our first major application launching very smoothly in the third quarter, enabling greater process standardization, simplification, operational efficiency and scalability across the enterprise. We enter the final quarter of the year with strong momentum to springboard into 2027. While the recent events in the Middle East have dampened expectations of a quick recovery, we still see a meaningful ramp in adjusted EBITDA* in the fourth quarter and are increasing our full year adjusted free cash flow* guidance yet again. We see significant market opportunities for growth heading into 2027 and are very well positioned to capitalize on those." *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled Operational & Commercial Highlights - Equinor awarded Weatherford a two-year extension and a new offshore completions award, across several strategic frame agreements to provide its integrated completions portfolio for the Statfjord and Oseberg licenses on the Norwegian Continental Shelf. - A major operator awarded Weatherford a 46-unit contract for the supply of Progressive Cavity Pumping systems, a hallmark of our Artificial Lift capability, to support well completions in Venezuela. - Eldorado Drilling (formerly known as Vantage Drilling) awarded Weatherford a contract to supply a comprehensive Managed Pressure Drilling ("MPD") equipment package for a 7th-generation ultra-deepwater drillship for a deepwater drilling campaign offshore Indonesia in water depths of approximately 1,700 meters. - A major operator awarded Weatherford a four-year contract to provide Tubular Running Services ("TRS") and Intervention Services & Drilling Tools ("ISDT"), expanding our support across offshore exploration, development and decommissioning activities in Australia. - A National Oil Company ("NOC") in South-East Asia awarded Weatherford a three-year deepwater liner hanger contract for conventional and expandable liner systems. - Seplat Energy awarded Weatherford a five-year contract to provide Completions Products and Services, including Gas Lift Solutions, for its shallow offshore operations in Nigeria. - Brunei Shell Petroleum awarded Weatherford a five-year contract extension for Thru-Tubing Services which covers the delivery of Weatherford's thru-tubing portfolio across onshore and offshore wells in Brunei, reinforcing a long-standing partnership focused on safe, reliable and efficient well intervention solutions. - A major operator awarded Weatherford a 30-month contract to provide MPD services in Argentina. - Joint Operations (Saudi Arabian Chevron Inc. - Kuwait Gulf Oil Company) awarded Weatherford a four-year contract for Foresite® and Cygnet® software. - Kuwait Oil Company awarded Weatherford a five-year contract to provide Directional Drilling, Measurement While Drilling and Logging While Drilling services. - A major drilling contractor awarded Weatherford a one-year contract to provide integrated services for offshore operations in Mexico. Technology Highlights - Drilling & Evaluation ("DRE") - In Thailand, Weatherford deployed its Magnus Saker™ drilling system across six high-temperature well sections, achieving 100% geological target success through single-run shoe-to-shoe operation. The campaign eliminated an additional drilling assembly trip, saved over 100 operational hours, equivalent to over five rig days, and delivered significant customer savings while exceeding the operator's drilling performance target. - In the United Kingdom ("UK"), Weatherford completed the first deployment of its Dual Advanced Kickover Tool technology to replace multiple gas-lift valves in a highly deviated offshore well. The solution completed the work in two intervention runs rather than the four typically required, reducing intervention runs by half, saving rig time and reducing personnel exposure at the wellsite. - Well Construction and Completions ("WCC") - With our acquisition of NCS Multistage, we now bring into our portfolio a differentiated completions technology platform that has surpassed 500,000 frac stages completed since 2009. During the quarter, we secured a Deepwater Gulf of America award for its frac sleeves and service tools following four years of collaborative development with a major international operator. The award expands our footprint into the offshore market, creates a platform for future growth, and highlights the potential to leverage these technologies across a broader range of completion applications. - In Saudi Arabia, Weatherford deployed a three-stage DV ("Differential Valve") Tool for the cementing of a 9-5/8" casing string for Aramco. An open hole annulus casing packer enabled isolation, allowing higher-density fluids in subsequent stages, while staged tools restored internal gas tight integrity, and a V0-rated packer secured the casing-to-casing annulus, supporting an optimized cement program and long-term well integrity. - In Malaysia, Weatherford completed the first Mature Asset Rejuvenation by Surveillance System ("MARS") deployment of its kind in Asia for Petronas to evaluate a gas-lift well where a restricted internal diameter prevented the use of conventional tools. The technology completed a full diagnostic survey and accurately identified the leak location, enabling multi-point gas-lift injection diagnosis while avoiding alternative intervention methods. - Production and Intervention ("PRI") - In the U.S., Weatherford completed the first commercial installation of its ForeSite® Power Regenerative System retrofit on an existing rod-lift well. The system captures and reuses energy generated during each pumping cycle, delivering over 50% in energy savings while lowering operating costs and emissions without requiring replacement of the installed drive. - In Colombia, Weatherford completed the world's first deployment of its SandSure™ XT sand consolidation technology to control sand production without conventional downhole screens. The solution consolidated the sand in place, reducing intervention requirements and lifecycle costs while preserving production performance and improving long-term well reliability. Corporate Treasury Debt repayment: On October 20, 2026, Weatherford issued a notice to redeem all of its 8.625% Senior Notes due 2030 (the "2030 Senior Notes") in an aggregate principal amount of $236 million. The 2030 Senior Notes will be redeemed at 100% of their principal amount, plus accrued and unpaid interest to and including the redemption date of October 30, 2026. The redemption is expected to be funded using cash on hand and is expected to reduce annualized cash interest expense by approximately $20 million. This disclosure does not constitute a notice of redemption with respect to the 2030 Senior Notes. Credit Ratings: During the third quarter of 2026, Fitch Ratings and S&P Global Ratings revised their outlook on Weatherford to 'Positive Outlook' from 'Stable Outlook' and affirmed the Company's 'BB' credit rating. Moody's affirmed its 'Ba2' rating with a 'Positive Outlook'. Despite the challenging conditions in the Middle East, these actions recognize Weatherford's continued improvement in credit profile, supported by a stronger balance sheet, enhanced financial flexibility, and prudent capital allocation. Shareholder Return During the third quarter of 2026, Weatherford paid dividends of $19 million and repurchased shares for $28 million, resulting in a total shareholder return of $47 million. During the nine months ended September 30, 2026, Weatherford paid dividends of $59 million and repurchased shares for approximately $54 million, resulting in a total shareholder return of $113 million. On October 15, 2026, our Board declared a cash dividend of $0.275 per share of the Company's ordinary shares. The dividend is payable on December 3, 2026, to shareholders of record as of November 6, 2026. Other Events The shareholders of Weatherford approved all proposals required to effect the Company's updated plan of redomestication from Ireland to Delaware, including approval at both the Scheme Meeting and Extraordinary General Meeting. The redomestication remains subject to previously disclosed closing conditions, including sanction by the Irish High Court. Subject to satisfaction of those conditions, the Company expects the transition to become effective during the fourth quarter of 2026. The redomestication shareholder vote marks a significant milestone in Weatherford's continued transformation and advances the Company's plan to establish a corporate structure better aligned with its global operations, long-term strategy, and shareholder base. This transaction is expected to generate $20 million to $30 million in annual cash savings beginning in 2027, which we believe is an important contributor to continued improvement in adjusted free cash flow conversion. Results by Reportable Segment Drilling and Evaluation ("DRE") | | Three Months Ended | | Variance ($ in Millions) | | Sep 30, 2026 | | Jun 30, 2026 | | Sep 30, 2025 | | Seq. | | YoY Revenue | | $ | 331 | | | | $ | 291 | | | | $ | 346 | | | | 14 | | % | | (4 | ) | % Segment Adjusted EBITDA | | $ | 90 | | | | $ | 58 | | | | $ | 83 | | | | 55 | | % | | 8 | | % Segment Adj EBITDA Margin | | | 27.2 | | % | | | 19.9 | | % | | | 24.0 | | % | | 726 | | bps | | 320 | | bps Third quarter 2026 DRE revenue of $331 million increased by $40 million, or 14% sequentially, primarily from higher MPD and Drilling Services activity in Latin America and higher MPD and Wireline activity in the Middle East/North Africa/Asia, partly offset by lower MPD activity in Europe/Sub-Sahara Africa/Russia. Year-over-year DRE revenue decreased by $15 million, or 4%, primarily from lower Wireline and Drilling-related Services activity, partly offset by higher MPD activity in Latin America. Third quarter 2026 DRE segment adjusted EBITDA of $90 million increased by $32 million, or 55% sequentially, primarily from higher MPD and Drilling Services activity and strong fall through in the Middle East/North Africa/Asia and Latin America, partly offset by lower fall through in North America. Year-over-year DRE segment adjusted EBITDA increased by $7 million, or 8%, primarily from higher fall through in the Middle East/North Africa/Asia and Europe/Sub-Sahara Africa/Russia, partly offset by lower activity and fall through in North America. Well Construction and Completions ("WCC") | | Three Months Ended | | Variance ($ in Millions) | | Sep 30, 2026 | | Jun 30, 2026 | | Sep 30, 2025 | | Seq. | | YoY Revenue | | $ | 450 | | | | $ | 433 | | | | $ | 468 | | | | 4 | | % | | (4 | ) | % Segment Adjusted EBITDA | | $ | 100 | | | | $ | 107 | | | | $ | 125 | | | | (7 | ) | % | | (20 | ) | % Segment Adj EBITDA Margin | | | 22.2 | | % | | | 24.7 | | % | | | 26.7 | | % | | (249 | ) | bps | | (449 | ) | bps Third quarter 2026 WCC revenue of $450 million increased by $17 million, or 4% sequentially, primarily from higher Completions activity in North America and higher Liner Hangers activity in the Middle East/North Africa/Asia, partly offset by lower Completions activity in Latin America. Year-over-year, WCC revenues decreased by $18 million, or 4%, primarily from lower activity in Middle East/North Africa/Asia, partly offset by higher Completions activity in North America and Latin America. Third quarter 2026 WCC segment adjusted EBITDA of $100 million decreased by $7 million, or 7% sequentially, primarily from lower fall through in North America and lower activity in Europe/Sub-Sahara Africa/Russia, partly offset by higher TRS and Completions activity and fall through in the Middle East/North Africa/Asia. Year-over-year WCC segment adjusted EBITDA decreased by $25 million, or 20%, primarily from lower fall through in North America, partly offset by higher Completions and Cementation Products activity and fall through in Latin America. Production and Intervention ("PRI") | | Three Months Ended | | Variance ($ in Millions) | | Sep 30, 2026 | | Jun 30, 2026 | | Sep 30, 2025 | | Seq. | | YoY Revenue | | $ | 314 | | | | $ | 316 | | | | $ | 326 | | | | (1 | ) | % | | (4 | ) | % Segment Adjusted EBITDA | | $ | 73 | | | | $ | 70 | | | | $ | 59 | | | | 4 | | % | | 24 | | % Segment Adj EBITDA Margin | | | 23.2 | | % | | | 22.2 | | % | | | 18.1 | | % | | 110 | | bps | | 515 | | bps Third quarter 2026 PRI revenue of $314 million decreased by $2 million, or 1% sequentially, primarily from lower international Pressure Pumping activity, partly offset by higher Artificial Lift and Subsea Intervention activity in Latin America. Year-over-year PRI revenue decreased by $12 million, or 4%, primarily from lower ISDT and Artificial Lift activity in North America and lower Pressure Pumping and ISDT activity in Latin America, partly offset by higher ISDT and Pressure Pumping activity in Europe/Sub-Sahara Africa/Russia. Third quarter 2026 PRI segment adjusted EBITDA of $73 million increased by $3 million, or 4%, sequentially, primarily from higher international Pressure Pumping fall through and higher ISDT and Digital Solutions activity and fall through in the Middle East/North Africa/Asia, partly offset by lower fall through in North America. Year-over-year PRI segment adjusted EBITDA increased by $14 million, or 24% primarily from higher activity and fall through in Europe/Sub-Sahara Africa/Russia, and higher fall through in the Middle East/North Africa/Asia, partly offset by lower ISDT and Pressure Pumping activity in Latin America. Revenue by Geography | | Three Months Ended | | Variance ($ in Millions) | | Sep 30, 2026 | | Jun 30, 2026 | | Sep 30, 2025 | | Seq. | | YoY North America | | $ | 236 | | | $ | 205 | | | $ | 243 | | | 15 | % | | (3 | )% | | | | | | | | | | | | | International | | $ | 907 | | | $ | 900 | | | $ | 989 | | | 1 | % | | (8 | )% Latin America | | | 225 | | | | 197 | | | | 214 | | | 14 | % | | 5 | % Middle East/North Africa/Asia | | | 447 | | | | 446 | | | | 533 | | | — | % | | (16 | )% Europe/Sub-Sahara Africa/Russia | | | 235 | | | | 257 | | | | 242 | | | (9 | )% | | (3 | )% Total Revenue | | $ | 1,143 | | | $ | 1,105 | | | $ | 1,232 | | | 3 | % | | (7 | )% North America Third quarter 2026 North America revenue of $236 million increased by $31 million, or 15%, sequentially, primarily from higher activity across all reported segments, especially Completions activity in U.S. Land and Canada Land, partly offset by lower Completions activity in U.S. offshore. Year-over-year, North America revenue decreased by $7 million, or 3%, primarily from lower activity in ISDT and Artificial Lift product lines, especially in U.S. Land, partly offset by higher Completions activity. International Third quarter 2026 international revenue of $907 million increased by $7 million, or 1% sequentially and decreased by $82 million, or 8% year-over-year. Third quarter 2026 Latin America revenue of $225 million increased by $28 million, or 14% sequentially, primarily from higher Drilling-related Services and Integrated Services & Projects ("ISP") activity in Mexico and higher MPD activity in the Caribbean, partly offset by lower Completions and Pressure Pumping activity. Year-over-year, Latin America revenue increased by $11 million, or 5%, primarily from higher MPD activity in the Caribbean and higher Completions activity, partly offset by lower Drilling-related Services activity in Argentina and Mexico. Third quarter 2026 Middle East/North Africa/Asia revenue of $447 million was largely flat sequentially, as lower ISP activity was partly offset by higher MPD and Liner Hangers activity. Year-over-year, the Middle East/North Africa/Asia revenue decreased by $86 million, or 16%, primarily from subdued activity on account of heightened geopolitical tensions partly offset by higher Cementation Products activity. Third quarter 2026 Europe/Sub-Sahara Africa/Russia revenue of $235 million decreased by $22 million, or 9% sequentially, primarily from lower activity across the reported segments, partly offset by higher Wireline activity in Europe. Year-over-year, Europe/Sub-Sahara Africa/Russia revenue decreased by $7 million, or 3%, primarily from lower Wireline and Liner Hangers activity, partly offset by higher activity in the PRI segment. About Weatherford Weatherford is a global energy services company that helps customers drill smarter, complete wells more effectively, and maximize production across the entire well lifecycle. With a differentiated portfolio of market-leading solutions, integrated technologies, and a broad global customer footprint across six continents, we blend advanced engineering, digital intelligence, and world-class field expertise to reduce risk, improve performance, and maximize the value of customer assets. Together, we elevate every operation, delivering stronger wells, sharper decisions, and better energy for the world. Visit weatherford.com for more information and connect with us on social media. Conference Call Details Weatherford will host a conference call on Wednesday, October 21, 2026, to discuss the Company's results for the third quarter ended September 30, 2026. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company's website. Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call. A telephonic replay of the conference call will be available until November 4, 2026, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 855-669-9658 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 2939769. A replay and transcript of the earnings call will also be available in the investor relations section of the Company's website. Contacts For Investors: Luke Lemoine Senior Vice President, Corporate Development & Investor Relations +1 713-836-7777 [email protected] For Media: Kelley Hughes Vice President, Communications, Marketing & Sustainability [email protected] Forward-Looking Statements This news release contains projections and forward-looking statements concerning, among other things, the Company's adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only estimates and may differ materially from actual future events or results, based on factors including but not limited to: global political, economic and market conditions, political disturbances, war or other global conflicts, terrorist attacks, public health issues such as pandemics, changes in global trade policies, tariffs and sanctions, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from the Russia Ukraine conflict, conflicts in the Middle East (including the Iran conflict) or instability in Latin America, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations (including changes in the regulatory environment) imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to remain competitive, and to address and participate in changes to the market demands, including for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts and our incorporation of artificial intelligence tools; increases in the prices and lead times, and the lack of availability of our procured products and services, including due to macroeconomic and geopolitical conditions such as tariffs and changes in trade policies; our ability to timely collect from customers; our ability to manage our workforce and systems, including the impact of our enterprise resource planning system implementation and business enhancements; our ability to effectively execute our capital allocation framework; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; the realization of additional cost savings and operational efficiencies, including as a result of our proposed Redomestication from Ireland to Delaware; our ability to receive, in a timely manner and on satisfactory terms, required court approval and to satisfy the other conditions to the proposed Redomestication within the expected timeframe or at all; our ability to realize the expected benefits from the proposed Redomestication; the occurrence of difficulties in connection with the Redomestication, including any costs related thereto; the risk that the proposed Redomestication disrupts current plans and operations; any changes in tax laws, tax treaties or tax regulations or the interpretation or enforcement thereof by the tax authorities in Ireland, the United States and other jurisdictions following the proposed Redomestication; the future financial performance of Weatherford following the Redomestication; our ability to successfully integrate NCS Multistage and to achieve the anticipated benefits and synergies of the acquisition within the expected time period or at all. These risks and uncertainties are more fully described in Weatherford's reports and registration statements filed with the U.S. Securities and Exchange Commission (the "SEC"), including the risk factors described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company's forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled Weatherford International plc Selected Statements of Operations (Unaudited) | | | | | | | | | | | | Three Months Ended | | Nine Months Ended ($ in Millions, Except Per Share Amounts) | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | September 30, 2026 | | September 30, 2025 Revenues: | | | | | | | | | | DRE Revenues | | $ | 331 | | | $ | 291 | | | $ | 346 | | | $ | 943 | | | $ | 1,031 | WCC Revenues | | | 450 | | | | 433 | | | | 468 | | | | 1,326 | | | | 1,365 | PRI Revenues | | | 314 | | | | 316 | | | | 326 | | | | 926 | | | | 987 | All Other | | | 48 | | | | 65 | | | | 92 | | | | 205 | | | | 246 | Total Revenues | | | 1,143 | | | | 1,105 | | | | 1,232 | | | | 3,400 | | | | 3,629 | | | | | | | | | | | Operating Income: | | | | | | | | | | DRE Segment Adjusted EBITDA[1] | | $ | 90 | | | $ | 58 | | | $ | 83 | | | $ | 220 | | | $ | 226 | WCC Segment Adjusted EBITDA[1] | | | 100 | | | | 107 | | | | 125 | | | | 317 | | | | 371 | PRI Segment Adjusted EBITDA[1] | | | 73 | | | | 70 | | | | 59 | | | | 197 | | | | 184 | All Other[2] | | | 10 | | | | 6 | | | | 14 | | | | 29 | | | | 37 | Corporate[2] | | | (19 | ) | | | (18 | ) | | | (12 | ) | | | (53 | ) | | | (42 | ) Depreciation and Amortization | | | (70 | ) | | | (71 | ) | | | (67 | ) | | | (211 | ) | | | (193 | ) Share-based Compensation | | | (15 | ) | | | (11 | ) | | | (10 | ) | | | (38 | ) | | | (26 | ) Gain on Sale of Business | | | — | | | | — | | | | — | | | | — | | | | 70 | Restructuring Charges | | | (6 | ) | | | (9 | ) | | | (11 | ) | | | (28 | ) | | | (51 | ) Redomestication | | | (6 | ) | | | (12 | ) | | | — | | | | (30 | ) | | | — | Other Charges, Net | | | (4 | ) | | | (13 | ) | | | (3 | ) | | | (20 | ) | | | (19 | ) Operating Income | | | 153 | | | | 107 | | | | 178 | | | | 383 | | | | 557 | | | | | | | | | | | Other Expense: | | | | | | | | | | Interest Expense, Net of Interest Income of $13, $11, $11, $34, and $36 | | | (15 | ) | | | (16 | ) | | | (23 | ) | | | (48 | ) | | | (70 | ) Other Expense, Net | | | (9 | ) | | | (16 | ) | | | (16 | ) | | | (26 | ) | | | (61 | ) Income Before Income Taxes | | | 129 | | | | 75 | | | | 139 | | | | 309 | | | | 426 | Income Tax Provision | | | (4 | ) | | | (33 | ) | | | (52 | ) | | | (33 | ) | | | (108 | ) Net Income | | | 125 | | | | 42 | | | | 87 | | | | 276 | | | | 318 | Net Income Attributable to Noncontrolling Interests | | | 5 | | | | 3 | | | | 6 | | | | 9 | | | | 25 | Net Income Attributable to Weatherford | | $ | 120 | | | $ | 39 | | | $ | 81 | | | $ | 267 | | | $ | 293 | | | | | | | | | | | Basic Income Per Share | | $ | 1.66 | | | $ | 0.55 | | | $ | 1.13 | | | $ | 3.71 | | | $ | 4.04 | Basic Weighted Average Shares Outstanding | | | 71.9 | | | | 71.9 | | | | 71.9 | | | | 71.9 | | | | 72.4 | | | | | | | | | | | Diluted Income Per Share | | $ | 1.66 | | | $ | 0.55 | | | $ | 1.12 | | | $ | 3.70 | | | $ | 4.02 | Diluted Weighted Average Shares Outstanding | | | 72.2 | | | | 72.2 | | | | 72.2 | | | | 72.2 | | | | 72.7 | [1] Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 "Segment Reporting" and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation, restructuring charges and other adjustments. Research and development expenses are included in segment adjusted EBITDA. [2] All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting. Weatherford International plc Selected Balance Sheet Data (Unaudited) | | | | | | ($ in Millions) | | September 30, 2026 | | December 31, 2025 Assets: | | | | | | Cash and Cash Equivalents | | $ | 1,161 | | | $ | 987 | Restricted Cash | | | 37 | | | | 55 | Accounts Receivable, Net | | | 1,105 | | | | 1,234 | Inventories, Net | | | 861 | | | | 836 | Property, Plant and Equipment, Net | | | 1,160 | | | | 1,124 | Intangibles, Net | | | 288 | | | | 285 | | | | | | | Liabilities: | | | | | | Accounts Payable | | | 595 | | | | 650 | Accrued Salaries and Benefits | | | 277 | | | | 285 | Current Portion of Long-term Debt | | | 264 | | | | 30 | Long-term Debt | | | 1,216 | | | | 1,455 | | | | | | | Shareholders' Equity: | | | | | | Total Shareholders' Equity | | | 1,992 | | | | 1,696 | Weatherford International plc Selected Cash Flows Information (Unaudited) | | | | | | | | | | | | Three Months Ended | | Nine Months Ended ($ in Millions) | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | September 30, 2026 | | September 30, 2025 Cash Flows From Operating Activities: | | | | | | | | | | Net Income | | $ | 125 | | | $ | 42 | | | $ | 87 | | | $ | 276 | | | $ | 318 | Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | | | | | | | | | | Depreciation and Amortization | | | 70 | | | | 71 | | | | 67 | | | | 211 | | | | 193 | Foreign Exchange Losses | | | 5 | | | | 10 | | | | 10 | | | | 11 | | | | 40 | Gain on Disposition of Assets | | | (15 | ) | | | (7 | ) | | | (2 | ) | | | (28 | ) | | | (6 | ) Gain on Sale of Business | | | — | | | | — | | | | — | | | | — | | | | (70 | ) Deferred Income Tax Provision (Benefit) | | | (44 | ) | | | — | | | | 11 | | | | (35 | ) | | | 13 | Share-Based Compensation | | | 15 | | | | 11 | | | | 10 | | | | 38 | | | | 26 | Changes in Accounts Receivable, Inventory, Accounts Payable, Accrued Salaries and Benefits and Income Taxes Payable | | | 27 | | | | 64 | | | | (69 | ) | | | 65 | | | | (116 | ) Other Changes, Net | | | 9 | | | | (16 | ) | | | 24 | | | | (35 | ) | | | 10 | Net Cash Provided By Operating Activities | | | 192 | | | | 175 | | | | 138 | | | | 503 | | | | 408 | | | | | | | | | | | Cash Flows From Investing Activities: | | | | | | | | | | Capital Expenditures for Property, Plant and Equipment | | | (45 | ) | | | (42 | ) | | | (44 | ) | | | (141 | ) | | | (175 | ) Proceeds from Disposition of Assets | | | 8 | | | | 6 | | | | 5 | | | | 17 | | | | 11 | Proceeds from Sale of Business | | | — | | | | — | | | | — | | | | — | | | | 97 | Purchases of Blue Chip Swap Securities | | | (9 | ) | | | (11 | ) | | | (20 | ) | | | (23 | ) | | | (103 | ) Proceeds from Sales of Blue Chip Swap Securities | | | 8 | | | | 11 | | | | 20 | | | | 22 | | | | 102 | Business Acquisition, Net of Cash Acquired | | | (13 | ) | | | — | | | | — | | | | (13 | ) | | | — | Other Investing Activities | | | (3 | ) | | | (6 | ) | | | (7 | ) | | | (26 | ) | | | (14 | ) Net Cash Used In Investing Activities | | | (54 | ) | | | (42 | ) | | | (46 | ) | | | (164 | ) | | | (82 | ) | | | | | | | | | | Cash Flows From Financing Activities: | | | | | | | | | | Repayments of Long-term Debt | | | (8 | ) | | | (9 | ) | | | (7 | ) | | | (25 | ) | | | (80 | ) Distributions to Noncontrolling Interests | | | (4 | ) | | | (5 | ) | | | (8 | ) | | | (9 | ) | | | (16 | ) Tax Remittance on Equity Awards | | | (2 | ) | | | (1 | ) | | | — | | | | (20 | ) | | | (20 | ) Share Repurchases | | | (28 | ) | | | (16 | ) | | | (7 | ) | | | (54 | ) | | | (94 | ) Dividends Paid | | | (19 | ) | | | (20 | ) | | | (18 | ) | | | (59 | ) | | | (54 | ) Other Financing Activities | | | (1 | ) | | | 2 | | | | (7 | ) | | | — | | | | (13 | ) Net Cash Used In Financing Activities | | $ | (62 | ) | | $ | (49 | ) | | $ | (47 | ) | | $ | (167 | ) | | $ | (277 | ) Weatherford International plc Non-GAAP Financial Measures Defined (Unaudited) We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford's management believes that certain non-GAAP financial measures (as defined under the SEC's Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company's reported results prepared in accordance with GAAP. Adjusted EBITDA* – Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company's reported results prepared in accordance with GAAP. Adjusted EBITDA margin* – Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company's reported results prepared in accordance with GAAP. Adjusted Free Cash Flow* – Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company's reported results prepared in accordance with GAAP. Adjusted Free Cash Flow Conversion* – Adjusted free cash flow conversion* is a non-GAAP measure that is calculated by dividing adjusted free cash flow* by adjusted EBITDA*. Management believes adjusted free cash flow conversion* is useful to assess the level of normalized liquidity generated in the operating cycle. Adjusted free cash flow conversion* should be considered in addition to, but not as a substitute for the GAAP measures described above for the respective components, and should be viewed in addition to the Company's reported results prepared in accordance with GAAP. Net Debt* – Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company's results prepared in accordance with GAAP.​ Net Leverage* – Net Leverage* is a non-GAAP measure which is calculated by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for, the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company's reported results prepared in accordance with GAAP. Gross Leverage* – Gross Leverage* is a non-GAAP measure which is calculated by dividing total debt by adjusted EBITDA* for the trailing 12 months. Management believes gross leverage* is useful to understand our ability to repay and service our debt. Gross leverage* should be considered in addition to, but not as a substitute for, total debt divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company's reported results prepared in accordance with GAAP. *Non-GAAP – as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled Weatherford International plc GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) | | Three Months Ended | | Nine Months Ended ($ in Millions, Except Margin in Percentages) | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | September 30, 2026 | | September 30, 2025 Revenues | | $ | 1,143 | | | $ | 1,105 | | | $ | 1,232 | | | $ | 3,400 | | | $ | 3,629 | Net Income Attributable to Weatherford | | $ | 120 | | | $ | 39 | | | $ | 81 | | | $ | 267 | | | $ | 293 | Net Income Margin | | | 10.5 | % | | | 3.5 | % | | | 6.6 | % | | | 7.9 | % | | | 8.1 | % Adjusted EBITDA* | | $ | 254 | | | $ | 223 | | | $ | 269 | | | $ | 710 | | | $ | 776 | Adjusted EBITDA Margin* | | | 22.2 | % | | | 20.2 | % | | | 21.8 | % | | | 20.9 | % | | | 21.4 | % | | | | | | | | | | Net Income Attributable to Weatherford | | $ | 120 | | | $ | 39 | | | $ | 81 | | | $ | 267 | | | $ | 293 | Net Income Attributable to Noncontrolling Interests | | | 5 | | | | 3 | | | | 6 | | | | 9 | | | | 25 | Income Tax Provision | | | 4 | | | | 33 | | | | 52 | | | | 33 | | | | 108 | Interest Expense, Net of Interest Income of $13, $11, $11, $34, and $36 | | | 15 | | | | 16 | | | | 23 | | | | 48 | | | | 70 | Other Expense, Net | | | 9 | | | | 16 | | | | 16 | | | | 26 | | | | 61 | Operating Income | | | 153 | | | | 107 | | | | 178 | | | | 383 | | | | 557 | Depreciation and Amortization | | | 70 | | | | 71 | | | | 67 | | | | 211 | | | | 193 | Other Charges, Net[1] | | | 4 | | | | 13 | | | | 3 | | | | 20 | | | | 19 | Gain on Sale of Business | | | — | | | | — | | | | — | | | | — | | | | (70 | ) Restructuring Charges | | | 6 | | | | 9 | | | | 11 | | | | 28 | | | | 51 | Redomestication | | | 6 | | | | 12 | | | | — | | | | 30 | | | | — | Share-Based Compensation | | | 15 | | | | 11 | | | | 10 | | | | 38 | | | | 26 | Adjusted EBITDA* | | $ | 254 | | | $ | 223 | | | $ | 269 | | | $ | 710 | | | $ | 776 | | | | | | | | | | | Net Cash Provided By Operating Activities | | $ | 192 | | | $ | 175 | | | $ | 138 | | | $ | 503 | | | $ | 408 | Capital Expenditures for Property, Plant and Equipment | | | (45 | ) | | | (42 | ) | | | (44 | ) | | | (141 | ) | | | (175 | ) Proceeds from Disposition of Assets | | | 8 | | | | 6 | | | | 5 | | | | 17 | | | | 11 | Adjusted Free Cash Flow* | | $ | 155 | | | $ | 139 | | | $ | 99 | | | $ | 379 | | | $ | 244 | [1] Other Charges, Net in the three and nine months ended September 30, 2026 primarily includes mergers and acquisitions costs. Other Charges, Net in the three and nine months ended September 30, 2025 primarily includes fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico and other miscellaneous charges and credits. *Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined Weatherford International plc GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited) | | ($ in Millions) | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 Current Portion of Long-term Debt | | $ | 264 | | | $ | 30 | | | $ | 126 | Long-term Debt | | | 1,216 | | | | 1,450 | | | | 1,462 | Total Debt | | $ | 1,480 | | | $ | 1,480 | | | $ | 1,588 | | | | | | | | | | Cash and Cash Equivalents | | $ | 1,161 | | | $ | 1,100 | | | $ | 967 | Restricted Cash | | | 37 | | | | 37 | | | | 64 | Total Cash | | $ | 1,198 | | | $ | 1,137 | | | $ | 1,031 | | | | | | | | | | Components of Net Debt | | | | | | | | | Current Portion of Long-term Debt | | $ | 264 | | | $ | 30 | | | $ | 126 | Long-term Debt | | | 1,216 | | | | 1,450 | | | | 1,462 | Less: Cash and Cash Equivalents | | | 1,161 | | | | 1,100 | | | | 967 | Less: Restricted Cash | | | 37 | | | | 37 | | | | 64 | Net Debt* | | $ | 282 | | | $ | 343 | | | $ | 557 | | | | | | | | | | Net Income for trailing 12 months | | $ | 405 | | | $ | 366 | | | $ | 405 | Adjusted EBITDA* for trailing 12 months | | $ | 1,001 | | | $ | 1,016 | | | $ | 1,102 | | | | | | | | | | Net Leverage* (Net Debt*/Adjusted EBITDA*) | | | 0.28 | x | | | 0.34 | x | | | 0.51 | x *Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined