Nasdaq:WFRD
Weatherford International plc
A premier manufacturer of intelligent energy solutions and drilling equipment supporting upstream oil and gas operations globally.
Key Metrics
Investment Thesis
Bull Case
Weatherford offers an attractive entry point for growth investors given its dominant market share in high-margin intelligent completion technologies and the secular shift toward digitalization in the energy sector. The company's robust balance sheet with over $1B in cash provides significant flexibility for strategic M&A or dividend growth, while recent divestitures suggest a disciplined approach to optimizing the portfolio.
Bear Case
The stock faces headwinds from a contracting upstream market that has reduced revenue by roughly 12% year-over-year, raising concerns about future demand elasticity if oil prices remain subdued. High levels of accounts receivable at $1.23B relative to current assets suggest potential collection challenges or aggressive credit terms in a competitive pricing environment.
About Weatherford International plc
Weatherford International plc is a leading provider of intelligent energy solutions serving the global oil and gas exploration and production markets. The company designs and manufactures critical drilling technologies, including high-pressure pumps, downhole sensors, and wellhead systems that enhance operational efficiency for energy producers worldwide.
Analysis
Management Discussion
Despite a revenue decline to $4.92B in 2025 from a peak of $5.51B in 2024, the company demonstrated resilient profitability with net income remaining robust at $457M compared to $550M the prior year. Strong operating cash flow of $676M and a healthy ending cash position of $1.04B indicate effective capital management and liquidity preservation even as working capital requirements tightened by $270M.
Industry Overview
The global energy services industry is currently navigating a cyclical downturn characterized by reduced drilling activity and intense price competition among equipment suppliers. However, the sector remains essential for any future recovery in production, with companies that can offer integrated digital solutions gaining a premium over traditional hardware vendors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.33B | $5.13B | $5.51B | $4.92B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $4.33B | $5.13B | $5.51B | $4.92B |
| Operating Expenses | $3.92B | $4.32B | $4.58B | $4.16B |
| Operating Income | $412.0M | $820.0M | $938.0M | $756.0M |
| R&D | $90.0M | $112.0M | $123.0M | $108.0M |
| Stock-Based Comp | $25.0M | $35.0M | $45.0M | $38.0M |
| D&A | $349.0M | $327.0M | $343.0M | $267.0M |
| Depreciation | $194.0M | $171.0M | $185.0M | $208.0M |
| Amortization | $155.0M | $156.0M | $158.0M | $59.0M |
| Other OpEx | $3.83B | $4.20B | $4.45B | $4.05B |
| Non-Operating Income | $-274.0M | $-314.0M | $-199.0M | $-202.0M |
| Pre-Tax Income | $138.0M | $506.0M | $739.0M | $554.0M |
| Income Tax | $87.0M | $57.0M | $189.0M | $97.0M |
| Continuing Ops | $51.0M | $449.0M | $550.0M | $457.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $51.0M | $449.0M | $550.0M | $457.0M |
| Minority Interest | $25.0M | $32.0M | $44.0M | $26.0M |
| Net to Common | $26.0M | $417.0M | $506.0M | $431.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.04B | $3.35B | $3.40B | $3.37B |
| Cash & Equivalents | $910.0M | $958.0M | $916.0M | $987.0M |
| Accounts Receivable | $989.0M | $1.22B | $1.26B | $1.23B |
| Inventory | $689.0M | $788.0M | $880.0M | $836.0M |
| Other Current Assets | $455.0M | $383.0M | $345.0M | $315.0M |
| Long-Term Assets | $1.68B | $1.72B | $1.76B | $1.82B |
| PP&E (Net) | $918.0M | $957.0M | $1.06B | $1.12B |
| Intangibles | $506.0M | $370.0M | $325.0M | $285.0M |
| Operating Leases | $115.0M | $138.0M | $124.0M | $128.0M |
| Other LT Assets | $138.0M | $258.0M | $247.0M | $288.0M |
| Total Assets | $4.72B | $5.07B | $5.16B | $5.20B |
| Current Liabilities | $1.47B | $1.87B | $1.70B | $1.54B |
| Accounts Payable | $460.0M | $679.0M | $792.0M | $650.0M |
| Current Leases | $44.0M | $46.0M | $44.0M | $48.0M |
| Other Current Liab | $966.0M | $1.14B | $860.0M | $839.0M |
| Long-Term Liabilities | $2.70B | $2.28B | $2.18B | $1.96B |
| LT Operating Leases | $117.0M | $131.0M | $110.0M | $109.0M |
| Other LT Liab | $2.58B | $1.86B | $1.79B | $1.61B |
| Total Liabilities | $4.17B | $4.15B | $3.88B | $3.50B |
| Shareholders' Equity | $551.0M | $922.0M | $1.28B | $1.70B |
| Retained Earnings | $-2.37B | $-1.95B | $-1.49B | $-1.13B |
| AOCI | $-22.0M | $-28.0M | $-150.0M | $13.0M |
| Total L&E | $4.72B | $5.07B | $5.16B | $5.20B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $51.0M | $449.0M | $550.0M | $457.0M |
| Non-Cash Adjustments | $45.0M | $-65.0M | $11.0M | $489.0M |
| Working Capital Changes | $253.0M | $448.0M | $231.0M | $-270.0M |
| Cash from Operations | $349.0M | $832.0M | $792.0M | $676.0M |
| Capital Expenditures | $132.0M | $209.0M | $299.0M | $226.0M |
| Cash from Investing | $-54.0M | $-289.0M | $-293.0M | $-145.0M |
| Debt Issuances | $0 | $0 | — | — |
| Share Buybacks | — | — | $99.0M | $101.0M |
| Dividends Paid | — | — | $36.0M | $72.0M |
| Cash from Financing | $-248.0M | $-514.0M | $-511.0M | $-474.0M |
| FX Effect | $-48.0M | $-78.0M | $-76.0M | $10.0M |
| Net Change in Cash | $-1.0M | $-49.0M | $-88.0M | $67.0M |
| Beginning Cash | $1.11B | $1.11B | $1.06B | $975.0M |
| Ending Cash | $1.11B | $1.06B | $975.0M | $1.04B |
Frequently Asked Questions
How does Weatherford International plc make money?
Core revenue streams include Intelligent Energy Solutions offering automated drilling tools and real-time data analytics, Well Equipment providing surface completion hardware like Christmas trees and manifolds, and Drilling Products supplying high-pressure pumps and downhole sensors essential for well construction.
What are the main risks for WFRD?
Investors should consider exposure to volatile crude oil prices which directly impact capital expenditure cycles and demand for drilling equipment, susceptibility to geopolitical instability in key operating regions like the Middle East and North Africa, potential for significant cost inflation in raw materials such as steel and copper, and competitive pressure from emerging low-cost manufacturers.
What is WFRD's competitive advantage?
The company leverages a strong patent portfolio protecting proprietary drilling technologies, maintains a global footprint with manufacturing facilities in over 20 countries to ensure supply chain resilience, and possesses deep domain expertise that allows for rapid customization of complex downhole solutions for diverse geological conditions.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.