Solid Q1 Financial Performance
Revenue of $1.152 billion, adjusted EBITDA of $233 million (20.2% margin) and adjusted free cash flow of $85 million in Q1 2026.
Weatherford International
· WFRD
April 21st, 2026
Summary
- Earnings Call Date:
- 2026-04-21
- Change Since:
- -14.98%
- Next Earnings Date:
- 2026-07-21
Earnings Call Sentiment
PositiveThe call presents a generally constructive and optimistic medium- to long-term outlook driven by strong cash generation, improved working capital, a healthy balance sheet, strategic contract wins and technical milestones. Near-term performance is constrained by Q1 seasonality and geopolitical disruptions in the Middle East that produced an estimated $30M–$50M H1 profit impact, higher freight/logistics costs, and weaker sequential revenue guidance for Q2. Management emphasized disciplined capital allocation, portfolio pruning, and confidence in a second-half ramp and robust 2027 prospects.
Company Guidance
Weatherford guided Q2 revenue of $1.017–$1.110 billion, adjusted EBITDA of $195–$220 million and adjusted free cash flow broadly in line with Q1 (~$85 million); for full‑year 2026 management narrowed ranges to revenues of $4.50–$4.95 billion, adjusted EBITDA of $945–$1,075 million, adjusted free‑cash‑flow conversion in the mid‑40% range and an effective tax rate in the low‑ to mid‑20% range. Management reminded listeners of Q1 results of $1.152 billion revenue, $233 million adjusted EBITDA (20.2% margin), $85 million adjusted FCF (36.5% conversion), adjusted net working capital of 27.9% of revenues (improved ~100 bps sequentially), cash and restricted cash of ~$1.05 billion and net leverage well below 0.5x. They noted Q1 CapEx of $54 million (4.7% of revenues) with full‑year CapEx expected in a 3–5% range, returned $30 million to shareholders in Q1 ($20M dividends, $10M repurchases; >$330M returned to date), quantified an estimated Iran‑conflict profit impact of roughly $30–$50 million in H1, and reiterated a through‑cycle free‑cash‑conversion target of 50% plus an anticipated second‑half ramp (international revenues could be up year‑on‑year) assuming Middle East normalization.
Improving Cash Conversion and Collections
Adjusted free cash flow conversion was 36.5% in Q1 2026, up from 26.1% in Q1 2025, supported by very strong collections across geographies and continued progress on payments from the largest customer in Mexico.
Working Capital and Balance Sheet Strength
Adjusted net working capital was 27.9% of revenues in Q1 with a sequential improvement of ~100 basis points; cash and restricted cash of approximately $1.05 billion and net leverage well below 0.5x.
Return of Capital to Shareholders
Returned $30 million to shareholders in Q1 ( $20 million dividends, $10 million share repurchases) and have returned over $330 million in total since program inception; dividend was increased by 10% earlier in the year.
Operational and Technical Milestones
Completed AlphaV casing system deployment in the U.K. Liverpool Bay; set a global record for extended reach wireline logging (>29,000 ft measured depth) in Saudi Arabia; executed first rigless thru-tubing sand-control gravel-pack and trialed rod lift at Jafurah.
Key Contract Wins and Pipeline Momentum
Secured multiyear integrated conditions contract with TotalEnergies (Denmark), a 5-year TRS contract with Phu Quoc POC (Vietnam), and a multiyear artificial lift contract with Shell (Argentina); management expects noticeable second-half growth driven by contract awards and project start-ups.
Prudent Capital Allocation and Lower CapEx
Q1 CapEx was $54 million (4.7% of revenues), down ~$23 million versus Q1 2025; full-year CapEx expected in the 3%-5% of revenue range, with a shift toward IT/ERP spending and focus on high-ROIC investments.
Refinancing and Interest Savings
Delevered in 2025 and refinanced $1.2 billion of 2030 notes into 2033, reducing interest expense with an expected run-rate benefit of ~$35+ million versus 2025.
Strategic Redomestication Initiative
Proposed redomestication from Ireland to the United States (Texas) to simplify corporate structure, enhance capital management flexibility and support long-term shareholder value and tax optimization.
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford First Quarter 2026 Results Conference Call. [Operator Instructions] As a reminder, today's event is being recorded. At this time, I'd like to turn the conference call over to Luke Lemoine, Senior of Corporate Development. Sir, you may begin.
Luke Lemoine
Welcome everyone, to the Weatherford International First Quarter 2026 Earnings Conference Call. I'm joined today by Girish Saligram, President and CEO; and Anuj Dhruv, Executive Vice President and CFO. We'll 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 today's comments 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'd like to turn the call over to Girish.
Girish Saligram
Thanks, Luke, ...
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