Weatherford third-quarter net income rises to $120 million while revenue falls 7%

Weatherford International plc (WFRD) said in a filing Tuesday that third-quarter net income attributable to the company rose 48% from a year earlier to $120 million, while revenue fell 7% to $1,143 million.

The energy services company released the results for the quarter ended Sept. 30, 2026, in a news release furnished as an exhibit to the filing.

Operating income was $153 million, down 14% from $178 million a year earlier and up 43% from the second quarter.

Here's how the company did:

• Revenue: $1,143 million vs. $1,232 million a year earlier
• Operating income: $153 million vs. $178 million a year earlier
• Net income attributable to Weatherford: $120 million vs. $81 million a year earlier
• Diluted income per share: $1.66 vs. $1.12 a year earlier
• Adjusted EBITDA: $254 million vs. $269 million a year earlier
• Adjusted free cash flow: $155 million vs. $99 million a year earlier

Adjusted EBITDA, or earnings before interest, taxes, depreciation, amortization and certain other charges, was down 6% from a year earlier but rose 14% from $223 million in the second quarter. The margin reached 22.2%, up 39 basis points from 21.8% a year earlier.

Operating cash flow was $192 million, up 39% from $138 million a year earlier. Capital expenditures were $45 million.

“The One Weatherford team delivered an excellent third quarter,” CEO Girish Saligram said.

“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,” Saligram said.

Segment results

Drilling and Evaluation revenue was $331 million, up 14% from $291 million in the second quarter and down 4% from $346 million a year earlier. Segment adjusted EBITDA was $90 million, up 55% sequentially and up 8% from $83 million a year earlier.

Well Construction and Completions revenue was $450 million, up 4% from the second quarter and down 4% from $468 million a year earlier. Segment adjusted EBITDA fell to $100 million, down 7% sequentially and down 20% from $125 million a year earlier.

Production and Intervention revenue was $314 million, down 1% sequentially and down 4% from $326 million a year earlier. Segment adjusted EBITDA rose 24% from $59 million a year earlier to $73 million.

The company completed its acquisition of NCS Multistage Holdings, Inc. in a stock-and-cash transaction during the quarter. The filing does not give the purchase price. The cash flow statement shows $13 million for business acquisitions, net of cash acquired.

North America revenue was $236 million, up 15% from the second quarter and down 3% from $243 million a year earlier. International revenue was $907 million, down 8% from $989 million a year earlier.

Revenue in the Middle East, North Africa and Asia fell 16% from a year earlier to $447 million. The release tied the decline to subdued activity on account of heightened geopolitical tensions.

Cash, debt and shareholder returns

Shareholder returns totaled $47 million in the quarter, including $19 million in dividends and $28 million in share repurchases. For the first nine months, the company paid $59 million in dividends and repurchased about $54 million of shares.

Adjusted free cash flow was $155 million, up 57% from a year earlier. For the first nine months it was $379 million, compared with $244 million a year earlier.

The company issued a notice Tuesday to redeem all $236 million of its 8.625% Senior Notes due 2030 at 100% of principal, plus accrued interest, on Oct. 30, 2026. It said the redemption will be funded with cash on hand and is expected to cut annualized cash interest expense by about $20 million.

Fitch Ratings and S&P Global Ratings revised their outlook on the company to positive from stable and affirmed its BB rating during the quarter. Moody's affirmed its Ba2 rating with a positive outlook.

The board declared a cash dividend of $0.275 per share on Oct. 15, payable Dec. 3 to shareholders of record as of Nov. 6.

Outlook and other events

In the release, CEO Girish Saligram said, “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.” The release did not give a revised full-year adjusted free cash flow figure.

Shareholders approved all proposals needed for the company's redomestication from Ireland to Delaware. The move remains subject to previously disclosed closing conditions, including sanction by the Irish High Court.

If those conditions are met, the company expects the change to take effect in the fourth quarter of 2026. It expects $20 million to $30 million in annual cash savings beginning in 2027.

Weatherford also said Equinor awarded it a two-year extension and a new offshore completions award for the Statfjord and Oseberg licenses on the Norwegian Continental Shelf.

The company will host a conference call on Wednesday, Oct. 21, at 8:30 a.m. Eastern Time.