million for the three months ended March 31, 2025, compared to three months ended March 31, 2024 where we recognized a tax expense of $ million. Income tax expense was lower in the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreased earnings before taxes and the recognition of a benefit from previously uncertain tax positions of $ million. We calculate income tax provision using the estimated annual effective tax rate method in accordance with Accounting Standards Codification “ASC” 740 - Income Taxes.
The relationship between our pre-tax income or loss and our income tax provision or benefit varies from period to period due to various factors which include changes in total pre-tax income or loss, the jurisdictions in which our income is earned, the tax laws in those jurisdictions and in our operating structure. We provide for income taxes based on the laws and rates in effect in the countries in which operations are conducted, or in which we or our subsidiaries are considered residents for income tax purposes. Our income tax provisions are primarily driven by income in certain jurisdictions and withholding taxes on intercompany and third-party transactions that do not directly correlate to ordinary income or loss. Certain charges and impairments recognized do not result in significant tax benefit as a result of being attributed to a non-income tax jurisdiction or our inability to forecast realization of the tax benefit of such losses. This is partially offset by the utilization of previously unbenefited deferred tax assets, such as net operating loss carryforwards.
We routinely undergo tax examination in various jurisdictions. We cannot predict the timing or outcome regarding resolution of these tax examinations or if they will have a material impact on our financial statements. As of March 31, 2025, we anticipate that it is reasonably possible that our uncertain tax positions of $ million, including interest and penalties offset by net operating losses and other tax attributes if settled, may decrease by up to $ million in the next twelve months due to expiration of statutes of limitations, settlements and/or conclusions of tax examinations.
million.
Under the CDS terms, within five business days upon notification of a default by the customer, we could be required to pay the then outstanding notional balance net of recoveries. As of March 31, 2025, we had a notional balance of $ million outstanding under the CDS and as of December 31, 2024, we had a notional balance of $ million outstanding. The fair value of the derivative was not material as of March 31, 2025 and December 31, 2024.
A CDS was entered into during the fourth quarter of 2023 with the same parties for similar reasons as in the fourth quarter of 2024, and accordingly, in the first quarter of 2024, we received $ million. The agreement was terminated in the third quarter of 2024, extinguishing the remaining notional balance.
million in cash. The Company expects to record a gain in the second quarter of 2025.
per share of the Company’s ordinary shares, payable on June 5, 2025 to shareholders of record as of May 6, 2025.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
As used in this item, “Weatherford”, “the Company,” “we,” “us” and “our” refer to Weatherford International plc, a public limited company organized under the laws of Ireland, and its subsidiaries on a consolidated basis. The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements and Notes thereto included in “Item 1. Financial Statements.” Our discussion includes various forward-looking statements about our markets, the demand for our products and services and our future results. These statements include assumptions, certain risks and uncertainties. For information about these assumptions, risks and uncertainties, refer to the section “Forward-Looking Statements” and the section “PART II - OTHER INFORMATION - Item 1A. Risk Factors.”
Business
Weatherford is a leading global energy services company providing equipment and services used in the drilling, evaluation, well construction, completion, production, intervention and responsible abandonment of wells in the oil and natural gas exploration and production industry as well as new energy platforms.
We conduct business in approximately 75 countries, answering the challenges of the energy industry with 320 operating locations including manufacturing, research and development, service, and training facilities. Our operational performance is reviewed and managed across the life cycle of the wellbore, and we report in three segments (1) Drilling and Evaluation, (2) Well Construction and Completions, and (3) Production and Intervention.
Drilling and Evaluation (“DRE”) offers a suite of services including managed pressure drilling, drilling services, wireline and drilling fluids. DRE offerings range from early well planning to reservoir management through innovative tools and expert engineering to optimize reservoir access and productivity.
Well Construction and Completions (“WCC”) offers products and services for well integrity assurance across the full life cycle of the well. The primary offerings are tubular running services, cementation products, completions, liner hangers and well services. WCC deploys conventional to advanced technologies, providing safe and efficient services in any environment during the well construction phase.
Production and Intervention (“PRI”) offers a suite of reservoir stimulation designs, and engineering capabilities that isolate zones and unlock reserves in conventional and unconventional wells, deep water, and aging reservoirs. The primary offerings are intervention services & drilling tools, artificial lift, digital solutions, sub-sea intervention and pressure pumping services in select markets.
Industry Trends
Demand for our industry’s products and services is driven by many factors, including commodity prices, the number of oil and gas rigs and wells drilled, depth and drilling conditions of wells, number of well completions, age of existing wells, reservoir depletion, regulatory environment, and the level of workover activity worldwide.
Lower oil and natural gas prices and lower rig count generally correlate to lower exploration and production spending, and higher oil and natural gas prices and higher rig count generally correlate to higher exploration and production spending. Therefore, our financial results can be significantly affected by oil and natural gas prices as well as rig counts. As shown in the following tables, as of March 31, 2025 oil prices and rig counts were notably lower than at March 31, 2024. The drop in oil prices and rig counts since the quarter ended March 31, 2024 has coincided with reduced activity levels across our industry. Oil prices and rig counts may continue to trend lower throughout the remainder of 2025, resulting in flat to lower activity levels.
In addition to the impact of lower commodity prices and reduced rig counts there may be future impacts and effects on our industry or us relating to the new U.S. Presidential administration and Congress in areas relating to trade policy and tariffs, global conflicts and sanctions, environmental regulations and others. For example, on April 2, 2025, the U.S. announced sweeping new tariffs, prompting retaliatory actions by affected countries, followed by a 90-day pause in the effectiveness of some tariffs. We have seen significant volatility in the energy markets subsequent to the tariff announcements, including a continued decline in oil prices, and anticipate increased supply chain challenges, as well as increased economic pressures on our customers. The Company continues to monitor these developments, but the impact and timing of these changes on our business is uncertain.
The table below shows the average oil and natural gas prices for West Texas Intermediate (“WTI”), Brent North Sea (“Brent”) crude oil and Henry Hub natural gas.
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Oil price measured in dollars per barrel (rounded to the nearest $0.01)
Natural gas price measured in dollars per million British thermal units (rounded to the nearest $0.01)
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The table below shows historical average rig counts based on the weekly Baker Hughes Company rig count information.
Russia Ukraine Conflict
In February 2022, the military conflict between Russia and Ukraine (“Russia Ukraine Conflict”) began and in response we evaluated, and continue to evaluate, our operations, with the priority being centered on the safety and well-being of our employees in the impacted regions, as well as operating in full compliance with applicable international laws and sanctions.
Revenues in Russia were approximately 6% of our total revenues for the three months ended March 31, 2025, compared to 5% of our total revenue for the three months ended March 31, 2024. As of March 31, 2025, our Russia operations included $113 million in cash, $131 million in other current assets, $72 million in property, plant and equipment and other non-current assets, and $53 million in liabilities. As of December 31, 2024, our Russia operations included $82 million in cash, $95 million in other current assets, $56 million in property, plant and equipment and other non-current assets, and $45 million in liabilities.
We continue to closely monitor and evaluate the developments in Russia as well as any changes in international laws and sanctions. We believe that operational complexity will increase over time and therefore continually evaluate these potential impacts on our business. As such, we continue to actively evaluate various options, strategies and contingencies with respect to our business in Russia, including, but not limited to:
•continuing the business in compliance with applicable laws and sanctions;
•evaluating the continued use or change in products, equipment and service offerings we currently provide in
Russia;
•curtailing or winding down our activities over time;
•potentially divesting some or all of our assets or businesses in Russia, which could include the option of re-entering the country if and when sanctions or applicable laws would allow for the same; and
•potential nationalization of the business.
Consolidated Statements of Operations - Operating Summary
Revenues of $1.2 billion in the three months ended March 31, 2025, decreased 12% compared to $1.4 billion in the three months ended March 31, 2024. Year-over-year in the first quarter, product revenues decreased 8% and service revenues decreased 14%. Revenues declined in all segments with DRE, WCC and PRI impacting 44%, 10%, and 8% of the decrease, respectively, with the remaining decrease from lower activity in integrated services and projects. Geographically, the year-over-year first quarter revenue decrease was led by a decline in the Latin America, Europe/Sub-Sahara Africa/Russia and North America regions, which impacted 78%, 15% and 10% of the decrease, respectively, partly offset by a revenue increase in Middle East/North Africa/Asia. Year-over-year revenue decreases were primarily driven by a decline in activity across segments and geographies.
Operating income of $142 million in the three months ended March 31, 2025, decreased 39% compared to $233 million in the three months ended March 31, 2024, due to the decline in revenue, with a partial offset from lower cost of products and services and selling general, administrative and research and development costs. Cost of products and services of $819 million in the three months ended March 31, 2025, decreased 7% compared to $884 million in the three months ended March 31, 2024. Our cost of products and services as a percentage of revenues was 69% in the three months ended March 31, 2025 compared to 65% in the three months ended March 31, 2024.
Selling, general, administrative and research and development costs of $190 million in the three months ended March 31, 2025, decreased 20% compared to $236 million in the three months ended March 31, 2024. The year-over-year decrease was primarily due to a decline in amortization expense and the cost of employee incentive programs. Selling, general, administrative and research and development costs as a percentage of revenues was 16% in the three months ended March 31, 2025, and 17% in the three months ended March 31, 2024.
Restructuring charges were $29 million in the three months ended March 31, 2025 and $3 million in the three months ended March 31, 2024. See “Note 4 – Restructuring Charges” for additional information.
Other Charges, Net in the three months ended March 31, 2025 were $13 million in net charges, and primarily include fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico. Other Charges, Net in the three months ended March 31, 2024 were $2 million in net charges.
Consolidated Statements of Operations - Non-Operating Summary
Interest Expense, Net
Interest Expense, Net was $26 million and $29 million in the three months ended March 31, 2025 and 2024, respectively. Interest Expense, Net is interest expense net of interest income.
Interest expense was $37 million in the three months ended March 31, 2025 and $43 million in the three months ended March 31, 2024. The decrease was primarily due to the reduction in our outstanding long-term debt. Interest income was $11 million in the three months ended March 31, 2025 and $14 million in the three months ended March 31, 2024.
Other Expense, Net
Other Expense, Net was $20 million in the three months ended March 31, 2025 and $22 million in the three months ended March 31, 2024. Other Expense, Net primarily represents foreign exchange losses in countries with no or limited markets to hedge, letter of credit fees and other financing charges, including bond redemption premiums partially offset by certain investment gains and losses. When economically advantageous, we enter into foreign currency forward contracts to mitigate the risk of future cash flows denominated in a foreign currency.
Income Taxes
We provide for income taxes based on the laws and rates in effect in the countries in which operations are conducted, or in which we or our subsidiaries are considered residents for income tax purposes. The relationship between our pre-tax income or loss from continuing operations and our income tax benefit or provision varies from period to period as a result of various factors, which include changes in total pre-tax income or loss, the jurisdictions in which our income is earned, the tax laws in those jurisdictions, the impacts of tax planning activities and the resolution of tax audits. Our effective rate differs from the Irish statutory tax rate as the majority of our operations are taxed in jurisdictions with different tax rates. In addition, certain charges do not result in significant tax benefit as a result of being attributed to a non-income tax jurisdiction or our inability to forecast realization of the tax benefit of such losses. Charges can be partially offset by the utilization of previously unbenefited deferred tax assets, such as net operating loss carryforwards. Please see “Note 11 – Income Taxes” to our Condensed Consolidated Financial Statements for additional details.
Results of Operations by Segment
Financial information by segment is summarized below.
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| (Dollars in millions) | | DRE | WCC | PRI | Other | Total |
| Revenue | | $ | 350 | | $ | 441 | | $ | 334 | | $ | 68 | | $ | 1,193 | |
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Direct Costs(a) | | (226) | | (258) | | (230) | | | |
Other Expense(b) | | (50) | | (55) | | (42) | | | |
| DRE Segment Adjusted EBITDA | | 74 | | | | | 74 | |
| WCC Segment Adjusted EBITDA | | | 128 | | | | 128 | |
| PRI Segment Adjusted EBITDA | | | | 62 | | | 62 | |
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| All Other | | | | | | 4 | |
| Corporate | | | | | | (15) | |
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| Depreciation and Amortization | | | | | | (62) | |
Share-based Compensation | | | | | | (7) | |
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Restructuring Charges | | | | | | (29) | |
Other Charges, Net | | | | | | (13) | |
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| Operating Income | | | | | | $ | 142 | |
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(a)Segment cost of sales and direct operating costs.
(b)Segment selling, general and administrative and research and development costs.
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| (Dollars in millions) | | DRE | WCC | PRI | Other | Total |
| Revenue | | $ | 422 | | $ | 458 | | $ | 348 | | $ | 130 | | $ | 1,358 | |
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Direct Costs(a) | | (239) | | (276) | | (231) | | | |
Other Expense(b) | | (53) | | (62) | | (44) | | | |
| DRE Segment Adjusted EBITDA | | 130 | | | | | 130 | |
| WCC Segment Adjusted EBITDA | | | 120 | | | | 120 | |
| PRI Segment Adjusted EBITDA | | | | 73 | | | 73 | |
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| All Other | | | | | | 27 | |
| Corporate | | | | | | (14) | |
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| Depreciation and Amortization | | | | | | (85) | |
Share-based Compensation | | | | | | (13) | |
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Restructuring Charges | | | | | | (3) | |
Other Charges, Net | | | | | | (2) | |
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| Operating Income | | | | | | $ | 233 | |
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(a)Segment cost of sales and direct operating costs.
(b)Segment selling, general and administrative and research and development costs.
DRE Results
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| | Three Months Ended | | Variance |
| ($ in Millions) | | March 31, 2025 | | March 31, 2024 | | $ | | % or bps |
| Revenue | | $ | 350 | | | $ | 422 | | | $ | (72) | | | (17) | % |
Direct Costs | | (226) | | | (239) | | | 13 | | | 5 | % |
Other Expense | | (50) | | | (53) | | | 3 | | 6 | % |
| Segment Adjusted EBITDA | | $ | 74 | | | $ | 130 | | | $ | (56) | | | (43) | % |
| Segment Adj EBITDA Margin | | 21.1 | % | | 30.8 | % | | n/m | | (966) | bps |
DRE revenues of $350 million in the three months ended March 31, 2025, decreased $72 million or 17%, compared to $422 million in the three months ended March 31, 2024.
Of the first quarter year-over-year revenue decrease, approximately 85% of the decrease was from lower activity in drilling-related services. Geographically, approximately 90% of the revenue decrease was from the Latin America region.
DRE segment adjusted EBITDA of $74 million in the three months ended March 31, 2025, decreased $56 million or 43%, compared to $130 million in the three months ended March 31, 2024. DRE segment adjusted EBITDA margin was 21.1% in the three months ended March 31, 2025 compared to 30.8% in the three months ended March 31, 2024. The first quarter segment adjusted EBITDA decreased primarily due to a decline in drilling-related services activity. Both direct costs and other expense generally decreased in line with the decrease in activity. However, the rate of decrease in direct costs and other expense was lower than the rate of decrease in revenue, contributing to the decrease in margin.
WCC Results
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| | Three Months Ended | | Variance |
| ($ in Millions) | | March 31, 2025 | | March 31, 2024 | | $ | | % or bps |
| Revenue | | $ | 441 | | | $ | 458 | | | $ | (17) | | | (4) | % |
| Direct Costs | | (258) | | | (276) | | | 18 | | | 7 | % |
| Other Expense | | (55) | | | (62) | | | 7 | | 11 | % |
| Segment Adjusted EBITDA | | $ | 128 | | | $ | 120 | | | $ | 8 | | | 7 | % |
| Segment Adj EBITDA Margin | | 29.0 | % | | 26.2 | % | | n/m | | 282 | bps |
WCC revenues of $441 million in the three months ended March 31, 2025, decreased $17 million or 4%, compared to $458 million in the three months ended March 31, 2024.
The first quarter year-over-year revenue decrease was primarily due to a decline in activity for cementation products which impacted 65% of the decrease for product lines which decreased year-over-year. This was partly offset by revenue increases from well services and completions activity. Geographically, of the regions with revenue decreases, approximately 50% of the decrease was from North America and approximately 30% was from the Latin America region. This was partly offset by a revenue increase in the Middle East/North Africa/Asia region.
WCC segment adjusted EBITDA of $128 million in the three months ended March 31, 2025, increased $8 million or 7%, compared to $120 million in the three months ended March 31, 2024. WCC segment adjusted EBITDA margin was 29.0% in the three months ended March 31, 2025, compared to 26.2% in the three months ended March 31, 2024. The increase in segment adjusted EBITDA was primarily due to higher margin activity in the Middle East/North Africa/Asia region and lower selling, general and administrative costs. Both direct costs and other expense generally decreased in line with the decrease in activity. However, the rate of decrease in direct costs and other expense was higher than the rate of decrease in revenue, contributing to increase in margin.
PRI Results
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| | Three Months Ended | | Variance |
| ($ in Millions) | | March 31, 2025 | | March 31, 2024 | | $ | | % or bps |
| Revenue | | $ | 334 | | | $ | 348 | | | $ | (14) | | | (4) | % |
| Direct Costs | | (230) | | | (231) | | | 1 | | | — | % |
| Other Expense | | (42) | | | (44) | | | 2 | | 5 | % |
| Segment Adjusted EBITDA | | $ | 62 | | | $ | 73 | | | $ | (11) | | | (15) | % |
| Segment Adj EBITDA Margin | | 18.6 | % | | 21.0 | % | | n/m | | (241) | bps |
PRI revenues of $334 million in the three months ended March 31, 2025, decreased $14 million or 4% compared to $348 million in the three months ended March 31, 2024.
The first quarter year-over-year revenue decrease was primarily due to decline in activity for intervention services and drilling tools and artificial lift which impacted 60% and 30% of the decrease, respectively, for product lines which decreased year-over-year. This was partly offset by revenue increase from pressure pumping activity. Geographically, approximately 90% of the revenue decrease was from the Latin America region.
PRI segment adjusted EBITDA of $62 million in the three months ended March 31, 2025, decreased $11 million or 15% compared to $73 million in the three months ended March 31, 2024. PRI segment adjusted EBITDA margin was 18.6% in the three months ended March 31, 2025, compared to 21.0% in the three months ended March 31, 2024. The first quarter year-over-year decrease in segment adjusted EBITDA was primarily due to a decline in activity and cost inflation on products sold. Direct costs slightly decreased year-over-year, while other expense decreased in line with decrease in activity. However, the decrease in direct costs and other expense was lower than decrease in revenue, contributing to the decrease in margin.
All Other Results
All Other results were from non-core business activities that do not individually meet the criteria for segment reporting, including integrated services and projects, which includes pass through and project management services.
All Other revenues were $68 million in the three months ended March 31, 2025, compared to $130 million in the three months ended March 31, 2024. The first quarter year-over-year decrease was due to a decline in international activity for integrated services and projects.
Corporate
Corporate was a net expense of $15 million in the three months ended March 31, 2025 compared to $14 million in the three months ended March 31, 2024.
Depreciation and Amortization
Depreciation and amortization expense was $62 million in the three months ended March 31, 2025 compared to $85 million in the three months ended March 31, 2024. The year-over-year decrease was primarily due to certain intangible assets reaching full amortization in the fourth quarter of 2024.
Share-based Compensation
We recognized $7 million of share-based compensation in the three months ended March 31, 2025 compared to $13 million in the three months ended March 31, 2024. The year-over-year decrease in share-based compensation expense was primarily due to the vesting of equity awards, resulting in a lower number of non-vested awards.
Outlook
Growth and spending in the energy services industry is highly dependent on many external factors. These include but are not limited to; the impact from geopolitical conflicts; our customers’ capital expenditures; environmental, social and governance and other sustainability policies and initiatives; world economic, political, trade, and weather conditions; the price of oil, natural gas, and alternatives; member-country quota compliance within the Organization of Petroleum Exporting Countries and the expanded alliance (OPEC+); and, non-OPEC+ investments and project timing. Imbalance across geographies driven by geopolitical conflicts, investment variances and supply disruptions are driving a greater focus on energy security and resiliency, which in turn is creating a shift towards national oil companies and diversification across multiple energy sources (oil, gas, coal, renewables, etc.) to meet domestic and global demand.
The overall international market has softened over the past nine months, and the industry has witnessed substantial drops in Mexico along with continued reduction in certain portions of our North America business. We expect a continued focus on capital discipline and efficiencies, particularly in our Latin American and North American regions, which we expect to negatively impact demand for our services and products in 2025, as our customers regulate activity timing and services spending, relative to macro-driven factors. Particularly, in the near term we expect lower demand from our largest customer in Mexico. Additionally, trade concerns such as recent U.S. tariff actions and potential retaliatory responses has increased uncertainty in our industry and in relation to global economic outlook, which may contribute to an economic slowdown and negatively impact both domestic and international crude demand and increase cost pressure on the sector.
Over the mid to long-term, we expect demand for oil and natural gas exploration and production as well as new energy platforms to continue to require more advanced technology from the energy service industry. While we remain cautious on our activity profile as we calibrate macroeconomic conditions with customer demand, we are confident that adoption of our differentiated technologies and market penetration will provide a pathway to long-cycle growth. We continue to closely monitor and adapt to macroeconomic and trade conditions, potential supply chain disruptions, inflationary factors, and other labor and logistical constraints that could impact our operations and results.
Liquidity and Capital Resources
At March 31, 2025, we had cash and cash equivalents of $873 million and $57 million in restricted cash, compared to $916 million of cash and cash equivalents and $59 million in restricted cash at December 31, 2024.
The following table summarizes cash flows provided by (used in) each type of business activity in the periods presented:
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| (Dollars in millions) | 2025 | 2024 |
| Net Cash Provided by Operating Activities | $ | 142 | | $ | 131 | |
| Net Cash Used in Investing Activities | $ | (79) | | $ | (54) | |
| Net Cash Used in Financing Activities | $ | (133) | | $ | (187) | |
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