Wed, Apr 23, 8:31 PM (30 days ago)
**Weatherford International plc (WFRD) Q1 2025 Financial Summary** Weatherford International plc reported a 12% year-over-year decline in revenue for Q1 2025, with total revenue amounting to $1,193 million, down from $1,358 million in Q1 2024. The decrease was driven by lower activity across all segments and geographies, with the Latin America, Europe/Sub-Sahara Africa/Russia, and North America regions experiencing the most significant declines. Operating income also decreased by 39% to $142 million, due to the revenue decline, partially offset by lower costs. **Key Financial Metrics:** - **Revenue:** $1,193 million (down 12% YoY) - **Operating Income:** $142 million (down 39% YoY) - **Net Income:** $86 million (down 30% YoY) - **Earnings per Share (EPS):** $1.04 (down 32% YoY) - **Cash Flow from Operations:** $142 million (up 8% YoY) **Segment Performance:** - **Drilling and Evaluation (DRE):** Revenue decreased by 17% to $350 million, with segment adjusted EBITDA down 43% to $74 million. - **Well Construction and Completions (WCC):** Revenue decreased by 4% to $441 million, but segment adjusted EBITDA increased by 7% to $128 million. - **Production and Intervention (PRI):** Revenue decreased by 4% to $334 million, with segment adjusted EBITDA down 15% to $62 million. **Cash Flow and Liquidity:** Weatherford generated $142 million in cash from operations, up 8% YoY. The company used $79 million in investing activities, primarily for capital expenditures, and $133 million in financing activities, including share repurchases and debt repayments. As of March 31, 2025, Weatherford had $873 million in cash and cash equivalents and $57 million in restricted cash. **Outlook and Uncertainties:** Weatherford expects continued focus on capital discipline and efficiencies, particularly in Latin America and North America. The company anticipates lower demand from its largest customer in Mexico and increased supply chain challenges due to recent U.S. tariff actions. However, Weatherford remains confident in the long-term growth potential of the energy services industry and its ability to adapt to macroeconomic and trade conditions. **Future Operations Impact:** Weatherford's future operations may be impacted by geopolitical conflicts, environmental regulations, and changes in commodity prices. The company continues to monitor these developments and evaluate various options to mitigate potential risks. Weatherford's strategic focus on technology and infrastructure upgrades, along with its capital allocation framework, positions it to navigate these uncertainties and drive long-term growth.