Weatherford International plc

Weatherford reported second-quarter 2026 revenue of $1.105 billion, adjusted EBITDA of $223 million, and adjusted EBITDA margin of 20.2%. Adjusted free cash flow was $139 million, representing 62.3% conversion, versus 31.1% in Q2 2025 and 36.5% in Q1 2026. Management said first-half Middle East conflict impact was within the previously guided $30 million-$50 million profit range, but expected it to increase later in the year. For Q3 2026, the company guided to revenue of $1.105 billion-$1.155 billion and adjusted EBITDA of $235 million-$265 million; adjusted free cash flow is expected to be more than $100 million. Full-year 2026 guidance is revenue of $4.54 billion-$4.80 billion, adjusted EBITDA of $951 million-$1.046 billion, adjusted free cash flow conversion in the mid-to-high 40% range, and an effective tax rate in the low-to-mid 20% range.

Girish Saligram framed the quarter as proof that Weatherford can protect margins and cash even when top-line growth is uneven. He emphasized that the company will walk away from lower-return work, citing the Saudi LSTK contract as an example, while leaning into technology differentiation, offshore, and integrated completions. His tone was confident but measured: he repeatedly said the recovery in the Middle East and broader upcycle will be gradual, and that the company is managing for cash flow, returns, and selective growth rather than chasing revenue.

Anuj Dhruv focused on working capital, liquidity, capital returns, and guidance. He said Q2 adjusted free cash flow of $139 million reflected working capital release, continued collections from Mexico, and lower capital expenditures, while adjusted net working capital improved to 27% of revenue, down about 90 basis points sequentially. CapEx was $42 million, or 3.8% of revenue, and the company returned $36 million to shareholders in the quarter; cash and restricted cash were about $1.14 billion, total liquidity was $1.7 billion, and net leverage fell to 0.34x. He said the company raised full-year free cash flow conversion to the mid-to-high 40% range and kept CapEx disciplined at 3%-5% of revenue over time.

Analysts focused on the tradeoff between growth and margins, the size and cadence of the Middle East disruption, Venezuela’s opportunity, Pemex collections and Mexico activity, NCS Multistage, offshore momentum, and pricing pressure. Management said it is willing to forego low-margin work, expects the Middle East impact to moderate but not disappear quickly, sees Venezuela building from a small base toward a meaningful contribution in 2027, and believes Pemex collections have been steady for three quarters. On NCS, management said the deal is about technology and global scaling, not just North American exposure, and on offshore it pointed to a strengthening cycle plus more service-partnership opportunities in MPD and completions.