Weatherford International (WFRD) Financials

Weatherford International (NASDAQ: WFRD) has shown a generally positive trend in revenue over the past year, with operating revenue increasing from approximately $1.186 billion in Q1 2023 to $1.193 billion in Q1 2025. Despite some quarterly fluctuations, this indicates steady top-line growth.

Gross profit remained relatively stable and strong, with Q1 2025 gross profit at $374 million, slightly lower than the $474 million in Q1 2024 but higher than the $396 million in Q1 2023. This reflects effective cost management of revenue despite some pressures on margins.

Operating expenses have been controlled fairly consistently, with Q1 2025 total operating expenses at $232 million, generally on par with previous years.

Net income has seen some volatility. For example, Q1 2025 net income attributable to common shareholders was $76 million, down from $123 million in Q1 2024 and $72 million in Q1 2023, showing some pressures on profitability recently.

The company’s earnings per share (diluted) have decreased to $1.03 in Q1 2025 from the $1.5 range in Q1 2024 and around $0.97 in Q1 2023, reflecting the net income trend.

Weatherford maintains a healthy cash position, with cash and equivalents at $873 million in Q1 2025, up from $824 million in Q1 2024 and $833 million in Q1 2023. However, the company continues to invest heavily in capital expenditures, with $77 million spent on property, plant, and equipment in Q1 2025.

Free cash flow has been positive but fluctuating. Net cash from operating activities was $142 million in Q1 2025, down from $131 million in Q1 2024 and $84 million in Q1 2023, indicating ongoing capacity to generate cash.

Debt levels remain high, with total liabilities around $3.69 billion in Q1 2025 and long-term debt approximately $1.58 billion, slightly down compared to previous quarters but still a substantial obligation that requires monitoring.

Key factors that may impact future performance include:

• Steady increase in operating revenue over recent quarters, indicating strong market demand.
• Consistent ability to generate positive operating cash flows above $130 million each quarter, supporting operations and investments.
• Maintaining strong cash and equivalents balance near $870 million, which provides liquidity flexibility.
• Ongoing capital investments to support growth and operational capability, signaling commitment to long-term performance.
• Fluctuations in net income and diluted EPS, with recent declines that may reflect industry or operational headwinds.
• Stable operating expense control, with SG&A and R&D costs steady but non-negligible.
• Sizable interest expense impacting overall profitability, around $25-$30 million per quarter.
• High total liabilities nearing $3.7 billion, with significant long-term debt burdening financial flexibility.
• Negative other income/expense results reducing pre-tax income by ~$46 million in Q1 2025, pointing to challenges in other income sources.
• Net decrease in cash and equivalents by $45 million in Q1 2025 despite operating cash flow, mainly driven by financing activities such as debt repayments and equity repurchases totaling over $133 million.

Overall, Weatherford International demonstrates solid revenue growth and positive cash flow generation, but profitability is under pressure from high financing costs and other expenses. The company’s substantial debt and negative impacts from other income suggest investors should watch financial leverage and operational efficiency closely going forward.