Weatherford International (WFRD) Financials

Weatherford International’s latest quarter shows a company that is still growing, but with some signs of margin pressure and a weaker balance sheet than it had a year ago. In Q1 2026, revenue rose modestly year over year, operating profit remained positive, and free cash flow stayed healthy. At the same time, profitability was lower than in late 2025, leverage ticked higher, and working capital remained a meaningful use of cash.

• Q1 2026 revenue increased to $1.152 billion from $1.193 billion in Q1 2025, and it was roughly in line with the recent quarterly range.
• The company generated $136 million in operating cash flow in Q1 2026, showing the business continues to convert earnings into cash.
• Cash on hand was solid at $1.012 billion, giving Weatherford a sizable liquidity cushion.
• Q1 2026 net income attributable to common shareholders was $108 million, or $1.50 per share, which is still a respectable profit level.
• Over the past four years, Weatherford has generally remained profitable and cash-generative, with quarterly operating cash flow often well above reported net income.
• Capital spending remained manageable at $54 million in Q1 2026, suggesting the company is not overspending relative to cash generation.
• Depreciation and other non-cash items continue to be meaningful, which helps support operating cash flow despite lower accounting earnings.
• The company still has a large base of current assets, led by receivables and inventory, which supports ongoing operations but also ties up capital.
• Q1 2026 gross profit fell to $340 million from $374 million in Q1 2025, indicating softer margin performance.
• Operating income declined to $123 million from $142 million a year earlier, showing that expense growth and margin compression are weighing on results.
• Q1 2026 other income/expense was a drag of $18 million, compared with an even larger but still negative drag in prior quarters, so below-the-line items remain a headwind.
• Long-term debt increased to $1.453 billion at the end of Q1 2026 from $1.583 billion in Q1 2025 and $1.565 billion in Q2 2025, but total debt still leaves the company meaningfully leveraged.
• Total equity has fallen sharply over the last year, to $1.758 billion in Q1 2026 from $1.36 billion in Q1 2025 and $1.36 billion in early 2024, reflecting a much thinner equity cushion.
• Working capital was a use of cash in Q1 2026, with changes in operating assets and liabilities reducing operating cash flow by $45 million.

Trend view: Weatherford’s story over the last several years is one of recovery and resilience. Revenue has generally stayed above the $1.1 billion quarterly level, the company has consistently produced positive operating cash flow, and net income has improved meaningfully from the weaker levels seen in 2022 and early 2023. However, the latest data also shows that margins are not expanding cleanly, debt remains elevated, and equity has been eroded relative to the size of the business. For retail investors, that means the stock still has a cash-generating business behind it, but the balance sheet and margin trend deserve close monitoring.