Weatherford International (WFRD) Financials

Weatherford International’s latest results show a company with a stronger balance sheet and consistent positive cash generation, but with clear signs of operating slowdown. The second quarter of 2026 included $1.105 billion in revenue, down from $1.152 billion in Q1 2026 and $1.204 billion in the restated Q2 2025 period. Revenue was also approximately 21% below Q2 2024.

Profitability has weakened more noticeably. Gross profit declined to $333 million in Q2 2026 from $375 million in Q2 2025 and $514 million in Q2 2024. The gross margin fell to roughly 30.1%, compared with 31.1% a year earlier and 36.6% two years earlier. Operating income declined to $107 million, producing a 9.7% operating margin versus 19.7% in Q2 2025. Common shareholders’ net income fell to $39 million, or $0.55 per diluted share, from $108 million, or $1.49 per share, in Q1 2026.

Despite the earnings pressure, Weatherford continues to generate substantial cash. Operating cash flow was $175 million in Q2 2026, exceeding net income by more than four times. After $42 million of capital expenditures, estimated free cash flow was approximately $133 million. The company also ended the quarter with $1.1 billion of cash and equivalents and a current ratio of approximately 2.3, providing meaningful liquidity.

• Balance-sheet leverage has improved substantially. Total debt declined to approximately $1.48 billion in Q2 2026 from roughly $2.38 billion in Q3 2022, while cash and equivalents increased from $933 million to $1.1 billion over the same broad period.
• Operating cash flow remains strong. Weatherford generated $175 million in operating cash flow in Q2 2026, up from $136 million in Q1 2026 and $128 million in the restated Q2 2025 period.
• Free cash flow continues to support shareholder returns. Q2 operating cash flow covered approximately $42 million of capital expenditures, $25 million of dividends and $16 million of share repurchases.
• Liquidity has strengthened. Total current assets reached $3.298 billion versus $1.407 billion of current liabilities, while total equity increased to $1.789 billion from $672 million in Q2 2023.
• Interest burden appears lower over the longer term. Long-term debt fell to $1.45 billion in Q2 2026 from $1.99 billion in Q2 2023 and $2.37 billion in Q3 2022, although quarterly interest payments have been uneven.
• Capital spending remains relatively controlled. Quarterly capital expenditures were $42 million in Q2 2026, below the $54 million recorded in Q1 2026 and Q2 2025, but investors should monitor whether lower spending reflects discipline or weaker activity.
• Working-capital movements are volatile. Changes in operating assets and liabilities contributed $48 million to Q2 2026 operating cash flow after consuming $45 million in Q1, making quarterly cash-flow comparisons less predictable.
• Revenue has been trending lower. Quarterly revenue declined from $1.409 billion in Q3 2024 to $1.105 billion in Q2 2026, suggesting weaker demand, pricing pressure or reduced activity across the company’s markets.
• Margins have compressed sharply. Q2 2026 gross and operating margins were approximately 30.1% and 9.7%, respectively, well below the 36.6% gross margin and 18.8% operating margin reported in Q2 2024.
• Net income and earnings per share have deteriorated. Q2 2026 net income attributable to common shareholders was $39 million, down from $136 million in Q2 2025 and $125 million in Q2 2024; diluted EPS fell to $0.55 from $1.87 and $1.66, respectively.

Overall, Weatherford’s financial position is considerably healthier than it was several years ago, supported by debt reduction, rising equity and solid operating cash flow. However, the recent decline in revenue, gross margin and earnings is a significant concern. For investors, the key question is whether the company’s strong liquidity and lower leverage can offset continued weakness in operating performance.

The historical figures include reported, calculated and restated periods, including restatements filed with later reports. Investors should therefore emphasize the latest comparable restated figures when evaluating longer-term trends.