Weatherford International WFRD delivered first-quarter 2026 earnings of $1.49 per share, reflecting a 44.7% increase from $1.03 in the year-ago period. The bottom line topped the Zacks Consensus Estimate of $1.02 by 46.1%.
Quarterly revenues were $1,152 million, down 3.4% from $1,193 million in the year-ago period. The top line beat the Zacks Consensus Estimate of $1,138.33 million by 1.2%.
The strong quarterly earnings reflected steady Well Construction and Completions performance despite operational disruptions in the Middle East.
Weatherford International PLC Price, Consensus and EPS Surprise
Weatherford International PLC price-consensus-eps-surprise-chart | Weatherford International PLC Quote
WFRD’s Regional Trends Reflect Headwinds and Resilience
In the first quarter of 2026, North America revenues were $220 million, down 12% year over year, reflecting softer activity in U.S. land and offshore markets, partially offset by stronger Completions activity in Canada. International revenues totaled $932 million, down 1% from the prior-year quarter.
Within international markets, Latin America revenues fell 7% year over year to $223 million, largely tied to lower activity in Argentina following the sale of the Pressure Pumping business, partially offset by a rebound in activity in Mexico.
Middle East/North Africa/Asia revenues declined 5% to $476 million amid heightened geopolitical tensions, partially offset by higher Completions activity in Saudi Arabia. Europe/Sub-Sahara Africa/Russia was a bright spot, with revenues rising 17% year over year to $233 million, driven by higher Integrated Services and Projects and Tubular Running Services (“TRS”) activity in Europe.
Q1 Segment Trends
Weatherford’s Well Construction and Completions (WCC) segment generated $443 million in revenues, essentially flat compared with $441 million in the year-ago quarter. Segment adjusted EBITDA was $110 million, down 14% year over year. The decline reflected flat overall activity and weaker fall through in the Middle East/North Africa/Asia, partly offset by better TRS fall through in North America.
Drilling and Evaluation (DRE) revenues decreased 8% year over year to $321 million, with segment adjusted EBITDA of $72 million, down 3%. This can be primarily attributed to reduced activity levels in Latin America, the MENA region and North America, partially offset by stronger wireline and drilling services activity in Europe.
Production and Intervention (PRI) revenues declined 11% to $296 million, and segment adjusted EBITDA dropped 13% to $54 million, pressured by the Argentina Pressure Pumping divestiture and lower Artificial Lift activity in North America. The decrease was partially offset by higher Subsea Intervention activity.
Profitability, Balance Sheet and Cash Flows
WFRD posted first-quarter 2026 operating income of $123 million, down 13% year over year, while net income attributable to Weatherford rose 42% to $108 million. The year-over-year increase in net income was aided by lower interest and other expenses, despite revenue pressure and operational complexity tied to the Iran conflict.
Net cash provided by operating activities was $136 million, and capital expenditures were $54 million. Weatherford continued returning capital, paying $20 million in dividends and repurchasing $10 million of shares, resulting in total shareholder returns of $30 million in the reported quarter.
As of March 31, 2026, cash and cash equivalents were $1,012 million, with restricted cash of $38 million, while long-term debt stood at $1,453 million.
WFRD’s Management Commentary and Outlook
Management expects operational disruptions in the Middle East to weigh on near-term visibility, with several weeks potentially needed for activity levels to normalize. The company indicated that freight costs have risen sharply, while project delays and suspensions have affected drilling and workover activity across multiple Middle East countries due to the Iran conflict.
For the second quarter of fiscal 2026, Weatherford guided revenues to $1.017- $1.110 billion and adjusted EBITDA between $195 million and $220 million. For full-year 2026, the company expects revenues of $4.50-$4.95 billion and adjusted EBITDA in the range of $945 million to $1.075 billion, with adjusted free cash flow conversion in the mid-40% range and an effective tax rate in the low to mid-20% range.
Management quantified the Iran conflict impact as approximately $30-$50 million of profit headwind over the first half of the year, while expressing increased confidence in a stronger second-half ramp and improving visibility into 2027.
WFRD’s Zacks Rank and Key Picks
WFRD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Equinor ASA EQNR, Subsea7 S.A. SUBCY and Galp Energia SGPS SA GLPEY. While Equinor sports a Zacks Rank #1 (Strong Buy), Subsea7 and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinor ASA is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Eqinor’s gas exports to Europe, positioning the company to benefit from heightened prices. The company’s expansion in the renewable energy space positions it for long-term growth as more countries transition toward cleaner energy solutions to meet their climate goals.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is also engaged in refining and marketing of oil products and natural gas marketing and sales.
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This article originally published on Zacks Investment Research (zacks.com).