📄 What This Document Is 🗓️

This document summarizes Weatherford International plc’s (WFRD) financial results and strategic updates for the first quarter of 2026. Because this is an earnings release attached to an SEC filing, it gives investors a detailed look at the company's recent operational performance, financial health, and future plans.

In short, you should expect a mix of hard numbers showing revenue dips and cash flow data, alongside strategic commentary about a major corporate restructuring and long-term contract wins. The goal is to tell the story of the business, not just list metrics.

👉 The overall narrative is one of managing significant short-term market volatility (due to geopolitical issues) while making aggressive structural changes and building a strong foundation for future growth.

🏢 What The Company Does 🛠️

Weatherford is a massive, global energy services company. Think of them as the expert engineers and equipment providers that help oil and gas companies drill, complete, and produce oil and gas efficiently from various parts of the world.

They don't necessarily own the oil fields, but they own the advanced services—the tools, technology, and specialized expertise—to make sure the energy companies can extract that oil and gas. Their core business is enabling the entire well lifecycle, from the initial drill bit to the finished product.

👉 They generate revenue by providing highly specialized services, such as Drilling and Evaluation (DRE), Well Construction and Completions (WCC), and Production and Intervention (PRI).

💰 Financial Highlights of Q1 2026 💹

The financial highlights show that the first quarter of 2026 was challenging for the company on the revenue front, but management noted a significant increase in net income. This complexity requires looking past the raw revenue numbers to understand how the business is generating value.

Here is a look at the key financial movements compared to the previous year and quarter:

• Revenues: Total revenues reached $1,152 million. This was a decrease of 3% compared to Q1 2025, but a larger decrease of 11% compared to the previous quarter (Q4 2025).
• Operating Income: Operating income stood at $123 million, which was a 13% decrease year-over-year, and a sharp 38% decrease sequentially (compared to Q4 2025).
• Net Income: Net income was $108 million. Despite the revenue decline, this number showed a strong increase of 42% year-over-year, reaching a net income margin of 9.4%.
• Adjusted EBITDA: This key operational metric was $233 million, marking an 8% decrease year-over-year.
• Shareholder Return: The company returned $30 million to shareholders for the quarter. This total included $20 million paid out in dividends and $10 million spent on share repurchases.

👉 While top-line revenue dipped due to external factors, the increase in net income and share returns suggests the company was highly effective at cost control and navigating market headwinds.

🌍 Performance by Geography 🗺️

The company's performance varied significantly across different regions, providing insight into where the energy demand remains strongest and where geopolitical risks are having the biggest impact.

Overall, International revenue was $932 million, decreasing by 1% year-over-year but dropping 10% sequentially.

• Middle East/North Africa/Asia: This region was the largest contributor to international revenue at $476 million, but revenue saw a noticeable decrease of 27 million, or 5% year-over-year. The filing attributes this slowdown to heightened geopolitical tensions.
• North America: Revenue was $220 million, decreasing 12% year-over-year. The primary factors cited were lower activity in both U.S. land and U.S. offshore sectors.
• Europe/Sub-Sahara Africa/Russia: This region was the standout performer, with revenue increasing 17% year-over-year, reaching $233 million. This growth was driven by higher activity in Integrated Services and Projects across Europe.
• Latin America: Revenue was $223 million, down 7% year-over-year, partly due to the sale of their Pressure Pumping business in Argentina.

👉 The dramatic performance swing across geographies shows that Weatherford is sensitive to geopolitical stability; regions like the Middle East/North Africa/Asia saw declines due to heightened tensions, while Europe remained strong.

🏗️ Operational & Segment Deep Dive ⚙️

The filing breaks down the business into three major segments, each showing different levels of momentum and operational focus. These segments show where the company is currently putting its resources and where its expertise is most needed.

• Well Construction and Completions (WCC): This segment was the largest revenue generator, bringing in $443 million (nearly flat year-over-year). The segment adjusted EBITDA was $110 million, though it decreased 14% year-over-year.
  • Why it matters: WCC is stable and continues to secure significant contracts, even if the current quarter was flat.
• Drilling and Evaluation (DRE): This segment generated $321 million in revenue, but the segment adjusted EBITDA of $72 million decreased 3% year-over-year.
  • Why it matters: DRE saw localized successes, such as setting a new global record for extended-reach Wireline work in Saudi Arabia, but lower activity in Latin America and the Middle East/North Africa/Asia weighed on overall results.
• Production and Intervention (PRI): This segment saw revenue of $296 million and adjusted EBITDA of $54 million.
  • Why it matters: PRI’s revenue decrease was partly attributed to the sale of the Pressure Pumping business in Argentina, indicating a strategic shift in what they offer in that market.

🚀 Key Contract Wins and Technology 💡

A major theme throughout the filing is the ongoing success in winning multi-year, high-value contracts across the globe. This demonstrates the company’s sticky client relationships and its specialized technological edge.

The company reported several significant wins, including:

• Denmark: Being awarded a multi-year Integrated Completions contract by TotalEnergies.
• Vietnam: Securing a five-year contract to provide Tubular Running Services (TRS) from Phu Quoc POC.
• Thailand: Extending an 18-month contract for Drilling Services on Rig 15 from PTTEP.
• Argentina: Winning a multi-year contract from Shell for Artificial Lift products and services in Vaca Muerta.
• Saudi Arabia (Saudi Arabia): Executing a successful first rigless thru-tubing sand-control gravel-pack operation, validating a key technology for restoring shut-in wells.
• Oman: Deploying Electric Submersible Pump (ESP) Predictive Analytics into the ForeSite Well Management System, moving the technology from a pilot phase to full operation.

👉 These wins are crucial because they provide the company with predictable, recurring revenue streams for years to come, helping offset current market volatility.

🧭 Strategic Direction & Corporate Changes 🏛️

Management addressed two major strategic efforts: reorganizing the company’s legal structure and providing a clear view of the future operational outlook.

🇺🇸 Redomestication to Texas

Weatherford announced a proposal to reorganize its corporate structure by redomesticating from Ireland to the United States, with Texas being designated as the new legal home.

This major change is expected to simplify the corporate and operational structure. The company stated this move will:

• Eliminate certain administrative and compliance burdens and costs.
• Provide the possibility of larger U.S. shareholder and lender bases.
• Enable greater agility in managing global tax considerations. The Redomestication is expected to be completed in the third quarter of 2026.

🔮 CEO Outlook and Guidance

Girish Saligram, President and CEO, addressed the volatile macro environment. He acknowledged that operational disruptions in the Middle East, such as those related to the Iran conflict, will cloud near-term visibility.

• Q2 Expectation: Due to the ongoing geopolitical uncertainty, the CEO warned that second-quarter results are expected to be softer than previously anticipated, with performance dependent on when global logistics and cost variables stabilize.
• Long-Term View: He expressed "strong balance sheet" confidence and stated that the company is "bullish about the medium-to-long term outlook, which is supported by energy security priorities and sustained upstream investment."
• Guidance: Crucially, despite the Q2 slowdown warning, the company confirmed it is maintaining its second half guidance and the total year guidance on adjusted free cash flow generation remains intact.

💵 Financial Position & Cash Flow Story 💰

This section details the actual movement of cash and the company's overall financial strength, which is vital for assessing risk and growth potential.

• Cash Reserves: As of March 31, 2026, the company reported $1,012 million in Cash and Cash Equivalents, demonstrating a substantial liquidity buffer.
• Cash Flow from Operations (CFO): CFO in Q1 2026 was $136 million. While this represents a 4% decrease year-over-year, the strong net income of $109 million helps cushion the blow.
• Adjusted Free Cash Flow (ACFF): This key non-GAAP metric—representing cash flow minus capital spending—was $85 million. This figure showed a strong increase of 29% year-over-year.
• Debt Management: The Net Debt* (total debt minus cash) as of March 31, 2026, was $434 million. The company has maintained a relatively low Net Leverage* ratio of 0.41x (meaning its net debt is less than half of its available operating cash flow).

👉 The combination of high cash reserves, rising adjusted free cash flow, and low net leverage suggests a financially stable company well-positioned to weather market downturns and fund strategic changes.

📊 Segment Profitability Details (GAAP/Non-GAAP) 📉

The financials for the individual segments reveal that while revenue declines were visible everywhere, profitability was maintained through efficiency and mix of services.

Segment	Q1 2026 Revenue ($M)	Segment Adj. EBITDA ($M)	YoY % Change (EBITDA)
DRE	321	72	-3%
WCC	443	110	-14%
PRI	296	54	-26%

• Overall Profit Trend: The decline in segment adjusted EBITDA was mainly due to lower activity levels in critical regions like Middle East/North Africa/Asia and Latin America across all three segments.
• The Buffer: Despite the revenue dip, the segment profit declines were somewhat offset by higher fall-through (revenue from services that are long-term projects or cyclical services) in stable areas like Europe/Sub-Sahara Africa/Russia.

📞 Key Contacts and Upcoming Events 📅

For investors and media looking for more details or updates, the following information was provided:

• Conference Call: Weatherford will host a conference call on Wednesday, April 22, 2026, to discuss these results.
• Participation: Listeners can join via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/
• Contact for Investors: Luke Lemoine, Senior Vice President, Corporate Development & Investor Relations. You can reach him at +1 713-836-7777 or [email protected].
• Contact for Media: Kelley Hughes, Senior Director, Communications, Marketing & Sustainability. Media inquiries should go to [email protected].

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🧠 The Analogy

Think of Weatherford as a highly advanced, global plumbing company that specializes in massive industrial pipe networks (oil and gas wells). Their global success depends on constantly having the right tools and expertise ready for any challenge, whether it’s the Middle East's unstable political environment or a giant pipeline deep in the North Sea. When the pipes dry up (low activity/revenue), they face a dip. However, their ability to keep their core tools maintained (technology/contracts) and their operational headquarters moving to a new, more efficient "city" (the U.S./Texas redomestication) shows they are making themselves stronger and ready for the next big rush of business.

🧩 Final Takeaway

Weatherford navigated a challenging quarter marked by geopolitical uncertainty, stabilizing its financial base and showing strong operational wins in key global markets. The company is making a critical, highly strategic move to reorganize its legal headquarters to the U.S. to simplify its structure and prepare for long-term growth.