Weatherford International plc Q3 FY2025 earnings call

Girish Saligram noted third quarter results were above expectations despite market headwinds. North America had slight sequential increase with Canadian rebound and offshore improvement but offset by U.S. land decline. Latin America saw 10% sequential revenue improvement after 3 quarters of decline, with Mexico showing sequential improvements. ESSR was flat, MENA/Asia had sequential growth. Operational highlights included contracts won in deepwater Brazil, Romania, Gulf of America, and FWRD 2025 conference with new products launched. Anuj Dhruv discussed cash flow, working capital, balance sheet, capital return program, credit facility expansion, debt offerings, ratings upgrades, and liquidity.

No detailed breakdown of product segments' financial performance with revenue contribution percentages provided in the transcript.

Fourth quarter revenues expected $1.245 billion to $1.28 billion. Adjusted EBITDA $274 million to $287 million. Adjusted free cash flow flat to slightly up from Q3. CapEx to trend down. Outlook for 2026: first half soft, second half rebound driven by offshore and key international markets. Saudi Arabia expected to bottom with growth in second half of 2026.

Market headwinds, soft macro environment, pricing pressure in several markets, trade discussions causing uncertainty, OPEC+ adding supply, Mexico payment uncertainties affecting working capital.

Q: David Anderson at Barclays asked about pricing pressure, regional basis and product lines.

A: Girish Saligram discussed pricing pressure in some regions, less on differentiated products.

Q: Scott Gruber at Citigroup asked about Saudi Arabia's recovery and oil activity.

A: Girish Saligram talked about Saudi's potential rebound driven by gas and oil activity.

Q: Saurabh Pant with Bank of America asked about Mexico's situation and working capital.

A: Girish Saligram and Anuj Dhruv discussed Mexico's stability, payment improvements, and working capital targets.

Q: Phil Jungwirth with BMO asked about DRE margins.

A: Girish Saligram discussed improvements in DRE margins due to Latin America activity and cost structure.

Q: James West of Melius Research asked about fourth quarter free cash flow.

A: Anuj Dhruv and Girish Saligram talked about free cash flow guidance and Mexico payments.

Q: James Rollyson with Raymond James asked about 2026 outlook.

A: Girish Saligram discussed 2026 outlook with first half soft and second half rebound.

Q: Derek Podhaizer with Piper Sandler asked about cost controls and margin guide.

A: Anuj Dhruv discussed cyclical and structural cost controls.

Q: Doug Becker at Capital One asked about intelligent completions.

A: Girish Saligram talked about technology's impact on financial results.

Q: Joshua Jayne at Daniel Energy Partners asked about ERP implementation.

A: Anuj Dhruv discussed ERP implementation timeline and benefits.