- Price
- $76.19
- Fair value
- $93.00
- Discount
- 18.1%
- Uncertainty
- High
- LSEG rating
- 1.91
- Moat
- None
- Next earnings
- 2026-10-21
- Next earnings is estimate
- No
- Company name
- Weatherford
- Sector
- Oilfield services
- About
- Weatherford International provides equipment and services for oil and gas wells. It has three segments: Drilling and Evaluation (DRE), which includes managed pressure drilling (MPD) and wireline; Well Construction and Completions (WCC); and Production and Intervention (PRI), which includes artificial lift and pressure pumping. It has large operations in the Middle East, North Africa, Asia, Latin America and North America. The parent company is incorporated in Ireland, its headquarters are in Houston and its shares trade on NASDAQ. Revenue was $1,105 million in Q2 2026. Girish Saligram is President and CEO.
- Thesis
- The market prices Weatherford for lower activity in the Middle East and for weak oilfield spending. The conflict with Iran disrupted work in the region in 2026. In Q2 2026, revenue fell 8% year over year to $1,105 million, operating income fell 55% and net income fell 71%. Weatherford says a return to activity levels from before the conflict will be gradual and needs regional stability. For the gap to close, three things must be true. Activity in the Middle East must recover, so that adjusted EBITDA margin rises in the second half of 2026, as management expects. Adjusted free cash flow must stay strong, as in Q2 2026, when it was $139 million. The redomestication to Delaware, which shareholders approved on September 3, 2026, must close in Q4 2026 and give the expected $20 million to $30 million of annual cash savings, and the NCS Multistage purchase must give at least $15 million of cost synergies. The Q3 2026 results, with the conference call on October 21, 2026, give the first test, and the Irish High Court hearing for the redomestication follows. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a new escalation in the Middle East or lower oil prices, which reduce customer spending.
- Risks
- A large part of the business is in the Middle East. The Iran conflict reduced MPD, wireline and completions activity in Q2 2026, and a further escalation can cut activity again.
Customer spending depends on oil and gas prices. Lower prices can reduce drilling and completion work, mostly in North America and with national oil companies.
The redomestication needs the sanction of the High Court of Ireland. A delay can postpone the expected $20 million to $30 million of annual cash savings.
The NCS Multistage purchase must be integrated. If the expected $15 million of cost synergies do not come, the purchase gives less value.
- Balance sheet
- Cash: $1.1B
Debt: $1.5B
Net debt: $380M
Net debt / EBITDA: 0.3× (low)
Debt due within 12 months: $30M
Weatherford has low net debt. At June 30, 2026, total debt was $1.48 billion and cash was $1.10 billion, with $37 million more of restricted cash. Net debt, which subtracts cash and restricted cash, was $343 million, and net leverage, which is net debt divided by adjusted EBITDA for the last 12 months, was 0.34 times. Debt due in the next 12 months was $30 million. Cash from operations was $175 million and adjusted free cash flow was $139 million in Q2 2026. In the quarter, Weatherford paid $20 million of dividends and bought back $16 million of shares.
As of 2026-06-30.
- Checkpoints
- Oct 21, 2026: Q3 2026 results: Middle East activity and margins. Pending. Watch: Higher adjusted EBITDA margin than the 20.2% of Q2 2026 and continued positive adjusted free cash flow pass; a lower margin or a further cut to the outlook fails.
Dec 2026 (estimate): Redomestication to Delaware closes. Pending. Watch: The High Court of Ireland sanctions the scheme and the move closes in Q4 2026 passes; a delay into 2027 or a court refusal fails.
- Recent events
- 2026-09-04: Weatherford appointed its Treasurer as Senior Vice President and Chief Accounting Officer.
2026-09-03: Shareholders approved the scheme of arrangement to move the parent company from Ireland to Delaware. The High Court of Ireland must sanction it, and Weatherford intends to close it in Q4 2026.
2026-09-01: Weatherford had completed its purchase of NCS Multistage, and it registered the resale of 357,159 shares that it issued as merger consideration.
2026-07-21: Weatherford reported Q2 2026 results. Revenue fell 4% from Q1 to $1,105 million, net income was $39 million and adjusted EBITDA was $223 million, a margin of 20.2%. Cash from operations was $175 million and adjusted free cash flow was $139 million. The Iran conflict reduced activity in the Middle East, and Weatherford lowered its outlook for the full year slightly.
2026-06-11: The proposal to move the parent company to Texas received more than 60% of votes cast at the June 2026 shareholder meetings, but it needed 75% and did not pass. Weatherford then proposed a move to Delaware.
2026-05-31: Weatherford agreed to buy NCS Multistage in a stock and cash transaction to expand its well completions products.