Weatherford Q3 revenue falls due to disruptions in Middle East

Overview

• Energy services firm's Q3 revenue slightly beat analyst expectations, but fell 7% yr/yr

• Q3 adjusted EBITDA beat analyst estimates, despite a 6% yr/yr decline

• Company completed NCS Multistage acquisition in the quarter, expanding completions and diagnostics portfolio

Outlook

• Company expects a meaningful ramp in adjusted EBITDA in Q4 2026

• Company raises full-year 2026 adjusted free cash flow guidance

• Company says Middle East conflict dampens expectations of a quick recovery

Result Drivers

• MIDDLE EAST IMPACT - Conflict-related operational disruptions in the Middle East weighed on activity levels, per CEO Girish Saligram

• MARGIN EXPANSION - Co attributed margin expansion and strong cash generation to portfolio diversification, cost discipline and execution

• LATIN AMERICA ACTIVITY - Higher Drilling Services and MPD activity in Latin America drove segment growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Weatherford International PLC is $115.00, about 49.2% above its October 19 closing price of $77.09

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)