Weatherford Q3 revenue falls due to disruptions in Middle East

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$1.14 bln

$1.13 bln (10 Analysts)

Q3 EPS

$1.66

Q3 Net Income Attributable to Weatherford

$120 mln

Q3 Adjusted EBITDA

Beat

$254 mln

$249.64 mln (9 Analysts)

*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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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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