Weatherford International Reports $1.193 Billion Revenue in Q1 2025, 12% Decrease Year-Over-Year

Weatherford International plc reported a total revenue of $1.193 billion for the first quarter of 2025, marking a 12% decrease from $1.358 billion in the same period of 2024. The decline was attributed to reduced activity across all segments, with service revenues falling by 14% and product revenues decreasing by 8%. The company's operating income also saw a significant drop, falling to $142 million from $233 million year-over-year, a decrease of 39%. Net income attributable to Weatherford was $76 million, down from $112 million in the prior year, resulting in a basic income per share of $1.04 compared to $1.54 in the first quarter of 2024.

The financial performance reflects notable changes in operational dynamics, particularly in the Drilling and Evaluation (DRE) segment, which experienced a revenue decline of 17% to $350 million. This segment's adjusted EBITDA fell by 43% to $74 million, primarily due to lower drilling-related service activity. Conversely, the Well Construction and Completions (WCC) segment reported a smaller revenue decrease of 4% to $441 million, with adjusted EBITDA increasing by 7% to $128 million, driven by higher-margin activities in the Middle East/North Africa/Asia region. The Production and Intervention (PRI) segment also faced a 4% revenue decline, resulting in an adjusted EBITDA of $62 million.

In terms of strategic developments, Weatherford has undertaken significant restructuring efforts, incurring charges of $29 million in the first quarter of 2025, compared to just $3 million in the same period last year. These charges are part of optimization initiatives aimed at enhancing operational efficiency. The company also reported a decrease in selling, general, and administrative expenses, which fell by 20% to $190 million, largely due to reduced amortization costs and employee incentive program expenses.

Geographically, the company noted a decline in revenue across several regions, particularly in Latin America, which accounted for a significant portion of the overall revenue drop. The U.S. and Saudi Arabia contributed 16% and 11% of total revenue, respectively, reflecting slight increases from the previous year. Weatherford's total assets decreased to $5.054 billion from $5.159 billion at the end of 2024, with cash and cash equivalents at $873 million, down from $916 million. The company continues to monitor market conditions closely, particularly in light of geopolitical tensions and fluctuating oil prices, which are expected to impact demand for its services in the near term.

Looking ahead, Weatherford anticipates continued challenges in the energy services sector, driven by external factors such as geopolitical conflicts, customer capital expenditures, and fluctuating commodity prices. The company expects to maintain a cautious approach to its activity levels while focusing on capital discipline and efficiency improvements. Despite the current market softness, Weatherford remains optimistic about long-term growth opportunities through the adoption of advanced technologies and strategic market penetration.