WFRD Nasdaq Russell 1000 Earnings call
Weatherford International (WFRD) · Q2 2026 results and valuation
Share price: $86.69 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 22 Jul 2026 and 22 Apr 2026
Net income down 64.2% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−64.2%
Net income vs Q1 2026
Guidance mixed
Net income 39.0M vs 109.0M
Revenue −4.1%
Against the same quarter last year (Q2 2025) it is −71.3%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Figure
Proposals to redomesticate to Texas received support from more than 60% of the votes at the June 11th shareholder meetings.
Valuation
Is Weatherford International undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.3% growth a year (3-year revenue growth), the model's fair value is $91.35 a share — the stock trades 5% below it. Today's price assumes 3.7% growth a year.
Current price
$86.69
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+3.7% for 10 yrs
Fair value / share
$91.35
Buy below
$68.51
Price vs fair value
Undervalued 5%
Price vs buy-below price
Overvalued 27%
Read between the lines
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Key theme
Margins will still rise significantly in the second half from the first, but by slightly less than expected in April.
Source quote
“Our adjusted net working capital as a percentage of revenues was 27% in the second quarter, a sequential improvement of approximately... ...to the 31.1% conversion we delivered in the second quarter of 2025 and the 36.5% conversion we delivered in the first quarter of this year and was driven primarily by working capital release, continued collections, including from our key customer in Mexico, and lower capital expenditures. This is the second consecutive quarter of improvement, and...”
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Key theme
Net working capital was a key theme for the company in Q2 2026.
Source quote
“Net working capital”
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Guidance ↓
Half margins are expected to be higher than first half margins, but the amount of improvement was reduced compared to April expectations due to ongoing issues.
Source quote
“We do expect second half margins to be significantly higher than the first, but the quantum of improvement is slightly reduced versus our April expectations due to the ongoing...”
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Guidance ↑
Adjusted free cash flow conversion is now expected to be in the mid to high 40% range, an increase from the prior outlook.
Source quote
“Adjusted free cash flow conversion is now expected to be in the mid to high 40% range, an increase from our prior outlook, and our effective tax rate...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“DRE revenue declined 13% year-over-year, primarily from lower wireline and drilling-related services activity in MENA, partly offset by higher managed pressure drilling activity in ESSR.”
“At the same time, we have increased confidence in our adjusted free cash flow conversion and are therefore increasing guidance on that metric.”
“During the quarter, we continued to build momentum with new contract wins across our portfolio and key regions.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.10B | 1.15B | −4.1% | 1.20B | −8.2% |
| Operating income | 107.0M | 123.0M | −13.0% | 237.0M | −54.9% |
| Net income | 39.0M | 109.0M | −64.2% | 136.0M | −71.3% |
| EPS | 0.55 | 1.49 | −63.1% | 1.87 | −70.6% |
| P/E today 16.2 | 16.1 | 14.8 | +1.3 | 7.8 | +8.3 |
Topics
Most discussed now
- New Over the past quarter, I have visited customers in all of Weatherford International's geo zones, and it is very clear that...
- New Weatherford International saw that dynamic firsthand this quarter with the recovery beginning later and building more gradually than the…
- I am especially pleased with Q2 margin and cash performance given the challenging environment.
- Fading Moreover, Weatherford International's adjusted free cash flow performance was excellent, driven by working capital execution, including…
- Despite those incremental pressures, Weatherford International's team rallied to deliver EBITDA margins north of 20% and essentially flat…
Faded since Q1 2026
- Fading To summarize its Q1 2026 performance, Weatherford International delivered revenue of $1.152 billion, adjusted EBITDA of $233 million at a…
- Fading Weatherford International's adjusted free cash flow for the first quarter was $85 million, which was supported by very strong collections…
- Dropped Weatherford International had built in inventory levels, and it worked at alternative logistics routes within the region to make sure…
- Fading I will wrap up with some thoughts on the current operating environment and structural market dynamics before opening for Q&A.
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Shareholder vote results; Other events · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Unregistered share sale · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K