Weatherford Q3 revenue falls due to disruptions in Middle East

Weatherford International

Tue 21:43

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: ID:nGNX6bZH66

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.)