third quarter of 2026
Filed Oct 20, 2026Third-quarter revenue increased 3% sequentially to $1,143 million, while adjusted EBITDA margin expanded 204 basis points sequentially to 22.2% and adjusted free cash flow was $155 million.
Sequential revenue, operating income, net income, adjusted EBITDA, operating cash flow and adjusted free cash flow improved, supported by DRE and PRI profitability. Year-over-year revenue declined 7%, with Middle East/North Africa/Asia revenue down 16% amid geopolitical disruption and WCC profitability lower.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third quarter 2026 total revenuesGAAP | $1.14B | 3% | (7)% |
| Nine months ended September 30, 2026 total revenuesGAAP | $3.4B | – | – |
| Third quarter 2026 operating incomeGAAP | $153M | 43% | (14)% |
| Nine months ended September 30, 2026 operating incomeGAAP | $383M | – | – |
| Third quarter 2026 net incomeGAAP | $125M | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $276M | – | – |
| Third quarter 2026 net income attributable to WeatherfordGAAP | $120M | 208% | 48% |
| Nine months ended September 30, 2026 net income attributable to WeatherfordGAAP | $267M | – | – |
| Third quarter 2026 net income marginGAAP | 10.5% | 697 basis points | 392 basis points |
| Nine months ended September 30, 2026 net income marginGAAP | 7.9% | – | – |
| Third quarter 2026 basic income per shareGAAP | $1.66 | 200% | 47% |
| Third quarter 2026 diluted income per shareGAAP | $1.66 | 199% | 48% |
| Nine months ended September 30, 2026 basic income per shareGAAP | $3.71 | – | – |
| Nine months ended September 30, 2026 diluted income per shareGAAP | $3.70 | – | – |
| Third quarter 2026 adjusted EBITDAnon-GAAP | $254M | 14% | (6)% |
| Nine months ended September 30, 2026 adjusted EBITDAnon-GAAP | $710M | – | – |
| Third quarter 2026 adjusted EBITDA marginnon-GAAP | 22.2% | 204 basis points | 39 basis points |
| Nine months ended September 30, 2026 adjusted EBITDA marginnon-GAAP | 20.9% | – | – |
| Third quarter 2026 cash flows provided by operating activitiesGAAP | $192M | 10% | 39% |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $503M | – | – |
| Third quarter 2026 capital expenditures for property, plant and equipmentGAAP | $45M | 7% | 2% |
| Nine months ended September 30, 2026 capital expenditures for property, plant and equipmentGAAP | $141M | – | – |
| Third quarter 2026 adjusted free cash flownon-GAAP | $155M | 12% | 57% |
| Nine months ended September 30, 2026 adjusted free cash flownon-GAAP | $379M | – | – |
| Third quarter 2026 DRE segment adjusted EBITDAother | $90M | 55% | 8% |
| Third quarter 2026 DRE segment adjusted EBITDA marginother | 27.2% | 726 bps | 320 bps |
| Third quarter 2026 WCC segment adjusted EBITDAother | $100M | (7)% | (20)% |
| Third quarter 2026 WCC segment adjusted EBITDA marginother | 22.2% | (249) bps | (449) bps |
| Third quarter 2026 PRI segment adjusted EBITDAother | $73M | 4% | 24% |
| Third quarter 2026 PRI segment adjusted EBITDA marginother | 23.2% | 110 bps | 515 bps |
| September 30, 2026 total debtGAAP | $1.48B | – | – |
| September 30, 2026 cash and cash equivalentsGAAP | $1.16B | – | – |
| September 30, 2026 restricted cashGAAP | $37M | – | – |
| September 30, 2026 net debtnon-GAAP | $282M | – | – |
| September 30, 2026 net leveragenon-GAAP | 0.28 x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Drilling and Evaluation (DRE)Higher MPD and Drilling Services activity in Latin America and higher MPD and Wireline activity in the Middle East/North Africa/Asia, partly offset by lower MPD activity in Europe/Sub-Sahara Africa/Russia. | $331M | 14% | (4)% |
| Well Construction and Completions (WCC)Higher Completions activity in North America and higher Liner Hangers activity in the Middle East/North Africa/Asia, partly offset by lower Completions activity in Latin America. | $450M | 4% | (4)% |
| Production and Intervention (PRI)Lower international Pressure Pumping activity, partly offset by higher Artificial Lift and Subsea Intervention activity in Latin America. | $314M | (1)% | (4)% |
| All OtherAll Other includes results from non-core business activities, including integrated services and projects. | $48M | – | – |
| North AmericaHigher activity across all reported segments, especially Completions activity in U.S. Land and Canada Land, partly offset by lower Completions activity in U.S. offshore. | $236M | 15% | (3)% |
| InternationalInternational revenue included growth in Latin America that was offset by declines in Middle East/North Africa/Asia and Europe/Sub-Sahara Africa/Russia. | $907M | 1% | (8)% |
| Latin AmericaHigher Drilling-related Services and Integrated Services & Projects activity in Mexico and higher MPD activity in the Caribbean, partly offset by lower Completions and Pressure Pumping activity. | $225M | 14% | 5% |
| Middle East/North Africa/AsiaLower ISP activity was partly offset by higher MPD and Liner Hangers activity sequentially; year-over-year revenue reflected subdued activity on account of heightened geopolitical tensions. | $447M | — % | (16)% |
| Europe/Sub-Sahara Africa/RussiaLower activity across the reported segments, partly offset by higher Wireline activity in Europe. | $235M | (9)% | (3)% |
fourth quarter of 2026 and full year 2026 outlook
- NoteThe Company sees a meaningful ramp in adjusted EBITDA in the fourth quarter.
- NoteThe Company is increasing its full year adjusted free cash flow guidance yet again.
- NoteThe redomestication is expected to generate $20 million to $30 million in annual cash savings beginning in 2027, subject to satisfaction of closing conditions.
- NoteThe redemption of the 2030 Senior Notes is expected to reduce annualized cash interest expense by approximately $20 million.
Capital returns
- Third quarter 2026 dividends paid of $19 million.
- Third quarter 2026 share repurchases of $28 million.
- Third quarter 2026 total shareholder return of $47 million.
- Nine months ended September 30, 2026 dividends paid of $59 million.
- Nine months ended September 30, 2026 share repurchases of approximately $54 million.
- Nine months ended September 30, 2026 total shareholder return of $113 million.
- On October 15, 2026, the Board declared a cash dividend of $0.275 per share, payable on December 3, 2026 to shareholders of record as of November 6, 2026.
What drove it
- DRE revenue and segment adjusted EBITDA increased sequentially on higher MPD and Drilling Services activity, with strong fall through in the Middle East/North Africa/Asia and Latin America.
- WCC sequential revenue growth was offset by lower profitability, as segment adjusted EBITDA fell 7% sequentially and segment adjusted EBITDA margin declined 249 bps.
- PRI segment adjusted EBITDA increased despite a 1% sequential revenue decline, driven by international Pressure Pumping fall through and ISDT and Digital Solutions activity and fall through in the Middle East/North Africa/Asia.
- The NCS Multistage acquisition expands the completions portfolio, reservoir diagnostics and well performance solutions.
- The first major ERP application launched in the third quarter, with management citing process standardization, simplification, operational efficiency and scalability.
- Fitch Ratings and S&P Global Ratings revised their outlooks to Positive Outlook from Stable Outlook while affirming the Company’s BB credit rating. Moody’s affirmed its Ba2 rating with a Positive Outlook.
Concerns
- Third-quarter revenue decreased 7% year-over-year and adjusted EBITDA decreased 6% year-over-year.
- Middle East/North Africa/Asia revenue declined 16% year-over-year, primarily from subdued activity on account of heightened geopolitical tensions.
- WCC segment adjusted EBITDA decreased 20% year-over-year and its segment adjusted EBITDA margin declined 449 bps year-over-year.
- Management said conflict related operational disruptions in the Middle East weighed on activity levels and that recent events dampened expectations of a quick recovery.
- Redomestication remains subject to previously disclosed closing conditions, including sanction by the Irish High Court.
- The Company identified risks related to integrating NCS Multistage and achieving anticipated acquisition benefits and synergies.
What to watch
- The fourth-quarter adjusted EBITDA ramp cited by management.
- Full-year adjusted free cash flow guidance, which management said it increased again without providing a numerical amount in the release.
- Middle East/North Africa/Asia activity levels and the effects of heightened geopolitical tensions.
- WCC fall through and margin recovery following the third-quarter decline.
- Completion of the 2030 Senior Notes redemption on October 30, 2026 and the expected approximately $20 million reduction in annualized cash interest expense.
- Completion of the redomestication, expected during the fourth quarter of 2026 subject to closing conditions, and expected annual cash savings beginning in 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $1,161 million at September 30, 2026, compared with $987 million at December 31, 2025.
- Restricted cash was $37 million at September 30, 2026, compared with $55 million at December 31, 2025.
- Current portion of long-term debt was $264 million and long-term debt was $1,216 million at September 30, 2026.
- Total shareholders’ equity was $1,992 million at September 30, 2026, compared with $1,696 million at December 31, 2025.
- Third-quarter net cash used in investing activities was $54 million and net cash used in financing activities was $62 million.
- During the third quarter, the Company completed the acquisition of NCS Multistage in a stock-and-cash transaction.
- On October 20, 2026, the Company issued notice to redeem all of its 8.625% Senior Notes due 2030 in an aggregate principal amount of $236 million. The redemption date is October 30, 2026 and is expected to be funded using cash on hand.
Analysis
Weatherford reported third-quarter revenue of $1,143 million, up 3% sequentially but down 7% year-over-year. Sequential momentum was led by DRE, where revenue rose 14% to $331 million, and North America, where revenue increased 15% to $236 million. International revenue increased 1% sequentially to $907 million, as Latin America growth offset a 9% decline in Europe/Sub-Sahara Africa/Russia and flat revenue in Middle East/North Africa/Asia. The latter geography declined 16% year-over-year as the Company cited subdued activity related to heightened geopolitical tensions.
Profitability improved strongly from the second quarter. Operating income rose 43% sequentially to $153 million, net income attributable to Weatherford increased 208% to $120 million, and diluted income per share was $1.66. Adjusted EBITDA increased 14% sequentially to $254 million, while adjusted EBITDA margin expanded 204 basis points to 22.2%. DRE was the principal segment contributor, with adjusted EBITDA up 55% sequentially and margin up 726 bps. PRI also expanded segment adjusted EBITDA by 4% and margin by 110 bps despite revenue declining 1%.
The mix was less favorable year-over-year and uneven by segment. WCC revenue rose 4% sequentially to $450 million, but segment adjusted EBITDA declined 7% and margin fell 249 bps due to lower fall through in North America and lower activity in Europe/Sub-Sahara Africa/Russia. On a year-over-year basis, all three reportable segments recorded lower revenue, while WCC adjusted EBITDA declined 20%. This leaves Middle East activity and WCC execution as the key operational pressure points despite the sequential consolidated margin improvement.
Cash generation remained strong. Cash flows provided by operating activities were $192 million and adjusted free cash flow was $155 million, up 10% and 12% sequentially, respectively. The Company returned $47 million to shareholders through $19 million of dividends and $28 million of repurchases. Cash and cash equivalents were $1,161 million at September 30, 2026, and net debt was $282 million, with net leverage of 0.28 x. Subsequent to quarter end, Weatherford issued a redemption notice for $236 million of 8.625% Senior Notes due 2030, which it expects to fund with cash on hand and reduce annualized cash interest expense by approximately $20 million.
Strategically, Weatherford completed the NCS Multistage acquisition and launched its first major ERP application. Shareholders approved the proposed redomestication to Delaware, which remains subject to closing conditions and is expected to generate $20 million to $30 million in annual cash savings beginning in 2027. Management expects a meaningful adjusted EBITDA ramp in the fourth quarter and said it raised full-year adjusted free cash flow guidance again, but the release did not provide numerical guidance ranges.
Management, verbatim
The One Weatherford team delivered an excellent third quarter, with adjusted EBITDA margin* expanding 204 basis points sequentially to 22.2% and adjusted free cash flow* of $155 million.
Girish Saligram, President and Chief Executive Officer
Even as conflict related operational disruptions in the Middle East weighed on activity levels, the strength of our diversified portfolio, disciplined cost management, and outstanding execution across the organization drove margin expansion and strong cash generation.
Girish Saligram, President and Chief Executive Officer
While the recent events in the Middle East have dampened expectations of a quick recovery, we still see a meaningful ramp in adjusted EBITDA* in the fourth quarter and are increasing our full year adjusted free cash flow* guidance yet again.
Girish Saligram, President and Chief Executive Officer
Not in the filing
stated, not guessed- Numerical fourth-quarter 2026 revenue guidance was not provided.
- Numerical fourth-quarter 2026 adjusted EBITDA guidance was not provided.
- Numerical full-year 2026 adjusted free cash flow guidance was not provided.
- Gross margin was not reported.
- Operating expenses were not reported as a consolidated line item.
- Effective tax rate was not reported.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Third-quarter 2026 adjusted free cash flow conversion was not reported.
- Third-quarter 2026 gross leverage was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.