Weatherford's Q2 2025: Contradictions in Market Stability, M&A Focus, and Financial Reporting

Revenue and EBITDA Trends:
- Weatherford International reported $1.17 billion in revenue for Q2 2025, with an adjusted EBITDA margin of 21.1%.
- Revenues were impacted by divestitures in Argentina and minimal payments from Mexico, resulting in a decline from the previous quarter.
- The adjusted EBITDA margin slightly declined from Q1 due to margin dilution from tariff cost pass-throughs and pricing pressure.

Market Outlook and Geographical Performance:
- North America and Latin America performed as expected, with both regions experiencing a decline in revenue.
- The Middle East, North Africa, and broader region achieved sequential growth in Q2, but the market is anticipated to soften in the second half of 2025.
- The company expects a low to mid-single-digit decline in international revenues for 2025, excluding the impact of Mexico and Argentina.

Operational Efficiency and Cost Management:
- Weatherford paid four quarterly dividends of $0.25 per share and repurchased approximately $186 million worth of shares over the past four quarters.
- The company has reduced its head count by over 1,500 and lowered annualized personnel expenses by more than $125 million since Q3 2024.
- These measures were taken to offset revenue declines and maintain operational efficiency.

Balance Sheet Strength and Shareholder Returns:
- Weatherford has approximately $1 billion of cash and restricted cash, with a net leverage ratio less than 0.5x.
- The company has maintained liquidity of $1.3 billion, allowing for flexibility in managing through market cycles.
- Shareholder returns included share repurchases and dividends, reflecting confidence in the company's financial position.