Description

Weatherford’s Saudi Contract Exit — Is A Higher-Margin Business Emerging?

Weatherford International plc reported second quarter 2026 revenues of $1.105 billion, with adjusted EBITDA of $223 million representing a 20.2% margin, and adjusted free cash flow of $139 million, equivalent to a 62.3% conversion on adjusted EBITDA. These results were delivered amid a challenging operating environment, particularly due to the ongoing geopolitical conflict in the Middle East, which constrained activity levels and increased costs such as freight and logistics. Despite these headwinds, adjusted EBITDA margins remained essentially flat sequentially, supported by disciplined cost management and operational execution. Geographically, the Middle East experienced the most significant disruption, with activity suspensions, project deferrals, and elevated logistics costs continuing through much of the quarter. The regional situation remains uncertain due to recent flare-ups of conflict, and Weatherford incorporated these factors into its updated guidance, anticipating ongoing impacts and a slower recovery timeline.