Weatherford International plc 10-Q

Item 1. Financial Statements. WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, (Dollars and shares in millions, except per share amounts) 2025 2024 Revenue: Services $ 741 $ 865 Products 452 493 Total Revenue 1,193 1,358 Costs and Expenses: Cost of Services 464 527 Cost of Products 355 357 Research and Development 29 31 Selling, General and Administrative 161 205 Restructuring Charges 29 3 Other Charges, Net 13 2 Total Costs and Expenses 1,051 1,125 Operating Income 142 233 Other Expense: Interest Expense, Net of Interest Income of $ 11 and $ 14 ( 26 ) ( 29 ) Other Expense, Net ( 20 ) ( 22 ) Income Before Income Taxes 96 182 Income Tax Provision ( 10 ) ( 59 ) Net Income 86 123 Net Income Attributable to Noncontrolling Interests 10 11 Net Income Attributable to Weatherford $ 76 $ 112 Basic Income per Share $ 1.04 $ 1.54 Basic Weighted Average Shares Outstanding 73.1 72.9 Diluted Income per Share $ 1.03 $ 1.50 Diluted Weighted Average Shares Outstanding 73.4 74.7 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 2 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended March 31, (Dollars in millions) 2025 2024 Net Income $ 86 $ 123 Foreign Currency Translation Adjustments 96 ( 24 ) Comprehensive Income 182 99 Net Income Attributable to Noncontrolling Interests 10 11 Comprehensive Income Attributable to Weatherford $ 172 $ 88 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 3 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars and shares in millions, except par value) March 31, 2025 December 31, 2024 (Unaudited) Assets: Cash and Cash Equivalents $ 873 $ 916 Restricted Cash 57 59 Accounts Receivable, Net of Allowance for Credit Losses of $ 8 at March 31, 2025 and $ 8 at December 31, 2024 1,175 1,261 Inventories, Net 889 880 Other Current Assets 270 286 Total Current Assets 3,264 3,402 Property, Plant and Equipment, Net of Accumulated Depreciation of $ 1,011 at March 31, 2025 and $ 940 at December 31, 2024 1,103 1,061 Intangibles, Net of Accumulated Amortization of $ 809 at March 31, 2025 and $ 793 at December 31, 2024 315 325 Operating Lease Assets 124 124 Other Non-Current Assets 248 247 Total Assets $ 5,054 $ 5,159 Liabilities: Current Portion of Long-term Debt $ 22 $ 17 Accounts Payable 714 792 Accrued Salaries and Benefits 249 302 Income Taxes Payable 118 129 Current Portion of Operating Lease Liabilities 46 44 Other Current Liabilities 418 412 Total Current Liabilities 1,567 1,696 Long-term Debt 1,583 1,617 Operating Lease Liabilities 108 110 Non-current Taxes Payable 255 274 Other Non-Current Liabilities 181 179 Total Liabilities $ 3,694 $ 3,876 Shareholders’ Equity: Ordinary Shares - Par Value $ 0.001 ; Authorized 1,356 shares, Issued and Outstanding 72.6 shares at March 31, 2025 and 72.1 at December 31, 2024 $ — $ — Capital in Excess of Par Value 2,834 2,921 Retained Deficit ( 1,428 ) ( 1,486 ) Accumulated Other Comprehensive Loss ( 54 ) ( 150 ) Shareholders’ Equity 1,352 1,285 Noncontrolling Interests 8 ( 2 ) Total Shareholders’ Equity 1,360 1,283 Total Liabilities and Shareholders’ Equity $ 5,054 $ 5,159 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, (Dollars in millions) 2025 2024 Cash Flows From Operating Activities: Net Income $ 86 $ 123 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 62 85 Foreign Exchange Losses 13 15 Gain on Disposition of Assets ( 1 ) ( 7 ) Deferred Income Tax Provision 7 14 Share-Based Compensation 7 13 Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits: Accounts Receivable 116 ( 112 ) Inventories ( 3 ) ( 53 ) Accounts Payable ( 74 ) 99 Accrued Salaries and Benefits ( 56 ) ( 86 ) Other Changes, Net ( 15 ) 40 Net Cash Provided by Operating Activities 142 131 Cash Flows From Investing Activities: Capital Expenditures for Property, Plant and Equipment ( 77 ) ( 59 ) Proceeds from Disposition of Assets 1 10 Business Acquisitions, Net of Cash Acquired — ( 36 ) Proceeds from Sale of Investments — 41 Other Investing Activities ( 3 ) ( 10 ) Net Cash Used in Investing Activities ( 79 ) ( 54 ) Cash Flows From Financing Activities: Repayments of Long-term Debt ( 39 ) ( 172 ) Tax Remittance on Equity Awards Vested ( 20 ) ( 8 ) Share Repurchases ( 53 ) — Dividends Paid ( 18 ) — Other Financing Activities ( 3 ) ( 7 ) Net Cash Used in Financing Activities ( 133 ) ( 187 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash 25 ( 16 ) Net Decrease in Cash, Cash Equivalents and Restricted Cash ( 45 ) ( 126 ) Cash, Cash Equivalents and Restricted Cash at Beginning of Period 975 1,063 Cash, Cash Equivalents and Restricted Cash at End of Period $ 930 $ 937 Supplemental Cash Flow Information: Interest Paid $ 2 $ 8 Income Taxes Paid, Net of Refunds $ 30 $ 35 844,702 Ordinary Shares Issued for Acquisitions as of March 31, 2024 $ — $ 75 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 5 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Weatherford International plc (the “Company,” “Weatherford,” “we,” “us,” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”). The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates. In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments considered necessary by management to fairly state the results of operations, financial position and cash flows of Weatherford and its subsidiaries for the periods presented and are not necessarily indicative of the results that may be expected for a full year. Our financial statements have been prepared on a consolidated basis. Under this basis, our financial statements consolidate all wholly owned subsidiaries and controlled joint ventures. All intercompany accounts and transactions have been eliminated. Summary of Significant Accounting Policies Please refer to “Note 1 – Summary of Significant Accounting Policies” of our Consolidated Financial Statements from our 2024 Form 10-K for the discussion on our significant accounting policies. Certain reclassifications have been made to these Condensed Consolidated Financial Statements and accompanying footnotes for the three months ended March 31, 2024 to conform to the presentation for the three months ended March 31, 2025. Accounting Standards Issued Not Yet Adopted Please refer to “Note 1 – Summary of Significant Accounting Policies” of our Consolidated Financial Statements from our 2024 Form 10-K for the discussion on accounting pronouncements that have been issued but not yet effective for the interim periods presented that are not expected to have a material impact on our financial position or results of operations. Evaluations of all other new accounting pronouncements that have been issued, but not yet effective are on-going, and at this time are not expected to have a material impact on our Condensed Consolidated Financial Statements. 6 Table of Contents 2 – Segment Information Financial information by segment is summarized below. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as presented in our 2024 Form 10-K. We have three reportable segments: (1) Drilling and Evaluation “DRE”, (2) Well Construction and Completions “WCC”, and (3) Production and Intervention “PRI”. The Company’s chief operating decision maker (“CODM”), our chief executive officer, uses segment adjusted EBITDA to measure the profitability of each segment. The regularly reviewed historical, current and forecasted segment adjusted EBITDA data is utilized by the CODM to allocate Company resources. The CODM also uses segment adjusted EBITDA to drive efficiencies and develop competitive strategies. Segment adjusted EBITDA is based on segment earnings before interest, taxes, depreciation, amortization, share-based compensation expense and other adjustments. All other includes results from non-core business activities (including integrated services and projects), and corporate includes overhead support and centrally managed or shared facilities costs. All other and corporate do not individually meet the criteria for segment reporting. Three Months Ended March 31, 2025 Reportable Segments All (Dollars in millions) DRE WCC PRI Other Total Revenue $ 350 $ 441 $ 334 $ 68 $ 1,193 Direct Costs (a) ( 226 ) ( 258 ) ( 230 ) Other Expense (b) ( 50 ) ( 55 ) ( 42 ) DRE Segment Adjusted EBITDA 74 74 WCC Segment Adjusted EBITDA 128 128 PRI Segment Adjusted EBITDA 62 62 All Other 4 Corporate ( 15 ) Depreciation and Amortization ( 62 ) Share-based Compensation ( 7 ) Restructuring Charges ( 29 ) Other Charges, Net ( 13 ) Operating Income $ 142 (a) Segment cost of sales and direct operating costs. (b) Segment selling, general and administrative and research and development costs . 7 Table of Contents Three Months Ended March 31, 2024 Reportable Segments All (Dollars in millions) DRE WCC PRI Other Total Revenue $ 422 $ 458 $ 348 $ 130 $ 1,358 Direct Costs (a) ( 239 ) ( 276 ) ( 231 ) Other Expense (b) ( 53 ) ( 62 ) ( 44 ) DRE Segment Adjusted EBITDA 130 130 WCC Segment Adjusted EBITDA 120 120 PRI Segment Adjusted EBITDA 73 73 All Other 27 Corporate ( 14 ) Depreciation and Amortization ( 85 ) Share-based Compensation ( 13 ) Restructuring Charges ( 3 ) Other Charges, Net ( 2 ) Operating Income $ 233 (a) Segment cost of sales and direct operating costs. (b) Segment selling, general and administrative and research and development costs. Three Months Ended March 31, (Dollars in millions) 2025 2024 Depreciation and Amortization: DRE $ 19 $ 28 WCC 12 23 PRI 18 22 Corporate and Other 13 12 Total Depreciation and Amortization $ 62 $ 85 Capital Expenditures: DRE $ 25 $ 23 WCC 8 14 PRI 31 13 Corporate and Other 13 9 Total Capital Expenditures $ 77 $ 59 (Dollars in millions) March 31, 2025 December 31, 2024 Total Assets: DRE $ 959 $ 925 WCC 1,024 1,040 PRI 788 789 Corporate and Other (a) 2,283 2,405 Total $ 5,054 $ 5,159 (a) Corporate and other total assets primarily include cash and cash equivalents, certain intangible assets, and centrally managed or shared facilities. 8 Table of Contents PP&E, Net and Operating Lease Assets by Geographic Area As of March 31, 2025 and December 31, 2024 the U.S. accounted for 23 % and 22 %, respectively, and the Kingdom of Saudi Arabia accounted for 12 % and 11 %, respectively, of our PP&E, Net and operating lease assets identifiable by geography. No other country accounted for more than 10% of our PP&E, Net and operating lease assets identifiable by geography as of March 31, 2025 and December 31, 2024. We had no PP&E, Net and operating lease assets in our country of domicile (Ireland) as of March 31, 2025, and December 31, 2024. (Dollars in millions) March 31, 2025 December 31, 2024 North America (a) $ 308 $ 293 Latin America 175 195 Middle East/North Africa/Asia 465 443 Europe/Sub-Sahara Africa/Russia 223 219 PP&E, Net and Operating Lease Assets by Geography (b) $ 1,171 $ 1,150 (a) North America consists of the U.S. and Canada. (b) Corporate assets not allocated by geography are excluded from this total. 9 Table of Contents 3 – Revenue Disaggregated Revenue The following table disaggregates our revenue from contracts with customers by geographic area and includes equipment rental revenue. Equipment rental revenues were $ 35 million in the three months ended March 31, 2025 and $ 34 million for the three months ended March 31, 2024. During the three months ended March 31, 2025, the U.S. and the Kingdom of Saudi Arabia accounted for 16 % and 11 % of total revenue, respectively. During the three months ended March 31, 2024, the U.S. and the Kingdom of Saudi Arabia accounted for 15 % and 10 % of total revenue, respectively. In addition during the three months ended March 31, 2024, Mexico accounted for 14 % of total revenue, driven by our largest customer, which accounted for 12 % of our total revenue. No other country accounted for more than 10% of our revenue in the periods presented. Three Months Ended March 31, (Dollars in millions) 2025 2024 Revenue by Geographic Areas: North America (a) $ 250 $ 267 International 943 1,091 Middle East/North Africa/Asia 503 497 Latin America 241 370 Europe/Sub-Sahara Africa/Russia 199 224 Total Revenue $ 1,193 $ 1,358 (a) North America consists of the U.S. and Canada. Contract Balances The timing of our revenue recognition, billings, and cash collections results in the recording of accounts receivable, contract assets, and contract liabilities. The following table summarizes these balances as of March 31, 2025 and December 31, 2024: (Dollars in millions) March 31, 2025 December 31, 2024 Receivables for Product and Services in Accounts Receivable, Net $ 1,147 $ 1,232 Receivables for Equipment Rentals in Account Receivable, Net $ 28 $ 29 Accounts Receivable, Net $ 1,175 $ 1,261 Contract Assets in Other Current Assets $ 43 $ 61 Contract Assets in Other Non-Current Assets $ 35 $ 34 Contract Liabilities in Other Current Liabilities $ 49 $ 51 Contract Liabilities in Other Non-Current Liabilities $ 2 $ 2 4 – Restructuring Charges Restructuring charges were $ 29 million and $ 3 million in the three months ended March 31, 2025 and March 31, 2024, respectively, and presented as “Restructuring Charges” on the accompanying Condensed Consolidated Statements of Operations. These charges were related to optimization and efficiency initiatives throughout the organization and primarily relates to severance expenses. 10 Table of Contents Restructuring liabilities were $ 47 million as of March 31, 2025 and $ 35 million as of December 31, 2024. Of the restructuring liabilities $ 42 million and $ 31 million are recorded in “Other Current Liabilities” on the accompanying Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively. The remaining $ 5 million and $ 4 million are recorded in “Other Non-Current Liabilities” on the accompanying Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively. Changes in the liability are primarily driven by restructuring charges and cash payments. The following table presents total restructuring charges by segment and All Other in the three months ended March 31, 2025 and 2024: Three Months Ended March 31, (Dollars in millions) 2025 2024 DRE $ 8 $ — WCC 7 1 PRI 8 1 All Other 6 1 Total Restructuring Charges $ 29 $ 3 5 – Inventories, Net Inventories, net of reserves of $ 119 million and $ 115 million as of March 31, 2025 and December 31, 2024, respectively, are presented by category in the table below: (Dollars in millions) March 31, 2025 December 31, 2024 Finished Goods $ 771 $ 778 Work in Process and Raw Materials, Components and Supplies 118 102 Inventories, Net $ 889 $ 880 The change in inventory reserves includes inventory charges primarily offset by the disposal of inventory previously reserved. The charges are recorded in “Cost of Products” on our Condensed Consolidated Statements of Operations in the amount of $ 5 million and $ 6 million during the three months ended March 31, 2025 and March 31, 2024, respectively. 11 Table of Contents 6 – Intangibles, Net The components of intangible assets, net were as follows: (Dollars in millions) March 31, 2025 December 31, 2024 Developed and Acquired Technology, Net of Accumulated Amortization of $ 598 at March 31, 2025 and $ 592 at December 31, 2024 $ 126 $ 126 Trade Names, Net of Accumulated Amortization of $ 211 at March 31, 2025 and $ 201 at December 31, 2024 189 199 Intangibles, Net of Accumulated Amortization of $ 809 at March 31, 2025 and $ 793 at December 31, 2024 $ 315 $ 325 Amortization expense was $ 14 million and $ 41 million for the three months ended March 31, 2025 and March 31, 2024, respectively, and is reported in “Selling, General and Administrative” on our Condensed Consolidated Statements of Operations. The decrease in amortization expense was primarily due to full amortization of certain intangible assets as of December 31, 2024. 7 – Borrowings and Other Debt Obligations (Dollars in millions) March 31, 2025 December 31, 2024 Current Portion of Finance Leases $ 22 $ 17 Current Portion of Long-term Debt $ 22 $ 17 8.625 % Senior Notes due 2030 “2030 Senior Notes” $ 1,552 $ 1,586 Finance Leases 31 31 Long-term Debt $ 1,583 $ 1,617 2028 Senior Secured Notes On September 30, 2021, Weatherford International Ltd. (“Weatherford Bermuda”) issued 6.50 % senior secured notes in aggregate principal amount of $ 500 million maturing September 15, 2028. Interest was payable semiannually on September 15 and March 15 of each year, and commenced on March 15, 2022. Proceeds from the issuance were reduced by debt issuance costs. During the three months ended March 31, 2024 we redeemed $ 167 million of the then outstanding $ 248 million of principal. During the three months ended June 30, 2024 we fully redeemed the remaining principal amount. 2030 Senior Notes On October 27, 2021, Weatherford Bermuda issued 8.625 % senior notes in aggregate principal amount of $ 1.6 billion maturing April 30, 2030 (the “2030 Senior Notes”). Interest is payable semiannually on June 1 and December 1 of each year, and commenced on June 1, 2022. On December 1, 2022, the indenture related to our 2030 Senior Notes was amended and supplemented to add Weatherford International, LLC (“Weatherford Delaware”) as co-issuer and co-obligor, and concurrently release the guarantee of Weatherford Delaware. In the first quarter of 2025, we repurchased $ 34 million in principal of our 2030 Senior Notes. At March 31, 2025, the carrying value represents the remaining unpaid principal of $ 1.56 billion, offset by unamortized deferred issuance cost of $ 11 million. At December 31, 2024, the carrying value represented the remaining principal of $ 1.6 billion, offset by unamortized deferred issuance cost of $ 11 million. 12 Table of Contents Credit Agreement Weatherford Bermuda, Weatherford Delaware, Weatherford Canada Ltd. (“Weatherford Canada”) and WOFS International Finance GmbH (“Weatherford Switzerland”), together as borrowers, and the Company as parent, have an amended and restated credit agreement (the “Credit Agreement”). The Credit Agreement is guaranteed by the Company and certain of our subsidiaries and secured by substantially all of the personal property of the Company and those subsidiaries. At March 31, 2025 and December 31, 2024, the Credit Agreement allowed for a total commitment amount of $ 720 million, maturing on October 24, 2028. Financial covenants in the Credit Agreement include a $ 250 million minimum liquidity covenant (which may increase up to $ 400 million dependent on the nature of transactions we may decide to enter into), a minimum interest coverage ratio of 2.50 to 1.00, a maximum total net leverage ratio of 3.50 to 1.00, and a maximum secured net leverage ratio of 1.50 to 1.00. As of March 31, 2025, we had zero borrowings outstanding under the Credit Agreement and $ 397 million of letters of credit outstanding. The letters of credit consisted of $ 277 million for performance letters of credit, $ 6 million for financial letters of credit under the Credit Agreement and $ 114 million letters of credit under various uncommitted bi-lateral facilities ($ 48 million of which was cash collateral held and recorded in “Restricted Cash” on the Condensed Consolidated Balance Sheets). As of December 31, 2024, we had zero borrowings outstanding under the Credit Agreement and $ 382 million of letters of credit outstanding. The letters of credit consisted of $ 279 million for performance letters of credit, $ 12 million for financial letters of credit under the Credit Agreement and $ 91 million letters of credit under various uncommitted bi-lateral facilities ($ 49 million of which was cash collateral held and recorded in “Restricted Cash” on the Condensed Consolidated Balance Sheets). Fair Value The fair value of our long-term debt fluctuates with changes in applicable interest rates among other factors. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued and will be less than the carrying value when the market rate is greater than the interest rate at which the debt was originally issued. The fair value of our long-term debt is classified as Level 2 in the fair value hierarchy and is established based on observable inputs in less active markets. The table below presents the fair value and carrying value of our long-term debt (excluding finance leases). March 31, 2025 December 31, 2024 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value 8.625 % Senior Notes due 2030 $ 1,552 $ 1,590 $ 1,586 $ 1,650 Long-Term Debt (excluding Finance Leases) $ 1,552 $ 1,590 $ 1,586 $ 1,650 8 – Disputes, Litigation and Legal Contingencies We are subject to lawsuits and claims arising out of the nature of our business. We have certain claims, disputes and pending litigation for which we do not believe a negative outcome is probable or for which we can only estimate a range of liability. It is possible, however, that an unexpected judgment could be rendered against us, or we could decide to resolve a case or cases, which would result in a liability that could be uninsured and beyond the amounts we currently have reserved and in some cases those losses could be material. If one or more negative outcomes were to occur relative to these cases, the aggregate impact to our financial condition could be material. 13 Table of Contents 9 – Shareholders’ Equity Shares issued and outstanding on our Condensed Consolidated Balance Sheets increased from 72.1 million as of December 31, 2024 to 72.6 million as of March 31, 2025. The increase was due to the issuance of 1.3 million of our ordinary shares for equity awards vested and delivered, net of shares withheld for taxes, partially offset by the cancellation of 0.8 million of our ordinary shares repurchased for $ 53 million under our $ 500 million share repurchase program. During the three months ended March 31, 2025, we declared and paid $ 18 million in dividends and accrued an immaterial amount of dividend equivalent rights on share-based awards. The following summarizes our shareholders’ equity activity for the three months ended March 31, 2025 and 2024: (Dollars in millions) Ordinary Shares Par Value Capital in Excess of Par Value Retained Deficit Accumulated Other Comprehensive Loss Non-controlling Interests Total Shareholders’ Equity Balance at December 31, 2024 72.1 $ — $ 2,921 $ ( 1,486 ) $ ( 150 ) $ ( 2 ) $ 1,283 Net Income — — — 76 — 10 86 Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes 1.3 — ( 34 ) — — — ( 34 ) Share Repurchases ( 0.8 ) — ( 53 ) — — — ( 53 ) Dividends Declared ($ 0.25 per share) (1) — — — ( 18 ) — — ( 18 ) Other Comprehensive Income — — — — 96 — 96 Balance at March 31, 2025 72.6 $ — $ 2,834 $ ( 1,428 ) $ ( 54 ) $ 8 $ 1,360 (1) Includes dividend equivalents on share-based awards. (Dollars in millions) Ordinary Shares Par Value Capital In Excess of Par Value Retained Deficit Accumulated Other Comprehensive Loss Non-controlling Interests Total Shareholders’ Equity Balance at December 31, 2023 72.1 $ — $ 2,906 $ ( 1,954 ) $ ( 28 ) $ ( 2 ) $ 922 Net Income — — — 112 — 11 123 Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes 0.3 — 4 — — — 4 Other Comprehensive Loss — — — — ( 24 ) — ( 24 ) Equity Issued for Acquisitions 0.8 — 75 — — — 75 Balance at March 31, 2024 73.2 $ — $ 2,985 $ ( 1,842 ) $ ( 52 ) $ 9 $ 1,100 14 Table of Contents The following table presents the changes in our accumulated other comprehensive income (loss) by component for the three months ended March 31, 2025 and 2024: (Dollars in millions) Currency Translation Adjustment Defined Benefit Pension Total Balance at December 31, 2024 $ ( 156 ) $ 6 $ ( 150 ) Other Comprehensive Income 96 — 96 Balance at March 31, 2025 $ ( 60 ) $ 6 $ ( 54 ) Balance at December 31, 2023 $ ( 43 ) $ 15 $ ( 28 ) Other Comprehensive Loss ( 24 ) — ( 24 ) Balance at March 31, 2024 $ ( 67 ) $ 15 $ ( 52 ) 15 Table of Contents 10 – Income per Share A reconciliation of the number of shares used for the basic and diluted income per share calculation was as follows: Three Months Ended March 31, (Dollars and shares in millions, except per share amounts) 2025 2024 Net Income Attributable to Weatherford $ 76 $ 112 Basic Weighted Average Shares Outstanding 73.1 72.9 Dilutive Effect of Awards Granted in Stock Incentive Plan 0.3 1.8 Diluted Weighted Average Shares Outstanding 73.4 74.7 Basic Income per Share $ 1.04 $ 1.54 Diluted Income per Share $ 1.03 $ 1.50 Antidilutive Weighted Average Shares: Equity Awards 0.4 0.5 Total Antidilutive Weighted Average Shares 0.4 0.5 Basic income per share for all periods presented equals net income divided by our weighted average shares outstanding during the period. Diluted income per share is computed by dividing net income available to shareholders by our weighted average shares outstanding during the period including potential dilutive ordinary shares. Anti-dilutive weighted average shares represent securities that could potentially dilute income per share in the future, and are excluded from the computation of income per share. 16 Table of Contents 11 – Income Taxes We recognized a tax expense of $ 10 million for the three months ended March 31, 2025, compared to three months ended March 31, 2024 where we recognized a tax expense of $ 59 million. Income tax expense was lower in the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreased earnings before taxes and the recognition of a benefit from previously uncertain tax positions of $ 26 million. We calculate income tax provision using the estimated annual effective tax rate method in accordance with Accounting Standards Codification “ASC” 740 - Income Taxes. The relationship between our pre-tax income or loss and our income tax provision or benefit varies from period to period due to various factors which include changes in total pre-tax income or loss, the jurisdictions in which our income is earned, the tax laws in those jurisdictions and in our operating structure. We provide for income taxes based on the laws and rates in effect in the countries in which operations are conducted, or in which we or our subsidiaries are considered residents for income tax purposes. Our income tax provisions are primarily driven by income in certain jurisdictions and withholding taxes on intercompany and third-party transactions that do not directly correlate to ordinary income or loss. Certain charges and impairments recognized do not result in significant tax benefit as a result of being attributed to a non-income tax jurisdiction or our inability to forecast realization of the tax benefit of such losses. This is partially offset by the utilization of previously unbenefited deferred tax assets, such as net operating loss carryforwards. We routinely undergo tax examination in various jurisdictions. We cannot predict the timing or outcome regarding resolution of these tax examinations or if they will have a material impact on our financial statements. As of March 31, 2025, we anticipate that it is reasonably possible that our uncertain tax positions of $ 255 million, including interest and penalties offset by net operating losses and other tax attributes if settled, may decrease by up to $ 87 million in the next twelve months due to expiration of statutes of limitations, settlements and/or conclusions of tax examinations. 12 – Credit Default Swap During the fourth quarter of 2024, we entered into a credit default swap (“CDS”) with a third-party financial institution terminating in September of 2026 related to a secured loan between that third-party financial institution and our largest customer in Mexico. The secured loan was utilized by this customer to pay certain of our outstanding receivables and accordingly, in the fourth quarter of 2024, we received $ 25 million. Under the CDS terms, within five business days upon notification of a default by the customer, we could be required to pay the then outstanding notional balance net of recoveries. As of March 31, 2025, we had a notional balance of $ 23 million outstanding under the CDS and as of December 31, 2024, we had a notional balance of $ 25 million outstanding. The fair value of the derivative was not material as of March 31, 2025 and December 31, 2024. A CDS was entered into during the fourth quarter of 2023 with the same parties for similar reasons as in the fourth quarter of 2024, and accordingly, in the first quarter of 2024, we received $ 142 million. The agreement was terminated in the third quarter of 2024, extinguishing the remaining notional balance. 13 – Subsequent Events On April 1, 2025 the Company completed the sale of our Pressure Pumping business in Argentina for approximately $ 104 million in cash. The Company expects to record a gain in the second quarter of 2025. On April 17, 2025, our Board of Directors declared a cash dividend of $ 0.25 per share of the Company’s ordinary shares, payable on June 5, 2025 to shareholders of record as of May 6, 2025. 17 Table of Contents