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Item 1. Financial Statements

2025-07-23 compared with 2025-04-23 · 169 added, 79 removed, 334 unchanged (43% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars and shares in millions, except per share amounts) 2025 2024 2025 2024

2 unchanged sentences

Total Revenue

1,204 1,405 2,397 2,763

Costs and Expenses:

3 unchanged sentences

Selling, General and Administrative 164 216 325 421

Gain on Sale of Business ( 70 ) — ( 70 ) —

Restructuring Charges

Other Charges, Net

Other Charges (Credits), Net

Total Costs and Expenses 967 1,141 2,018 2,266

3 unchanged sentences

( 21 ) ( 24 ) ( 47 ) ( 53 )

Loss on Blue Chip Swap Securities ( 1 ) ( 10 ) ( 1 ) ( 10 )

Other Expense, Net ( 24 ) ( 20 ) ( 44 ) ( 42 )

11 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in millions) 2025

4 unchanged sentences

Comprehensive Income Attributable to Weatherford

$ 201 $ 125 $ 373 $ 213

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars and shares in millions, except par value) March 31, 2025

(Dollars and shares in millions, except par value) June 30, 2025

December 31, 2024

1 unchanged sentence

Restricted Cash 60 59

Accounts Receivable, Net of Allowance for Credit Losses of $ 8 at March 31, 2025 and $ 8 at December 31, 2024

Accounts Receivable, Net of Allowance for Credit Losses of $ 9 at June 30, 2025 and $ 8 at December 31, 2024

Inventories, Net 881 880

1 unchanged sentence

Total Current Assets 3,328 3,402

Property, Plant and Equipment, Net of Accumulated Depreciation of $ 1,011 at March 31, 2025 and $ 940 at December 31, 2024

Intangibles, Net of Accumulated Amortization of $ 809 at March 31, 2025 and $ 793 at December 31, 2024

Property, Plant and Equipment, Net of Accumulated Depreciation of $ 1,070 at June 30, 2025 and $ 940 at December 31, 2024

Intangibles, Net of Accumulated Amortization of $ 828 at June 30, 2025 and $ 793 at December 31, 2024

Operating Lease Assets 124 124

15 unchanged sentences

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

Authorized 1,356 shares, Issued and Outstanding 71.8 shares at June 30, 2025 and 72.1 at December 31, 2024

Capital in Excess of Par Value 2,810 2,921

Retained Deficit ( 1,311 ) ( 1,486 )

Accumulated Other Comprehensive Loss ( 54 ) ( 150 )

Accumulated Other Comprehensive Income (Loss) 11 ( 150 )

Shareholders’ Equity

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

Six Months Ended June 30,

(Dollars in millions) 2025 2024

4 unchanged sentences

Foreign Exchange Losses

Loss on Blue Chip Swap Securities 1 10

Gain on Disposition of Assets

Gain on Sale of Business

Deferred Income Tax Provision

10 unchanged sentences

Proceeds from Disposition of Assets 6 18

Proceeds from Sale of Business

Purchases of Blue Chip Swap Securities

( 83 ) ( 50 )

Proceeds from Sales of Blue Chip Swap Securities

Business Acquisitions, Net of Cash Acquired

5 unchanged sentences

( 73 ) ( 259 )

Distributions to Noncontrolling Interests

Tax Remittance on Equity Awards Vested ( 20 ) ( 9 )

4 unchanged sentences

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash 24 ( 20 )

Net Decrease in Cash, Cash Equivalents and Restricted Cash ( 45 ) ( 126 )

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash 28 ( 143 )

Cash, Cash Equivalents and Restricted Cash at Beginning of Period 975 1,063

3 unchanged sentences

Income Taxes Paid, Net of Refunds $ 86 $ 89

844,702 Ordinary Shares Issued for Acquisitions as of March 31, 2024

844,702 Ordinary Shares Issued for Acquisitions

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

16 unchanged sentences

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.

Certain reclassifications have been made to these Condensed Consolidated Financial Statements and accompanying footnotes for the three and six months ended June 30, 2024 to conform to the presentation for the three and six months ended June 30, 2025.

Accounting Standards Issued Not Yet Adopted

12 unchanged sentences

All other and corporate do not individually meet the criteria for segment reporting.

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Reportable Segments All

11 unchanged sentences

Share-based Compensation

Gain on Sale of Business

Restructuring Charges

3 unchanged sentences

(b) Segment selling, general and administrative and research and development costs .

Three Months Ended March 31, 2024

Six Months Ended June 30, 2025

Reportable Segments All

11 unchanged sentences

Share-based Compensation

Gain on Sale of Business

Restructuring Charges

3 unchanged sentences

(b) Segment selling, general and administrative and research and development costs .

Three Months Ended March 31,

Three Months Ended June 30, 2024

Reportable Segments All

(Dollars in millions) DRE

Revenue $ 427 $ 504 $ 369 $ 105 $ 1,405

Direct Costs (a)

( 241 ) ( 297 ) ( 236 )

Other Expense (b)

( 56 ) ( 62 ) ( 48 )

DRE Segment Adjusted EBITDA 130 130

WCC Segment Adjusted EBITDA 145 145

PRI Segment Adjusted EBITDA 85 85

Corporate ( 18 )

Depreciation and Amortization ( 86 )

Share-based Compensation

Restructuring Charges

Other Credits, Net

Operating Income $ 264

(a) Segment cost of sales and direct operating costs.

(b) Segment selling, general and administrative and research and development costs .

Six Months Ended June 30, 2024

Reportable Segments All

(Dollars in millions) DRE

Revenue $ 849 $ 962 $ 717 $ 235 $ 2,763

Direct Costs (a)

( 480 ) ( 573 ) ( 467 )

Other Expense (b)

( 109 ) ( 124 ) ( 92 )

DRE Segment Adjusted EBITDA 260 260

WCC Segment Adjusted EBITDA 265 265

PRI Segment Adjusted EBITDA 158 158

Corporate ( 32 )

Depreciation and Amortization ( 171 )

Share-based Compensation

Restructuring Charges

Operating Income $ 497

(a) Segment cost of sales and direct operating costs.

(b) Segment selling, general and administrative and research and development costs.

Three Months Ended June 30, Six Months Ended June 30,

(Dollars in millions) 2025 2024 2025 2024

Depreciation and Amortization:

$ 21 $ 27 $ 40 $ 55

Corporate and Other

4 unchanged sentences

Total Capital Expenditures $ 54 $ 62 $ 131 $ 121

(Dollars in millions) March 31, 2025 December 31, 2024

(Dollars in millions) June 30, 2025 December 31, 2024

Total Assets:

3 unchanged sentences

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

As of June 30, 2025 and December 31, 2024 the U.S.

accounted for 22 % in each period, 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 June 30, 2025 and December 31, 2024.

We had no PP&E, Net and operating lease assets in our country of domicile (Ireland) as of June 30, 2025 and December 31, 2024.

(Dollars in millions) June 30, 2025 December 31, 2024

North America (a)

6 unchanged sentences

(b) Corporate assets not allocated by geography are excluded from this total.

Sale of Business

In April 2025, we completed the sale of our pressure pumping business in Argentina for proceeds totaling $ 104 million consisting of $ 7 million of proceeds received in the fourth quarter of 2024 and $ 97 million of proceeds received in the second quarter of 2025.

We recognized a gain of $ 70 million as a result of this transaction.

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.

Equipment rental revenues were $ 32 million and $ 67 million in the three and six months ended June 30, 2025, respectively, and $ 39 million and $ 73 million for the three and six months ended June 30, 2024, respectively.

During the three and six months ended June 30, 2025, the U.S.

accounted for 16 % of total revenue in each period, and the Kingdom of Saudi Arabia accounted for 11 % of total revenue in each period.

During the three and six months ended June 30, 2024, the U.S.

accounted for 14 % of total revenue in each period, and the Kingdom of Saudi Arabia accounted for 11 % and 10 % of total revenue, respectively.

In addition, during the three and six months ended June 30, 2024, Mexico accounted for 12 % and 13 % of total revenue, respectively, driven by our largest customer, which accounted for 10 % and 11 % of our total revenue, respectively, in the same periods.

No other country accounted for more than 10% of our revenue in the periods presented.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(Dollars in millions) 2025 2024 2025 2024

1 unchanged sentence

North America (a)

$ 241 $ 252 $ 491 $ 519

International

963 1,153 1,906 2,244

Middle East/North Africa/Asia 524 542 1,027 1,039

6 unchanged sentences

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

The following table summarizes these balances as of June 30, 2025 and December 31, 2024:

(Dollars in millions) June 30, 2025 December 31, 2024

Receivables for Product and Services in Accounts Receivable, Net $ 1,148 $ 1,232

6 unchanged sentences

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.

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,

Restructuring charges were $ 11 million and $ 40 million in the three and six months ended June 30, 2025, respectively, and $ 5 million and $ 8 million in the three and six months ended June 30, 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 relate to severance expenses.

Restructuring liabilities were $ 36 million as of June 30, 2025 and $ 35 million as of December 31, 2024.

Of the restructuring liabilities, $ 30 million and $ 31 million are recorded in “Other Current Liabilities” on the accompanying Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, respectively.

The remaining $ 6 million and $ 4 million are recorded in “Other Non-Current Liabilities” on the accompanying Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, respectively.

Changes in the liabilities are primarily driven by restructuring charges and cash payments.

The following table presents total restructuring charges by segment and All other in the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

(Dollars in millions) 2025 2024 2025 2024

DRE $ 1 $ 2 $ 9 $ 2

All Other 9 — 15 1

1 unchanged sentence

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

Inventories are reported net of reserves of $ 122 million and $ 115 million as of June 30, 2025 and December 31, 2024, respectively, and are presented by category in the table below:

(Dollars in millions) June 30, 2025 December 31, 2024

Finished Goods $ 775 $ 778

2 unchanged sentences

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.

The charges are recorded in “Cost of Products” on our Condensed Consolidated Statements of Operations in the amount of $ 9 million and $ 14 million in the three and six months ended June 30, 2025, respectively, and $ 9 million and $ 15 million during the three and six months ended June 30, 2024, respectively.

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

Trade Names, Net of Accumulated Amortization of $ 211 at March 31, 2025 and $ 201 at December 31, 2024

Intangibles, Net of Accumulated Amortization of $ 809 at March 31, 2025 and $ 793 at December 31, 2024

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.

(Dollars in millions) June 30, 2025 December 31, 2024

Developed and Acquired Technology, Net of Accumulated Amortization of $ 606 at June 30, 2025 and $ 592 at December 31, 2024

Trade Names, Net of Accumulated Amortization of $ 222 at June 30, 2025 and $ 201 at December 31, 2024

Intangibles, Net of Accumulated Amortization of $ 828 at June 30, 2025 and $ 793 at December 31, 2024

Amortization expense was $ 15 million and $ 29 million in the three and six months ended June 30, 2025, respectively, and $ 41 million and $ 82 million in the three and six months ended June 30, 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

(Dollars in millions) June 30, 2025 December 31, 2024

Current Portion of Finance Leases $ 26 $ 17

6 unchanged sentences

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.

(“Weatherford Bermuda”) issued 6.50 % senior secured notes in aggregate principal amount of $ 500 million maturing September 15, 2028 (the “2028 Senior Secured Notes”).

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.

As of June, 30, 2024, we fully redeemed the remaining principal of our 2028 Senior Secured Notes.

2030 Senior Notes

2 unchanged sentences

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.

In the second quarter of 2025 and for the six months ended June 30, 2025, we repurchased $ 27 million and $ 61 million in principal, respectively, of our 2030 Senior Notes.

At June 30, 2025, the carrying value represents the remaining unpaid principal of $ 1.54 billion, offset by unamortized deferred issuance cost of $ 10 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.

3 unchanged sentences

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.

At June 30, 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.

As of June 30, 2025, we had zero borrowings outstanding under the Credit Agreement and $ 412 million of letters of credit outstanding.

The letters of credit consisted of $ 253 million for performance letters of credit, $ 6 million for financial letters of credit under the Credit Agreement and $ 153 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).

5 unchanged sentences

The table below presents the fair value and carrying value of our long-term debt (excluding finance leases).

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value

8 unchanged sentences

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:

Shares issued and outstanding on our Condensed Consolidated Balance Sheets decreased from 72.1 million as of December 31, 2024 to 71.8 million as of June 30, 2025.

The decrease was due to the cancellation of 1.6 million of our ordinary shares repurchased for $ 87 million.

The decrease was partially offset by the issuance of 1.3 million of our ordinary shares for equity awards vested and delivered, net of shares withheld for taxes.

During the six months ended June 30, 2025, we declared and paid $ 36 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 and six months ended June 30, 2025 and 2024:

(Dollars in millions) Ordinary Shares Par Value Capital in Excess of Par Value Retained

Deficit Accumulated

Comprehensive Loss Non-controlling Interests

Comprehensive Income (Loss)

Non-controlling Interests

Total Shareholders’ Equity

9 unchanged sentences

72.6 $ — $ 2,834 $ ( 1,428 ) $ ( 54 ) $ 8 $ 1,360

(1) Includes dividend equivalents on share-based awards.

Net Income — — — 136 — 9 145

Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes — — 10 — — — 10

Share Repurchases ( 0.8 ) — ( 34 ) — — — ( 34 )

Dividends Declared ($ 0.25 per share) (1)

— — — ( 19 ) — — ( 19 )

Distributions to Noncontrolling Interests

— — — — — ( 8 ) ( 8 )

Other Comprehensive Income — — — — 65 — 65

Balance at June 30, 2025

71.8 $ — $ 2,810 $ ( 1,311 ) $ 11 $ 9 $ 1,519

(1) Includes dividend equivalent rights on share-based awards.

(Dollars in millions) Ordinary Shares

13 unchanged sentences

73.2 $ — $ 2,985 $ ( 1,842 ) $ ( 52 ) $ 9 $ 1,100

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:

— — — 125 — 12 137

Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes

— — 12 — — — 12

Distributions to Noncontrolling Interests

— — — — — ( 9 ) ( 9 )

Balance at June 30, 2024

73.2 $ — $ 2,997 $ ( 1,717 ) $ ( 52 ) $ 12 $ 1,240

The following table presents the changes in our accumulated other comprehensive income (loss) by component for the six months ended June 30, 2025 and 2024:

(Dollars in millions) Currency Translation Adjustment Defined Benefit Pension Total

2 unchanged sentences

Other Comprehensive Income 161 — 161

Balance at March 31, 2025

$ ( 60 ) $ 6 $ ( 54 )

Balance at June 30, 2025

Balance at December 31, 2023

1 unchanged sentence

Other Comprehensive Loss ( 24 ) — ( 24 )

Balance at March 31, 2024

Balance at June 30, 2024

$ ( 67 ) $ 15 $ ( 52 )

1 unchanged sentence

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,

Three Months Ended June 30, Six Months Ended June 30,

(Dollars and shares in millions, except per share amounts) 2025 2024 2025 2024

2 unchanged sentences

Dilutive Effect of Awards Granted in Stock Incentive Plan

0.2 2.1 0.2 1.9

Diluted Weighted Average Shares Outstanding 72.4 75.3 72.9 75.0

4 unchanged sentences

Equity Awards

0.7 0.5 0.6 0.5

Total Antidilutive Weighted Average Shares

0.7 0.5 0.6 0.5

Basic income per share for all periods presented equals net income divided by our weighted average shares outstanding during the period.

2 unchanged sentences

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.

We recognized a tax expense of $ 46 million and $ 56 million for the three and six months ended June 30, 2025, respectively, compared to three and six months ended June 30, 2024 where we recognized a tax expense of $ 73 million and $ 132 million, respectively.

Income tax expense was lower in the three and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to decreased earnings before taxes and the recognition of a benefit from previously uncertain tax positions of $ 26 million recognized in the first quarter of 2025.

We calculate our 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.

1 unchanged sentence

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.

Certain charges and impairments recognized do not result in a 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.

We cannot predict the timing or outcome regarding resolution of these tax examinations or if they will have a material impact on our financia l statements.

As of June 30, 2025, we anticipate that it is reasonably possible that our uncertain tax positions of $ 268 million, including interest and penalties offset by net operating losses and other tax attributes if settled, may decrease by up to $ 91 million in the next twelve months due to expiration of statutes of limitations, settlements and/or conclusions of tax examinations.

On July 4, 2025 the “One Big Beautiful Bill Act” was enacted in the United States.

The bill is expected to have an immaterial impact on the Company through tax savings.

12 – Credit Default Swap

1 unchanged sentence

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.

Under the terms of the CDS, 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 June 30, 2025, we had a notional balance of $ 20 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 June 30, 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 – Blue Chip Swap Securities - Argentina

The functional currency for our Argentine operations is the U.S.

dollar and we use Argentina’s official exchange rate to remeasure our Argentine peso-denominated net monetary assets into U.S.

dollars at each balance sheet date.

The Central Bank of Argentina has maintained certain currency controls that limit our ability to access U.S.

dollars in Argentina and remit cash from our Argentine operations.

As such, we have used an indirect foreign exchange mechanism known as a Blue Chip Swap (“BCS”) which allows entities to remit U.S.

dollars from Argentina through the purchase and sale of securities.

During the second quarter of 2025 and 2024, we completed a series of BCS transactions at implied exchange rates that were approximately 1 % and 26 % higher, respectively, than the official exchange rate, resulting in a loss of $ 1 million and $ 10 million, respectively.

We continue to use the official exchange rate for remeasurement of our Argentine peso-denominated net monetary assets under U.S.

GAAP as the BCS rates do not meet the criteria for remeasurement under U.S.

14 – 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.

On July 17, 2025, our Board of Directors declared a cash dividend of $ 0.25 per share of the Company’s ordinary shares, payable on September 4, 2025 to shareholders of record as of August 6, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements