Weatherford International plc 10-K

Item 8. Financial Statements and Supplementary Data. INDEX TO FINANCIAL STATEMENTS PAGE Reports of Independent Registered Public Accounting Firm ( KPMG LLP , Houston, TX Firm ID 185 ) 43 Consolidated Statements of Operations for the years ended December 31, 202 5 , 202 4 and 20 23 46 Consolidated Statements of Comprehensive Income for the years ended December 31, 202 5 , 202 4 and 20 23 47 Consolidated Balance Sheets as of December 31, 202 5 and 20 2 4 48 Consolidated Statements of Shareholders’ Equity for the years ended December 31, 202 5 , 202 4 and 20 23 49 Consolidated Statements of Cash Flows for the years ended December 31, 202 5 , 202 4 and 20 23 50 Notes to Consolidated Financial Statements 51 Weatherford International plc – 2025 Form 10-K | 42 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors Weatherford International plc: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Weatherford International plc and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 4, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Assessment of impairment triggering events related to long-lived assets As discussed in Note 1 to the consolidated financial statements, the Company evaluates long-lived assets, consisting of property, plant and equipment, operating lease right-of use assets, and definite-lived intangible assets, for impairment to determine whether any events or changes in circumstances, known as triggering events, indicate that the carrying amount of an asset group may not be recoverable. The triggering events evaluated by the Company include reduced or expected sustained decreases in cash flows generated by an asset group, negative changes in industry conditions (such as global rig count, commodity prices, and the global economy), a significant change in the long-lived assets’ use or physical condition, the introduction of competing technologies, and legal and regulatory challenges. The carrying value of long-lived assets as of December 31, 2025 was $1.5 billion. Weatherford International plc – 2025 Form 10-K | 43 Table of Contents We identified the assessment of impairment triggering events related to long-lived asset groups as a critical audit matter. The assessment of whether (i) reduced or expected sustained decreases in cash flows generated by an asset group and (ii) negative changes in industry conditions represented a triggering event required a higher degree of subjective auditor judgment. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s triggering events assessment. This included a control related to the Company’s process to identify and evaluate triggering events that indicate the carrying value of an asset group may not be recoverable. We evaluated the Company’s identification of triggering events related to the evaluation of cash flow trends for asset groups by comparing historical cash flow trends to the asset groups’ carrying values. Further, we evaluated the Company’s assessment of changes in industry conditions by comparing them to changes in global rig count, commodity prices, and economic outlook using data obtained from publicly available industry and market information. /s/ KPMG LLP We have served as the Company’s auditor since 2013. Houston, Texas February 4, 2026 Weatherford International plc – 2025 Form 10-K | 44 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors Weatherford International plc: Opinion on Internal Control Over Financial Reporting We have audited Weatherford International plc and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements), and our report dated February 4, 2026 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Houston, Texas February 4, 2026 Weatherford International plc – 2025 Form 10-K | 45 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, (Dollars and shares in millions, except per share amounts) 2025 2024 2023 Revenue: Services $ 2,980 $ 3,393 $ 3,179 Products 1,938 2,120 1,956 Total Revenue 4,918 5,513 5,135 Costs and Expenses: Cost of Services 1,901 2,048 1,965 Cost of Products 1,483 1,557 1,430 Research and Development 108 123 112 Selling, General and Administrative 664 791 804 Gain on Sale of Business ( 70 ) — ( 2 ) Restructuring Charges 58 42 16 Other Charges (Credits), Net 18 14 ( 10 ) Total Costs and Expenses 4,162 4,575 4,315 Operating Income 756 938 820 Other Income (Expense): Interest Expense, Net of Interest Income of $ 46 , $ 56 and $ 59 ( 91 ) ( 102 ) ( 123 ) Loss on Extinguishment of Debt and Bond Redemption Premium ( 39 ) ( 9 ) ( 5 ) Loss on Blue Chip Swap Securities ( 2 ) ( 10 ) ( 57 ) Other Expense, Net ( 70 ) ( 78 ) ( 129 ) Income Before Income Taxes 554 739 506 Income Tax Provision ( 97 ) ( 189 ) ( 57 ) Net Income 457 550 449 Net Income Attributable to Noncontrolling Interests 26 44 32 Net Income Attributable to Weatherford $ 431 $ 506 $ 417 Basic Income Per Share Attributable to Weatherford $ 5.96 $ 6.93 $ 5.79 Basic Weighted Average Shares Outstanding 72.2 73.0 71.9 Diluted Income Per Share Attributable to Weatherford $ 5.93 $ 6.75 $ 5.66 Diluted Weighted Average Shares Outstanding 72.6 74.9 73.6 The accompanying notes are an integral part of these consolidated financial statements. Weatherford International plc – 2025 Form 10-K | 46 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, (Dollars in millions) 2025 2024 2023 Net Income $ 457 $ 550 $ 449 Foreign Currency Translation 157 ( 113 ) ( 2 ) Defined Benefit Pension 6 ( 9 ) ( 4 ) Other Comprehensive Income (Loss) 163 ( 122 ) ( 6 ) Comprehensive Income 620 428 443 Comprehensive Income Attributable to Noncontrolling Interests 26 44 32 Comprehensive Income Attributable to Weatherford $ 594 $ 384 $ 411 The accompanying notes are an integral part of these consolidated financial statements. Weatherford International plc – 2025 Form 10-K | 47 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, (Dollars and shares in millions, except par value) 2025 2024 Assets: Cash and Cash Equivalents $ 987 $ 916 Restricted Cash 55 59 Accounts Receivable, Net of Allowance for Credit Losses of $ 10 at December 31, 2025 and $ 8 at December 31, 2024 1,234 1,261 Inventories, Net 836 880 Other Current Assets 260 286 Total Current Assets 3,372 3,402 Property, Plant and Equipment, Net of Accumulated Depreciation of $ 1,150 at December 31, 2025 and $ 940 at December 31, 2024 1,124 1,061 Intangible Assets, Net of Accumulated Amortization of $ 828 at December 31, 2025 and $ 793 at December 31, 2024 285 325 Operating Lease Assets 128 124 Other Non-current Assets 288 247 Total Assets $ 5,197 $ 5,159 Liabilities: Current Portion of Long-term Debt $ 30 $ 17 Accounts Payable 650 792 Accrued Salaries and Benefits 285 302 Income Taxes Payable 129 129 Current Portion of Operating Lease Liabilities 48 44 Other Current Liabilities 395 412 Total Current Liabilities 1,537 1,696 Long-term Debt 1,455 1,617 Operating Lease Liabilities 109 110 Non-current Taxes Payable 242 274 Other Non-current Liabilities 158 179 Total Liabilities 3,501 3,876 Shareholders’ Equity: Ordinary Shares - Par value $ 0.001 ; Authorized 1,356 , Issued and Outstanding 71.6 at December 31, 2025 and 72.1 at December 31, 2024 — — Capital in Excess of Par Value 2,815 2,921 Retained Deficit ( 1,129 ) ( 1,486 ) Accumulated Other Comprehensive Income (Loss) 13 ( 150 ) Shareholders’ Equity 1,699 1,285 Noncontrolling Interests ( 3 ) ( 2 ) Total Shareholders’ Equity 1,696 1,283 Total Liabilities and Shareholders’ Equity $ 5,197 $ 5,159 The accompanying notes are an integral part of these consolidated financial statements. Weatherford International plc – 2025 Form 10-K | 48 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Dollars and shares in millions) Ordinary Shares Par Value Capital In Excess of Par Value Retained Income (Deficit) Accumulated Other Comprehensive Income (Loss) Non-controlling Interests Total Shareholders’ Equity Balance at December 31, 2022 70.6 $ — $ 2,928 $ ( 2,371 ) $ ( 22 ) $ 16 $ 551 Net Income — — — 417 — 32 449 Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes 1.5 — ( 22 ) — — — ( 22 ) Other Comprehensive Loss — — — — ( 6 ) — ( 6 ) Distributions to Noncontrolling Interests — — — — — ( 52 ) ( 52 ) Other — — — — — 2 2 Balance at December 31, 2023 72.1 $ — $ 2,906 $ ( 1,954 ) $ ( 28 ) $ ( 2 ) $ 922 Net Income — — — 506 — 44 550 Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes 0.2 — 36 — — — 36 Equity Issued for Acquisitions 0.9 — 79 — — — 79 Other Comprehensive Loss — — — — ( 122 ) — ( 122 ) Share Repurchases (1) ( 1.1 ) — ( 100 ) — — — ( 100 ) Dividends Declared ($ 0.50 per share) (2) — — — ( 38 ) — — ( 38 ) Distributions to Noncontrolling Interests — — — — — ( 39 ) ( 39 ) Other — — — — — ( 5 ) ( 5 ) Balance at December 31, 2024 72.1 $ — $ 2,921 $ ( 1,486 ) $ ( 150 ) $ ( 2 ) $ 1,283 Net Income — — — 431 — 26 457 Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes 1.3 — ( 4 ) — — — ( 4 ) Other Comprehensive Income — — — — 163 — 163 Share Repurchases (1) ( 1.8 ) — ( 100 ) — — — ( 100 ) Dividends Declared ($ 1.00 per share) (2) — — — ( 74 ) — — ( 74 ) Distributions to Noncontrolling Interests — — — — — ( 29 ) ( 29 ) Other — — ( 2 ) — — 2 — Balance at December 31, 2025 71.6 $ — $ 2,815 $ ( 1,129 ) $ 13 $ ( 3 ) $ 1,696 (1) Includes repurchased shares pending settlement. (2) Includes dividend equivalent rights on share-based awards. The accompanying notes are an integral part of these consolidated financial statements. Weatherford International plc – 2025 Form 10-K | 49 Table of Contents WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, (Dollars in millions) 2025 2024 2023 Cash Flows From Operating Activities: Net Income $ 457 $ 550 $ 449 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 267 343 327 Foreign Exchange Losses 45 56 116 Loss on Blue Chip Swap Securities 2 10 57 Gain on Disposition of Assets ( 9 ) ( 35 ) ( 9 ) Gain on Sale of Business ( 70 ) — ( 2 ) Deferred Income Tax Provision (Benefit) ( 14 ) 8 ( 86 ) Share-Based Compensation 38 45 35 Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits: Accounts Receivable 75 ( 31 ) ( 221 ) Inventories 24 ( 112 ) ( 114 ) Accounts Payable ( 131 ) 97 231 Accrued Salaries and Benefits ( 24 ) ( 74 ) 20 Other Changes, Net 16 ( 65 ) 29 Net Cash Provided by Operating Activities $ 676 $ 792 $ 832 Cash Flows From Investing Activities: Capital Expenditures for Property, Plant and Equipment $ ( 226 ) $ ( 299 ) $ ( 209 ) Proceeds from Disposition of Assets 16 31 28 Proceeds from Sale of Business 97 — — Purchases of Blue Chip Swap Securities ( 117 ) ( 50 ) ( 110 ) Proceeds from Sales of Blue Chip Swap Securities 115 40 53 Business Acquisitions, Net of Cash Acquired — ( 51 ) ( 4 ) Proceeds from Sale of Investments — 41 — Other Investing Activities ( 30 ) ( 5 ) ( 47 ) Net Cash Used in Investing Activities $ ( 145 ) $ ( 293 ) $ ( 289 ) Cash Flows From Financing Activities: Borrowings of Long-term Debt $ 1,200 $ — $ — Debt Issuance Costs ( 18 ) — — Repayments of Long-term Debt ( 1,388 ) ( 287 ) ( 386 ) Distributions to Noncontrolling Interests ( 29 ) ( 39 ) ( 52 ) Tax Remittance on Equity Awards ( 21 ) ( 31 ) ( 56 ) Share Repurchases ( 101 ) ( 99 ) — Dividends Paid ( 72 ) ( 36 ) — Other Financing Activities ( 45 ) ( 19 ) ( 20 ) Net Cash Used in Financing Activities $ ( 474 ) $ ( 511 ) $ ( 514 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 10 ( 76 ) ( 78 ) Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash 67 ( 88 ) ( 49 ) Cash, Cash Equivalents and Restricted Cash at Beginning of Period 975 1,063 1,112 Cash, Cash Equivalents and Restricted Cash at End of Period $ 1,042 $ 975 $ 1,063 Supplemental Cash Flow Information Interest Paid $ 125 $ 153 $ 181 Income Taxes Paid, Net of Refunds $ 157 $ 168 $ 132 Supplemental Noncash Information: 895,119 Ordinary Shares Issued for Acquisitions $ — $ 79 $ — The accompanying notes are an integral part of these consolidated financial statements. Weatherford International plc – 2025 Form 10-K | 50 Table of Contents Item 8 | Notes to the Consolidated Financial Statements WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1 – Summary of Significant Accounting Policies Organization and Nature of Operations Weatherford International plc (“Weatherford Ireland”), an Irish public limited company, together with its subsidiaries (“Weatherford,” the “Company,” “we,” “us” and “our”), is a multinational energy services company. Weatherford is one of the world’s leading providers of equipment and services used in the drilling, evaluation, completion, production and intervention of oil, geothermal and natural gas wells. We conduct business in approximately 75 countries and have service and sales locations in oil and natural gas producing regions globally. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Exchange Act for annual financial information. We consolidate all wholly owned subsidiaries and controlled joint ventures and eliminate intercompany balances in consolidation. Certain reclassifications have been made to the financial statements and accompanying footnotes to conform to the Company’s current period presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent liabilities. On an on-going basis, we evaluate our estimates and assumptions, including those related to allowance for credit losses, inventory valuation reserves, recoverability of long-lived assets, useful lives used in depreciation and amortization, income taxes and related valuation allowance, accruals for contingencies, valuation of derivative financial instruments, actuarial assumptions to determine costs and liabilities related to employee benefit plans, and share-based compensation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Cash and Cash Equivalents We consider all highly liquid investments with original maturities of three months or less to be cash equivalents. Restricted Cash Our restricted cash balance of $ 55 million at December 31, 2025 and $ 59 million at December 31, 2024 primarily includes cash collateral for certain of our letters of credit facilities. Weatherford International plc – 2025 Form 10-K | 51 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Accounts Receivables and Allowance for Credit Losses Substantially all of our customers are in fossil fuel-related industries and thus this concentration of customers may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. We perform periodic credit evaluations of our customers and do not generally require collateral in support of our trade receivables. We establish an allowance for credit losses based on various factors, including historical experience, current conditions and environments in which our customers operate, the aging status and reasonable and supportable forecasts. The determination of the collectability requires us to use estimates and make judgments regarding future events and trends, including monitoring our customers’ payment history and current creditworthiness, as well as consideration of the overall business and political climate in which our customers operate. Risk profiles can vary between larger and smaller independent customers as well as between state-owned customers. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2025 and December 31, 2024, Mexico accounted for 27 % and 31 % of our total net outstanding accounts receivables, respectively, of which our largest customer in the country accounted for 24 % and 26 % of our total net outstanding accounts receivables, respectively. Our largest customer in Mexico has a history of making late payments and, in more recent periods, has utilized third-party financial institutions to pay certain of our receivables. The balances due are not in dispute, however additional or continued delays in customer payments in the future could differ from historical practice and management’s current expectations, and delays or failures to pay or defaults, if any, could negatively impact future results of the Company. During the twelve months ended December 31, 2025 and December 31, 2024 we paid an immaterial amount of fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico. Pursuant to such arrangements, we received $ 93 million during the twelve months ended December 31, 2025 and $ 484 million during the twelve months ended December 31, 2024. As of December 31, 2025 and December 31, 2024, the U.S. accounted for 11 % and less than 10 % of our total net accounts receivables, respectively. No other country or individual customer accounted for more than 10% of our total net outstanding accounts receivables. Inventories We state our inventories at the lower of cost or net realizable value using either the first-in, first-out (“FIFO”) or average cost method. Cost represents third-party invoice or production cost, which include materials, labor and applicable overhead. To maintain a carrying value that is the lower of cost or net realizable value, we regularly review inventory quantities on hand and compare to estimates of future product demand, market conditions, our production requirements, and technological developments. We maintain reserves for excess, slow moving and obsolete inventory and we may record additional charges when items are determined to have no forecasted demand. Property, Plant and Equipment (“PP&E”) PP&E is both owned and under finance leases. Owned PP&E are initially stated at cost and finance leases are initially stated at the present value of lease payments. Both are depreciated on straight-line basis over its estimated useful life. Subsequently, PP&E is measured at cost less accumulated depreciation and adjusted for impairment, when applicable. The carrying values are based on our estimates and judgments relative to capitalized costs, useful lives and salvage value, where applicable. We expense maintenance and repairs as incurred and capitalize expenditures for improvements as well as renewals and replacements that extend the useful life of the asset. We estimate the useful lives of our PP&E over their respective lease terms, if applicable, or as follows: Assets Estimated Useful Lives Buildings and leasehold improvements 10 – 40 years Rental and service equipment 3 – 10 years Machinery and other 2 – 12 years Weatherford International plc – 2025 Form 10-K | 52 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Intangible Assets Our identifiable intangible assets include developed and acquired technologies and our trade names, amortized on a straight-line basis over their estimated economic lives, generally ranging from 5 years (developed and acquired technologies) to 10 years (trade names). As many areas of our business rely on patents and proprietary technology, we seek patent protection both inside and outside the U.S. for products and methods that appear to have commercial significance. We capitalize patent defense costs when we determine that a successful defense is probable. Leases We are committed under various operating lease agreements primarily related to office space and equipment. Generally, these leases include renewal provisions and rental payments, which may be adjusted for taxes, insurance and maintenance related to the property. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date and include related options to extend or terminate lease terms that are reasonably certain of being exercised. We determine if an arrangement is classified as a lease at its inception. As most of our leases do not provide an implicit rate of return, on a quarterly basis, we use our incremental borrowing rate, together with the lease term information available at commencement date of the lease, in determining the present value of lease payments. Long-Lived Assets Impairment Long-lived assets, consisting of PP&E, operating lease assets and intangible assets, to be held and used are reviewed to determine whether any events or changes in circumstances, known as triggering events, indicate that we may not be able to recover the carrying amount of the asset group. Triggering events include, but are not limited to, reduced or expected sustained decreases in cash flows generated by an asset group, negative changes in industry conditions (such as global rig count, commodity prices, and the global economy), a significant change in the long-lived assets’ use or physical condition, the introduction of competing technologies, and legal and regulatory challenges. The Company groups individual assets at the lowest level of identifiable cash flows and, if impairment triggers are present, performs an undiscounted cash flow analysis to identify asset groups that may not be recoverable. If the undiscounted cash flows do not exceed the carrying value of the long-lived asset group, impairment is recognized to the extent the carrying amount exceeds the estimated fair value of the asset group, as determined by a discounted cash flow analysis. Research and Development Expenditures Research and development expenditures are expensed as incurred. Derivative Financial Instruments We primarily enter into foreign currency forward contracts to mitigate the volatility of foreign exchange related gains and losses on the income statement and the risk of volatility in future cash flows denominated in a foreign currency. The amounts will fluctuate, depending on exchange rate volatility, the volume of our foreign currency transactions, and our decisions to hedge. During 2024 and 2023 we entered into credit default swaps (“CDSs”). The notional amounts of our foreign currency forward contracts and the CDSs do not generally represent cash amounts exchanged by the parties and are calculated based on the terms of the derivative instrument. Our foreign currency forward contracts and the CDS are undesignated hedging instruments under Accounting Standards Codification “ASC” 815 Derivatives and Hedging. We record these derivative instruments on the balance sheet at their fair value as either assets or liabilities. See “Note 11 – Derivative Financial Instruments” for additional information. The fair values of our outstanding derivative instruments are determined using models with either Level 2 or Level 3 inputs. See “Note 10 – Fair Value of Financial Instruments, Assets and Other Assets” for additional information. Weatherford International plc – 2025 Form 10-K | 53 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Foreign Currency Results of operations for our foreign subsidiaries with functional currencies other than the U.S. dollar are translated using average exchange rates during the period. Assets and liabilities are translated using the exchange rates in effect at the balance sheet date, and the resulting translation adjustments are included in “Accumulated Other Comprehensive Income (Loss)” on the accompanying Consolidated Statements of Shareholders' Equity. For our subsidiaries with a functional currency that differs from the currency of their balances and transactions, inventories, PP&E and other non-monetary assets and liabilities, together with their related elements of expense or income, are remeasured into the functional currency using historical exchange rates. All monetary assets and liabilities are remeasured into the functional currency at current exchange rates. The resulting gains and losses are recognized during the period incurred and recognized in “Other Expense, Net” on the accompanying Consolidated Statements of Operations. Share-Based Compensation We account for share-based payment awards by recognizing the grant date fair value as an expense, over the service period, which is usually the vesting period, and account for forfeitures as they occur. The fair value and associated expense is updated at each reporting date for share-based awards we intend to settle in cash and for awards where performance targets are established or modified during the performance period. We record share-based compensation in “Selling, General and Administrative” on the accompanying Consolidated Statements of Operations. Income Taxes We account for taxes under the asset and liability method. Income taxes have been provided based upon the tax laws and rates in the countries in which our operations are conducted and income is earned. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. The impact of an uncertain tax position taken or expected to be taken on an income tax return is recognized in the financial statements at the largest amount that is more likely than not to be sustained upon examination by the relevant taxing authority. Disputes, Litigation and Contingencies We accrue an estimate of losses to resolve certain disputes, legal matters and contingencies when a loss on these matters is deemed probable and reasonably estimable. For matters not deemed probable or not reasonably estimable, we have not accrued any amounts. Our contingent loss estimates are based upon an analysis of potential outcomes, assuming a combination of possible litigation and settlement strategies. The accuracy of these estimates is impacted by the complexity of the associated issues. Revenue Recognition We account for revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , and all of the related amendments, collectively referred to as “Topic 606.” Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenue is derived from short-term contracts. Our products and services are generally sold based upon purchase orders, contracts or other legally enforceable arrangements with our customers that include fixed or determinable prices but do not generally include right of return provisions or other significant post-delivery obligations. If the terms of a service contract give us the right to invoice the customer for an amount that corresponds directly with the value of our performance completed to date, revenues are recognized at the amount to which we have the right to invoice. For certain long-term contracts, our revenue is recognized for services over time as the services are rendered and we utilize an output method such as time elapsed or footage drilled, which coincides with how customers receive the benefit. We lease drilling tools, artificial lift pumping equipment and other unmanned equipment to customers as operating leases. These equipment rental revenues are generally provided based on call-out work orders that include fixed per unit prices and are derived from short-term contracts. Equipment rental revenues are recognized under ASU No. 2016-02, Leases (Topic 842) and are recorded within “Services Revenue” on the accompanying Consolidated Statements of Operations. Weatherford International plc – 2025 Form 10-K | 54 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Contract Balances The timing of revenue recognition, billings and cash collections results in billed and unbilled accounts receivable (included in “Accounts Receivable, Net”), contract assets (included in “Other Current Assets” and “Other Non-Current Assets”), and contract liabilities (included in “Other Current Liabilities” and “Other Non-current Liabilities”) on our Consolidated Balance Sheets. We recognize receivables for work completed on service contracts but not billed in which the rights to consideration are conditional as contract assets. We recognize contract liabilities when consideration is received in advance of the recognition of revenue. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. We generally bill our sales of products and services upon completion of the performance obligation. Product sales and services are billed and recognized when control passes to the customer. Our products are produced in a standard manufacturing operation, even if produced to our customer’s specifications. Our payment terms vary by the type and location of our customer and the products or services offered. For certain products or services and customer types, we require payment before the products or services are delivered to the customer and record as a contract liability. We defer revenue recognition on such payments until the products or services are delivered to the customer. Revenue is occasionally generated from contracts that include multiple performance obligations, such as product sales with related installation and/or maintenance services. The consideration in the contract is allocated between separate products and services based on their standalone selling prices (determined based on the prices at which we separately sell our products and services). We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Income per Share Basic income per share for all periods presented equals net income divided by the weighted average shares outstanding during the period including participating securities. Diluted income per share is computed by dividing net income by our weighted average shares outstanding during the period including participating securities and any potential dilutive shares, when applicable. Accounting Standards Newly Adopted The Company has adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures as issued by the Financial Accounting Standards Board (“FASB”) in December 2023, which is an update that improves income tax disclosure requirements. Other than providing additional disclosures related to our income taxes, the adoption, which was done on a prospective basis, did not materially impact our financial statements. See “Note 17 – Income Taxes” in our Notes to Consolidated Financial Statements. Accounting Standards Issued Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , an update that improves income statement expense disclosure requirements. Under ASU 2024-03 issuers will be required to incorporate new tabular disclosures disaggregating prescribed expense categories within relevant income statement captions in the notes to their financial statements. These categories include purchases of inventory, employee compensation, depreciation and intangible asset amortization. The amendments are effective for fiscal years beginning after December 15, 2026 and should be applied prospectively. We expect to adopt ASU 2024-03 in our 2027 Form 10-K. The adoption of ASU 2024-03 will require us to provide additional disclosures related to certain income statement expenses, but otherwise will not materially impact our financial statements. Weatherford International plc – 2025 Form 10-K | 55 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 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 Consolidated Financial Statements. 2 – Segment Information The Company's chief operating decision maker (“CODM”), our chief executive officer, regularly reviews information to make operating decisions, allocate resources and assess performance of the business. The CODM regularly reviews information aligned with how we offer our services and technologies in relation to the well life cycle as reflected in our reportable segments. All of our segments are enabled by a suite of digital monitoring, control and optimization solutions using advanced analytics to provide safe, reliable and efficient solutions throughout the well life cycle, including responsible abandonment. We have three reportable segments: (1) Drilling and Evaluation (2) Well Construction and Completions, and (3) Production and Intervention. Drilling and Evaluation (“DRE”) offers a suite of services including managed pressure drilling, drilling services, wireline and drilling fluids. DRE offerings range from early well planning to reservoir management through innovative tools and expert engineering to optimize reservoir access and productivity. Well Construction and Completions (“WCC”) offers products and services for well integrity assurance across the full life cycle of the well. The primary offerings are tubular running services, cementation products, completions, liner hangers and well services. WCC deploys conventional to advanced technologies, providing safe and efficient services in any environment during the well construction phase. Production and Intervention (“PRI”) offers a suite of reservoir stimulation designs, and engineering capabilities that isolate zones and unlock reserves in conventional and unconventional wells, deep water, and aging reservoirs. The primary offerings are intervention services & drilling tools, artificial lift, digital solutions, sub-sea intervention and pressure pumping services in select markets. Total revenues are from external customers and segment revenues are specific to our three reportable segments and all other revenues are specific to our non-operating segment revenues. Revenues are further described in “Note 3 – Revenue.” The CODM 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. Weatherford International plc – 2025 Form 10-K | 56 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Year Ended December 31, 2025 Reportable Segments All (Dollars in millions) DRE WCC PRI Other Total Revenue $ 1,371 $ 1,875 $ 1,340 $ 332 $ 4,918 Direct Costs (a) ( 876 ) ( 1,127 ) ( 913 ) Other Expense (b) ( 186 ) ( 233 ) ( 170 ) DRE Segment Adjusted EBITDA 309 309 WCC Segment Adjusted EBITDA 515 515 PRI Segment Adjusted EBITDA 257 257 All Other 42 Corporate ( 56 ) Depreciation and Amortization ( 267 ) Share-based Compensation (c) ( 38 ) Gain on Sale of Business 70 Restructuring Charges ( 58 ) Other Charges, Net ( 18 ) Operating Income $ 756 (a) Segment cost of sales and direct operating costs. (b) Segment selling, general and administrative and research and development costs. (c) See “Note 14 – Share-Based Compensation” for additional information. Year Ended December 31, 2024 Reportable Segments All (Dollars in millions) DRE WCC PRI Other Total Revenue $ 1,682 $ 1,976 $ 1,452 $ 403 $ 5,513 Direct Costs (a) ( 1,007 ) ( 1,174 ) ( 955 ) Other Expense (b) ( 208 ) ( 238 ) ( 178 ) DRE Segment Adjusted EBITDA 467 467 WCC Segment Adjusted EBITDA 564 564 PRI Segment Adjusted EBITDA 319 319 All Other 84 Corporate ( 52 ) Depreciation and Amortization ( 343 ) Share-based Compensation (c) ( 45 ) Restructuring Charges ( 42 ) Other Charges, Net ( 14 ) Operating Income $ 938 (a) Segment cost of sales and direct operating costs. (b) Segment selling, general and administrative and research and development costs. (c) See “Note 14 – Share-Based Compensation” for additional information. Weatherford International plc – 2025 Form 10-K | 57 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Year Ended December 31, 2023 Reportable Segments All (Dollars in millions) DRE WCC PRI Other Total Revenue $ 1,536 $ 1,800 $ 1,472 $ 327 $ 5,135 Direct Costs (a) ( 920 ) ( 1,091 ) ( 953 ) Other Expense (b) ( 194 ) ( 254 ) ( 196 ) DRE Segment Adjusted EBITDA 422 422 WCC Segment Adjusted EBITDA 455 455 PRI Segment Adjusted EBITDA 323 323 All Other 38 Corporate ( 52 ) Depreciation and Amortization ( 327 ) Share-based Compensation (c) ( 35 ) Gain on Sale of Business 2 Restructuring Charges ( 16 ) Other Credits, Net 10 Operating Income $ 820 (a) Segment cost of sales and direct operating costs. (b) Segment selling, general and administrative and research and development costs. (c) See “Note 14 – Share-Based Compensation” for additional information. Year Ended December 31, (Dollars in millions) 2025 2024 2023 Depreciation and Amortization: DRE $ 87 $ 113 $ 102 WCC 51 93 95 PRI 80 91 84 Corporate and Other 49 46 46 Total Depreciation and Amortization $ 267 $ 343 $ 327 Capital Expenditures: DRE $ 86 $ 108 $ 104 WCC 32 57 49 PRI 67 77 34 Corporate and Other 41 57 22 Total Capital Expenditures $ 226 $ 299 $ 209 Weatherford International plc – 2025 Form 10-K | 58 Table of Contents Item 8 | Notes to the Consolidated Financial Statements December 31, (Dollars in millions) 2025 2024 Total Assets: DRE $ 931 $ 925 WCC 1,055 1,040 PRI 771 789 Corporate and Other (a) 2,440 2,405 Total $ 5,197 $ 5,159 (a) Corporate and other total assets primarily include cash and cash equivalents, certain intangible assets, and centrally managed or shared facilities. PP&E, Net and Operating Lease Assets by Geographic Area As of December 31, 2025, and 2024 the U.S. accounted for 23 % and 22 %, respectively, and the Kingdom of Saudi Arabia accounted for 13 % 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 December 31, 2025 and 2024. We had no PP&E, Net and operating lease assets in our country of domicile (Ireland) as of December 31, 2025, and 2024. December 31, (Dollars in millions) 2025 2024 North America (a) $ 314 $ 293 Latin America 153 195 Middle East/North Africa/Asia 507 443 Europe/Sub-Sahara Africa/Russia 231 219 PP&E, Net and Operating Lease Assets by Geography (b) $ 1,205 $ 1,150 (a) North America consists of the U.S. and Canada. (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 during the three months ended June 30, 2025. 3 – Revenue Disaggregated Revenue For additional details on our revenue recognition policies see “Note 1 – Summary of Significant Accounting Policies.” The following tables disaggregate our revenue from contracts with customers by geographic region and includes equipment rental revenue. Equipment rental revenue were $ 115 million, $ 151 million and $ 142 million in 2025, 2024 and 2023, respectively. During 2025, 2024 and 2023, the U.S. accounted for 15 %, 15 % and 16 % of total revenue, respectively. During 2025 and 2024, the Kingdom of Saudi Arabia accounted for 10 % of total revenue in each period. In addition, during 2024 and 2023, Mexico accounted for 12 % and 13 % of total revenue, respectively, driven by our largest customer which accounted for 10% of our total revenue in each year, respectively. No other country or individual customer accounted for more than 10% of our total revenue in 2025, 2024 and 2023. We had no revenue in our country of domicile (Ireland) in 2025, 2024 and 2023. Weatherford International plc – 2025 Form 10-K | 59 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Year Ended December 31, (Dollars in millions) 2025 2024 2023 Revenue by Geographic Areas: North America (a) $ 983 $ 1,046 $ 1,068 International 3,935 4,467 4,067 Latin America 898 1,393 1,387 Europe/Sub-Sahara Africa/Russia 921 951 865 Middle East/North Africa/Asia 2,116 2,123 1,815 Total Revenue $ 4,918 $ 5,513 $ 5,135 (a) North America consists of the U.S. and Canada. Contract Balances The timing of our revenue recognition, billings and cash collections result in the recording of accounts receivable, contract assets, and contract liabilities. The following table summarizes these balances as of December 31, 2025, and December 31, 2024: December 31, (Dollars in millions) 2025 2024 Receivables for Product and Services in Accounts Receivable, Net $ 1,209 $ 1,232 Receivables for Equipment Rentals in Account Receivable, Net $ 25 $ 29 Accounts Receivable, Net of Allowance for Credit Losses of $ 10 at December 31, 2025 and $ 8 at December 31, 2024 $ 1,234 $ 1,261 Contract Assets in Other Current Assets $ 71 $ 61 Contract Assets in Other Non-Current Assets $ 32 $ 34 Contract Liabilities in Other Current Liabilities $ 48 $ 51 Contract Liabilities in Other Non-Current Liabilities $ 2 $ 2 Weatherford International plc – 2025 Form 10-K | 60 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 4 – Restructuring Charges During 2025, 2024 and 2023, “Restructuring Charges” on the accompanying Consolidated Statements of Operations were primarily related to optimization and efficiency initiatives throughout the organization. Restructuring liabilities were $ 22 million and $ 35 million as of December 31, 2025 and 2024, respectively, of which $ 19 million and $ 31 million were recorded in “Other Current Liabilities” and $ 3 million and $ 4 million in “Other Non-current Liabilities” as of December 31, 2025 and 2024, respectively, on the accompanying Consolidated Balance Sheets. The change in liabilities include restructuring charges, primarily offset by cash payments. The following table presents restructuring charges by type and by segment (and all other) for the following periods: Year Ended December 31, (Dollars in millions) 2025 2024 2023 Severance Charges $ 41 $ 35 $ 9 Facility Exit and Other Charges 17 7 7 Total Restructuring Charges $ 58 $ 42 $ 16 Year Ended December 31, (Dollars in millions) 2025 2024 2023 DRE $ 13 $ 10 $ 3 WCC 16 8 7 PRI 13 14 3 Corporate and Other 16 10 3 Total Restructuring Charges $ 58 $ 42 $ 16 Weatherford International plc – 2025 Form 10-K | 61 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 5 – Inventories, Net Inventories, net of reserves of $ 118 million and $ 115 million as of December 31, 2025 and December 31, 2024, respectively, by category were as follows: December 31, (Dollars in millions) 2025 2024 Finished Goods $ 742 $ 778 Work in Process and Raw Materials, Components and Supplies 94 102 Inventories, Net $ 836 $ 880 The change in inventory reserves includes inventory charges primarily offset by the disposal of inventory previously reserved. The charges are primarily recorded in “Cost of Products” on our Consolidated Statements of Operations in the amount of $ 29 million, $ 32 million and $ 19 million, in 2025, 2024 and 2023, respectively. 6 – Property, Plant and Equipment, Net Property, plant and equipment, net was composed of the following: December 31, (Dollars in millions) 2025 2024 Land, Buildings and Leasehold Improvements $ 568 $ 498 Rental and Service Equipment 1,377 1,213 Machinery and Other 329 290 Property, Plant and Equipment, Gross 2,274 2,001 Less: Accumulated Depreciation 1,150 940 Property, Plant and Equipment, Net $ 1,124 $ 1,061 Depreciation expense was $ 208 million, $ 185 million and $ 171 million in 2025, 2024 and 2023, respectively. Weatherford International plc – 2025 Form 10-K | 62 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 7 – Intangible Assets, Net The components of intangible assets, net were as follows: December 31, 2025 Gross Net Carrying Accumulated Intangible (Dollars in millions) Amount Amortization Assets Developed and Acquired Technology $ 704 $ ( 586 ) $ 118 Trade Names 409 ( 242 ) 167 Intangible Assets, Net $ 1,113 $ ( 828 ) $ 285 December 31, 2024 Gross Net Carrying Accumulated Intangible (Dollars in millions) Amount Amortization Assets Developed and Acquired Technology $ 718 $ ( 592 ) $ 126 Trade Names 400 ( 201 ) 199 Intangible Assets, Net $ 1,118 $ ( 793 ) $ 325 Amortization expense was $ 59 million, $ 158 million and $ 156 million in 2025, 2024, and 2023, respectively. The decrease in amortization expense for 2025 was primarily due to full amortization of certain intangible assets as of December 31, 2024. Based on the carrying value of intangible assets at December 31, 2025, amortization expense for the subsequent five years is estimated as follows (dollars in millions): Period Amount 2026 $ 63 2027 62 2028 61 2029 55 2030 15 Weatherford International plc – 2025 Form 10-K | 63 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 8 – Leases The following table presents our lease expense components: Year Ended December 31, (Dollars in millions) 2025 2024 2023 Lease Expense Components: Operating Lease Expense $ 57 $ 57 $ 60 Short-term and Variable Lease Expense 185 205 174 Subtotal of Operating Lease Expense $ 242 $ 262 $ 234 Finance Lease Expense: Amortization of Assets and Interest on Lease Liabilities 27 24 19 Sublease Income ( 1 ) ( 2 ) ( 2 ) Total Lease Expense $ 268 $ 284 $ 251 Future commitments under operating and finance leases are as follows: Operating Finance (Dollars in millions) Leases Leases Maturity of Lease Liabilities as of December 31, 2025: 2026 $ 58 $ 33 2027 41 22 2028 24 10 2029 18 4 2030 16 3 After 2030 88 6 Total Lease Payments 245 78 Less: Interest ( 88 ) ( 8 ) Present Value of Lease Liabilities $ 157 $ 70 Weatherford International plc – 2025 Form 10-K | 64 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Years Ended (Dollars in millions except years and percentages) 12/31/2025 12/31/2024 12/31/2023 Other Supplemental Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 63 $ 61 $ 67 Operating cash outflows from finance leases $ 4 $ 5 $ 5 Financing cash outflows from finance leases $ 27 $ 35 $ 18 Assets obtained in exchange for: Operating leases $ 45 $ 32 $ 70 Finance leases $ 57 $ 34 $ 16 Weighted-average remaining lease term (years) Operating leases 8.9 8.9 8.4 Finance leases 3.2 3.1 3.1 Weighted-average discount rate (percentages) Operating leases 8.4 % 8.6 % 8.8 % Finance leases 6.7 % 6.8 % 8.2 % Weatherford International plc – 2025 Form 10-K | 65 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 9 – Borrowings and Other Debt Obligations Total debt carrying values consisted of the following: December 31, (Dollars in millions) 2025 2024 Finance Lease Current Portion $ 30 $ 17 Current Portion of Long-term Debt $ 30 $ 17 6.75 % Senior Notes due 2033 “2033 Senior Notes” $ 1,181 $ — 8.625 % Senior Notes due 2030 “2030 Senior Notes” 234 1,586 Finance Lease Long-term Portion 40 31 Long-term Debt $ 1,455 $ 1,617 2028 Senior Secured Notes On September 30, 2021, we issued 6.5 % Senior Secured Notes in aggregate principal amount of $ 500 million maturing September 15, 2028 (the “2028 Senior Secured Notes”). Interest accrued at the rate of 6.5 % per annum and was payable semiannually on September 15 and March 15. Proceeds from the issuance were reduced by debt issuance costs. In 2024, we fully redeemed the remaining $ 248 million principal amount. 2030 Senior Notes On October 27, 2021, we issued 8.625 % Senior Notes in aggregate principal amount of $ 1.6 billion maturing April 30, 2030 (the “2030 Senior Notes”). Interest accrues at the rate of 8.625 % per annum and is payable semiannually on June 1 and December 1 of each year, and commenced June 1, 2022. Our 2030 Senior Notes were issued by Weatherford International Ltd., a Bermuda exempted company (“Weatherford Bermuda”) and guaranteed by the Company and Weatherford International, LLC, a Delaware limited liability company (“Weatherford Delaware”) and other subsidiary guarantors party thereto. On December 1, 2022, the indenture related to our 2030 Senior Notes was amended and supplemented to add Weatherford Delaware as co-issuer and co-obligor, and concurrently releases the guarantee of Weatherford Delaware. In 2025, we repurchased approximately $ 61 million of principal of our 2030 Senior Notes and acquired an additional $ 1.3 billion of principal through a tender offer and redemption. In connection with the tender offer and redemption, we also paid $ 41 million of accrued interest and a $ 30 million redemption premium. We recognized a non-cash loss on extinguishment of debt of $ 8 million, primarily related to the write-off of unamortized debt issuance costs. The tender offer and redemption used net proceeds from the issuance of $ 1.2 billion of 2033 Senior Notes (defined below) and cash on hand. In 2024, we repurchased $4 million in principal of our 2030 Senior Notes. At December 31, 2025 and December 31, 2024, the carrying value represents the remaining unpaid principal of $ 236 million and $ 1.6 billion, respectively, offset by unamortized deferred issuance cost of $ 2 million and $ 11 million, respectively. 2033 Senior Notes On October 6, 2025, we issued 6.75 % Senior Note in aggregate principal amount of $ 1.2 billion maturing October 15, 2033 (the “2033 Senior Notes’). Interest accrues at the rate of 6.75 % per annum and is payable semiannually on April 15th and October 15th of each year commencing April 15, 2026. Our 2033 Senior Notes were issued by Weatherford Bermuda and guaranteed by the Company and Weatherford Delaware and other subsidiary guarantors party thereto. On October 24, 2025, the indenture related to our 2033 Senior Notes was amended and supplemented to add Weatherford Delaware as co-issuer and co-obligor, and concurrently released the guarantee of Weatherford Delaware. At December 31, 2025, the carrying value represents the remaining unpaid principal of $ 1.2 billion, offset by unamortized deferred issuance cost of $ 19 million. Weatherford International plc – 2025 Form 10-K | 66 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 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 December 31, 2025, the Credit Agreement allowed for a total commitment amount of $ 1 billion, maturing on the earlier of (a) September 18, 2030 and (b) to the extent that more than $ 200 million of 2030 Senior Notes or Permitted Refinancing Indebtedness in respect thereof is outstanding on such date, the date that is 91 days prior to the stated maturity date of the Senior Notes or any Permitted Refinancing Indebtedness in respect thereof. 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. On September 18, 2025, we amended the Credit Agreement to (i) allow for an increase in total commitment amount from $ 720 million to $ 1 billion comprised of $ 600 million to be used either for revolving loans or financial letters of credit and $ 400 million to be used for performance letters of credit, (ii) extend the maturity date to the earlier of September 18, 2030 or January 29, 2030 if more than $ 200 million of 2030 Senior Notes or Permitted Refinancing Indebtedness are outstanding on that date and (iii) include an accordion feature that will allow for further increases of commitments up to $ 1.15 billion. As of December 31, 2025, under the Credit Agreement we had zero borrowings, $ 7 million in financial letters of credit and $ 245 million in performance letters of credit outstanding. Additionally as of December 31, 2025, we had $ 207 million letters of credit under various uncommitted bi-lateral facilities ($ 47 million of which was cash collateral held and recorded in “Restricted Cash” on the Consolidated Balance Sheets). As of December 31, 2024, under the Credit Agreement we had zero borrowings, $ 12 million in financial letters of credit and $ 279 million in performance letters of credit outstanding. Additionally as of December 31, 2024, we had $ 91 million of letters of credit under various uncommitted bi-lateral facilities ($ 49 million of which was cash collateral held and recorded in “Restricted Cash” on the Consolidated Balance Sheets). Covenants for the Senior Notes and Credit Agreement The Credit Agreement and indentures governing the 2030 Senior Notes and 2033 Senior Notes contain covenants that limit, among other things, our ability and the ability of certain of our subsidiaries, to: incur, assume or guarantee additional indebtedness; pay dividends or distributions on capital stock or redeem or repurchase capital stock; make investments; sell stock of our subsidiaries; transfer or sell assets; create liens; enter into transactions with affiliates; and enter into mergers or consolidations. The Company is subject to 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. The following is a summary of scheduled debt maturities by year: (Dollars in millions) Amount 2026 $ 29 2027 20 2028 9 2029 4 2030 238 Thereafter 1,206 Total Debt Maturities $ 1,506 Unamortized Debt Issuance and Discount $ ( 21 ) Total Debt Carrying Value $ 1,485 Weatherford International plc – 2025 Form 10-K | 67 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 10 – Fair Value of Financial Instruments, Assets and Other Assets We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Our valuation techniques require inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs are quoted prices or other market data for similar assets and liabilities in active markets, or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based upon our own judgment and assumptions used to measure assets and liabilities at fair value. Classification of a financial asset or liability within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The fair values of our foreign currency forward contracts (see “Note 11 – Derivative Financial Instruments”), warrants (before their expiration in 2023, see “Note 16 – Income per Share”), and plan assets of defined benefit pension plans (see “Note 12 – Employee Benefit Plans”) are all Level 2 valuations and the fair value of the credit default swap is a Level 3 valuation (see “Note 11 – Derivative Financial Instruments”). Our other financial instruments include cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings and long-term debt. The carrying values of these financial instruments (excluding long-term debt) approximate their fair value due to their short maturities. 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 current market interest rate is greater than the interest rate at which the debt was originally issued. The fair value of our long-term debt (excluding Finance Leases) in the following table is classified as Level 2 in the fair value hierarchy and is established based on observable inputs in less active markets. December 31, 2025 December 31, 2024 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value 8.625 % Senior Notes due 2030 234 242 1,586 1,650 6.75% Senior Notes due 2033 1,181 1,226 — — Long-Term Debt (excluding Finance Leases) $ 1,415 $ 1,468 $ 1,586 $ 1,650 11 – Derivative Financial Instruments Both our foreign currency forward contracts and the credit default swap are undesignated hedging instruments under ASC 815, Derivatives and Hedging . Foreign Currency Forward Contracts We enter into foreign currency forward contracts to economically hedge our exposure to currency fluctuations in various foreign currencies. At December 31, 2025 and December 31, 2024, we had outstanding foreign currency forward contracts with notional amounts aggregating to $ 608 million and $ 543 million, respectively. The fair values of these derivatives were not material as of December 31, 2025 and December 31, 2024. Credit Default Swap During the fourth quarter of 2024, we entered into a 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. The fair value of the derivative was not material as of December 31, 2025 and December 31, 2024. Under the CDS terms, within five business days upon notification of default, we could be required to pay the then outstanding notional balance net of recoveries. As of December 31, 2025, we had a notional balance of $ 14 million outstanding under the CDS and as of December 31, 2024 we had a notional balance of $ 25 million outstanding. Management expects the total notional balance under the CDS to be nil by December 31, 2026. 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. Weatherford International plc – 2025 Form 10-K | 68 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 12 – Employee Benefit Plans We have defined contribution plans covering certain employees. Contribution expenses related to these plans totaled $ 20 million, $ 20 million and $ 18 million for the years ended December 31, 2025, 2024 and 2023, respectively. We have defined benefit pension and other post-retirement benefit plans covering certain current and former U.S. and international employees. Plan benefits are generally based on factors such as age, compensation levels and years of service. Net periodic benefit cost related to these plans totaled less than $1 million, $ 3 million, and $ 3 million for the years ended December 31, 2025, 2024 and 2023, respectively. The projected benefit obligations on a consolidated basis were $ 128 million and $ 126 million as of December 31, 2025 and December 31, 2024, respectively. The fair values of plan assets on a consolidated basis were $ 107 million and $ 100 million as of December 31, 2025 and December 31, 2024, respectively. The increase in both the projected benefit obligation and the plan assets year over year is due primarily to the weakening of the U.S. Dollar, partially offset by the settlement and payment of benefit obligations and annual interest and return activity. As of December 31, 2025, the net underfunded obligation consisted of $ 20 million of funded obligations recorded to “Other Non-current Assets” and $ 41 million of underfunded obligations substantially all recorded to “Other Non-current Liabilities” on our Consolidated Balance Sheets. As of December 31, 2024, the net underfunded obligation consisted of $ 17 million of funded obligations recorded to “Other Non-current Assets” and $ 43 million of underfunded obligations substantially all recorded to “Other Non-current Liabilities” on our Consolidated Balance Sheets. Additionally, the consolidated pre-tax amount in accumulated other comprehensive income as of December 31, 2025 and December 31, 2024, that has not yet been recognized as a component of net periodic benefit cost was a net gain of $ 12 million and $ 6 million, respectively. The increase is due to the deferral of actuarial gains for 2025, the weakening of the U.S. Dollar for our non-U.S. plans offset by the recognition of prior actuarial gains in net periodic benefit costs. The weighted average assumption rates used for benefit obligations were as follows: Year Ended December 31, 2025 2024 Discount rate: United States Plans 4.75 % - 5.25 % 4.75 % International Plans 3.30 % - 11.50 % 3.13 % - 10.60 % Rate of Compensation Increase: United States Plans — — International Plans 2.00 % - 3.00 % 2.00 % - 3.00 % During the years ended December 31, 2025, 2024 and 2023, we made contributions and paid direct benefits of $ 3 million, $ 4 million and $ 5 million, respectively, in connection with our defined benefit pension and other post-retirement benefit plans. In 2026, we expect to fund approximately $ 2 million related to those plans. 13 – 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. Weatherford International plc – 2025 Form 10-K | 69 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 14 – Share-Based Compensation Share-Based Plan The Weatherford International plc Fourth Amended and Restated 2019 Equity Incentive Plan, (“2019 Equity Plan”) authorizes the issuance of 9.9 million shares of ordinary shares by the Board of Directors in the form of options, share appreciation rights, restricted share awards, restricted share units (“RSUs”), performance-based restricted share units (“PSUs”) and other share-based and performance-based awards to any employee, consultant, or non-employee director (“Grantees”). The provisions of each award vary based on the type of award granted. Awards made under the 2019 Equity Plan vest and settle in shares of newly issued ordinary shares or cash. As of December 31, 2025, there were 2.4 million shares available for future grants. We granted RSUs and PSUs under the 2019 Equity Plan during 2025, 2024 and 2023. All awards generally require continued employment and vest over one to three years . The Grantees do not have the rights of a shareholder under these awards until such date as the shares are issued. Dividend equivalent rights are accrued during the vesting period and paid upon distribution of the shares. Share-Based Compensation Expense Share-based compensation expense was $ 38 million, $ 45 million and $ 35 million for the year ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively. As of December 31, 2025, there was $ 46 million of unrecognized compensation cost, which is expected to be recognized over a weighted-average period of less than two years . RSUs RSUs generally vest based on continued employment. The fair value of RSUs are determined based on the closing price of our shares on the date of grant. The total fair value, less forfeitures, is expensed over the vesting period. The weighted-average grant date fair value per unit (“WAGD FV”) of RSUs granted during 2025, 2024 and 2023 was $ 56.54 , $ 93.98 and $ 54.85 , respectively. The fair value of RSUs vested during 2025, 2024 and 2023 was $ 25 million, $ 28 million and $ 34 million, respectively. RSUs were primarily settled in shares, with cash settlements, including dividend equivalent rights, totaling less than $ 1 million each in 2025, 2024, and 2023. PSUs PSUs generally vest based on continued employment and the achievement of an established target. The actual number of PSUs earned may range from 0 % to 200 %. The fair value of PSUs depends on whether the established target is a performance condition defined solely by reference to our own operations (“operational performance”) or the market performance of our shares (“market condition”). The total fair value, less forfeitures, is expensed over the vesting period. The WAGD FV per unit of PSUs granted during 2025, 2024 and 2023 was $ 55.53 , $ 120.13 and $ 70.91 , respectively. The fair value of PSUs vested during 2025 was $ 112 million, nil for 2024 and $ 118 million for 2023, PSUs were primarily settled in shares, with $ 1 million settled in cash, including dividend equivalent rights, in 2025 and no cash settlements in 2024 or 2023. The fair value of PSUs subject to operational performance conditions is determined based on the closing price of our shares on the date of grant. The units are adjusted periodically based on the metric’s expected performance goal multiplier. Weatherford International plc – 2025 Form 10-K | 70 Table of Contents Item 8 | Notes to the Consolidated Financial Statements The fair value of PSUs subject to market conditions was determined based on a Monte Carlo simulation method. Compensation cost is fully recognized if the employment condition is met, even if the market condition is not achieved, as the likelihood of achieving the market condition is incorporated into the fair value of the award. The weighted average of assumptions used in the models were as follows: Year Ended December 31, 2025 2024 2023 Risk-Free rate 3.9 % 4.3 % 3.8 % Dividend Yield n/a n/a n/a Expected Volatility 47.0 % 54.0 % 62.0 % Expected Life (in years) 2.8 2.8 2.6 The risk-free rate is obtained as of the grant date with terms matching the performance period. The dividend yield is based on historical dividend payments and expectations of management. For the years ended December 31, 2025 and December 31, 2024, expected volatility was based on our NASDAQ trading history, and for the year ended December 31, 2023, also incorporated the volatility of our constituents. The expected life in years is based on the time to vest from the grant date through the end of the performance measurement period. Summary of Awards Activity A summary of activity for non-vested RSUs, and PSUs at target and their respective WAGD FV during 2025 is presented below. (Units in thousands, except dollars) RSU WAGD FV (1) PSU (2) WAGD FV (1) Non-Vested at December 31, 2024 640 $ 66.91 1,751 $ 39.21 Granted 488 56.54 413 55.53 Vested ( 344 ) 56.50 ( 1,366 ) 23.15 Cancelled or Forfeited ( 63 ) 60.96 ( 83 ) 81.92 Non-Vested at December 31, 2025 721 $ 65.38 715 $ 74.37 (1) The WAGD FV for granted awards has been adjusted on a net basis for RSUs and PSUs that require remeasurement to fair value at each balance sheet date. (2) The table presents PSUs at the target level; however; under the award terms, a maximum of 1,299 PSUs may vest, consisting of 715 PSUs at target 105 PSUs that have already been earned and 479 additional PSUs that may be earned under applicable performance multipliers. Due to above‑target performance, an additional 218 PSUs vested, resulting in 1,584 PSUs vesting during 2025 compared to 1,366 at target Weatherford International plc – 2025 Form 10-K | 71 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 15 – Shareholders’ Equity Our ordinary shares outstanding balance decreased from 72.1 million as of December 31, 2024 to 71.6 million as of December 31, 2025. The decrease was due to the cancellation of 1.8 million of our ordinary shares repurchased during the year, 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. Cash paid for repurchases of our ordinary shares during the year totaled $ 101 million, including $ 1 million settled in 2025 related to repurchases with a trade date of December 31, 2024. Ordinary shares for the year ended December 31, 2024 remained consistent with the year ended December 31, 2023, as issuances of our ordinary shares related to acquisitions and vesting and settlement of equity awards were offset by repurchases of our ordinary shares. Ordinary shares for the year ended December 31, 2023 primarily increased upon the vesting and settlement of awards made under the 2019 Equity Plan. On July 23, 2024, we announced our Board authorization of a dividend program under which we intend to pay regular quarterly cash dividends, subject to our Board’s discretion and continuing determination that it is in the best interest of the Company and complies with applicable legal requirements. During the twelve months ended December 31, 2025, we declared and paid $ 72 million in dividends and accrued $ 2 million in accrued dividend equivalent rights on share-based awards. During the twelve months ended December 31, 2024, we declared and paid $ 36 million in dividends and accrued $ 2 million in dividend equivalent rights on share-based awards. Weatherford International plc – 2025 Form 10-K | 72 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 16 – Income per Share A reconciliation of the number of weighted average shares used for the basic and diluted income per share calculation for the periods presented was as follows: Year Ended December 31, (Shares in millions) 2025 2024 2023 Net Income Attributable to Weatherford $ 431 $ 506 $ 417 Basic Weighted Average Shares Outstanding 72.2 73.0 71.9 Dilutive Effect of Awards Granted in Stock Incentive Plans 0.4 1.9 1.7 Diluted Weighted Average Shares Outstanding 72.6 74.9 73.6 Basic Income Per Share Attributable to Weatherford $ 5.96 $ 6.93 $ 5.79 Diluted Income Per Share Attributable to Weatherford $ 5.93 $ 6.75 $ 5.66 Antidilutive Weighted Average Shares: Warrants — — 7.4 Equity Awards 0.6 0.4 0.7 Total Antidilutive Weighted Average Shares 0.6 0.4 8.1 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. Antidilutive shares represent securities that could dilute income per share in the future, and are excluded from the computation of income per share. Warrants to purchase 7.8 million ordinary shares at $ 99.96 per share were issued on December 13, 2019 and expired on December 13, 2023. For the year ended December 31, 2023 the warrants were excluded from the diluted weighted average shares outstanding as the exercise price of the warrants was greater than the average market price of the Company’s ordinary shares. Weatherford International plc – 2025 Form 10-K | 73 Table of Contents Item 8 | Notes to the Consolidated Financial Statements 17 – Income Taxes 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 resident for income tax purposes. The relationship between our pre-tax income or loss and our income tax provision or benefit varies from period to period as a result of 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. Our income tax provision consisted of the following: Year Ended December 31, (Dollars in millions) 2025 2024 2023 Total Current Provision $ ( 111 ) $ ( 181 ) $ ( 143 ) Total Deferred (Provision) Benefit 14 ( 8 ) 86 Income Tax Provision $ ( 97 ) $ ( 189 ) $ ( 57 ) The difference between the Irish income tax provision and the consolidated income tax provision is analyzed below. During the fourth quarter of 2025, we adopted ASU 2023-09 (see "Note 1 Summary of Significant Accounting Policies" for further discussion on ASU 2023-09) on a prospective basis. As such, we have updated income tax disclosure presentations as of and for the year ended December 31, 2025 in order to comply with ASU 2023-09, but have not retrospectively applied these presentational changes to any of the prior periods presented. This adoption of ASU 2023-09 resulted in presentational differences of our income tax disclosures and did not result in a change to the calculations of our income before income taxes, current tax expense, deferred tax expense or effective tax rates for the year ended December 31, 2025. The Company is domiciled in Ireland and is subject to Ireland corporate income tax. In addition, we are subject to other income taxes, including those in the U.S. and in various foreign jurisdictions. Our consolidated effective tax rate reconciliation for the year ended December 31, 2025 is summarized below (in millions, except percentages): Weatherford International plc – 2025 Form 10-K | 74 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Year Ended December 31, (Dollars in millions) 2025 Irish Income Tax Provision Tax Rate of 25% $ ( 138 ) 25.0 % State and Local Income Taxes, net of federal income tax effect Foreign Tax Effects Angola ( 9 ) 1.7 % Argentina Changes in valuation allowances 16 ( 2.9 ) % Other ( 8 ) 1.4 % Bermuda Statutory tax rate difference ( 12 ) 2.2 % Changes in valuation allowances ( 18 ) 3.3 % Iraq Changes in valuation allowances 9 ( 1.7 ) % Other ( 11 ) 2.1 % Saudi Arabia 8 ( 1.5 ) % Switzerland Statutory tax rate difference 43 ( 7.9 ) % Changes in valuation allowances 22 ( 4.0 ) % Other 3 ( 0.5 ) % United Arab Emirates Statutory tax rate difference ( 9 ) 1.5 % Other 1 ( 0.1 ) % United States Changes in valuation allowances 9 ( 1.7 ) % Other 2 ( 0.4 ) % Other foreign jurisdictions ( 22 ) 4.1 % Effect of cross border tax laws ( 2 ) 0.4 % Changes in valuation allowances ( 9 ) 1.6 % Nontaxable or nondeductible items ( 6 ) 1.2 % Changes in unrecognized tax benefits 34 ( 6.3 ) % Income Tax Provision $ ( 97 ) 17.5 % Year Ended December 31, (Dollars in millions) 2024 2023 Irish Income Tax Provision Tax Rate of 25% $ ( 185 ) $ ( 126 ) Tax Provision on Operating Earnings/Losses Subject to Rates Different than the Irish Income Tax Rate ( 75 ) 52 Tax (Provision) Benefit on Swiss Loss from internal liquidation of subsidiary and internal restructuring — 2 Decrease (Increase) in Valuation Allowance on Operating Earnings/Losses 81 35 Change in Uncertain Tax Positions ( 10 ) ( 20 ) Income Tax Provision $ ( 189 ) $ ( 57 ) Weatherford International plc – 2025 Form 10-K | 75 Table of Contents Item 8 | Notes to the Consolidated Financial Statements Our income tax provisions generally do not correlate to our consolidated income (loss) before tax. Our income tax provisions are primarily driven by profits in certain jurisdictions, deemed profit countries 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. For the year ended December 31, 2025, income tax expense was lower than 2024, primarily driven by the lower earnings and the release of $ 70 million in benefits from previously uncertain tax positions due to audit settlements and lapses in the statute of limitations, partially offset by a decrease in the amount of valuation allowance releases as compared to 2024. During the year ended December 31, 2024, income tax expense was primarily driven by increased activity and operating profits, profit mix in various jurisdictions that we operate and lower valuation allowance releases. During the year ended December 31, 2023, income tax expense includes a one-time benefit of $ 115 million, due to the release of valuation allowances and the recognition of benefits from previously uncertain tax positions. Those benefits were offset by the establishment of valuation allowance of approximately $ 50 million against the sale of Blue Chip Swap securities and currency devaluation in Argentina (see Note 18 – Blue Chip Swap Securities - Argentina). Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Financial Statements. The measurement of deferred tax assets and liabilities is based on enacted tax laws and rates currently in effect in each of the jurisdictions in which we have operations. The components of the net deferred tax asset were as follows: December 31, December 31, (Dollars in millions) 2025 2024 Deferred Tax Assets: Net Operating Losses Carryforwards $ 605 $ 585 Unused Recognized Built in Losses 47 47 Accrued Liabilities and Reserves 63 138 Tax Credit Carryforwards 17 13 Employee Benefits 30 29 Property, Plant and Equipment 102 109 Inventory 34 34 U.S. Interest Deferral 57 58 Tax Base Adjustment 52 53 State Deferred 60 57 Other Differences between Financial and Tax Basis 162 142 Valuation Allowance ( 1,057 ) ( 1,122 ) Total Deferred Tax Assets 172 143 Deferred Tax Liabilities: Intangible Assets ( 23 ) ( 17 ) Other Differences between Financial and Tax Basis ( 22 ) ( 22 ) Total Deferred Tax Liabilities ( 45 ) ( 39 ) Net Deferred Tax Asset $ 127 $ 104 We record deferred tax assets for net operating losses and temporary differences between the book and tax basis of assets and liabilities that are expected to produce tax deductions in future periods. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income in the appropriate tax jurisdiction during the periods in which those deferred tax assets would be deductible. The Company assesses the realizability of its deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company considers all available evidence (both positive and negative) when determining whether a valuation allowance is required, with emphasis on our past operating results, the existence of cumulative losses in the most recent years and our forecast of near- term taxable income. The Company evaluates possible sources of taxable income that may be available to realize the benefit of Weatherford International plc – 2025 Form 10-K | 76 Table of Contents Item 8 | Notes to the Consolidated Financial Statements deferred tax assets, including projected future taxable income, the reversal of existing temporary differences, taxable income in carryback years and available tax planning strategies, in making this assessment. The valuation allowance decreased by $ 65 million in 2025. The decrease is primarily driven by $ 24 million of remeasurement of net deferred tax assets and $ 12 million due to the release of valuation allowances where deferred tax assets are now considered more likely than not to be realized in the future. The remaining net decrease in the valuation allowance during the year relates to the movement in our underlying valued net deferred tax assets based on current year activity as well as changes attributable to foreign currency translation. Deferred income taxes generally have not been recognized on the cumulative undistributed earnings of our non-Irish subsidiaries because they are considered to be indefinitely reinvested. Distribution of these earnings in the form of dividends or otherwise may result in a combination of income and withholding taxes payable in various countries. Due to complexities in the tax laws and the manner of repatriation, it is not practicable to estimate the unrecognized amount of deferred income taxes and the related dividend withholding taxes associated with these undistributed earnings. At December 31, 2025, we had approximately $ 3.1 billion of net operating losses (“NOLs”) in various jurisdictions. Our non-indefinite loss carryforwards, which are limited by Internal Revenue Code section 382 and total $ 0.4 billion as of December 31, 2025, and if not utilized, will mostly expire for U.S. subsidiaries from 2035 through 2036. Our non-indefinite loss carryforwards for our non-US subsidiaries will mostly expire at various dates from 2026 through 2044. In 2021, we executed a liquidation transaction of one of our Swiss holding companies which resulted in the forfeiture of impairment losses of $ 1.3 billion generated in 2020. In addition, the liquidation transaction resulted in approximately $ 5.6 billion of tax losses (NOLs) in Switzerland, of which $ 2.7 billion was deemed worthless and is not included in the deferred tax table as of December 31, 2025. A tabular reconciliation of the total amounts of uncertain tax positions at the beginning and end of the period is as follows: Year Ended December 31, (Dollars in millions) 2025 2024 2023 Balance at Beginning of Year $ 201 $ 203 $ 191 Additions for tax positions of prior periods 7 7 9 Additions based on tax positions for the current period 14 13 19 Reductions for tax positions of prior periods ( 2 ) ( 2 ) ( 12 ) Reductions relating to settlements with taxing authorities ( 33 ) ( 5 ) ( 3 ) Reductions due to a lapse of the statute of limitations ( 15 ) ( 8 ) ( 6 ) Foreign Exchange Effects 7 ( 7 ) 5 Balance at End of Year $ 179 $ 201 $ 203 Substantially all of the uncertain tax positions, if released in future periods, would impact our effective tax rate. Within the total balance is $ 51 million and $ 48 million as of December 31, 2025 and 2024, respectively, that would be offset by net operating losses and other tax attributes if settled. Our income tax provision includes penalties and interest expense (benefit) on uncertain tax positions of $ 5 million, $ 1 million and $ 12 million for years ended December 31, 2025, 2024, and 2023, respectively. The expense of $ 5 million in 2025 includes $ 21 million of interest and penalty release related to benefit from previously uncertain tax positions. The amounts in the table above exclude cumulative accrued interest and penalties of $ 114 million and $ 112 million at December 31, 2025 and 2024, respectively, which are included in other non-current liabilities. Weatherford International plc – 2025 Form 10-K | 77 Table of Contents Item 8 | Notes to the Consolidated Financial Statements We are subject to income tax in many of the approximately 75 countries where we operate. We are continuously under tax examination in various jurisdictions and cannot predict the timing or outcome regarding the resolutions or if they will have a material impact on our financial statements. As of December 31, 2025, the following table summarizes the tax years that remain subject to examination for the major jurisdictions in which we operate: Tax Jurisdiction Tax Years under Examination Argentina 2017 - 2025 Canada 2017 - 2025 Mexico 2015 - 2025 Russia 2022 - 2025 Saudi Arabia 2006 - 2025 Switzerland 2021 - 2025 United States (Federal) 2021 - 2025 The following table summarizes income taxes paid during the year ended December 31, 2025, net of refunds, by jurisdiction. Federal and state taxes paid did not meet the 5% disclosure threshold as required by ASU 2023-09. Cash taxes, net of refunds, were $ 168 million and $ 132 million for 2024 and 2023, respectively. (Dollars in millions) 2025 Foreign Argentina $ 11 Brazil 14 Mexico 13 Russia 41 Other 78 Total $ 157 18 – 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 limited our ability to access U.S. dollars in Argentina and to remit cash from our Argentine operations. An indirect foreign exchange mechanism known as a Blue Chip Swap (“BCS”) allows entities to remit U.S. dollars from Argentina through the purchase and sale of BCS securities. During each of the years ended December 31, 2025 and 2024, we completed a series of BCS transactions at implied exchange rates (“BCS rates”) that were approximately 2 % and 26 % higher, respectively, than the official exchange rate, resulting in a loss of $ 2 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. GAAP. 19 – Subsequent Events Declaration of cash dividend On January 26, 2026, our Board of Directors declared a cash dividend of $ 0.275 per share of the Company’s ordinary shares, payable on March 5, 2026 to shareholders of record as of February 6, 2026. Weatherford International plc – 2025 Form 10-K | 78 Table of Contents Item 9 | Changes in and Disagreement with Accountants on Accounting and Financial Disclosure Item 9. Changes in and Disagreement with Accountants on Accounting and Financial Disclosure. None.