What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-07-22 compared with 2026-04-22 · 154 added, 72 removed, 333 unchanged (40% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars and shares in millions, except per share amounts) 2026 2025 2026 2025

2 unchanged sentences

Total Revenue

1,105 1,204 2,257 2,397

Costs and Expenses:

3 unchanged sentences

Selling, General and Administrative 172 164 340 325

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

Restructuring Charges

3 unchanged sentences

Other Expense:

Interest Expense, Net of Interest Income of $ 10 , $ 11

Interest Expense, Net of Interest Income of $ 11 , $ 14 , $ 21 and $ 25

( 16 ) ( 21 ) ( 33 ) ( 47 )

1 unchanged sentence

Income Before Income Taxes 75 191 180 287

Income Tax Benefit (Provision) 4 ( 10 )

Income Tax Provision ( 33 ) ( 46 ) ( 29 ) ( 56 )

Net Income 42 145 151 231

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in millions) 2026

4 unchanged sentences

Comprehensive Income Attributable to Weatherford

$ 55 $ 201 $ 150 $ 373

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

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars and shares in millions, except par value) March 31, 2026

(Dollars and shares in millions, except par value) June 30, 2026

December 31, 2025

1 unchanged sentence

Restricted Cash 37 55

Accounts Receivable, Net of Allowance for Credit Losses of $ 12 at March 31, 2026 and $ 10 at December 31, 2025

Accounts Receivable, Net of Allowance for Credit Losses of $ 12 at June 30, 2026 and $ 10 at December 31, 2025

Inventories, Net 811 836

1 unchanged sentence

Total Current Assets 3,298 3,372

Property, Plant and Equipment, Net of Accumulated Depreciation of $ 1,189 at March 31, 2026 and $ 1,150 at December 31, 2025

Intangibles, Net of Accumulated Amortization of $ 842 at March 31, 2026 and $ 828 at December 31, 2025

Property, Plant and Equipment, Net of Accumulated Depreciation of $ 1,220 at June 30, 2026 and $ 1,150 at December 31, 2025

Intangibles, Net of Accumulated Amortization of $ 858 at June 30, 2026 and $ 828 at December 31, 2025

Operating Lease Assets 118 128

15 unchanged sentences

Ordinary Shares - Par Value $ 0.001 ;

Authorized 1,356 shares, Issued and Outstanding 71.9 shares at March 31, 2026 and 71.6 at December 31, 2025

Authorized 1,356 shares, Issued and Outstanding 71.8 shares at June 30, 2026 and 71.6 at December 31, 2025

Capital in Excess of Par Value 2,794 2,815

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

Six Months Ended June 30,

(Dollars in millions) 2026 2025

3 unchanged sentences

Depreciation and Amortization 141 126

Foreign Exchange (Gains) Losses

Foreign Exchange Losses 6 30

Gain on Disposition of Assets

Gain on Sale of Business

Deferred Income Tax Provision 9 2

Share-Based Compensation 23 16

Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits:

Changes in Accounts Receivable, Inventory, Accounts Payable, Accrued Salaries and Benefits and Income Taxes Payable:

Accounts Receivable 143 132

Inventories ( 3 ) ( 7 )

Accounts Payable

2 unchanged sentences

( 44 ) ( 57 )

Income Taxes Payable ( 30 ) ( 8 )

Other Changes, Net ( 44 ) ( 14 )

3 unchanged sentences

Proceeds from Disposition of Assets 9 6

Proceeds from Sale of Business

Purchases of Blue Chip Swap Securities

( 14 ) ( 83 )

Proceeds from Sales of Blue Chip Swap Securities

3 unchanged sentences

Repayments of Long-term Debt

( 17 ) ( 73 )

Distributions to Noncontrolling Interests

Tax Remittance on Equity Awards Vested ( 18 ) ( 20 )

6 unchanged sentences

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash ( 1 ) 24

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash 8 ( 45 )

Net Increase in Cash, Cash Equivalents and Restricted Cash 95 28

Cash, Cash Equivalents and Restricted Cash at Beginning of Period 1,042 975

15 unchanged sentences

Ultimate results could differ from our estimates.

In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments considered necessary by management to fairly state the results of operations, financial position and cash flows of Weatherford and its subsidiaries for the periods presented and are not necessarily indicative of the results that may be expected for a full year.

In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments, which consist of normal recurring adjustments, considered necessary by management to fairly state the results of operations, financial position and cash flows of Weatherford and its subsidiaries for the periods presented and are not necessarily indicative of the results that may be expected for a full year.

Our financial statements have been prepared on a consolidated basis.

3 unchanged sentences

Please refer to “Note 1 – Summary of Significant Accounting Policies” of our Consolidated Financial Statements from our 2025 Form 10-K for the discussion on our significant accounting policies.

Certain reclassifications have been made to these Condensed Consolidated Financial Statements and accompanying footnotes for the three and six months ended June 30, 2025 to conform to the presentation for the three and six months ended June 30, 2026.

Accounting Standards Issued Not Yet Adopted

10 unchanged sentences

Segment adjusted EBITDA is based on segment earnings before interest, taxes, depreciation, amortization, share-based compensation expense and other adjustments.

All other includes results from non-core business activities (including integrated services and projects), and corporate includes overhead support and centrally managed or shared facilities costs.

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

Three Months Ended March 31, 2026

All Other includes results from non-core business activities (including integrated services and projects), and Corporate Costs includes overhead support and centrally managed or shared facilities costs.

All Other and Corporate Costs do not individually meet the criteria for segment reporting.

Three Months Ended June 30, 2026

Reportable Segments All

8 unchanged sentences

PRI Segment Adjusted EBITDA 70 70

Corporate ( 16 )

Corporate Costs ( 18 )

Depreciation and Amortization ( 71 )

5 unchanged sentences

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

Three Months Ended March 31, 2025

Six Months Ended June 30, 2026

Reportable Segments All

8 unchanged sentences

PRI Segment Adjusted EBITDA 124 124

Corporate ( 15 )

Corporate Costs ( 34 )

Depreciation and Amortization ( 141 )

5 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, 2025

Reportable Segments All

(Dollars in millions) DRE

Revenue $ 335 $ 456 $ 327 $ 86 $ 1,204

Direct Costs (a)

( 220 ) ( 279 ) ( 220 )

Other Expense (b)

( 46 ) ( 59 ) ( 44 )

DRE Segment Adjusted EBITDA 69 69

WCC Segment Adjusted EBITDA 118 118

PRI Segment Adjusted EBITDA 63 63

Corporate Costs ( 15 )

Depreciation and Amortization ( 64 )

Share-based Compensation ( 9 )

Gain on Sale of Business

Restructuring Charges ( 11 )

Other Charges, Net ( 3 )

Operating Income $ 237

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

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

Six Months Ended June 30, 2025

Reportable Segments All

(Dollars in millions) DRE

Revenue $ 685 $ 897 $ 661 $ 154 $ 2,397

Direct Costs (a)

( 446 ) ( 537 ) ( 450 )

Other Expense (b)

( 96 ) ( 114 ) ( 86 )

DRE Segment Adjusted EBITDA 143 143

WCC Segment Adjusted EBITDA 246 246

PRI Segment Adjusted EBITDA 125 125

Corporate Costs ( 30 )

Depreciation and Amortization ( 126 )

Share-based Compensation

Gain on Sale of Business

Restructuring Charges ( 40 )

Other Charges, Net ( 16 )

Operating Income $ 379

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

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

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

(Dollars in millions) 2026 2025 2026 2025

Depreciation and Amortization:

$ 23 $ 21 $ 46 $ 40

Corporate and Other

4 unchanged sentences

Total Capital Expenditures $ 42 $ 54 $ 96 $ 131

(Dollars in millions) March 31, 2026 December 31, 2025

(Dollars in millions) June 30, 2026 December 31, 2025

Total Assets:

3 unchanged sentences

PP&E, Net and Operating Lease Assets by Geographic Area

As of March 31, 2026 and December 31, 2025, the U.S.

accounted for 22 % and 23 %, respectively, and the Kingdom of Saudi Arabia accounted for 13 % in each period, of our PP&E, Net and operating lease assets identifiable by geography.

No other country accounted for more than 10% of our PP&E, Net and operating lease assets identifiable by geography as of March 31, 2026 and December 31, 2025.

We had no PP&E, Net and operating lease assets in our country of domicile (Ireland) as of March 31, 2026 and December 31, 2025.

(Dollars in millions) March 31, 2026 December 31, 2025

As of June 30, 2026 and December 31, 2025, the U.S.

accounted for 22 % and 23 %, respectively, and the Kingdom of Saudi Arabia accounted for 13 % at each period, of our PP&E, Net and operating lease assets identifiable by geography.

No other country accounted for more than 10% of our PP&E, Net and operating lease assets identifiable by geography as of June 30, 2026 and December 31, 2025.

We had no PP&E, Net and operating lease assets in our country of domicile (Ireland) as of June 30, 2026 and December 31, 2025.

(Dollars in millions) June 30, 2026 December 31, 2025

North America (a)

8 unchanged sentences

The following table disaggregates our revenue from contracts with customers by geographic area and includes equipment rental revenue.

Equipment rental revenues were $ 18 million in the three months ended March 31, 2026, and $ 35 million for the three months ended March 31, 2025.

During the three months ended March 31, 2026, the U.S.

and the Kingdom of Saudi Arabia accounted for 13 % and 10 % of total revenue, respectively.

During the three months ended March 31, 2025, the U.S.

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

Equipment rental revenues were $ 22 million and $ 40 million in the three and six months ended June 30, 2026, respectively, and $ 32 million and $ 67 million for the three and six months ended June 30, 2025, respectively.

During the three and six months ended June 30, 2026, the U.S.

accounted for 15 % and 14 % of total revenue, respectively.

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

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

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

Three Months Ended March 31,

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

(Dollars in millions) 2026 2025 2026 2025

1 unchanged sentence

North America (a)

$ 205 $ 241 $ 425 $ 491

International

900 963 1,832 1,906

Middle East/North Africa/Asia 446 524 922 1,027

6 unchanged sentences

The timing of our revenue recognition, billings, and cash collections results in the recording of accounts receivable, contract assets, and contract liabilities.

The following table summarizes these balances as of March 31, 2026 and December 31, 2025:

(Dollars in millions) March 31, 2026 December 31, 2025

Receivables for Product and Services in Accounts Receivable, Net $ 1,142 $ 1,209

The following table summarizes these balances as of June 30, 2026 and December 31, 2025:

(Dollars in millions) June 30, 2026 December 31, 2025

Receivables for Products and Services in Accounts Receivable, Net $ 1,083 $ 1,209

Receivables for Equipment Rentals in Account Receivable, Net $ 21 $ 25

5 unchanged sentences

4 – Restructuring Charges

Restructuring charges were $ 13 million and $ 29 million in the three months ended March 31, 2026 and March 31, 2025, respectively, and are presented as “Restructuring Charges” on the accompanying Condensed Consolidated Statements of Operations.

Restructuring charges were $ 9 million and $ 22 million in the three and six months ended June 30, 2026, respectively, and $ 11 million and $ 40 million in the three and six months ended June 30, 2025, respectively, and are presented as “Restructuring Charges” on the accompanying Condensed Consolidated Statements of Operations.

These charges were related to optimization and efficiency initiatives throughout the organization and primarily relate to severance expenses.

Restructuring liabilities were $ 24 million as of March 31, 2026 and $ 22 million as of December 31, 2025, respectively.

Of the restructuring liabilities, $ 21 million and $ 19 million are recorded in “Other Current Liabilities” on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively.

The remaining $ 3 million at both March 31, 2026 and December 31, 2025 is recorded in “Other Non-Current Liabilities” on the accompanying Consolidated Balance Sheets.

Restructuring liabilities were $ 20 million as of June 30, 2026 and $ 22 million as of December 31, 2025, respectively.

Of the restructuring liabilities, $ 17 million and $ 19 million are recorded in “Other Current Liabilities” on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively.

The remaining $ 3 million is recorded in “Other Non-Current Liabilities” on the accompanying Condensed Consolidated Balance Sheets as of both June 30, 2026 and December 31, 2025, respectively.

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

The following table presents total restructuring charges by segment and Corporate and Other in the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

The following table presents total restructuring charges by segment and Corporate and Other in the three and six months ended June 30, 2026 and 2025:

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

(Dollars in millions) 2026 2025 2026 2025

DRE $ 2 $ 1 $ 4 $ 9

Corporate and Other

1 unchanged sentence

5 – Inventories, Net

Inventories are reported net of reserves of $ 124 million and $ 118 million as of March 31, 2026 and December 31, 2025, respectively, and are presented by category in the table below:

(Dollars in millions) March 31, 2026 December 31, 2025

Inventories are reported net of reserves of $ 125 million and $ 118 million as of June 30, 2026 and December 31, 2025, respectively, and are presented by category in the table below:

(Dollars in millions) June 30, 2026 December 31, 2025

Finished Goods $ 711 $ 742

2 unchanged sentences

The change in inventory reserves includes inventory charges, primarily offset by the disposal of inventory previously reserved.

The charges are recorded in “Cost of Products” on our Condensed Consolidated Statements of Operations in the amount of $ 11 million and $ 5 million during the three months ended March 31, 2026 and March 31, 2025, respectively.

The charges are recorded in “Cost of Products” on our Condensed Consolidated Statements of Operations in the amount of $ 10 million and $ 21 million in the three and six months ended June 30, 2026, respectively, and $ 9 million and $ 14 million during the three and six months ended June 30, 2025, respectively.

6 – Intangibles, Net

The components of intangible assets, net were as follows:

(Dollars in millions) March 31, 2026 December 31, 2025

Developed and Acquired Technology, Net of Accumulated Amortization of $ 589 at March 31, 2026 and $ 586 at December 31, 2025

Trade Names, Net of Accumulated Amortization of $ 253 at March 31, 2026 and $ 242 at December 31, 2025

Intangibles, Net of Accumulated Amortization of $ 842 at March 31, 2026 and $ 828 at December 31, 2025

Amortization expense was $ 15 million and $ 14 million for the three months ended March 31, 2026, and March 31, 2025, respectively, and is reported in “Selling, General and Administrative” on our Condensed Consolidated Statements of Operations.

(Dollars in millions) June 30, 2026 December 31, 2025

Developed and Acquired Technology, Net of Accumulated Amortization of $ 595 at June 30, 2026 and $ 586 at December 31, 2025

Trade Names, Net of Accumulated Amortization of $ 263 at June 30, 2026 and $ 242 at December 31, 2025

Intangibles, Net of Accumulated Amortization of $ 858 at June 30, 2026 and $ 828 at December 31, 2025

Amortization expense was $ 16 million and $ 31 million in the three and six months ended June 30, 2026, respectively, and $ 15 million and $ 29 million in the three and six months ended June 30, 2025, respectively, and is reported in “Selling, General and Administrative” on our Condensed Consolidated Statements of Operations.

7 – Borrowings and Other Debt Obligations

(Dollars in millions) March 31, 2026 December 31, 2025

(Dollars in millions) June 30, 2026 December 31, 2025

Current Portion of Finance Leases $ 30 $ 30

10 unchanged sentences

On December 1, 2022, the indenture related to our 2030 Senior Notes was amended and supplemented to add Weatherford International, LLC (now Weatherford US Holding, LLC following a name change effective March 19, 2026, “Weatherford Delaware”) as co-issuer and co-obligor, and concurrently release the guarantee of Weatherford Delaware.

At March 31, 2026 and December 31, 2025, the carrying value represented the remaining unpaid principal of $ 236 million, offset by unamortized deferred issuance cost of $ 2 million.

At June 30, 2026 and December 31, 2025, the carrying value represented the remaining unpaid principal of $ 236 million, offset by unamortized deferred issuance cost of $ 2 million.

2033 Senior Notes

2 unchanged sentences

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 March 31, 2026 and December 31, 2025, the carrying value represented the remaining unpaid principal of $ 1.2 billion, offset by unamortized deferred issuance cost of $ 19 million.

At June 30, 2026, the carrying value represents the remaining unpaid principal of $ 1.2 billion, offset by unamortized deferred issuance cost of $ 18 million.

At December 31, 2025, the carrying value represented the remaining unpaid principal of $ 1.2 billion, offset by unamortized deferred issuance cost of $ 19 million.

Credit Agreement

2 unchanged sentences

The Credit Agreement is guaranteed by the Company and certain of our subsidiaries and secured by substantially all of the personal property of the Company and those subsidiaries.

At March 31, 2026 and 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 2030 Senior Notes or any Permitted Refinancing Indebtedness in respect thereof.

At June 30, 2026 and December 31, 2025, the Credit Agreement allowed for a total commitment amount of $ 1 billion, maturing on the date that occurs first:

(a) September 18, 2030 or (b) if more than $ 200 million of the 2030 Senior Notes remain outstanding, the date that is 91 days before the maturity of those notes.

Financial covenants in the Credit Agreement include a $ 250 million minimum liquidity covenant (which may increase up to $ 400 million dependent on the nature of transactions we may decide to enter into), a minimum interest coverage ratio of 2.50 to 1.00, a maximum total net leverage ratio of 3.50 to 1.00, and a maximum secured net leverage ratio of 1.50 to 1.00.

As of March 31, 2026, under the Credit Agreement we had zero borrowings, $ 7 million in financial letters of credit and $ 257 million in performance letters of credit outstanding.

Additionally as of March 31, 2026, we had $ 193 million letters of credit under various uncommitted bi-lateral facilities ($ 32 million of which was cash collateral held and recorded in “Restricted Cash” on the Condensed Consolidated Balance Sheets).

As of June 30, 2026, under the Credit Agreement we had zero borrowings, $ 4 million in financial letters of credit and $ 243 million in performance letters of credit outstanding.

Additionally as of June 30, 2026, we had $ 233 million letters of credit under various uncommitted bi-lateral facilities ($ 32 million of which was cash collateral held and recorded in “Restricted Cash” on the Condensed Consolidated Balance Sheets).

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.

4 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

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

10 unchanged sentences

9 – Shareholders’ Equity

Shares issued and outstanding on our Condensed Consolidated Balance Sheets increased from 71.6 million as of December 31, 2025 to 71.9 million as of March 31, 2026.

Shares issued and outstanding on our Condensed Consolidated Balance Sheets increased from 71.6 million as of December 31, 2025 to 71.8 million as of June 30, 2026.

The increase was due to the issuance of 0.4 million of our ordinary shares for equity awards vested and delivered, net of shares withheld for taxes, partially offset by the cancellation of 0.2 million of our ordinary shares repurchased for $ 26 million.

During the three months ended March 31, 2026, we declared and paid $ 20 million in dividends and accrued an immaterial amount of dividend equivalent rights on share-based awards.

The following summarizes our shareholders’ equity activity for the three months ended March 31, 2026 and 2025:

During the six months ended June 30, 2026, we declared and paid $ 40 million in dividends and accrued an immaterial amount of dividend equivalent rights on share-based awards.

The following summarizes our shareholders’ equity activity for the three and six months ended June 30, 2026 and 2025:

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

14 unchanged sentences

71.9 $ — $ 2,799 $ ( 1,041 ) $ — $ 1 $ 1,759

Net Income — — — 39 — 3 42

Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes — — 11 — — — 11

Share Repurchases ( 0.1 ) — ( 16 ) — — — ( 16 )

Dividends Declared ($ 0.275 per share) (1)

— — — ( 20 ) — — ( 20 )

Distributions to Noncontrolling Interests

— — — — — ( 5 ) ( 5 )

Other Comprehensive Income — — — — 16 — 16

— — — — — 2 2

Balance at June 30, 2026

71.8 $ — $ 2,794 $ ( 1,022 ) $ 16 $ 1 $ 1,789

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

1 unchanged sentence

Capital In Excess of Par Value Retained Deficit

Comprehensive

Comprehensive Income (Loss)

Non-controlling Interests Total Shareholders’ Equity

1 unchanged sentence

— — — 76 — 10 86

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

7 unchanged sentences

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

— — — 136 — 9 145

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

— — 10 — — — 10

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

Dividends Declared ($ 0.25 per share) (1)

— — — ( 19 ) — — ( 19 )

Distributions to Noncontrolling Interests

— — — — — ( 8 ) ( 8 )

Other Comprehensive Income

— — — — 65 — 65

Balance at June 30, 2025 71.8 $ — $ 2,810 $ ( 1,311 ) $ 11 $ 9 $ 1,519

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

The following table presents the changes in our accumulated other comprehensive income (loss) by component for the three months ended March 31, 2026 and 2025:

The following table presents the changes in our accumulated other comprehensive income (loss) by component for the six months ended June 30, 2026 and 2025:

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

1 unchanged sentence

$ 1 $ 12 $ 13

Other Comprehensive Loss ( 13 ) — ( 13 )

Balance at March 31, 2026

Other Comprehensive Income 3 — 3

Balance at June 30, 2026

$ 4 $ 12 $ 16

2 unchanged sentences

Other Comprehensive Income 161 — 161

Balance at March 31, 2025

$ ( 60 ) $ 6 $ ( 54 )

Balance at June 30, 2025

10 – Income per Share

A reconciliation of the number of shares used for the basic and diluted income per share calculation was as follows:

Three Months Ended March 31,

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

(Dollars and shares in millions, except per share amounts) 2026 2025 2026 2025

2 unchanged sentences

Dilutive Effect of Awards Granted in Stock Incentive Plan

0.3 0.2 0.3 0.2

Diluted Weighted Average Shares Outstanding 72.2 72.4 72.2 72.9

5 unchanged sentences

Total Antidilutive Weighted Average Shares

0.4 0.7 0.3 0.6

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

2 unchanged sentences

11 – Income Taxes

We recognized a tax benefit of $ 4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025 where we recognized a tax expense of $ 10 million.

Income tax expense was lower in the three months ended March 31, 2026 compared to the first quarter of 2025 primarily due to increased recognition of benefits from previously uncertain tax positions.

The recognized amounts for first quarters of 2026 and 2025 were $ 44 million and $ 26 million, respectively.

We recognized a tax expense of $ 33 million and $ 29 million for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025 where we recognized a tax expense of $ 46 million and $ 56 million, respectively.

Income tax expense was lower in the three months ended June 30, 2026 compared to the same period in 2025 primarily due to decreased earnings before taxes.

Income tax expense was lower in the six months ended June 30, 2026 compared with the corresponding period in 2025 primarily due to decreased earnings before taxes and increased recognition of benefits from previously uncertain tax positions.

The recognized benefit amounts for the first quarters of 2026 and 2025 were $ 44 million and $ 26 million, respectively.

We calculate our income tax provision using the estimated annual effective tax rate method in accordance with Accounting Standards Codification “ASC” 740 - Income Taxes.

7 unchanged sentences

Declaration of cash dividend

On April 16, 2026, our Board of Directors declared a cash dividend of $ 0.275 per share of the Company’s ordinary shares, payable on June 4, 2026 to shareholders of record as of May 6, 2026.

On July 16, 2026, our Board of Directors declared a cash dividend of $ 0.275 per share of the Company’s ordinary shares, payable on September 3, 2026 to shareholders of record as of August 6, 2026.

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

What changed 10-Q

Item 1. Financial Statements