Item 1. Financial Statements
Item 1. Financial Statements.
WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
(Dollars and shares in millions, except per share amounts) 2026 2025 2026 2025
Revenue:
Services $ 676 $ 732 $ 1,387 $ 1,473
Products 429 472 870 924
Total Revenue
1,105 1,204 2,257 2,397
Costs and Expenses:
Cost of Services 443 464 919 928
Cost of Products 329 365 665 720
Research and Development 20 30 41 59
Selling, General and Administrative 172 164 340 325
Gain on Sale of Business — ( 70 ) — ( 70 )
Restructuring Charges
9 11 22 40
Other Charges, Net
25 3 40 16
Total Costs and Expenses 998 967 2,027 2,018
Operating Income 107 237 230 379
Other Expense:
Interest Expense, Net of Interest Income of $ 11 , $ 14 , $ 21 and $ 25
( 16 ) ( 21 ) ( 33 ) ( 47 )
Other Expense, Net ( 16 ) ( 25 ) ( 17 ) ( 45 )
Income Before Income Taxes 75 191 180 287
Income Tax Provision ( 33 ) ( 46 ) ( 29 ) ( 56 )
Net Income 42 145 151 231
Net Income Attributable to Noncontrolling Interests 3 9 4 19
Net Income Attributable to Weatherford $ 39 $ 136 $ 147 $ 212
Basic Income per Share $ 0.55 $ 1.87 $ 2.05 $ 2.91
Basic Weighted Average Shares Outstanding 71.9 72.2 71.9 72.7
Diluted Income per Share $ 0.55 $ 1.87 $ 2.04 $ 2.90
Diluted Weighted Average Shares Outstanding 72.2 72.4 72.2 72.9
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in millions) 2026
2025
2026 2025
Net Income $ 42 $ 145 $ 151 $ 231
Foreign Currency Translation Adjustments 16 65 3 161
Comprehensive Income 58 210 154 392
Comprehensive Income Attributable to Noncontrolling Interests
3 9 4 19
Comprehensive Income Attributable to Weatherford
$ 55 $ 201 $ 150 $ 373
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars and shares in millions, except par value) June 30, 2026
December 31, 2025
(Unaudited)
Assets:
Cash and Cash Equivalents $ 1,100 $ 987
Restricted Cash 37 55
Accounts Receivable, Net of Allowance for Credit Losses of $ 12 at June 30, 2026 and $ 10 at December 31, 2025
1,104 1,234
Inventories, Net 811 836
Other Current Assets 246 260
Total Current Assets 3,298 3,372
Property, Plant and Equipment, Net of Accumulated Depreciation of $ 1,220 at June 30, 2026 and $ 1,150 at December 31, 2025
1,131 1,124
Intangibles, Net of Accumulated Amortization of $ 858 at June 30, 2026 and $ 828 at December 31, 2025
265 285
Operating Lease Assets 118 128
Other Non-Current Assets 290 288
Total Assets $ 5,102 $ 5,197
Liabilities:
Current Portion of Long-term Debt $ 30 $ 30
Accounts Payable 625 650
Accrued Salaries and Benefits 241 285
Income Taxes Payable 95 129
Current Portion of Operating Lease Liabilities 42 48
Other Current Liabilities 374 395
Total Current Liabilities 1,407 1,537
Long-term Debt 1,450 1,455
Operating Lease Liabilities 100 109
Non-current Taxes Payable 217 242
Other Non-Current Liabilities 139 158
Total Liabilities $ 3,313 $ 3,501
Shareholders’ Equity:
Ordinary Shares - Par Value $ 0.001 ; 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
Retained Deficit ( 1,022 ) ( 1,129 )
Accumulated Other Comprehensive Income 16 13
Shareholders’ Equity
1,788 1,699
Noncontrolling Interests 1 ( 3 )
Total Shareholders’ Equity 1,789 1,696
Total Liabilities and Shareholders’ Equity $ 5,102 $ 5,197
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30,
(Dollars in millions) 2026 2025
Cash Flows From Operating Activities:
Net Income $ 151 $ 231
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization 141 126
Foreign Exchange Losses 6 30
Gain on Disposition of Assets
( 13 ) ( 4 )
Gain on Sale of Business
— ( 70 )
Deferred Income Tax Provision 9 2
Share-Based Compensation 23 16
Changes in Accounts Receivable, Inventory, Accounts Payable, Accrued Salaries and Benefits and Income Taxes Payable:
Accounts Receivable 143 132
Inventories ( 3 ) ( 7 )
Accounts Payable
( 28 ) ( 107 )
Accrued Salaries and Benefits
( 44 ) ( 57 )
Income Taxes Payable ( 30 ) ( 8 )
Other Changes, Net ( 44 ) ( 14 )
Net Cash Provided by Operating Activities 311 270
Cash Flows From Investing Activities:
Capital Expenditures for Property, Plant and Equipment ( 96 ) ( 131 )
Proceeds from Disposition of Assets 9 6
Proceeds from Sale of Business
— 97
Purchases of Blue Chip Swap Securities
( 14 ) ( 83 )
Proceeds from Sales of Blue Chip Swap Securities
14 82
Other Investing Activities
( 23 ) ( 7 )
Net Cash Used in Investing Activities ( 110 ) ( 36 )
Cash Flows From Financing Activities:
Repayments of Long-term Debt
( 17 ) ( 73 )
Distributions to Noncontrolling Interests
( 5 ) ( 8 )
Tax Remittance on Equity Awards Vested ( 18 ) ( 20 )
Share Repurchases
( 26 ) ( 87 )
Dividends Paid
( 40 ) ( 36 )
Other Financing Activities 1 ( 6 )
Net Cash Used in Financing Activities ( 105 ) ( 230 )
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash ( 1 ) 24
Net Increase in Cash, Cash Equivalents and Restricted Cash 95 28
Cash, Cash Equivalents and Restricted Cash at Beginning of Period 1,042 975
Cash, Cash Equivalents and Restricted Cash at End of Period $ 1,137 $ 1,003
Supplemental Cash Flow Information:
Interest Paid $ 55 $ 70
Income Taxes Paid, Net of Refunds $ 82 $ 86
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1 – Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements of Weatherford International plc (the “Company,” “Weatherford,” “we,” “us,” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”).
The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates.
In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments, 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. Under this basis, our financial statements consolidate all wholly owned subsidiaries and controlled joint ventures. All intercompany accounts and transactions have been eliminated.
Summary of Significant Accounting Policies
Please refer to “Note 1 – Summary of Significant Accounting Policies” of our Consolidated Financial Statements from our 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
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 accounting pronouncements that have been issued but not yet effective for the interim periods presented that are not expected to have a material impact on our financial position or results of operations.
Evaluations of all other new accounting pronouncements that have been issued, but not yet effective are on-going, and at this time are not expected to have a material impact on our Condensed Consolidated Financial Statements.
2 – Segment Information
Financial information by segment is summarized below. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as presented in our 2025 Form 10-K. We have three reportable segments: (1) Drilling and Evaluation “DRE,” (2) Well Construction and Completions “WCC,” and (3) Production and Intervention “PRI.”
The Company’s chief operating decision maker (“CODM”), our chief executive officer, uses segment adjusted EBITDA to measure the profitability of each segment. The regularly reviewed historical, current and forecasted segment adjusted EBITDA data is utilized by the CODM to allocate Company resources. The CODM also uses segment adjusted EBITDA to drive efficiencies and develop competitive strategies. Segment adjusted EBITDA is based on segment earnings before interest, taxes, depreciation, amortization, share-based compensation expense and other adjustments. All Other includes results from non-core business activities (including integrated services and projects), and Corporate 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.
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Three Months Ended June 30, 2026
Reportable Segments All
(Dollars in millions) DRE
WCC
PRI
Other Total
Revenue $ 291 $ 433 $ 316 $ 65 $ 1,105
Direct Costs (a)
( 192 ) ( 272 ) ( 206 )
Other Expense (b)
( 41 ) ( 54 ) ( 40 )
DRE Segment Adjusted EBITDA 58 58
WCC Segment Adjusted EBITDA 107 107
PRI Segment Adjusted EBITDA 70 70
All Other 6
Corporate Costs ( 18 )
Depreciation and Amortization ( 71 )
Share-based Compensation
( 11 )
Restructuring Charges
( 9 )
Other Charges, Net
( 25 )
Operating Income $ 107
(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, 2026
Reportable Segments All
(Dollars in millions) DRE
WCC
PRI
Other Total
Revenue $ 612 $ 876 $ 612 $ 157 $ 2,257
Direct Costs (a)
( 396 ) ( 548 ) ( 409 )
Other Expense (b)
( 86 ) ( 111 ) ( 79 )
DRE Segment Adjusted EBITDA 130 130
WCC Segment Adjusted EBITDA 217 217
PRI Segment Adjusted EBITDA 124 124
All Other 19
Corporate Costs ( 34 )
Depreciation and Amortization ( 141 )
Share-based Compensation
( 23 )
Restructuring Charges
( 22 )
Other Charges, Net
( 40 )
Operating Income $ 230
(a) Segment cost of sales and direct operating costs.
(b) Segment selling, general and administrative and research and development costs .
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Three Months Ended June 30, 2025
Reportable Segments All
(Dollars in millions) DRE
WCC
PRI
Other Total
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
All Other 19
Corporate Costs ( 15 )
Depreciation and Amortization ( 64 )
Share-based Compensation ( 9 )
Gain on Sale of Business
70
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
WCC
PRI
Other Total
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
All Other 23
Corporate Costs ( 30 )
Depreciation and Amortization ( 126 )
Share-based Compensation
( 16 )
Gain on Sale of Business
70
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 .
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Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions) 2026 2025 2026 2025
Depreciation and Amortization:
DRE
$ 23 $ 21 $ 46 $ 40
WCC
12 12 24 24
PRI
22 18 46 36
Corporate and Other
14 13 25 26
Total Depreciation and Amortization $ 71 $ 64 $ 141 $ 126
Capital Expenditures:
DRE $ 16 $ 25 $ 35 $ 50
WCC
13 8 24 16
PRI
5 15 10 46
Corporate and Other 8 6 27 19
Total Capital Expenditures $ 42 $ 54 $ 96 $ 131
(Dollars in millions) June 30, 2026 December 31, 2025
Total Assets:
DRE
$ 935 $ 931
WCC
995 1,055
PRI
790 771
Corporate and Other (a)
2,382 2,440
Total $ 5,102 $ 5,197
(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 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)
$ 299 $ 314
Latin America 139 153
Middle East/North Africa/Asia 494 507
Europe/Sub-Sahara Africa/Russia 240 231
PP&E, Net and Operating Lease Assets by Geography (b)
$ 1,172 $ 1,205
(a) North America consists of the U.S. and Canada.
(b) Corporate assets not allocated by geography are excluded from this total.
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3 – Revenue
Disaggregated Revenue
The following table disaggregates our revenue from contracts with customers by geographic area and includes equipment rental revenue. Equipment rental revenues were $ 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 June 30, Six Months Ended June 30,
(Dollars in millions) 2026 2025 2026 2025
Revenue by Geographic Areas:
North America (a)
$ 205 $ 241 $ 425 $ 491
International
900 963 1,832 1,906
Middle East/North Africa/Asia 446 524 922 1,027
Latin America 197 195 420 436
Europe/Sub-Sahara Africa/Russia 257 244 490 443
Total Revenue
$ 1,105 $ 1,204 $ 2,257 $ 2,397
(a) North America consists of the U.S. and Canada.
Contract Balances
The timing of our revenue recognition, billings, and cash collections results in the recording of accounts receivable, contract assets, and contract liabilities. The following table summarizes these balances as of 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
Accounts Receivable, Net $ 1,104 $ 1,234
Contract Assets in Other Current Assets $ 85 $ 71
Contract Assets in Other Non-Current Assets $ 30 $ 32
Contract Liabilities in Other Current Liabilities $ 60 $ 48
Contract Liabilities in Other Non-Current Liabilities $ 2 $ 2
4 – Restructuring Charges
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.
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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 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
WCC 5 1 6 8
PRI 2 — 5 8
Corporate and Other
— 9 7 15
Total Restructuring Charges $ 9 $ 11 $ 22 $ 40
5 – Inventories, Net
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
Work in Process and Raw Materials, Components and Supplies 100 94
Inventories, Net $ 811 $ 836
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 $ 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.
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6 – Intangibles, Net
The components of intangible assets, net were as follows:
(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
$ 119 $ 118
Trade Names, Net of Accumulated Amortization of $ 263 at June 30, 2026 and $ 242 at December 31, 2025
146 167
Intangibles, Net of Accumulated Amortization of $ 858 at June 30, 2026 and $ 828 at December 31, 2025
$ 265 $ 285
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) June 30, 2026 December 31, 2025
Current Portion of Finance Leases $ 30 $ 30
Current Portion of Long-term Debt $ 30 $ 30
6.75 % Senior Notes due 2033 “2033 Senior Notes”
$ 1,182 $ 1,181
8.625 % Senior Notes due 2030 “2030 Senior Notes”
234 234
Finance Leases
34 40
Long-term Debt $ 1,450 $ 1,455
2030 Senior Notes
On October 27, 2021, Weatherford International Ltd. (“Weatherford Bermuda”) issued 8.625 % senior notes in aggregate principal amount of $ 1.6 billion maturing April 30, 2030 (the “2030 Senior Notes”). Interest on the 2030 Senior Notes is payable semiannually on June 1 and December 1 of each year, and commenced on June 1, 2022. On December 1, 2022, the indenture related to our 2030 Senior Notes was amended and supplemented to add Weatherford International, LLC (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 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
On October 6, 2025, Weatherford Bermuda issued 6.75 % senior notes in aggregate principal amount of $ 1.2 billion maturing on October 15, 2033 (the “2033 Senior Notes”). Interest on the 2033 Senior Notes is payable semiannually on April 15th and October 15th of each year, beginning on April 15, 2026. 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 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.
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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 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 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. Additionally as of December 31, 2025, we had $ 207 million of letters of credit under various uncommitted bi-lateral facilities ($ 47 million of which was cash collateral held and recorded in “Restricted Cash” on the Condensed Consolidated Balance Sheets).
Fair Value
The fair value of our long-term debt fluctuates with changes in applicable interest rates among other factors. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued and will be less than the carrying value when the market rate is greater than the interest rate at which the debt was originally issued. The fair value of our long-term debt is classified as Level 2 in the fair value hierarchy and is established based on observable inputs in less active markets. The table below presents the fair value and carrying value of our long-term debt (excluding finance leases).
June 30, 2026 December 31, 2025
(Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value
8.625 % Senior Notes due 2030
$ 234 $ 238 $ 234 $ 242
6.75 % Senior Notes due 2033
$ 1,182 $ 1,225 $ 1,181 $ 1,226
Long-Term Debt (excluding Finance Leases) $ 1,416 $ 1,463 $ 1,415 $ 1,468
8 – Disputes, Litigation and Legal Contingencies
We are subject to lawsuits and claims arising out of the nature of our business. We have certain claims, disputes and pending litigation for which we do not believe a negative outcome is probable or for which we can only estimate a range of liability. It is possible, however, that an unexpected judgment could be rendered against us, or we could decide to resolve a case or cases, which would result in a liability that could be uninsured and beyond the amounts we currently have reserved and in some cases those losses could be material. If one or more negative outcomes were to occur relative to these cases, the aggregate impact to our financial condition could be material.
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9 – Shareholders’ Equity
Shares issued and outstanding on our Condensed Consolidated Balance Sheets increased from 71.6 million as of December 31, 2025 to 71.8 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 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
Deficit Accumulated
Other
Comprehensive Income (Loss)
Non-controlling Interests
Total Shareholders’ Equity
Balance at December 31, 2025
71.6 $ — $ 2,815 $ ( 1,129 ) $ 13 $ ( 3 ) $ 1,696
Net Income — — — 108 — 1 109
Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes 0.4 — ( 6 ) — — — ( 6 )
Share Repurchases ( 0.1 ) — ( 10 ) — — — ( 10 )
Dividends Declared ($ 0.275 per share) (1)
— — — ( 20 ) — — ( 20 )
Other Comprehensive Loss — — — — ( 13 ) — ( 13 )
Other
— — — — — 3 3
Balance at March 31, 2026
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
Other
— — — — — 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.
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(Dollars in millions) Ordinary Shares
Par Value
Capital In Excess of Par Value Retained Deficit
Accumulated
Other
Comprehensive Income (Loss)
Non-controlling Interests Total Shareholders’ Equity
Balance at December 31, 2024 72.1 $ — $ 2,921 $ ( 1,486 ) $ ( 150 ) $ ( 2 ) $ 1,283
Net Income
— — — 76 — 10 86
Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes
1.3 — ( 34 ) — — — ( 34 )
Share Repurchases ( 0.8 ) — ( 53 ) — — — ( 53 )
Dividends Declared ($ 0.25 per share) (1)
— — — ( 18 ) — — ( 18 )
Other Comprehensive Income
— — — — 96 — 96
Balance at March 31, 2025
72.6 $ — $ 2,834 $ ( 1,428 ) $ ( 54 ) $ 8 $ 1,360
Net Income
— — — 136 — 9 145
Equity Awards, Granted and Vested, Net of Shares Withheld for Taxes
— — 10 — — — 10
Share Repurchases ( 0.8 ) — ( 34 ) — — — ( 34 )
Dividends Declared ($ 0.25 per share) (1)
— — — ( 19 ) — — ( 19 )
Distributions to Noncontrolling Interests
— — — — — ( 8 ) ( 8 )
Other Comprehensive Income
— — — — 65 — 65
Balance at June 30, 2025 71.8 $ — $ 2,810 $ ( 1,311 ) $ 11 $ 9 $ 1,519
(1) Includes dividend equivalent rights on share-based awards.
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
Balance at December 31, 2025
$ 1 $ 12 $ 13
Other Comprehensive Income 3 — 3
Balance at June 30, 2026
$ 4 $ 12 $ 16
Balance at December 31, 2024
$ ( 156 ) $ 6 $ ( 150 )
Other Comprehensive Income 161 — 161
Balance at June 30, 2025
$ 5 $ 6 $ 11
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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 June 30, Six Months Ended June 30,
(Dollars and shares in millions, except per share amounts) 2026 2025 2026 2025
Net Income Attributable to Weatherford $ 39 $ 136 $ 147 $ 212
Basic Weighted Average Shares Outstanding 71.9 72.2 71.9 72.7
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
Basic Income per Share $ 0.55 $ 1.87 $ 2.05 $ 2.91
Diluted Income per Share
$ 0.55 $ 1.87 $ 2.04 $ 2.90
Antidilutive Weighted Average Shares:
Equity Awards 0.4 0.7 0.3 0.6
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. Diluted income per share is computed by dividing net income available to shareholders by our weighted average shares outstanding during the period including potential dilutive ordinary shares. Anti-dilutive weighted average shares represent securities that could potentially dilute income per share in the future and are excluded from the computation of income per share.
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11 – Income Taxes
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.
The relationship between our pre-tax income or loss and our income tax provision or benefit varies from period to period due to various factors which include changes in total pre-tax income or loss, the jurisdictions in which our income is earned, the tax laws in those jurisdictions and in our operating structure. We provide for income taxes based on the laws and rates in effect in the countries in which operations are conducted, or in which we or our subsidiaries are considered residents for income tax purposes. Our income tax provisions are primarily driven by income in certain jurisdictions and withholding taxes on intercompany and third-party transactions that do not directly correlate to ordinary income or loss. Certain charges and impairments recognized do not result in a significant tax benefit as a result of being attributed to a non-income tax jurisdiction or our inability to forecast realization of the tax benefit of such losses. This is partially offset by the utilization of previously unbenefited deferred tax assets, such as net operating loss carryforwards.
We 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.
12 – Subsequent Events
Declaration of cash dividend
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.
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