Weatherford Q2 2024 Earnings Report
Key Takeaways
Weatherford announced strong Q2 2024 results, with revenues of $1,405 million, a 10% increase year-over-year. The company also introduced its first-ever shareholder return program, including a $1 annual dividend per share and a $500 million share repurchase program.
Revenues increased 3.5% sequentially and 10% year-over-year, reaching $1,405 million.
Operating income rose by 13% sequentially and 31% year-over-year, totaling $264 million.
Net income increased by 12% sequentially and 52% year-over-year, resulting in $125 million.
The company launched a shareholder return program with a $1 annual dividend and a $500 million share repurchase program.
Weatherford
Weatherford
Weatherford Revenue by Segment
Weatherford Revenue by Geographic Location
Forward Guidance
The second half of the year is poised to deliver mid-single digits sequential revenue growth over the first half, with total year adjusted EBITDA margins expected to be slightly north of 25%. Second half adjusted free cash flow is expected to be materially higher than the first, reaffirming our expectation of adjusted free cash flow of over $500 million for the year.
Positive Outlook
- Mid-single digits sequential revenue growth expected in the second half of the year.
- Total year adjusted EBITDA margins expected to be slightly north of 25%.
- Second half adjusted free cash flow is expected to be materially higher than the first.
- Adjusted free cash flow expected to be over $500 million for the year.
- Continued strength in international and offshore activity, spearheaded by the Middle East/North Africa/Asia region.
Challenges Ahead
- Weather events caused revenue headwinds.
- Social unrest in Colombia led to reduced activity.
- Timing shifts in activity in some regions impacted revenue.
- Potential for global political disturbances, war, and terrorist attacks.
- Risks associated with climate change, environmental, social and governance initiatives.