Weatherford International (WFRD.N): 4q Still Bears Risk, But Multiple Growth Drivers Support 2027 Upside

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Weatherford International (WFRD.N): 4q Still Bears Risk, But Multiple Growth Drivers Support 2027 Upside

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22 Jul 2026 19:59:25 ET │ 11 pages

Weatherford International (WFRD.N)

4q Still Bears Risk, But Multiple Growth Drivers Support 2027 Upside

CITI'S TAKE

Poor sentiment on WFRD entering earnings set a low bar and with guidance

that was in-line on 3q and only modestly better in 4q, the stock jumped

4.5% today. A desire for a more conservative guide for 4q regarding Middle Buy

East recovery (approaching normal embedded) likely contributed to the Price (22 Jul 26 16:00) US$87.08

midday pullback. That said, Latin America and N. America both appear

Target price US$115.00poised for robust growth in 2H. While WFRD’s stock will likely still be

influenced by the Middle East risk profile, there are underlying growth Expected share price return 32.1%

drivers, including numerous offshore MPD contracts. We agree that a lower Expected dividend yield 1.1%

4q guide would have derisked the estimate achievability path. However, we

Expected total return 33.2%think the market will soon be largely looking toward 2027 where WFRD

should deliver underlying growth, aided by the NCSM acquisition and Market Cap US$6,247M

savings from their redomestication. With the stock trading at sub 6x 2027

on our new estimates, we still see strong upside ahead.

Model Update — We tweak our 3q EBITDA estimate slightly higher to $241mm, Price Performance

adjusted at $253mm, compared to FactSet consensus at $248mm. We raise 4q (RIC: WFRD.N, BB: WFRD US)

EBITDA by 5% to $275mm, or adjusted at $287mm, in-line with consensus but

about $5mm below implied guidance based upon some conservatism toward the

pace of Middle East recovery. We estimate that revenues expand ~10% next year