Weatherford International (WFRD) risk factors, FY2025 10-K

Weatherford International's FY2025 10-K, filed Feb 04, 2026, lists 30 risk factors in 3 groups. Against the prior year's 30: 5 new, 5 dropped, 11 substantially reworded.

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Risk factors listed
303 groups
New this year
5vs 30 last year
Dropped
5since the prior 10-K
Substantially reworded
11of those kept
Section length
9k wordsItem 1A

What the changes say

  • Weatherford added disclosures regarding climate and ESG capital constraints, tariffs, indemnification insolvency, AI adoption, and ERP implementation risks.

What changed since the prior 10-K

New

  • New

    The imposition and enforcement of stringent greenhouse gas emissions reduction requirements could severely and adversely impact the oil and natural gas industry and therefore significantly reduce the value of our business

    Stricter greenhouse gas rules and negative ESG investor ratings may restrict our capital access and increase litigation and compliance costs.

  • NewBusiness and Operational Risks

    Changes in trade policy and uncertainties related to tariffs could adversely affect our business

    US tariffs and retaliatory trade measures could increase raw material prices, create market uncertainty, and disrupt our operations.

  • NewBusiness and Operational Risks

    Furthermore, the parties from which we seek indemnity may not be solvent, may become bankrupt, may lack resources or insurance to honor their indemnities or may not otherwise be able to satisfy their indemnity obligations to us. The lack of enforceable indemnification could expose us to significant potential losses

    Insolvent indemnitors or uninsured political violence events like war and terrorism could expose us to significant unrecovered asset losses.

  • NewBusiness and Operational Risks

    The business in which we operate is highly competitive and rapidly evolving. Our business may be adversely affected if we fail to make timely investments in new technology, such as artificial intelligence (“AI”), or if we fail to manage such technologies appropriately

    Failing to properly integrate artificial intelligence tools or meet data privacy and cybersecurity standards could harm our business and reputation.

  • NewGeneral Risks

    We have begun a multi-year process of implementing a cloud-based enterprise resource planning (“ERP”) system that will assist with the collection, storage, management and interpretation of data from our business activities to support future growth and to integrate significant processes

    Implementing a multi-year cloud-based ERP system may cause cost overruns, operational disruptions, and internal control deficiencies affecting financial reporting.

Dropped

  • Dropped

    Table of Contents Item 1 | Business

  • Dropped

    Liability claims resulting from catastrophic incidents could have a material adverse effect on our business, financial condition and results of operations

  • DroppedBusiness and Operational Risks

    Failure to make timely investments in technology and to utilize artificial intelligence appropriately and safely could adversely affect our ability to successfully compete with other companies in our industry

    Global supply chain network vulnerabilities and supplier constraints impacting fulfillment and pricing.

  • DroppedGeneral Risks

    Interruptions in the proper functioning of our information systems or other issues with our enterprise resource systems could cause disruption to our operations

  • DroppedGeneral Risks

    If our long-lived assets and other assets are impaired, we may be required to record significant non-cash charges to our earnings

Reworded

  • 100% rewritten

    Table of Contents Item 1 | Business

    Expanded significantly to list detailed macroeconomic and geopolitical factors driving oil and gas supply and demand, replacing a focused hydraulic fracturing regulation warning.

  • 82% rewritten

    Consolidation in our industry may impact our results of operations

    Added specific mention that industry consolidation may lead to the acquisition of primary customers, reducing demand.

  • 79% rewritten

    Severe weather, including extreme weather conditions and unusual wildfires, has in the past, and could in the future, adversely affect our business and results of operations

    Appended a distinct warning regarding liability claims from catastrophic incidents to the severe weather risk factor.

  • 74% rewritten

    sustainable, renewable energy sources and public sentiment around alternatives to oil and natural gas

    Clarified that transition to renewable energy affects customer spending specifically on fossil fuel products and services.

  • 51% rewrittenLegal, Tax and Regulatory Risks

    Changes in tax laws could significantly increase our tax expense and require us to take actions, at potential significant expense, to seek to preserve our current level of tax expense

    Retained substantially identical text regarding U.S. tax legislative proposals following a 2002 foreign reorganization.

  • 48% rewrittenBusiness and Operational Risks

    A pandemic could significantly weaken demand for our products and services and have a substantial negative impact on our business, financial condition, results of operations and cash flows

    Streamlined pandemic risk to emphasize workforce instability, remote work cybersecurity vulnerabilities, and geopolitical tensions.

  • 48% rewritten

    Energy Services Industry Risks

    Retained core energy services industry risks tied to customer capital spending and volatile oil and gas prices.

  • 43% rewrittenBusiness and Operational Risks

    Failure to attract, retain and develop qualified personnel could impede our operations

    Added specific mention of operating in jurisdictions with localization requirements relying on local skilled workers.

  • 36% rewrittenBusiness and Operational Risks

    We may not be fully indemnified against financial losses in all circumstances where damage to or loss of property, personal injury, death or environmental harm occur

  • 33% rewrittenBusiness and Operational Risks

    A concentration of our accounts receivable was related to one customer and significant changes to the demand or health of the customer could adversely impact our consolidated results of operations, financial condition and statements of cashflows

    Was: A concentration of our accounts receivables and revenues were related to one customer and significant changes to the demand or health of the customer could adversely impact our consolidated results of operations, financial condition and statements of cashflows

  • 29% rewrittenBusiness and Operational Risks

    A significant portion of our revenue is derived from our operations outside the U.S., which exposes us to risks inherent in doing business in each of the approximately 75 countries in which we operate

All 30 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Energy Services Industry Risks48% rewritten
  2. 02Table of Contents Item 1 | Business100% rewritten
  3. 03sustainable, renewable energy sources and public sentiment around alternatives to oil and natural gas74% rewritten
  4. 04The imposition and enforcement of stringent greenhouse gas emissions reduction requirements could severely and adversely impact the oil and natural gas industry and therefore significantly reduce the value of our businessNew
  5. 05Failure to effectively and timely address the need to operate more sustainably and with a lower carbon footprint and impact could adversely affect our business, results of operations and cash flows
  6. 06Failure to effectively and timely address the energy transition could materially adversely affect our business, financial condition and results of operations
  7. 07Severe weather, including extreme weather conditions and unusual wildfires, has in the past, and could in the future, adversely affect our business and results of operations79% rewritten
  8. 08Consolidation in our industry may impact our results of operations82% rewritten

Business and Operational Risks

  1. 09A significant portion of our revenue is derived from our operations outside the U.S., which exposes us to risks inherent in doing business in each of the approximately 75 countries in which we operate29% rewritten
  2. 10Changes in trade policy and uncertainties related to tariffs could adversely affect our businessNew
  3. 11A concentration of our accounts receivable was related to one customer and significant changes to the demand or health of the customer could adversely impact our consolidated results of operations, financial condition and statements of cashflows33% rewritten
  4. 12Our business could be negatively affected by cybersecurity incidents and other technology disruptions
  5. 13A pandemic could significantly weaken demand for our products and services and have a substantial negative impact on our business, financial condition, results of operations and cash flows48% rewritten
  6. 14Our operational and financial growth, in part, is dependent upon our ability to meet our liquidity requirements and the adequacy of our capital resources
  7. 15Changes in economic and/or market conditions such as the condition of capital and equity markets may impact the price of our ordinary shares and our ability to borrow. Furthermore, if our credit rating is downgraded, it could increase our cost of borrowing
  8. 16We may not be fully indemnified against financial losses in all circumstances where damage to or loss of property, personal injury, death or environmental harm occur36% rewritten
  9. 17Furthermore, the parties from which we seek indemnity may not be solvent, may become bankrupt, may lack resources or insurance to honor their indemnities or may not otherwise be able to satisfy their indemnity obligations to us. The lack of enforceable indemnification could expose us to significant potential lossesNew
  10. 18Our indebtedness and liabilities could limit cash flow available for our operations, expose us to risks that could adversely affect our business, financial condition and results of operations
  11. 19In the ordinary course of business, we become the subject of various claims and litigation. We maintain liability insurance, which includes insurance against damage to people, property and the environment, in commercially reasonable amounts, subject to self-insured retentions and deductibles
  12. 20The terms of our indebtedness may restrict our current and future operations, particularly our ability to respond to changes or to pursue our business strategies
  13. 21Failure to attract, retain and develop qualified personnel could impede our operations43% rewritten
  14. 22The business in which we operate is highly competitive and rapidly evolving. Our business may be adversely affected if we fail to make timely investments in new technology, such as artificial intelligence (“AI”), or if we fail to manage such technologies appropriatelyNew
  15. 23There may be circumstances that adversely affect our ability to declare and pay dividends or repurchase shares
  16. 24Our acquisitions may not result in anticipated benefits and may present risks not originally contemplated, which may have an adverse affect on our business

Legal, Tax and Regulatory Risks

  1. 25Our environmental, social and governance commitments and disclosures may expose us to reputational risks and legal liability
  2. 26Changes in tax laws could significantly increase our tax expense and require us to take actions, at potential significant expense, to seek to preserve our current level of tax expense51% rewritten
  3. 27The United States could treat Weatherford International plc (our parent corporation) as a United States taxpayer under IRC Section 7874
  4. 28The rights of our shareholders are governed by Irish law; Irish law differs from the laws in effect in the United States and may afford less protection and increased obligations to holders of our securities
  5. 29We are incorporated in Ireland and a significant portion of our assets are located outside the United States. As a result, it might not be possible for shareholders to enforce civil liability provisions of the federal or state securities laws of the United States

General Risks

  1. 30We have begun a multi-year process of implementing a cloud-based enterprise resource planning (“ERP”) system that will assist with the collection, storage, management and interpretation of data from our business activities to support future growth and to integrate significant processesNew

Other Weatherford International 10-Ks

  • FY2024 10-K risk factors
    30 risks

    Customer concentration and late payments in Mexico pose revenue and cash flow risks. International operations across 75 countries expose the company to global instability and tax laws. Indebtedness of $1.6 billion in long-term debt restricts operational flexibility.

    Filed Feb 06, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.