Weatherford International (WFRD) is tracking toward the upper end of its second-quarter guidance with no major surprises from the Middle East conflict, though headwinds are expected to persist into Q3 before a meaningful Q4 recovery and an improving 2027 outlook, UBS Securities said.

The investment firm forecasts Q2 adjusted EBITDA of $213 million and revenue of $1.074 billion versus Street estimates of $209 million and $1.071 billion. The firm also expects adjusted earnings per share of $1.01, above the consensus estimate of $0.92.

Cease-fire progress and the gradual roll-off of startup costs are expected to support a recovery through year-end, according to the note Wednesday.

UBS also sees tightening regional activity after the conflict creating pricing opportunities that could position Weatherford well heading into 2027.

The pending NCS Multistage (NCSM) acquisition adds further upside. The deal expands Weatherford's completions offering, is expected to generate more than $15 million in annual run-rate synergies and could roughly double non-North American revenue contribution over the long term.

UBS maintained its neutral rating and $113 price target.

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