Weatherford International (NASDAQ:WFRD) +6% in Wednesday’s trading after Q1 GAAP earnings easily topped expectations and revenues rose 26% Y/Y to $1.18B, generating margins ahead of the company’s record Q4 2022.

Q1 net income swung to a $72M profit, or $0.97/share, from a net loss of $80M, or $1.14/share, in the year-earlier quarter, while total sales jumped to $1.19B from $938M.

Q1 revenues by segment: Well Construction & Completions up 22% Y/Y to $421M, Drilling & Evaluation up 27% to $372M, Production & Intervention up 22% to $349M.

Q1 segment adjusted EBITDA margin surged Y/Y across the board: Well Construction & Completions to 22.8% from 19.5%, Drilling & Evaluation to 29% from 20.2%, Production & Intervention to 19.5% from 13.6%.

“This very encouraging start to the year gives us confidence to continue to reduce debt, improve our outlook, and raise our guidance for the full year,” Weatherford (WFRD) said, now seeing revenues rising by mid-teens Y/Y and adjusted EBITDA margins expanding by at least 250 bps Y/Y, which will result in higher adjusted free cash flow generation than 2022.

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