NOV Reports First Quarter 2026 Earnings
- Revenues of
$2.05 billion - Net income of
$19 million , or$0.05 per share - Adjusted EBITDA* of
$177 million - Bookings of
$520 million , representing a book-to-bill of 80% - Returned
$100 million of capital to shareholders through share repurchases and dividends
*Free Cash Flow, Excess Free Cash Flow, Adjusted Operating Profit, and Adjusted EBITDA are non-GAAP measures, see “Non-GAAP Financial Measures,” and “Reconciliation of GAAP to non-GAAP measures” below.
“The conflict in the
“The war’s impact on logistics delayed quarter-end deliveries of equipment and spare parts, disrupted offshore service and repair activity, and increased operating costs in the region, resulting in an estimated impact of
“Outside of the
“We expect sustainably higher commodity prices, along with a renewed focus on energy security and diversification, to increase urgency across the industry. After a decade of limited investment, we believe the stage is set for a meaningful increase in activity and investment, driving a new capital equipment cycle. NOV is well positioned to support customers and benefit as that cycle develops.”
Energy Equipment
Energy Equipment generated revenues of
New orders booked during the quarter totaled
Energy Products and Services
Energy Products and Services generated revenues of
Second Quarter 2026 Outlook
The Company is providing financial guidance for the second quarter of 2026, which constitutes “forward-looking statements” as described further below under “Cautionary Note Regarding Forward-Looking Statements.” This guidance is subject to, and may be affected by, the current uncertainty and conflict in the
For the second quarter of 2026 management expects year-over-year consolidated revenues to decline between four to six percent with Adjusted EBITDA expected to be between
Corporate Information
NOV repurchased approximately 3.5 million shares of common stock for
During the first quarter of 2026, NOV recorded
As of
Significant Achievements
NOV was awarded a contract to provide 96 km of flexible riser and flowline systems for deepwater offshore production in
NOV was awarded contracts for the reactivation of a high-specification harsh-environment semisubmersible rig in the
NOV secured a contract to supply phenolic fiberglass-reinforced plastic (FRP) grating for a new floating production unit destined for the Gulf of America. The scope includes approximately 1,700 grating panels covering about 10,200-m2 for the topside structure. Additionally, NOV secured an order for Bondstrand™ 7000M glass-reinforced epoxy ballast lines for two FLNG vessels in
NOV’s Grant Prideco™ business unit secured two offshore drill pipe orders featuring Delta™ connections, including drill pipe for a supermajor operator in
NOV secured two strategic contracts for CO₂ treatment. The first included a dehydration package for a carbon capture and sequestration project supporting a new blue ammonia facility in
NOV secured two orders for produced water transport projects in the Permian, reinforcing demand for its STAR™ Super Seal
NOV supported the drilling of an operator’s first 4 mile lateral in the Bakken, helping deliver a 20,719-ft section in 143 drilling hours. The operator combined NOV’s new INDY™ 80 high-speed ERT™-powered drilling motor, with a dual Agitator™ system incorporating AgitatorZP™ technology, and a ReedHycalog™ RH54A1 drill bit. NOV downhole performance technologies continue to drive drilling efficiency improvements in demanding shale applications.
NOV
NOV enrolled additional rigs in a multiyear BOP condition-based maintenance program designed in collaboration with an ultra-deepwater operator and aligned with the customer’s performance and cost-of-ownership objectives. The program uses operational data to optimize maintenance timing, reducing unnecessary servicing while helping minimize downtime.
NOV’s Downhole Broadband Solutions (DBS) technology enabled real-time transmission of high-resolution 4D caliper borehole imaging from a third-party tool integrated into its wired drill pipe network, providing immediate visibility into wellbore conditions and improved decision-making. NOV also introduced an industry-first smart-wired circulating sub that gives operators real-time control of circulation with instant activation and deactivation while also enabling independent operation of multiple subs within the drillstring. Together, these first-of-their-kind advancements expand the DBS ecosystem and demonstrate the growing value of the network as a platform for additional real-time imaging and control applications.
NOV secured several coiled tubing equipment orders, including a modular reel trailer, two HR-6140 injectors, and 15 AutoBoost XV™ kits to upgrade existing units. These awards reflect increasing operator demand for higher-capacity injector solutions to address more complex well requirements. NOV also secured an award from a leading
NOV secured an order for Tuboscope™ TK™-Drakon H2S coating in
First Quarter Earnings Conference Call
NOV will hold a conference call to discuss its first quarter 2026 results on
About NOV
NOV (NYSE: NOV) delivers technology-driven solutions to empower the global energy industry. For more than 160 years, NOV has pioneered innovations that enable its customers to safely and efficiently produce abundant energy while minimizing environmental impact. NOV powers the industry that powers the world.
Visit www.nov.com for more information.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating NOV’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the oilfield services and equipment industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Additionally, Free Cash Flow and Excess Free Cash Flow do not represent the Company’s residual cash flow available for discretionary expenditures, as the calculation of these measures does not account for certain debt service requirements or other non-discretionary expenditures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this press release and the most directly comparable GAAP financial measures.
This press release contains certain forward-looking non-GAAP financial measures, including Adjusted EBITDA. The Company has not provided a reconciliation of projected Adjusted EBITDA. Management cannot predict with a reasonable degree of accuracy certain of the necessary components of net income, such as other income (expense), which includes fluctuations in foreign currencies. As such, a reconciliation of projected net income to projected Adjusted EBITDA is not available without unreasonable effort. The actual amount of other income (expense), provision (benefit) for income taxes, equity income (loss) in unconsolidated affiliates, depreciation and amortization, and other amounts excluded from Adjusted EBITDA could have a significant impact on net income.
Cautionary Note Regarding Forward-Looking Statements
This document contains, or has incorporated by reference, statements that are not historical facts, including estimates, projections, and statements relating to our business plans, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often contain words such as “may,” “can,” “likely,” “believe,” “plan,” “predict,” “potential,” “will,” “intend,” “think,” “should,” “expect,” “anticipate,” “estimate,” “forecast,” “expectation,” “goal,” “outlook,” “projected,” “projections,” “target,” and other similar words, although some such statements are expressed differently. Other oral or written statements we release to the public may also contain forward-looking statements. Forward-looking statements involve risk and uncertainties and reflect our best judgment based on current information. You should be aware that our actual results could differ materially from results anticipated in such forward-looking statements due to a number of factors, including but not limited to changes in oil and gas prices, customer demand for our products, challenges related to NOV’s operations in the
Certain prior period amounts have been reclassified in this press release to be consistent with current period presentation.
CONTACT:
Director, Investor Relations
(713) 375-3826
Amie.DAmbrosio@nov.com
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share data) |
||||||||||||
| Three Months Ended | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Revenue: | ||||||||||||
| Energy Equipment | $ | 1,190 | $ | 1,146 | $ | 1,334 | ||||||
| Energy Products and Services | 897 | 992 | 989 | |||||||||
| Eliminations | (35 | ) | (35 | ) | (46 | ) | ||||||
| Total revenue | 2,052 | 2,103 | 2,277 | |||||||||
| Gross profit | 379 | 447 | 462 | |||||||||
| Gross profit % | 18.5 | % | 21.3 | % | 20.3 | % | ||||||
| Selling, general, and administrative | 332 | 295 | 300 | |||||||||
| — | — | 70 | ||||||||||
| Operating profit | 47 | 152 | 92 | |||||||||
| Interest expense, net | (11 | ) | (11 | ) | (3 | ) | ||||||
| Equity loss in unconsolidated affiliates | (3 | ) | — | (6 | ) | |||||||
| Other income (expense), net | 2 | (20 | ) | (17 | ) | |||||||
| Income before income taxes | 35 | 121 | 66 | |||||||||
| Provision for income taxes | 15 | 47 | 147 | |||||||||
| Net income (loss) | 20 | 74 | (81 | ) | ||||||||
| Net income (loss) attributable to noncontrolling interests | 1 | 1 | (3 | ) | ||||||||
| Net income (loss) attributable to Company | $ | 19 | $ | 73 | $ | (78 | ) | |||||
| Per share data: | ||||||||||||
| Basic | $ | 0.05 | $ | 0.19 | $ | (0.21 | ) | |||||
| Diluted | $ | 0.05 | $ | 0.19 | $ | (0.21 | ) | |||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 361 | 381 | 364 | |||||||||
| Diluted | 364 | 383 | 367 | |||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) |
||||||||
| 2026 | 2025 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,342 | $ | 1,552 | ||||
| Receivables, net | 1,664 | 1,701 | ||||||
| Inventories, net | 1,874 | 1,799 | ||||||
| Contract assets | 634 | 596 | ||||||
| Prepaid and other current assets | 207 | 172 | ||||||
| Total current assets | 5,721 | 5,820 | ||||||
| Property, plant and equipment, net | 2,017 | 2,050 | ||||||
| Lease right-of-use assets | 504 | 502 | ||||||
| 2,025 | 2,037 | |||||||
| Other assets | 876 | 882 | ||||||
| Total assets | $ | 11,143 | $ | 11,291 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 852 | $ | 831 | ||||
| Accrued liabilities | 728 | 822 | ||||||
| Contract liabilities | 575 | 565 | ||||||
| Current portion of lease liabilities | 100 | 101 | ||||||
| Current portion of long-term debt | 27 | 30 | ||||||
| Accrued income taxes | 34 | 57 | ||||||
| Total current liabilities | 2,316 | 2,406 | ||||||
| Long-term debt | 1,688 | 1,688 | ||||||
| Lease liabilities | 524 | 521 | ||||||
| Other liabilities | 347 | 354 | ||||||
| Total liabilities | 4,875 | 4,969 | ||||||
| Total stockholders’ equity | 6,268 | 6,322 | ||||||
| Total liabilities and stockholders’ equity | $ | 11,143 | $ | 11,291 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) |
||||||||
| Three Months Ended |
||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 20 | $ | 74 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 92 | 89 | ||||||
| Working capital, net | (221 | ) | (94 | ) | ||||
| Other operating items, net | 83 | 66 | ||||||
| Net cash provided by (used in) operating activities | (26 | ) | 135 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | (65 | ) | (84 | ) | ||||
| Other | 1 | 3 | ||||||
| Net cash used in investing activities | (64 | ) | (81 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments against lines of credit and other debt | (4 | ) | (4 | ) | ||||
| Cash dividends paid | (33 | ) | (28 | ) | ||||
| Share repurchases | (67 | ) | (81 | ) | ||||
| Other | (11 | ) | (22 | ) | ||||
| Net cash used in financing activities | (115 | ) | (135 | ) | ||||
| Effect of exchange rates on cash | (5 | ) | 8 | |||||
| Decrease in cash and cash equivalents | (210 | ) | (73 | ) | ||||
| Cash and cash equivalents, beginning of period | 1,552 | 1,230 | ||||||
| Cash and cash equivalents, end of period | $ | 1,342 | $ | 1,157 | ||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Unaudited)
(In millions)
Presented below is a reconciliation of cash flow from operating activities to “Free Cash Flow”. The Company defines Free Cash Flow as cash flow from operating activities less purchases of property, plant and equipment, or “capital expenditures” and Excess Free Cash Flow as cash flows from operations less capital expenditures and other investments, including acquisitions and divestitures. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and manage the business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s results of ongoing operations. Free Cash Flow and Excess Free Cash Flow are not intended to replace GAAP financial measures.
| Three Months Ended |
||||||||
| 2026 | 2025 | |||||||
| Total cash flows provided by operating activities | $ | (26 | ) | $ | 135 | |||
| Capital expenditures | (65 | ) | (84 | ) | ||||
| Free Cash Flow | $ | (91 | ) | $ | 51 | |||
| Business acquisitions, net of cash acquired | — | — | ||||||
| Business divestitures, net of cash disposed | — | — | ||||||
| Excess Free Cash Flow | $ | (91 | ) | $ | 51 | |||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES, CONT. (Unaudited)
(In millions)
Presented below is a reconciliation of Operating Profit to Adjusted Operating Profit and Net Income to Adjusted EBITDA. The Company defines Adjusted Operating Profit as Operating Profit excluding Gains and Losses on Sales of Fixed Assets, and, when applicable, pre-tax Other Items. The Company defines Adjusted EBITDA as Operating Profit excluding Depreciation, Amortization, Gains and Losses on Sales of Fixed Assets, and, when applicable, pre-tax Other Items. Adjusted EBITDA % is a ratio showing Adjusted EBITDA as a percentage of sales. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and manage the business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s results of ongoing operations. Adjusted Operating Profit, Adjusted EBITDA and Adjusted EBITDA % are not intended to replace GAAP financial measures, such as Net Income and Operating Profit %. Pre-tax Other Items include gain on business divestiture, impairment, restructure, severance, facility closure costs and inventory charges and credits.
| Three Months Ended | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Operating profit: | ||||||||||||
| Energy Equipment | $ | 93 | $ | 134 | $ | 107 | ||||||
| Energy Products and Services | 26 | 83 | 73 | |||||||||
| Eliminations and corporate costs | (72 | ) | (65 | ) | (88 | ) | ||||||
| Total operating profit | $ | 47 | $ | 152 | $ | 92 | ||||||
| Operating profit %: | ||||||||||||
| Energy Equipment | 7.8 | % | 11.7 | % | 8.0 | % | ||||||
| Energy Products and Services | 2.9 | % | 8.4 | % | 7.4 | % | ||||||
| Eliminations and corporate costs | — | — | — | |||||||||
| Total operating profit % | 2.3 | % | 7.2 | % | 4.0 | % | ||||||
| Pre-tax Other Items, net: | ||||||||||||
| Energy Equipment | $ | 9 | $ | 3 | $ | 46 | ||||||
| Energy Products and Services | 8 | 5 | 7 | |||||||||
| Corporate | 20 | 5 | 33 | |||||||||
| Total pre-tax Other Items | $ | 37 | $ | 13 | $ | 86 | ||||||
| (Gain) loss on sales of fixed assets: | ||||||||||||
| Energy Equipment | $ | — | $ | — | $ | (2 | ) | |||||
| Energy Products and Services | 1 | (2 | ) | 1 | ||||||||
| Corporate | — | — | — | |||||||||
| Total (gain) loss on sales of fixed assets | $ | 1 | $ | (2 | ) | $ | (1 | ) | ||||
| Adjusted operating profit: | ||||||||||||
| Energy Equipment | $ | 102 | $ | 137 | $ | 151 | ||||||
| Energy Products and Services | 35 | 86 | 81 | |||||||||
| Eliminations and corporate costs | (52 | ) | (60 | ) | (55 | ) | ||||||
| Adjusted operating profit | $ | 85 | $ | 163 | $ | 177 | ||||||
| Depreciation & amortization: | ||||||||||||
| Energy Equipment | $ | 29 | $ | 28 | $ | 29 | ||||||
| Energy Products and Services | 61 | 59 | 59 | |||||||||
| Corporate | 2 | 2 | 2 | |||||||||
| Total depreciation & amortization | $ | 92 | $ | 89 | $ | 90 | ||||||
| Adjusted EBITDA: | ||||||||||||
| Energy Equipment | $ | 131 | $ | 165 | $ | 180 | ||||||
| Energy Products and Services | 96 | 145 | 140 | |||||||||
| Eliminations and corporate costs | (50 | ) | (58 | ) | (53 | ) | ||||||
| Total Adjusted EBITDA | $ | 177 | $ | 252 | $ | 267 | ||||||
| Adjusted EBITDA %: | ||||||||||||
| Energy Equipment | 11.0 | % | 14.4 | % | 13.5 | % | ||||||
| Energy Products and Services | 10.7 | % | 14.6 | % | 14.2 | % | ||||||
| Eliminations and corporate costs | — | — | — | |||||||||
| Total Adjusted EBITDA % | 8.6 | % | 12.0 | % | 11.7 | % | ||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES, CONT. (Unaudited) (In millions) |
||||||||||||
| Three Months Ended | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Reconciliation of Adjusted operating profit and Adjusted EBITDA: | ||||||||||||
| GAAP net income (loss) attributable to Company | $ | 19 | $ | 73 | $ | (78 | ) | |||||
| Noncontrolling interests | 1 | 1 | (3 | ) | ||||||||
| Provision for income taxes | 15 | 47 | 147 | |||||||||
| Interest and financial costs | 22 | 22 | 22 | |||||||||
| Interest income | (11 | ) | (11 | ) | (19 | ) | ||||||
| Equity loss in unconsolidated affiliates | 3 | — | 6 | |||||||||
| Other (income) expense, net | (2 | ) | 20 | 17 | ||||||||
| (Gain) loss on sales of fixed assets | 1 | (2 | ) | (1 | ) | |||||||
| Pre-tax Other Items, net | 37 | 13 | 86 | |||||||||
| Adjusted operating profit | 85 | 163 | 177 | |||||||||
| Depreciation and amortization | 92 | 89 | 90 | |||||||||
| Total Adjusted EBITDA | $ | 177 | $ | 252 | $ | 267 | ||||||
Source: NOV Inc.