NOV Reports Second Quarter 2026 Earnings
- Revenues of
$2.13 billion , up 4% sequentially and down 2% year-over-year - Net income of
$112 million , or$0.31 per share, an increase of$93 million sequentially and$4 million year-over-year - Adjusted EBITDA1,2 of
$283 million , an increase of$106 million sequentially and$31 million year-over-year - Returned
$127 million of capital to shareholders through share repurchases and dividends - Bookings of
$474 million , representing a book-to-bill of 74%
1 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.
2 Second quarter 2026 Adjusted EBITDA includes a benefit of approximately
“NOV’s second quarter results reflect outstanding execution by our team in a market that is demonstrating significantly improved underlying industry fundamentals,” said
“While recent price volatility and geopolitical uncertainty continue to cause temporary disruptions and project deferrals, we are encouraged by a growing pipeline of capital equipment opportunities and improving short cycle activity across most markets. Additionally, it is becoming increasingly apparent that depleting inventories and significantly heightened focus on energy security, combined with a decade of constrained investments in the industry’s asset base, is starting a synchronized global recovery that should drive meaningful demand for NOV’s technology and equipment over the next several years.
“We believe the actions our organization is taking, including continued investment in the development of superior solutions for our customers and initiatives to drive efficiencies across our operations, position NOV to demonstrate meaningfully higher earnings over the coming years.”
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
Third Quarter 2026 Outlook
The Company is providing financial guidance for the third 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 third quarter of 2026, management expects year-over-year consolidated revenues to be flat to up 2 percent, with Adjusted EBITDA expected to be between
Corporate Information
NOV repurchased approximately 3.2 million shares of common stock for
During the second quarter of 2026, NOV recorded
As of
Significant Achievements
NOV won orders for production processing equipment and seawater treatment systems for offshore developments across multiple regions. NOV will provide gas dehydration and seawater treatment systems for a newbuild FPSO that will be used in
NOV developed and implemented an AI-enabled solution that integrates real-time equipment diagnostics into the operation of a Norwegian operator’s sulphate removal unit to help optimize performance. Supplementing NOV’s operational support services, the solution allows NOV’s AI-agent to interface directly with the operator’s AI-agent to recommend maintenance actions using the Max Platform. The solution demonstrates NOV’s ability to collaborate closely with leading operators and leverage its engineering and equipment expertise to create differentiated digital solutions that reduce operating costs and maximize productivity.
NOV was selected to supply its Bondstrand™ fiberglass piping systems for an FPSO destined for a deepwater development in Suriname. The scope includes over 3,000 meters of pipe, with diameters ranging from 2 in. to 40 in., for handling critical water services across the vessel. The project further strengthens NOV’s leadership in offshore production infrastructure and demonstrates sustained demand for fiberglass piping systems in corrosive, weight-sensitive offshore applications.
NOV secured drill pipe awards for offshore drilling projects in
NOV was awarded orders to supply Tuboscope™ Zap-Lok™ mechanical interference connection technology for subsea gas pipeline projects in
NOV’s robotics and automation technologies continued to gain traction with new orders for ATOM™ RTX robotics packages and NOVOS™ automation systems across offshore and land drilling operations. Following successful deployment in the
NOV signed an agreement with a major oil and gas operator to deploy its Downhole Broadband Solutions for an upcoming
NOV deployed a remote service rig monitoring solution through its Max Completions offering for a supermajor, enabling centralized oversight of its workover operations through real-time operational visibility and improved reporting accuracy. Additionally, NOV expanded its digital portfolio through the acquisition of Rigsmart and Cranesmart, further complementing NOV’s existing wireless monitoring, safety, and data acquisition technologies. Together, these developments strengthen NOV’s ability to provide digital technologies across a broad range of end-markets.
NOV secured a new contract for its XLC-S connector with a regional operator in
NOV secured a large order to supply underground composite fuel storage tanks to support a customer’s retail fueling expansion across the Upper Midwest and
NOV secured a multiyear contract to provide real-time data acquisition, delivery, and visualization services for a leading Latin American operator’s drilling and completion operations. NOV’s Max Platform will provide improved operational visibility across the customer’s operations, improving workflows and supporting better and faster data-driven decision making.
NOV’s PosiTrack™ torsional vibration mitigation technology gained traction in offshore markets with successful deployments in
Second Quarter Earnings Conference Call
NOV will hold a conference call to discuss its second 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 net income to projected Adjusted EBITDA because 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 | Six Months Ended | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| Revenue: | |||||||||||||||||||
| Energy Equipment | $ | 1,218 | $ | 1,207 | $ | 1,190 | $ | 2,408 | $ | 2,353 | |||||||||
| Energy Products and Services | 974 | 1,025 | 897 | 1,871 | 2,017 | ||||||||||||||
| Eliminations | (58 | ) | (44 | ) | (35 | ) | (93 | ) | (79 | ) | |||||||||
| Total revenue | 2,134 | 2,188 | 2,052 | 4,186 | 4,291 | ||||||||||||||
| Gross profit | 521 | 446 | 379 | 900 | 893 | ||||||||||||||
| Gross profit % | 24.4 | % | 20.4 | % | 18.5 | % | 21.5 | % | 20.8 | % | |||||||||
| Selling, general, and administrative | 328 | 303 | 332 | 660 | 598 | ||||||||||||||
| Operating profit | 193 | 143 | 47 | 240 | 295 | ||||||||||||||
| Interest expense, net | (13 | ) | (12 | ) | (11 | ) | (24 | ) | (23 | ) | |||||||||
| Equity income (loss) in unconsolidated affiliates | (5 | ) | 1 | (3 | ) | (8 | ) | 1 | |||||||||||
| Other income (expense), net | (18 | ) | (17 | ) | 2 | (16 | ) | (37 | ) | ||||||||||
| Income before income taxes | 157 | 115 | 35 | 192 | 236 | ||||||||||||||
| Provision for income taxes | 41 | 1 | 15 | 56 | 48 | ||||||||||||||
| Net income | 116 | 114 | 20 | 136 | 188 | ||||||||||||||
| Net income attributable to noncontrolling interests | 4 | 6 | 1 | 5 | 7 | ||||||||||||||
| Net income attributable to Company | $ | 112 | $ | 108 | $ | 19 | $ | 131 | $ | 181 | |||||||||
| Per share data: | |||||||||||||||||||
| Basic | $ | 0.31 | $ | 0.29 | $ | 0.05 | $ | 0.36 | $ | 0.48 | |||||||||
| Diluted | $ | 0.31 | $ | 0.29 | $ | 0.05 | $ | 0.36 | $ | 0.48 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 359 | 375 | 361 | 360 | 378 | ||||||||||||||
| Diluted | 362 | 376 | 364 | 364 | 380 | ||||||||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) |
|||||
| 2026 | 2025 | ||||
| ASSETS | (Unaudited) | ||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 1,164 | $ | 1,552 | |
| Receivables, net | 1,813 | 1,701 | |||
| Inventories, net | 1,947 | 1,799 | |||
| Contract assets | 666 | 596 | |||
| Prepaid and other current assets | 199 | 172 | |||
| Total current assets | 5,789 | 5,820 | |||
| Property, plant and equipment, net | 2,016 | 2,050 | |||
| Lease right-of-use assets | 500 | 502 | |||
| 2,022 | 2,037 | ||||
| Other assets | 872 | 882 | |||
| Total assets | $ | 11,199 | $ | 11,291 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 858 | $ | 831 | |
| Accrued liabilities | 781 | 822 | |||
| Contract liabilities | 596 | 565 | |||
| Current portion of lease liabilities | 100 | 101 | |||
| Current portion of long-term debt | 14 | 30 | |||
| Accrued income taxes | 41 | 57 | |||
| Total current liabilities | 2,390 | 2,406 | |||
| Long-term debt | 1,692 | 1,688 | |||
| Lease liabilities | 520 | 521 | |||
| Other liabilities | 336 | 354 | |||
| Total liabilities | 4,938 | 4,969 | |||
| Total stockholders’ equity | 6,261 | 6,322 | |||
| Total liabilities and stockholders’ equity | $ | 11,199 | $ | 11,291 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) |
|||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| 2026 | 2026 | 2025 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 116 | $ | 136 | $ | 188 | |||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | 93 | 185 | 176 | ||||||||
| Working capital, net | (174 | ) | (395 | ) | (135 | ) | |||||
| Other operating items, net | (18 | ) | 65 | 97 | |||||||
| Net cash provided by (used in) operating activities | 17 | (9 | ) | 326 | |||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, plant and equipment | (81 | ) | (146 | ) | (167 | ) | |||||
| Business acquisitions, net of cash acquired | (13 | ) | (13 | ) | — | ||||||
| Proceeds from sales of fixed assets | 44 | 45 | 5 | ||||||||
| Net cash used in investing activities | (50 | ) | (114 | ) | (162 | ) | |||||
| Cash flows from financing activities: | |||||||||||
| Payments against lines of credit and other debt | (9 | ) | (13 | ) | (13 | ) | |||||
| Cash dividends paid | (64 | ) | (97 | ) | (135 | ) | |||||
| Share repurchases | (63 | ) | (130 | ) | (150 | ) | |||||
| Other | (12 | ) | (23 | ) | (35 | ) | |||||
| Net cash used in financing activities | (148 | ) | (263 | ) | (333 | ) | |||||
| Effect of exchange rates on cash | 3 | (2 | ) | 19 | |||||||
| Decrease in cash and cash equivalents | (178 | ) | (388 | ) | (150 | ) | |||||
| Cash and cash equivalents, beginning of period | 1,342 | 1,552 | 1,230 | ||||||||
| Cash and cash equivalents, end of period | $ | 1,164 | $ | 1,164 | $ | 1,080 | |||||
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 | Six Months Ended | ||||||||||
| 2026 | 2026 | 2025 | |||||||||
| Total cash flows provided by (used in) operating activities | $ | 17 | $ | (9 | ) | $ | 326 | ||||
| Capital expenditures | (81 | ) | (146 | ) | (167 | ) | |||||
| Free Cash Flow | $ | (64 | ) | $ | (155 | ) | $ | 159 | |||
| Business acquisitions, net of cash acquired | (13 | ) | (13 | ) | — | ||||||
| Business divestitures, net of cash disposed | — | — | — | ||||||||
| Excess Free Cash Flow | $ | (77 | ) | $ | (168 | ) | $ | 159 | |||
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 | Six Months Ended | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| Operating profit: | |||||||||||||||||||
| Energy Equipment | $ | 177 | $ | 122 | $ | 93 | $ | 270 | $ | 256 | |||||||||
| Energy Products and Services | 85 | 83 | 26 | 111 | 166 | ||||||||||||||
| Eliminations and corporate costs | (69 | ) | (62 | ) | (72 | ) | (141 | ) | (127 | ) | |||||||||
| Total operating profit | $ | 193 | $ | 143 | $ | 47 | $ | 240 | $ | 295 | |||||||||
| Operating profit %: | |||||||||||||||||||
| Energy Equipment | 14.5 | % | 10.1 | % | 7.8 | % | 11.2 | % | 10.9 | % | |||||||||
| Energy Products and Services | 8.7 | % | 8.1 | % | 2.9 | % | 5.9 | % | 8.2 | % | |||||||||
| Eliminations and corporate costs | — | — | — | — | — | ||||||||||||||
| Total operating profit % | 9.0 | % | 6.5 | % | 2.3 | % | 5.7 | % | 6.9 | % | |||||||||
| Pre-tax Other Items, net: | |||||||||||||||||||
| Energy Equipment | $ | 2 | $ | 9 | $ | 9 | $ | 11 | $ | 12 | |||||||||
| Energy Products and Services | 9 | 6 | 8 | 17 | 11 | ||||||||||||||
| Corporate | 6 | 4 | 20 | 26 | 9 | ||||||||||||||
| Total pre-tax Other Items | $ | 17 | $ | 19 | $ | 37 | $ | 54 | $ | 32 | |||||||||
| (Gain) loss on sales of fixed assets: | |||||||||||||||||||
| Energy Equipment | $ | (7 | ) | $ | (1 | ) | $ | — | $ | (7 | ) | $ | (1 | ) | |||||
| Energy Products and Services | (13 | ) | — | 1 | (12 | ) | (2 | ) | |||||||||||
| Corporate | — | 4 | — | — | 4 | ||||||||||||||
| Total (gain) loss on sales of fixed assets | $ | (20 | ) | $ | 3 | $ | 1 | $ | (19 | ) | $ | 1 | |||||||
| Adjusted operating profit: | |||||||||||||||||||
| Energy Equipment | $ | 172 | $ | 130 | $ | 102 | $ | 274 | $ | 267 | |||||||||
| Energy Products and Services | 81 | 89 | 35 | 116 | 175 | ||||||||||||||
| Eliminations and corporate costs | (63 | ) | (54 | ) | (52 | ) | (115 | ) | (114 | ) | |||||||||
| Adjusted operating profit | $ | 190 | $ | 165 | $ | 85 | $ | 275 | $ | 328 | |||||||||
| Depreciation & amortization: | |||||||||||||||||||
| Energy Equipment | $ | 28 | $ | 28 | $ | 29 | $ | 57 | $ | 56 | |||||||||
| Energy Products and Services | 63 | 57 | 61 | 124 | 116 | ||||||||||||||
| Corporate | 2 | 2 | 2 | 4 | 4 | ||||||||||||||
| Total depreciation & amortization | $ | 93 | $ | 87 | $ | 92 | $ | 185 | $ | 176 | |||||||||
| Adjusted EBITDA: | |||||||||||||||||||
| Energy Equipment | $ | 200 | $ | 158 | $ | 131 | $ | 331 | $ | 323 | |||||||||
| Energy Products and Services | 144 | 146 | 96 | 240 | 291 | ||||||||||||||
| Eliminations and corporate costs | (61 | ) | (52 | ) | (50 | ) | (111 | ) | (110 | ) | |||||||||
| Total Adjusted EBITDA | $ | 283 | $ | 252 | $ | 177 | $ | 460 | $ | 504 | |||||||||
| Adjusted EBITDA %: | |||||||||||||||||||
| Energy Equipment | 16.4 | % | 13.1 | % | 11.0 | % | 13.7 | % | 13.7 | % | |||||||||
| Energy Products and Services | 14.8 | % | 14.2 | % | 10.7 | % | 12.8 | % | 14.4 | % | |||||||||
| Eliminations and corporate costs | — | — | — | — | — | ||||||||||||||
| Total Adjusted EBITDA % | 13.3 | % | 11.5 | % | 8.6 | % | 11.0 | % | 11.7 | % | |||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES, CONT. (Unaudited) (In millions) |
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| Three Months Ended | Six Months Ended | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2026 | 2025 | |||||||||||||||
| Reconciliation of Adjusted operating profit and Adjusted EBITDA: | |||||||||||||||||||
| GAAP net income attributable to Company | $ | 112 | $ | 108 | $ | 19 | $ | 131 | $ | 181 | |||||||||
| Noncontrolling interests | 4 | 6 | 1 | 5 | 7 | ||||||||||||||
| Provision for income taxes | 41 | 1 | 15 | 56 | 48 | ||||||||||||||
| Interest and financial costs | 21 | 22 | 22 | 43 | 44 | ||||||||||||||
| Interest income | (8 | ) | (10 | ) | (11 | ) | (19 | ) | (21 | ) | |||||||||
| Equity (income) loss in unconsolidated affiliates | 5 | (1 | ) | 3 | 8 | (1 | ) | ||||||||||||
| Other (income) expense, net | 18 | 17 | (2 | ) | 16 | 37 | |||||||||||||
| (Gain) loss on sales of fixed assets | (20 | ) | 3 | 1 | (19 | ) | 1 | ||||||||||||
| Pre-tax Other Items, net | 17 | 19 | 37 | 54 | 32 | ||||||||||||||
| Adjusted operating profit | 190 | 165 | 85 | 275 | 328 | ||||||||||||||
| Depreciation and amortization | 93 | 87 | 92 | 185 | 176 | ||||||||||||||
| Total Adjusted EBITDA | $ | 283 | $ | 252 | $ | 177 | $ | 460 | $ | 504 | |||||||||
Source: NOV Inc.