NOV Reports Third Quarter 2025 Results and Appointment of Jose Bayardo to Board of Directors
- Bookings of
$951 million , representing a book-to-bill of 141% - Revenues of
$2.18 billion - Net Income of
$42 million , or$0.11 per share - Adjusted EBITDA* of
$258 million - Cash flow from operations of
$352 million and free cash flow* of$245 million - Returned
$108 million of capital to shareholders through share repurchases and dividends
*Free Cash Flow, Excess Free Cash Flow and Adjusted EBITDA are non-GAAP measures, see “Non-GAAP Financial Measures,” “Reconciliation of Cash Flows from Operating Activities to Free Cash Flow and Excess Free Cash Flow” and “Reconciliation of Net Income to Adjusted EBITDA” below.
“NOV's operational performance improved sequentially in the third quarter,” stated
“Demand for NOV’s production equipment remains strong as the offshore upcycle gains momentum and global natural gas development expands. Bookings more than doubled sequentially, resulting in a book-to-bill ratio of 141%.
“While near-term industry fundamentals remain challenged, and inflationary pressures are prompting reassessments of both energy and industrial projects, the breadth and resilience of NOV’s portfolio continue to underpin our performance. We are encouraged by the resurgence in offshore investment and the emergence of unconventional development in new regions as these trends will rely on NOV’s differentiated tools and technologies.
“Our longstanding commitment to technology leadership and our diverse portfolio provide strength through cycles and opportunities for growth. Along with ongoing actions to improve our cost structure and better leverage our global platform, NOV is positioned to increase profitability, generate strong cash flow, and unlock long-term shareholder value.”
As part of its long-term succession plan, the Company also announced that its board of directors (the “Board”) had increased its size by one and appointed
Energy Products and Services
Energy Products and Services generated revenues of
Energy Equipment
Energy Equipment generated revenues of
New orders booked during the quarter totaled
Q4 2025 Outlook
The Company is providing financial guidance for the fourth quarter of 2025, which constitutes “forward-looking statements” as described further below under “Cautionary Note Regarding Forward-Looking Statements.”
For the fourth quarter of 2025 management expects year-over-year consolidated revenues to decline between five to seven percent with Adjusted EBITDA expected to be between
Corporate Information
NOV repurchased approximately 6.2 million shares of common stock for
During the third quarter of 2025, NOV recorded
As of
Significant Achievements
NOV secured a contract to supply a monoethylene glycol (MEG) reclamation system for operation in the
NOV’s success with offshore drilling automation continues to expand. A deepwater floater operating offshore
NOV’s ATOM™ RTX robotic technology was deployed on a land rig in the
NOV secured several orders for flexible riser and flowline systems supporting deepwater production projects in the
NOV secured a second order for its APL™ Submerged Swivel and Yoke (SSY) system to support a floating LNG (FLNG) project in the San Matías Gulf,
NOV was selected to supply double-wall fiberglass-reinforced plastic fuel storage tanks for a major financial institution’s data center expansion in the
NOV supported drilling and completion of the first tight gas unconventional well drilled by an international operator in
NOV secured an award to deploy its Max™ Platform technology stack in support of a next-generation remote operating center for a major
NOV secured two major wireline intervention package orders in the
NOV achieved record drilling performance in
NOV ReedHycalog’s 8½-inch RH63-A1 Pegasus™ drill bit delivered record performance for an operator drilling in Devonian-age formations in the Central Basin Platform of the
Third Quarter Earnings Conference Call
NOV will hold a conference call to discuss its third quarter 2025 results on
About NOV
NOV (NYSE: NOV) delivers technology-driven solutions to empower the global energy industry. For more than 150 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, potential catastrophic events related to our operations, protection of intellectual property rights, compliance with laws, and worldwide economic activity, including matters related to recent Russian sanctions and changes in
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 | Nine Months Ended | ||||||||||||||||||
, | , | , | |||||||||||||||||
| 2025 | 2024 | 2025 | 2025 | 2024 | |||||||||||||||
| Revenue: | |||||||||||||||||||
| Energy Products and Services | $ | 971 | $ | 1,003 | $ | 1,025 | $ | 2,988 | $ | 3,070 | |||||||||
| Energy Equipment | 1,247 | 1,219 | 1,207 | 3,600 | 3,601 | ||||||||||||||
| Eliminations | (42 | ) | (31 | ) | (44 | ) | (121 | ) | (109 | ) | |||||||||
| Total revenue | 2,176 | 2,191 | 2,188 | 6,467 | 6,562 | ||||||||||||||
| Gross profit | 412 | 469 | 446 | 1,305 | 1,517 | ||||||||||||||
| Gross profit % | 18.9 | % | 21.4 | % | 20.4 | % | 20.2 | % | 23.1 | % | |||||||||
| Selling, general, and administrative | 305 | 275 | 303 | 903 | 848 | ||||||||||||||
| Operating profit | 107 | 194 | 143 | 402 | 669 | ||||||||||||||
| Interest expense, net | (11 | ) | (10 | ) | (12 | ) | (34 | ) | (40 | ) | |||||||||
| Equity income (loss) in unconsolidated affiliates | (11 | ) | — | 1 | (10 | ) | 37 | ||||||||||||
| Other expense, net | (12 | ) | (10 | ) | (17 | ) | (49 | ) | (34 | ) | |||||||||
| Income before income taxes | 73 | 174 | 115 | 309 | 632 | ||||||||||||||
| Provision for income taxes | 29 | 44 | 1 | 77 | 158 | ||||||||||||||
| Net income | 44 | 130 | 114 | 232 | 474 | ||||||||||||||
| Net income (loss) attributable to noncontrolling interests | 2 | — | 6 | 9 | (1 | ) | |||||||||||||
| Net income attributable to Company | $ | 42 | $ | 130 | $ | 108 | $ | 223 | $ | 475 | |||||||||
| Per share data: | |||||||||||||||||||
| Basic | $ | 0.11 | $ | 0.33 | $ | 0.29 | $ | 0.59 | $ | 1.21 | |||||||||
| Diluted | $ | 0.11 | $ | 0.33 | $ | 0.29 | $ | 0.59 | $ | 1.20 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 370 | 392 | 375 | 375 | 394 | ||||||||||||||
| Diluted | 371 | 395 | 376 | 377 | 397 | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| (In millions) | ||||||
, | , | |||||
| 2025 | 2024 | |||||
| ASSETS | (Unaudited) | |||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 1,207 | $ | 1,230 | ||
| Receivables, net | 1,871 | 1,819 | ||||
| Inventories, net | 1,886 | 1,932 | ||||
| Contract assets | 576 | 577 | ||||
| Prepaid and other current assets | 222 | 212 | ||||
| Total current assets | 5,762 | 5,770 | ||||
| Property, plant and equipment, net | 2,025 | 1,922 | ||||
| Lease right-of-use assets | 532 | 549 | ||||
and intangibles, net | 2,089 | 2,138 | ||||
| Other assets | 930 | 982 | ||||
| Total assets | $ | 11,338 | $ | 11,361 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 798 | $ | 837 | ||
| Accrued liabilities | 760 | 861 | ||||
| Contract liabilities | 564 | 492 | ||||
| Current portion of lease liabilities | 101 | 102 | ||||
| Current portion of long-term debt | 34 | 37 | ||||
| Accrued income taxes | 7 | 18 | ||||
| Total current liabilities | 2,264 | 2,347 | ||||
| Long-term debt | 1,692 | 1,703 | ||||
| Lease liabilities | 528 | 544 | ||||
| Other liabilities | 342 | 339 | ||||
| Total liabilities | 4,826 | 4,933 | ||||
| Total stockholders’ equity | 6,512 | 6,428 | ||||
| Total liabilities and stockholders’ equity | $ | 11,338 | $ | 11,361 | ||
| |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||||
| (In millions) | |||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||
, | , | ||||||||||
| 2025 | 2025 | 2024 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 44 | $ | 232 | $ | 474 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 89 | 265 | 255 | ||||||||
| Working capital, net | 120 | (15 | ) | (89 | ) | ||||||
| Other operating items, net | 99 | 196 | 73 | ||||||||
| Net cash provided by operating activities | 352 | 678 | 713 | ||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, plant and equipment | (107 | ) | (274 | ) | (233 | ) | |||||
| Business acquisitions, net of cash acquired | — | — | (252 | ) | |||||||
| Business divestitures, net of cash disposed | — | — | 176 | ||||||||
| Other | 3 | 8 | 1 | ||||||||
| Net cash used in investing activities | (104 | ) | (266 | ) | (308 | ) | |||||
| Cash flows from financing activities: | |||||||||||
| Borrowings against lines of credit and other debt | 2 | 2 | 419 | ||||||||
| Payments against lines of credit and other debt | (4 | ) | (17 | ) | (422 | ) | |||||
| Cash dividends paid | (28 | ) | (163 | ) | (79 | ) | |||||
| Share repurchases | (80 | ) | (230 | ) | (117 | ) | |||||
| Other | (8 | ) | (43 | ) | (36 | ) | |||||
| Net cash used in financing activities | (118 | ) | (451 | ) | (235 | ) | |||||
| Effect of exchange rates on cash | (3 | ) | 16 | (1 | ) | ||||||
| Increase (decrease) in cash and cash equivalents | 127 | (23 | ) | 169 | |||||||
| Cash and cash equivalents, beginning of period | 1,080 | 1,230 | 816 | ||||||||
| Cash and cash equivalents, end of period | $ | 1,207 | $ | 1,207 | $ | 985 | |||||
| RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW AND EXCESS FREE CASH FLOW (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 | Nine Months Ended | ||||||||||
, | , | ||||||||||
| 2025 | 2025 | 2024 | |||||||||
| Total cash flows provided by operating activities | $ | 352 | $ | 678 | $ | 713 | |||||
| Capital expenditures | (107 | ) | (274 | ) | (233 | ) | |||||
| Free Cash Flow | $ | 245 | $ | 404 | $ | 480 | |||||
| Business acquisitions, net of cash acquired | — | — | (252 | ) | |||||||
| Business divestitures, net of cash disposed | — | — | 176 | ||||||||
| Excess Free Cash Flow | $ | 245 | $ | 404 | $ | 404 | |||||
| RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited) | |||||||||||||||||||
| (In millions) | |||||||||||||||||||
| Presented below is a reconciliation of Net Income to Adjusted EBITDA. The Company defines Adjusted EBITDA as Operating Profit excluding Depreciation, Amortization, Gains and Losses on Sales of Fixed Assets, and, when applicable, 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 EBITDA and Adjusted EBITDA % are not intended to replace GAAP financial measures, such as Net Income and Operating Profit %. Other Items include gain on business divestiture, impairment, restructure, severance, facility closure costs and inventory charges and credits. | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
, | , | , | |||||||||||||||||
| 2025 | 2024 | 2025 | 2025 | 2024 | |||||||||||||||
| Operating profit: | |||||||||||||||||||
| Energy Products and Services | $ | 38 | $ | 114 | $ | 83 | $ | 204 | $ | 363 | |||||||||
| Energy Equipment | 130 | 129 | 122 | 386 | 456 | ||||||||||||||
| Eliminations and corporate costs | (61 | ) | (49 | ) | (62 | ) | (188 | ) | (150 | ) | |||||||||
| Total operating profit | $ | 107 | $ | 194 | $ | 143 | $ | 402 | $ | 669 | |||||||||
| Operating profit %: | |||||||||||||||||||
| Energy Products and Services | 3.9 | % | 11.4 | % | 8.1 | % | 6.8 | % | 11.8 | % | |||||||||
| Energy Equipment | 10.4 | % | 10.6 | % | 10.1 | % | 10.7 | % | 12.7 | % | |||||||||
| Eliminations and corporate costs | — | — | — | — | — | ||||||||||||||
| Total operating profit % | 4.9 | % | 8.9 | % | 6.5 | % | 6.2 | % | 10.2 | % | |||||||||
| Other items, net: | |||||||||||||||||||
| Energy Products and Services | $ | 41 | $ | 3 | $ | 6 | $ | 52 | $ | 4 | |||||||||
| Energy Equipment | 21 | 1 | 9 | 33 | (122 | ) | |||||||||||||
| Corporate | 3 | 1 | 4 | 12 | 2 | ||||||||||||||
| Total other items | $ | 65 | $ | 5 | $ | 19 | $ | 97 | $ | (116 | ) | ||||||||
| (Gain) loss on sales of fixed assets: | |||||||||||||||||||
| Energy Products and Services | $ | (2 | ) | $ | 1 | $ | — | $ | (4 | ) | $ | — | |||||||
| Energy Equipment | (1 | ) | — | (1 | ) | (2 | ) | — | |||||||||||
| Corporate | — | — | 4 | 4 | — | ||||||||||||||
| Total (gain) loss on sales of fixed assets | $ | (3 | ) | $ | 1 | $ | 3 | $ | (2 | ) | $ | — | |||||||
| Depreciation & amortization: | |||||||||||||||||||
| Energy Products and Services | $ | 58 | $ | 54 | $ | 57 | $ | 174 | $ | 163 | |||||||||
| Energy Equipment | 30 | 29 | 28 | 86 | 86 | ||||||||||||||
| Corporate | 1 | 3 | 2 | 5 | 6 | ||||||||||||||
| Total depreciation & amortization | $ | 89 | $ | 86 | $ | 87 | $ | 265 | $ | 255 | |||||||||
| Adjusted EBITDA: | |||||||||||||||||||
| Energy Products and Services | $ | 135 | $ | 172 | $ | 146 | $ | 426 | $ | 530 | |||||||||
| Energy Equipment | 180 | 159 | 158 | 503 | 420 | ||||||||||||||
| Eliminations and corporate costs | (57 | ) | (45 | ) | (52 | ) | (167 | ) | (142 | ) | |||||||||
| Total Adjusted EBITDA | $ | 258 | $ | 286 | $ | 252 | $ | 762 | $ | 808 | |||||||||
| Adjusted EBITDA %: | |||||||||||||||||||
| Energy Products and Services | 13.9 | % | 17.1 | % | 14.2 | % | 14.3 | % | 17.3 | % | |||||||||
| Energy Equipment | 14.4 | % | 13.0 | % | 13.1 | % | 14.0 | % | 11.7 | % | |||||||||
| Eliminations and corporate costs | — | — | — | — | — | ||||||||||||||
| Total Adjusted EBITDA % | 11.9 | % | 13.1 | % | 11.5 | % | 11.8 | % | 12.3 | % | |||||||||
| Reconciliation of Adjusted EBITDA: | |||||||||||||||||||
| GAAP net income attributable to Company | $ | 42 | $ | 130 | $ | 108 | $ | 223 | $ | 475 | |||||||||
| Noncontrolling interests | 2 | — | 6 | 9 | (1 | ) | |||||||||||||
| Provision for income taxes | 29 | 44 | 1 | 77 | 158 | ||||||||||||||
| Interest and financial costs | 22 | 21 | 22 | 66 | 67 | ||||||||||||||
| Interest income | (11 | ) | (11 | ) | (10 | ) | (32 | ) | (27 | ) | |||||||||
| Equity (income) loss in unconsolidated affiliates | 11 | — | (1 | ) | 10 | (37 | ) | ||||||||||||
| Other expense, net | 12 | 10 | 17 | 49 | 34 | ||||||||||||||
| (Gain) loss on sales of fixed assets | (3 | ) | 1 | 3 | (2 | ) | — | ||||||||||||
| Depreciation and amortization | 89 | 86 | 87 | 265 | 255 | ||||||||||||||
| Other items, net | 65 | 5 | 19 | 97 | (116 | ) | |||||||||||||
| Total Adjusted EBITDA | $ | 258 | $ | 286 | $ | 252 | $ | 762 | $ | 808 | |||||||||
Source: NOV Inc.