[Financial Highlights](index=1&type=section&id=Financial%20Highlights) NOV Inc. achieved $2.19 billion in revenue in Q2 2025, a 1% year-over-year decrease but a 4% sequential increase, with net income significantly down 52% to $108 million due to a prior-year business sale gain, and adjusted EBITDA decreasing 10% year-over-year to $252 million, while returning $176 million to shareholders through buybacks and dividends Financial Performance Overview | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Change | QoQ Change | | :------------------- | :------------------- | :------------------- | :--------- | :--------- | | Revenue | 2,190 | 2,216 | -1% | +4% | | Net Income | 108 | 223 | -52% | -51.3% | | EPS (Diluted) | 0.29 | 0.57 | -49.1% | -49.1% | | Operating Profit | 143 | 313 | -54% | -6.0% | | Adjusted EBITDA | 252 | 281 | -10% | 0% | | Cash Flow from Operations | 191 | 354 | -46.1% | +10.3% | | Free Cash Flow | 108 | 203 | -46.8% | +46.0% | - Net income and operating profit decline primarily attributed to approximately **$130 million** pre-tax gain from a business sale in Q2 2024[3](index=3&type=chunk) - **$176 million** capital returned to shareholders this quarter, including stock repurchases and dividends[6](index=6&type=chunk) [CEO Commentary and Market Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Market%20Outlook) CEO Clay Williams noted that despite sequential sales growth, macroeconomic uncertainty, rapid unwinding of OPEC+ quotas, and Middle East conflicts led to cautious customers and delayed orders, resulting in a year-over-year revenue decline, with market headwinds and sales mix shifts pressuring margins, prompting additional cost control measures and supply chain adjustments, while anticipating current market dynamics to persist into H2, offshore activity to recover in 2026, and long-term energy demand to drive core market investments - Macroeconomic uncertainty, rapid unwinding of OPEC+ production quotas, and Middle East conflicts led to customer caution and delayed orders, resulting in a year-over-year revenue decline[4](index=4&type=chunk) - North American customers continued to reduce oil drilling, partially offset by modest growth in natural gas drilling; offshore activity remained relatively strong[5](index=5&type=chunk) - The company is implementing additional cost control measures and adjusting its global supply chain to better mitigate rising costs[5](index=5&type=chunk) - Current market dynamics are expected to persist, leading to lower industry activity levels in the second half, with offshore activity projected to resume growth in **2026**[7](index=7&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Energy Products and Services revenue decreased 2% year-over-year, with declines in operating profit and adjusted EBITDA due to reduced global drilling and unfavorable sales mix, while Energy Equipment revenue was flat, but operating profit significantly decreased due to prior-year business sale gains, though adjusted EBITDA grew from strong execution of high-margin backlog, with new orders and backlog both decreasing [Energy Products and Services](index=2&type=section&id=Energy%20Products%20and%20Services) The Energy Products and Services segment experienced a 2% year-over-year revenue decrease, with operating profit down 35.1% and adjusted EBITDA down 20.6%, primarily due to reduced global drilling activity and an unfavorable sales mix Energy Products and Services Financials | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Change | | :------------------- | :------------------- | :------------------- | :--------- | | Revenue | 1,030 | 1,050 | -2% | | Operating Profit | 83 | 128 | -35.1% | | Operating Margin | 8.1% | 12.2% | -4.1 pp | | Adjusted EBITDA | 146 | 184 | -20.6% | | Adjusted EBITDA Margin | 14.2% | 17.5% | -3.3 pp | - Revenue decline attributed to lower global drilling activity impacting demand for short-cycle consumables, partially offset by increased capital equipment sales[8](index=8&type=chunk) - Profitability impacted by unfavorable sales mix, tariffs, other inflationary pressures, and certain expenses in Latin America[8](index=8&type=chunk) [Energy Equipment](index=2&type=section&id=Energy%20Equipment) The Energy Equipment segment reported flat year-over-year revenue, a 47.4% decrease in operating profit primarily due to a prior-year business sale gain, but an 11.3% increase in adjusted EBITDA driven by strong execution of high-margin backlog, while new orders and backlog decreased Energy Equipment Financials | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Change | | :------------------- | :------------------- | :------------------- | :--------- | | Revenue | 1,210 | 1,204 | 0% | | Operating Profit | 122 | 232 | -47.4% | | Operating Margin | 10.1% | 19.3% | -9.2 pp | | Adjusted EBITDA | 158 | 142 | +11.3% | | Adjusted EBITDA Margin | 13.1% | 11.8% | +1.3 pp | - Operating profit decreased by **$110 million** year-over-year, primarily due to approximately **$130 million** pre-tax gain from a business sale in Q2 2024[9](index=9&type=chunk) - Improved profitability driven by strong execution of high-margin backlog[9](index=9&type=chunk) Energy Equipment Orders and Backlog | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Change | | :------------------- | :------------------- | :------------------- | :--------- | | New Orders | 420 | 977 | -57.0% | | Backlog Shipments | 632 | 553 | +14.3% | | Book-to-bill Ratio | 66% | 177% | -111 pp | | Capital Equipment Backlog (as of June 30) | 4,300 | 4,331 | -0.7% | [Q3 2025 Outlook](index=2&type=section&id=Q3%202025%20Outlook) NOV anticipates a 1% to 3% year-over-year decrease in consolidated revenue for Q3 2025, with adjusted EBITDA projected to be between **$230 million** and **$250 million** Q3 2025 Financial Projections | Metric | Q3 2025 Expectation | | :------------------- | :------------------- | | Consolidated Revenue YoY Change | -1% to -3% | | Adjusted EBITDA | $230 million to $250 million | [Corporate Information](index=2&type=section&id=Corporate%20Information) NOV repurchased approximately **5.5 million** common shares and paid **$176 million** in total dividends during Q2, recorded **$19 million** in other items related to severance, facility closures, and business process streamlining, and as of June 30, 2025, had **$1.73 billion** in total debt, **$1.5 billion** available on its revolving credit facility, and **$1.08 billion** in cash and cash equivalents [Capital Allocation and Liquidity](index=3&type=section&id=Capital%20Allocation%20and%20Liquidity) NOV's capital allocation in Q2 included **$69 million** in stock repurchases and **$176 million** in total capital returned to shareholders, while maintaining strong liquidity with **$1.08 billion** in cash and **$1.5 billion** available on its revolving credit facility against **$1.73 billion** in total debt as of June 30, 2025 Capital Allocation Summary | Metric | Amount (million USD) | | :------------------- | :------------------- | | Stock Repurchases | 69 | | Supplemental Dividend | 0.21/share | | Regular Dividend | 0.075/share | | Total Capital Returned to Shareholders | 176 | Liquidity Position | Metric | As of June 30, 2025 (million USD) | | :------------------- | :------------------- | | Total Debt | 1,730 | | Available Revolving Credit Facility | 1,500 | | Cash and Cash Equivalents | 1,080 | [Other Items](index=2&type=section&id=Other%20Items) In Q2 2025, NOV recorded **$19 million** in other items, primarily related to severance, facility closures, and business process streamlining - In Q2 2025, NOV recorded **$19 million** in other items, primarily related to severance, facility closures, and business process streamlining[13](index=13&type=chunk) [Significant Achievements](index=3&type=section&id=Significant%20Achievements) NOV secured multiple contracts for advanced digital and automated drilling solutions, MEG recovery systems, FLNG mooring and fluid transfer systems, and next-generation wind turbine installation vessel designs, while delivering composite piping and underground diesel storage solutions, and launching drilling performance technologies like Agitator™X2 and ION+™ Intrepid PDC cutters, alongside advancements in high-pressure/high-temperature drilling - Secured a multi-year contract to provide instrumentation and digital services for a major U.S. land drilling contractor, enabling real-time insights and collaboration via the **Max™ platform**[15](index=15&type=chunk) - Signed a contract to provide a monoethylene glycol (MEG) recovery system for an Eastern Mediterranean project, supporting long-term natural gas infrastructure development[16](index=16&type=chunk) - Awarded a contract to provide a Submerged Swivel and Yoke (SSY) system for an Argentinian FLNG project, ensuring continuous and safe natural gas transfer[17](index=17&type=chunk) - Secured a multi-year, multi-rig contract to provide surface automation suites for four land rigs and one jackup rig for a major Middle East operator, utilizing **NOVOS™** and **Kaizen™ AI technology**, which can increase overall mechanical rate of penetration (ROP) by **52%** and reduce drilling time by **34%**[18](index=18&type=chunk) - Awarded a contract to provide a next-generation wind turbine installation jackup vessel design and jacking system for an Asian customer, based on the **GustoMSC™ NG-16000X design**[19](index=19&type=chunk) - Completed installations of four offshore rig automation suites, including **ATOM RTX™ robotic systems**, with one operator reporting nearly **99%** utilization of the Multi-Machine Control pipe handling system[20](index=20&type=chunk) - Received three new orders totaling **93,800 feet** of **Star Super Seal Key-Lock™ (SSKL) piping** to support produced water infrastructure in the Permian Basin, manufactured in the continental U.S.[21](index=21&type=chunk) - Provided advanced composite piping systems and underground diesel storage solutions for major data center facilities in New Jersey, Arizona, and North Dakota, supporting critical operations for hyperscale data centers[22](index=22&type=chunk) - NOV's bottom hole assembly (BHA), comprising the **MONZA™ 40 drilling motor**, **High Flow Agitator™ friction reduction tool**, and **ReedHycalog™ drill bit**, set a new record of **5,200 feet** drilled in **24 hours** in the Eagle Ford Shale[23](index=23&type=chunk) - Launched **Agitator™X2 dual Agitator friction reduction technology** in the Argentinian unconventional market, drilling the longest **3,500-meter** horizontal well in the Vaca Muerta formation[24](index=24&type=chunk) - Released **ION+™ Intrepid 14.5mm PDC cutters**, helping operators break drilling speed records in the Bakken region, and secured a multi-year drill bit contract for the **New Gas Consortium (NGC) project** in Angola[25](index=25&type=chunk) - Delivered an integrated coiled tubing equipment, nitrogen converter, and pressure control equipment package to a multinational oilfield service company in Latin America, indicating strong international demand for critical well intervention technologies[26](index=26&type=chunk) - Deployed **Tundra™ Max mud coolers** and **TK™-Drakon insulated drill pipe coating** in South Texas and the Haynesville Shale, enhancing high-pressure/high-temperature (HP/HT) drilling performance and reducing non-productive time[27](index=27&type=chunk) [Investor Relations & Company Profile](index=5&type=section&id=Investor%20Relations%20%26%20Company%20Profile) NOV will host a conference call on July 29, 2025, to discuss Q2 results and provides a company profile highlighting its role as a technology-driven solutions provider for the global energy industry, committed to safe, efficient energy production through innovation and supporting the energy transition [Earnings Conference Call](index=5&type=section&id=Earnings%20Conference%20Call) NOV will host an earnings conference call on July 29, 2025, at 10:00 AM CT (11:00 AM ET) to discuss its Q2 2025 results - NOV will host a conference call on **July 29, 2025**, at **10:00 AM CT (11:00 AM ET)** to discuss its Q2 2025 results[28](index=28&type=chunk) - The conference call will be webcast live at **www.nov.com/investors**, with a replay available on the website for **30 days**[28](index=28&type=chunk) [About NOV](index=5&type=section&id=About%20NOV) NOV (NYSE: NOV) is a technology-driven solutions provider for the global energy industry, with over 150 years of innovation, dedicated to enabling safe and abundant energy production while minimizing environmental impact and supporting the energy transition - NOV (**NYSE: NOV**) is a technology-driven solutions provider for the global energy industry, with over **150 years** of innovation[29](index=29&type=chunk) - The company is committed to helping customers safely produce abundant energy while minimizing environmental impact, continuously improving oilfield operations through deep expertise and technology, and assisting in the energy transition[29](index=29&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section explains NOV's non-GAAP financial measures, such as Free Cash Flow, Excess Free Cash Flow, and Adjusted EBITDA, providing reconciliations to the most directly comparable GAAP measures, emphasizing their utility for internal assessment and investor understanding of performance trends, but not as substitutes for GAAP metrics [Explanation of Non-GAAP Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Measures) This section clarifies that non-GAAP financial measures are provided for internal use and investor evaluation of NOV's overall financial performance, serving as a supplement to, not a substitute for, GAAP measures, and notes that Free Cash Flow and Excess Free Cash Flow do not represent remaining discretionary cash flow - This press release includes non-GAAP financial measures that management believes are useful for internal use and for the investment community to evaluate NOV's overall financial performance[31](index=31&type=chunk) - Non-GAAP financial measures are not substitutes for financial measures prepared in accordance with GAAP and should be considered only as a supplement to GAAP financial measures[31](index=31&type=chunk) - Free Cash Flow and Excess Free Cash Flow do not represent the company's remaining cash flow available for discretionary expenditures, as the calculation of these measures does not consider certain debt repayment requirements or other non-discretionary expenditures[31](index=31&type=chunk) - Adjusted EBITDA is defined as Operating Profit adjusted for depreciation, amortization, gain or loss on the sale of property, plant, and equipment, and other items as applicable[47](index=47&type=chunk) [Reconciliation of Cash Flows to Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Cash%20Flows%20to%20Free%20Cash%20Flow) This table provides a reconciliation of cash flow from operations to free cash flow and excess free cash flow for Q2 2025, H1 2025, and H1 2024 Cash Flow Reconciliation | Metric | Q2 2025 (million USD) | H1 2025 (million USD) | H1 2024 (million USD) | | :------------------- | :------------------- | :------------------- | :------------------- | | Cash Flow from Operations | 191 | 326 | 354 | | Capital Expenditures | (83) | (167) | (151) | | **Free Cash Flow** | **108** | **159** | **203** | | Business Acquisitions (net of cash acquired) | — | — | (252) | | Business Divestitures (net of cash divested) | — | — | 176 | | **Excess Free Cash Flow** | **108** | **159** | **127** | [Reconciliation of Net Income to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This table reconciles GAAP net income attributable to the company to total adjusted EBITDA for Q2 2025, Q2 2024, Q1 2025, H1 2025, and H1 2024 Net Income to Adjusted EBITDA Reconciliation | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Q1 2025 (million USD) | H1 2025 (million USD) | H1 2024 (million USD) | | :--------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | GAAP Net Income Attributable to the Company | 108 | 226 | 73 | 181 | 345 | | Noncontrolling Interests | 6 | (3) | 1 | 7 | (1) | | Provision for Income Taxes | 1 | 70 | 47 | 48 | 114 | | Interest and Finance Costs | 22 | 22 | 22 | 44 | 46 | | Interest Income | (10) | (8) | (11) | (21) | (16) | | Equity in Earnings of Unconsolidated Affiliates | (1) | (8) | — | (1) | (37) | | Other Expense, Net | 17 | 14 | 20 | 37 | 24 | | (Gain) Loss on Sale of Property, Plant and Equipment | 3 | — | (2) | 1 | (1) | | Depreciation and Amortization | 87 | 86 | 89 | 176 | 169 | | Other Items, Net | 19 | (118) | 13 | 32 | (121) | | **Total Adjusted EBITDA** | **252** | **281** | **252** | **504** | **522** | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents NOV Inc.'s unaudited consolidated financial statements, including the Consolidated Statements of Income, Consolidated Balance Sheets, and Consolidated Statements of Cash Flows, covering Q2 and H1 2025 compared to 2024, and balance sheet data as of June 30, 2025, and December 31, 2024 [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) This table provides NOV Inc.'s unaudited consolidated statements of income for Q2 2025, Q2 2024, Q1 2025, H1 2025, and H1 2024 Consolidated Statements of Income | Metric (million USD) | Q2 2025 | Q2 2024 | Q1 2025 | H1 2025 | H1 2024 | | :------------------- | :------- | :------- | :------- | :----------- | :----------- | | Energy Products and Services Revenue | 1,025 | 1,050 | 992 | 2,017 | 2,067 | | Energy Equipment Revenue | 1,207 | 1,204 | 1,146 | 2,353 | 2,382 | | Total Revenue | 2,188 | 2,216 | 2,103 | 4,291 | 4,371 | | Gross Profit | 446 | 590 | 447 | 893 | 1,048 | | Gross Margin | 20.4% | 26.6% | 21.3% | 20.8% | 24.0% | | Selling, General and Administrative Expenses | 303 | 277 | 295 | 598 | 573 | | Operating Profit | 143 | 313 | 152 | 295 | 475 | | Earnings Before Income Taxes | 115 | 293 | 121 | 236 | 458 | | Provision for Income Taxes | 1 | 70 | 47 | 48 | 114 | | Net Income | 114 | 223 | 74 | 188 | 344 | | Net Income Attributable to NOV Inc. | 108 | 226 | 73 | 181 | 345 | | Basic Earnings Per Share | 0.29 | 0.57 | 0.19 | 0.48 | 0.88 | | Diluted Earnings Per Share | 0.29 | 0.57 | 0.19 | 0.48 | 0.87 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) This table presents NOV Inc.'s unaudited consolidated balance sheets as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheets | Metric (million USD) | As of June 30, 2025 | As of Dec 31, 2024 | | :------------------- | :------------------- | :------------------- | | **Assets** | | | | Cash and Cash Equivalents | 1,080 | 1,230 | | Accounts Receivable, Net | 1,902 | 1,819 | | Inventories, Net | 1,929 | 1,932 | | Contract Assets | 655 | 577 | | Prepaid and Other Current Assets | 215 | 212 | | **Total Current Assets** | **5,781** | **5,770** | | Property, Plant and Equipment, Net | 1,990 | 1,922 | | Operating Lease Right-of-Use Assets | 541 | 549 | | Goodwill and Intangible Assets, Net | 2,119 | 2,138 | | Other Assets | 932 | 982 | | **Total Assets** | **11,363** | **11,361** | | **Liabilities and Stockholders' Equity** | | | | Accounts Payable | 823 | 837 | | Accrued Liabilities | 742 | 861 | | Contract Liabilities | 513 | 492 | | Current Portion of Operating Lease Liabilities | 103 | 102 | | Current Portion of Long-Term Debt | 38 | 37 | | Accrued Income Taxes | 20 | 18 | | **Total Current Liabilities** | **2,239** | **2,347** | | Long-Term Debt | 1,690 | 1,703 | | Operating Lease Liabilities | 540 | 544 | | Other Liabilities | 336 | 339 | | **Total Liabilities** | **4,805** | **4,933** | | **Total Stockholders' Equity** | **6,558** | **6,428** | | **Total Liabilities and Stockholders' Equity** | **11,363** | **11,361** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This table provides NOV Inc.'s unaudited consolidated statements of cash flows for Q2 2025, H1 2025, and H1 2024 Consolidated Statements of Cash Flows | Metric (million USD) | Q2 2025 | H1 2025 | H1 2024 | | :------------------- | :------- | :----------- | :----------- | | Net Income | 114 | 188 | 344 | | Depreciation and Amortization | 87 | 176 | 169 | | Working Capital, Net | (41) | (135) | (222) | | Other Operating Items, Net | 31 | 97 | 63 | | **Net Cash Provided by Operating Activities** | **191** | **326** | **354** | | Purchases of Property, Plant and Equipment | (83) | (167) | (151) | | Business Acquisitions, Net of Cash Acquired | — | — | (252) | | Business Divestitures, Net of Cash Divested | — | — | 176 | | Other | 2 | 5 | 1 | | **Net Cash Used in Investing Activities** | **(81)** | **(162)** | **(226)** | | Borrowings (Credit Facility and Other Debt) | — | — | 419 | | Repayments (Credit Facility and Other Debt) | (9) | (13) | (422) | | Cash Dividends Paid | (107) | (135) | (50) | | Stock Repurchases | (69) | (150) | (37) | | Other | (13) | (35) | (23) | | **Net Cash Used in Financing Activities** | **(198)** | **(333)** | **(113)** | | Effect of Exchange Rate Changes | 11 | 19 | (4) | | Increase (Decrease) in Cash and Cash Equivalents | (77) | (150) | 11 | | Cash and Cash Equivalents at Beginning of Period | 1,157 | 1,230 | 816 | | Cash and Cash Equivalents at End of Period | 1,080 | 1,080 | 827 | [Legal Disclosures](index=6&type=section&id=Legal%20Disclosures) This section contains a cautionary note regarding forward-looking statements, advising investors of risks and uncertainties that could cause actual results to differ materially from expectations, and recommends reviewing risk factors in the company's latest 10-K and 10-Q reports [Cautionary Note Regarding Forward-Looking Statements](index=6&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This document includes or refers to non-historical statements, including estimates, forecasts, and statements about business plans, objectives, and expected operating results, which are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, subject to risks and uncertainties - This document contains or refers to statements that are not historical facts, including estimates, forecasts, and statements regarding business plans, objectives, and expected operating results, which are "forward-looking statements" as defined by the **Private Securities Litigation Reform Act of 1995**[34](index=34&type=chunk) - Forward-looking statements involve risks and uncertainties, and actual results may differ materially from expectations due to various factors such as changes in oil and gas prices, customer demand, potential catastrophic events, intellectual property protection, legal compliance, and global economic activity[34](index=34&type=chunk) - Investors should exercise caution with any forward-looking statements and refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections disclosed in the company's latest **Form 10-K** annual report and **Form 10-Q** quarterly reports[34](index=34&type=chunk)

Financial Performance - Nov Inc. reported revenue of $2.19 billion for the quarter ended June 2025, a year-over-year decline of 1.3% [1] - The EPS for the same period was $0.29, down from $0.57 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.15 billion, resulting in a surprise of +1.85% [1] - The company experienced an EPS surprise of -3.33%, with the consensus EPS estimate being $0.30 [1] Key Metrics - Nov Inc. has a backlog in Energy Equipment of $4.3 billion, below the estimated $4.52 billion [4] - New orders booked in Energy Equipment were $420 million, significantly lower than the average estimate of $717.71 million [4] - Orders shipped from backlog amounted to $632 million, slightly above the estimated $610.44 million [4] - The Book-to-Bill ratio for Energy Equipment was 66%, compared to the estimated 96.3% [4] Revenue Breakdown - Revenue from Energy Products and Services was $1.03 billion, compared to the average estimate of $986.27 million, reflecting a year-over-year change of -2.4% [4] - Revenue from Eliminations was reported at -$44 million, worse than the average estimate of -$35.66 million, but showing a year-over-year improvement of +15.8% [4] - Revenue from Energy Equipment was $1.21 billion, slightly above the average estimate of $1.2 billion, with a year-over-year change of +0.3% [4] Adjusted EBITDA - Adjusted EBITDA for Eliminations and corporate costs was -$52 million, close to the average estimate of -$51.09 million [4] - Adjusted EBITDA for Energy Equipment was $158 million, below the estimated $166.11 million [4] - Adjusted EBITDA for Energy Products and Services was $146 million, slightly lower than the average estimate of $148.25 million [4] Stock Performance - Shares of Nov Inc. have returned +9.7% over the past month, outperforming the Zacks S&P 500 composite's +4.9% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Group 1: Earnings Performance - Nov Inc. reported quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.30 per share, and down from $0.57 per share a year ago, representing an earnings surprise of -3.33% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] - The company posted revenues of $2.19 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.85%, but down from $2.22 billion year-over-year [2] Group 2: Stock Performance and Outlook - Nov Inc. shares have lost about 4.3% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Nov Inc. was unfavorable ahead of the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which Nov Inc. belongs, is currently in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Core Viewpoint - NOV Inc. reported a decline in revenues and net income for the second quarter of 2025, primarily due to previous year's gains from business sales and current market challenges affecting customer orders and margins [3][4][6]. Financial Performance - Revenues for Q2 2025 were $2.19 billion, a decrease of 1% year-over-year, but up 4% sequentially [3][9]. - Net income fell 52% to $108 million, or $0.29 per share, with operating profit down 54% to $143 million, representing 6.5% of sales [3][9]. - Adjusted EBITDA decreased 10% year-over-year to $252 million, or 11.5% of sales [3][9]. Segment Performance - **Energy Products and Services**: Generated revenues of $1.03 billion, down 2% from the previous year, with operating profit decreasing to $83 million (8.1% of sales) [7]. - **Energy Equipment**: Revenues remained flat at $1.21 billion, but operating profit decreased significantly due to prior year gains, while adjusted EBITDA increased to $158 million (13.1% of sales) [8]. Market Conditions - The company faced macroeconomic uncertainties, including OPEC+ production changes and geopolitical conflicts, leading to cautious customer behavior and deferred orders [4][5]. - North American customers reduced oil-directed drilling, partially offset by slight increases in gas drilling, while offshore activity remained strong despite project delays [5]. Future Outlook - The company anticipates continued lower industry activity levels through the second half of 2025, with expectations for offshore activity growth resuming in 2026 [6]. - Long-term demand for secure and cost-effective energy sources is expected to drive investment in core markets [6]. Capital Management - NOV returned $176 million to shareholders through share repurchases and dividends during the quarter [12]. - The company repurchased approximately 5.5 million shares for $69 million [12]. Order and Backlog - New orders totaled $420 million, a decrease of $557 million compared to the same quarter in 2024, with a book-to-bill ratio of 66% [10]. - As of June 30, 2025, the backlog for capital equipment orders was $4.30 billion, down $31 million from the previous year [10].

Core Viewpoint - NOV Inc. is expected to report second-quarter 2025 results on July 28, 2025, with earnings estimated at 30 cents per share and revenues at $2.1 billion, reflecting a year-over-year decline in both metrics [1][9]. Group 1: Recent Performance - In the last reported quarter, NOV missed the consensus earnings estimate, reporting adjusted earnings per share of 19 cents against an expected 25 cents, while revenues were $2.1 billion, a slight increase of 0.2% from the consensus [2]. - Over the trailing four quarters, NOV has beaten the Zacks Consensus Estimate twice and missed twice, with an average surprise of 12.6% [3]. Group 2: Revenue and Cost Expectations - The Zacks Consensus Estimate predicts a revenue decline for the second quarter, projecting revenues to decrease from $2.2 billion in the previous year to $2.1 billion [5][9]. - The Energy Products and Services segment is expected to generate revenues of $966 million, down from $1,050 million in the year-ago period, while the cost of goods sold is projected to rise to $1,674.8 million, indicating a 3% increase from the previous year [5][9]. Group 3: Segment Performance - Revenues from the Energy Equipment segment are anticipated to reach $1,216.6 million, an increase from $1,204 million in the year-ago period, with a strong backlog expected to rise by 13.1% year-over-year [6]. Group 4: Earnings Prediction Model - The Zacks model does not predict an earnings beat for NOV this quarter, as the Earnings ESP is -5.38%, and the company currently holds a Zacks Rank of 5 (Strong Sell) [7][8].

Core Viewpoint - Nov Inc. (NOV) is expected to report a year-over-year decline in earnings due to lower revenues for the quarter ended June 2025, with the consensus outlook indicating a significant earnings drop [1][3]. Earnings Expectations - The consensus EPS estimate for Nov Inc. is $0.30 per share, reflecting a year-over-year decrease of 47.4% [3]. - Revenues are projected to be $2.15 billion, which is a 3% decline from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 2.6%, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Nov Inc. is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.38% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat [9][10]. - Nov Inc. currently holds a Zacks Rank of 4 (Sell), complicating the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Nov Inc. was expected to post earnings of $0.25 per share but only achieved $0.19, resulting in a surprise of -24.00% [13]. - Over the past four quarters, Nov Inc. has beaten consensus EPS estimates two times [14]. Industry Comparison - Solaris Energy Infrastructure, Inc. (SEI), another player in the oil and gas industry, is expected to report earnings of $0.15 per share for the same quarter, indicating a year-over-year increase of 15.4% [18]. - SEI's revenues are anticipated to be $123.23 million, up 66.8% from the previous year, although its consensus EPS estimate has been revised down by 10% in the last 30 days [19].

Group 1 - NOV Inc. holds a unique position in the oil industry with a balanced revenue-generating portfolio based on proprietary technologies [1] - The company's flexibility allows it to serve every segment and player in the oil sector [1]

Company Announcement - NOV Inc. will hold a conference call to discuss its second quarter 2025 results on July 29, 2025, at 10 a.m. Central Time [1] - A press release with the company's results will be issued after the market closes on July 28, 2025 [1] - The conference call will be webcast live on the company's investor relations website [1] Company Overview - NOV delivers technology-driven solutions to empower the global energy industry [2] - The company has over 150 years of experience in pioneering innovations that enable safe and abundant energy production while minimizing environmental impact [2] - NOV's expertise and technology are essential for improving oilfield operations and advancing the energy transition towards sustainability [2]

Core Insights - NOV Inc. has experienced a 24% decline in stock price over the past year, raising concerns among investors about its future performance [1][2] Financial Performance - In Q1 2025, NOV reported adjusted earnings of 19 cents per share, missing the Zacks Consensus Estimate of 25 cents, primarily due to margin challenges in the Energy Equipment division [3] - The company's net income for Q1 2025 was $73 million, a 39% decrease from $119 million in Q1 2024, attributed to lower equity income, unfavorable tax adjustments, and higher corporate costs [4] Risks and Challenges - Macroeconomic uncertainties, including trade wars and OPEC's decision to increase oil supply, are expected to negatively impact oilfield activity, particularly in North America, Mexico, and Saudi Arabia [5] - NOV anticipates $8-$10 million in unavoidable tariff expenses in Q2 2025, increasing to $15 million per quarter thereafter, which could erode margins despite mitigation efforts [6] - The Energy Products and Services segment saw a 2% revenue decline year over year, with EBITDA dropping by $29 million, indicating ongoing challenges in demand for drilling-related equipment [7] - NOV's exposure to North America's market volatility is significant, with 40% of revenues tied to this region, making it vulnerable to lower commodity prices and E&P spending cuts [8] Backlog and Order Trends - The Energy Equipment backlog grew 12% year over year to $4.41 billion, but management warned of potential delays in project awards due to macroeconomic uncertainty [9] - The book-to-bill ratio of 80 in Q1 suggests slowing order momentum, indicating potential future revenue challenges [10] Cost Pressures - Unallocated corporate costs rose significantly in Q1, contributing to the earnings miss, with expectations for these costs to remain elevated at $45-$55 million in Q2 [11] - Although Q1 free cash flow was positive at $51 million, it was below the $426 million returned to shareholders over the past 12 months, raising concerns about future cash-flow sustainability [12] Market Performance - NOV's stock has underperformed compared to the Zacks Oil and Energy sector and its peers, with a 24.4% decline over the past 12 months, while competitors like Kodiak Gas Services and Natural Gas Services Group saw gains of 35.6% and 43.6%, respectively [14]

Core Viewpoint - Nov Inc. has experienced a 2.5% increase in share price over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Estimates for Nov Inc. have trended downward over the past month, with a consensus estimate shift of -5.21% [2] VGM Scores - Nov Inc. currently holds an average Growth Score of C, a Momentum Score of F, and a Value Score of B, resulting in an aggregate VGM Score of C, indicating a mixed performance across different investment strategies [3] Outlook - The downward trend in estimates suggests a negative outlook for Nov Inc., reflected in its Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [4]