Financial Data and Key Metrics Changes - For Q1 2025, NOV reported revenues of $2.1 billion, a 2% decrease year over year, with net income of $73 million or $0.19 per fully diluted share [4][14] - Adjusted EBITDA was $252 million, representing a 5% increase, with EBITDA margins expanding by 80 basis points to 12% [5][14] - The company generated $135 million in cash from operations and $51 million in free cash flow, with a cash balance increase of $689 million over the last twelve months [15][16] Business Line Data and Key Metrics Changes - The Energy Products and Services segment generated revenue of $992 million, a 2% decrease year over year, with EBITDA declining to $145 million or 14.6% of sales [16][18] - The Energy Equipment segment reported revenue of $1.15 billion, down 3% from the previous year, but EBITDA increased by $46 million to $165 million, resulting in a margin of 14.4% [21][24] - Capital equipment sales accounted for 57% of the Energy Equipment segment's revenues, with bookings for Q1 at $437 million, a 12% year-over-year increase [22][24] Market Data and Key Metrics Changes - International revenues decreased from 65% to 61% of total revenues, attributed to seasonal factors, but the international market is expected to grow as a share of the business [60] - North American activity is anticipated to decline in the double-digit range, while international markets, particularly in unconventional resources, are expected to perform better [60][68] Company Strategy and Development Direction - The company is focusing on operational efficiencies and careful cost management in light of emerging macroeconomic headwinds [6][9] - NOV is well-positioned for long-term growth, emphasizing the importance of deepwater and international shale production as future sources of incremental oil supply [11][41] - The company is actively diversifying supply chains to mitigate tariff impacts and is leveraging its U.S. manufacturing footprint to enhance competitiveness [30][39] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the geopolitical and macroeconomic environment, anticipating challenges in the second half of 2025 [29][41] - The outlook for offshore production remains robust, with expectations for more awards for FPSOs in 2025 compared to previous years [24][50] - Management highlighted the importance of technological advancements in improving drilling and production efficiencies, particularly in deepwater projects [45][46] Other Important Information - The company plans to pay a supplemental dividend of around $80 million, subject to Board approval, to align returns to 50% of excess free cash flow for 2024 [15] - NOV's backlog of capital equipment and projects has grown steadily, with margins improving significantly over the past four years [8][9] Q&A Session Summary Question: Guidance on 2025 margins relative to 2024 - Management indicated that EBITDA margins are expected to be flattish from the first half to the second half of 2025, with modest growth anticipated [56] Question: International revenues decrease - Management acknowledged a seasonal pullback but expects international revenues to grow as a share of the business going forward [60] Question: Capital equipment order activity - Management noted strong confidence in the offshore deepwater market, with potential FPSO awards in 2025, despite some macroeconomic uncertainties [66][68] Question: Tariff mitigation efforts and CapEx - Most mitigation plans do not require significant CapEx, focusing instead on operational efficiency and vendor collaboration [80] Question: M&A opportunities in the current economic environment - Management remains open to opportunistic M&A but emphasized the need for deals to make industrial sense and provide high returns [86][89]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-12317 NOV INC. (Exact name of registrant as specified in its charter) Washington, D.C. 20549 FORM 10-Q Delaware 76-0475815 (State or other jurisdiction of incorporation or organization) (IRS Employ ...

Financial Data and Key Metrics Changes - For Q1 2025, NOV reported revenues of $2.1 billion, a net income of $73 million, and an EBITDA of $252 million, representing a margin increase of 80 basis points year on year [5][6][15] - Consolidated revenue decreased by 2% year on year, while adjusted EBITDA increased by 5%, marking the fourteenth consecutive quarter of year-over-year EBITDA margin improvement [15][18] - Operating cash flow was strong, generating $135 million in cash from operations and $51 million in free cash flow after capital expenditures of $84 million [16][18] Business Line Data and Key Metrics Changes - The Energy Products and Services segment generated revenue of $992 million, a 2% decrease year on year, with EBITDA declining to $145 million or 14.6% of sales [18][19] - The Energy Equipment segment reported revenue of $1.15 billion, down 3% year on year, but EBITDA increased by $46 million to $165 million, resulting in a margin of 14.4% [22][24] - Capital equipment sales accounted for 57% of the Energy Equipment segment's revenues, with bookings for Q1 at $437 million, a 12% year-over-year increase [23][24] Market Data and Key Metrics Changes - International revenues decreased from 65% to 61% of total revenues, attributed to seasonal pullbacks, but the international market is expected to grow as a share of the business going forward [59][60] - North American activity is anticipated to decline in the double-digit range, while international markets, particularly in unconventional resources, are expected to perform better [60][70] Company Strategy and Development Direction - The company is focusing on operational efficiencies and cost management in light of emerging macroeconomic headwinds, including a potential trade war and lower oilfield activity [8][10] - NOV is well-positioned for long-term growth, emphasizing the importance of deepwater and international shale production as future sources of incremental oil supply [12][41] - The company is actively working to mitigate tariff impacts by diversifying supply chains and leveraging its U.S. manufacturing footprint [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the geopolitical and macroeconomic environment, indicating that while there are potential upsides, the outlook remains skewed to the downside [29][41] - The company expects modest growth in Q2 2025, with consolidated revenue anticipated to decline by 1% to 4% compared to the same period in 2024 [28][60] - Management highlighted the resilience of international and offshore customers, who continue to press ahead with strategic plans despite market uncertainties [9][10] Other Important Information - The backlog of capital equipment and projects has grown steadily over the past four years, with margins improving significantly [10][22] - The company plans to pay a supplemental dividend of around $80 million, subject to board approval, to align returns to 50% of excess free cash flow for 2024 [17][18] Q&A Session Summary Question: Guidance on 2025 margins relative to 2024 - Management indicated that EBITDA margins are expected to be flattish from the first half to the second half of 2025, with modest growth anticipated [56][58] Question: International revenues and future growth - Management confirmed that international revenues are expected to grow as a share of the business, driven by resilience in unconventional shale and deepwater offshore activity [59][60] Question: Capital equipment order activity - Management noted that while there is uncertainty, confidence in the deepwater offshore market remains strong, with potential FPSO awards expected in 2025 [68][69] Question: Exposure to the flexibles market and Petrobras agreement - Management expressed optimism about the flexibles market and highlighted a new agreement with Petrobras to address stress corrosion issues, which could significantly benefit the business [74][75] Question: Tariff mitigation efforts and CapEx - Management clarified that most tariff mitigation efforts do not require significant CapEx, focusing instead on operational efficiency improvements [80][81] Question: M&A opportunities in the current economic environment - Management stated that while there may be opportunities due to the economic soft patch, they remain cautious about pursuing M&A unless it aligns with their strategic goals [88][90]

[First Quarter 2025 Results Overview](index=1&type=section&id=First%20Quarter%202025%20Results%20Overview) This section provides a comprehensive overview of NOV Inc.'s financial performance and strategic outlook for the first quarter of 2025, highlighting key achievements and future expectations [First Quarter 2025 Financial Performance](index=1&type=section&id=First%20Quarter%202025%20Financial%20Performance) NOV Inc. achieved solid first-quarter 2025 results, with adjusted EBITDA and cash flow growth despite a slight year-over-year revenue decline, alongside significant capital returns to shareholders Key Financial Data for Q1 2025 (Year-over-Year) | Metric | Q1 2025 | Q1 2024 | Change | Change Rate | Reference | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $2.10 billion | $2.14 billion | -$0.04 billion | -2% | [3] | | Net Income | $73 million | $119 million | -$46 million | -39% | [3, 6] | | Earnings Per Share (EPS) | $0.19 | $0.31 | -$0.12 | -39% | [3, 6] | | Operating Profit | $152 million | $162 million | -$10 million | -6% | [3] | | Adjusted EBITDA | $252 million | $241 million | +$11 million | +5% | [3, 6] | | Cash Flow from Operations | $135 million | -$78 million | +$213 million | N/A | [6] | | Free Cash Flow | $51 million | -$147 million | +$198 million | N/A | [6] | - The company overcame revenue decline and improved adjusted EBITDA margins by executing large offshore production technology backlogs, accelerating adoption of differentiated new technologies, and continuously improving operational efficiencies[4](index=4&type=chunk) - Capital of **$109 million** was returned to shareholders this quarter through opportunistic share repurchases and dividends[4](index=4&type=chunk)[6](index=6&type=chunk) [CEO Commentary & Business Outlook](index=1&type=section&id=CEO%20Commentary%20%26%20Business%20Outlook) The CEO highlighted the company's execution in an uncertain macroeconomic environment and provided an outlook for future activities and second-quarter performance - Macroeconomic and geopolitical uncertainties, including global trade tensions, a weakening economic outlook, and OPEC+ production increases, are increasing customer uncertainty and caution, with some short-cycle activity expected to slow[5](index=5&type=chunk) - The company will continue to focus on supporting customer operations, including adjusting global supply chains to mitigate the impact of new tariffs[5](index=5&type=chunk) - For the second quarter of 2025, revenue is expected to moderately improve sequentially, but full-year second-half activity may further decrease due to uncertainties[6](index=6&type=chunk) Q2 2025 Performance Outlook | Metric | Q2 2025 Outlook | Reference | | :--- | :--- | :--- | | Consolidated Revenue (YoY) | Down 1% to 4% | [10] | | Adjusted EBITDA | $250 million to $280 million | [10] | [Segment Performance](index=2&type=section&id=Segment%20Performance) This section details the financial and operational performance of NOV's Energy Products and Services and Energy Equipment segments, including revenue, profitability, and order trends [Energy Products and Services](index=2&type=section&id=Energy%20Products%20and%20Services) The Energy Products and Services segment experienced year-over-year declines in revenue and profitability, primarily due to lower industry activity and an unfavorable sales mix, partially offset by accelerated market adoption of new performance technologies Energy Products and Services Segment Q1 2025 Performance (Year-over-Year) | Metric | Q1 2025 | Q1 2024 | Change | Change Rate | Reference | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $992 million | $1,012 million | -$20 million | -2% | [7, 34] | | Operating Profit | $83 million | $121 million | -$38 million | -31.4% | [7, 44] | | Operating Margin | 8.4% | 11.9% | -3.5% | N/A | [7, 44] | | Adjusted EBITDA | $145 million | $174 million | -$29 million | -16.7% | [7, 44] | | Adjusted EBITDA Margin | 14.6% | 17.1% | -2.5% | N/A | [7, 44] | - The revenue decline was primarily due to lower industry activity, significantly impacting demand for the segment's short-cycle capital equipment products, though partially offset by accelerated market adoption of new performance technologies[7](index=7&type=chunk) - Lower sales volumes and an unfavorable sales mix led to decreased profitability[7](index=7&type=chunk) [Energy Equipment](index=2&type=section&id=Energy%20Equipment) The Energy Equipment segment saw a slight year-over-year revenue decrease but significant growth in operating profit and adjusted EBITDA, driven by backlog execution, improved pricing, and strong performance, with both new orders and backlog increasing Energy Equipment Segment Q1 2025 Performance (Year-over-Year) | Metric | Q1 2025 | Q1 2024 | Change | Change Rate | Reference | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $1.15 billion | $1.18 billion | -$0.03 billion | -3% | [8, 34] | | Operating Profit | $134 million | $95 million | +$39 million | +41.1% | [8, 44] | | Operating Margin | 11.7% | 8.1% | +3.6% | N/A | [8, 44] | | Adjusted EBITDA | $165 million | $119 million | +$46 million | +38.7% | [8, 44] | | Adjusted EBITDA Margin | 14.4% | 10.1% | +4.3% | N/A | [8, 44] | - Despite decreased aftermarket parts and service demand, increased revenue from backlog execution partially offset this impact, with improved pricing and strong execution enhancing profitability[8](index=8&type=chunk) Energy Equipment Segment Orders and Backlog | Metric | Q1 2025 | Q1 2024 | Change | Reference | | :--- | :--- | :--- | :--- | :--- | | New Orders | $437 million | $390 million | +$47 million | [9] | | Backlog Shipments | $549 million | $507 million | +$42 million | [9] | | Book-to-bill Ratio | 80% | 77% | +3% | [9] | | Capital Equipment Backlog (as of March 31) | $4.41 billion | $3.95 billion | +$458 million | [9] | [Corporate Financials & Capital Allocation](index=2&type=section&id=Corporate%20Financials%20%26%20Capital%20Allocation) This section outlines NOV's capital allocation strategies, shareholder returns, and overall financial health, including debt levels and cash positions [Capital Allocation & Shareholder Returns](index=2&type=section&id=Capital%20Allocation%20%26%20Shareholder%20Returns) NOV returned **$109 million** to shareholders in Q1 through share repurchases and dividends, committing to return at least **50%** of annual excess free cash flow to shareholders Q1 2025 Shareholder Returns | Metric | Amount | Reference | | :--- | :--- | :--- | | Share Repurchases | $81 million (5.4 million shares) | [11] | | Dividends | $28 million | [37] | | Total Capital Returned to Shareholders | $109 million | [11] | - The company plans to return at least **50%** of annual excess free cash flow to shareholders through quarterly base dividends, opportunistic share repurchases, and annual supplemental dividends[11](index=11&type=chunk) [Financial Position & Other Items](index=2&type=section&id=Financial%20Position%20%26%20Other%20Items) As of March 31, 2025, NOV maintained a healthy financial position with ample cash and credit availability, and disclosed the primary components of "Other Items" for the quarter Financial Position as of March 31, 2025 | Metric | Amount | Reference | | :--- | :--- | :--- | | Total Debt | $1.74 billion | [12] | | Available under Primary Revolving Credit Facility | $1.50 billion | [12] | | Cash and Cash Equivalents | $1.16 billion | [12] | - The first quarter of 2025 recorded **$13 million** in "Other Items," primarily related to severance and the deconsolidation of Russian subsidiaries following additional U.S. sanctions on Russian operations[12](index=12&type=chunk) [Operational Highlights & Strategic Developments](index=3&type=section&id=Operational%20Highlights%20%26%20Strategic%20Developments) This section showcases NOV's key contract wins, technology deployments, and innovation efforts across various energy sectors, demonstrating its market leadership and strategic growth initiatives [Key Contracts & Technology Deployments](index=3&type=section&id=Key%20Contracts%20%26%20Technology%20Deployments) NOV secured several significant contracts and technology deployments in Q1, spanning deepwater flexible pipelines, offshore wind, natural gas development, and unconventional drilling, solidifying its leadership in energy technology solutions - Signed an agreement with Petrobras to develop flexible pipeline solutions for high-CO2 deepwater applications, aiming to address CO2-induced stress corrosion cracking[13](index=13&type=chunk) - Awarded a contract to provide an integrated cable lay system for a new vessel for a Japanese client, supporting subsea infrastructure for offshore wind farm construction[14](index=14&type=chunk) - Secured a Triethylene Glycol (TEG) gas dehydration project from a Middle Eastern national oil company, strengthening NOV's position in natural gas development and production technologies[15](index=15&type=chunk) - NOV's downhole technologies achieved two of the longest single Bottom Hole Assembly (BHA) runs in U.S. onshore drilling, demonstrating the durability and performance of ERT™ power section technology[16](index=16&type=chunk) - Awarded a contract to supply XLW-S connectors for the GranMorgu development project offshore Suriname, enhancing operational safety and accelerating run speeds[17](index=17&type=chunk) - Provided integrated BHAs for an operating company in a Middle Eastern unconventional field, achieving the highest average performance for **16-inch** and **12-inch** hole sizes and setting a field record for **12-inch** Rate of Penetration (ROP)[18](index=18&type=chunk) - Developed and delivered customized choke valve solutions for a major Middle Eastern operator, significantly improving production capabilities and securing multiple additional orders[19](index=19&type=chunk) [Innovation & Market Expansion](index=4&type=section&id=Innovation%20%26%20Market%20Expansion) NOV continues to innovate in AI, composites, thermal insulation coatings, and digital solutions, successfully expanding into the Icelandic geothermal market, enhancing its technological leadership and market influence - NOV's Drilling Bit Analytics (DBA) solution continues to gain global traction, utilizing AI to provide real-time wellbore insights, applied across **20 million feet** of drilling operations, and successfully deployed in geothermal drilling[20](index=20&type=chunk) - Awarded contracts to supply STAR™ Super Seal Key Lock (SSKL) composite pipe for a produced water infrastructure project in West Texas and a production facility expansion in the Middle East, demonstrating leadership in non-corrosive composite solutions[21](index=21&type=chunk) - Successfully delivered Tuboscope's TK™ Drakōn thermal insulation coating for high-pressure, high-temperature environments in the Haynesville and Eagle Ford shales, with customers expanding their investment[22](index=22&type=chunk) - Awarded a contract to upgrade existing U.S. workover rigs from conventional to AC electric operations, integrating PLC controls and data acquisition systems to enhance operational efficiency and wellsite accountability[23](index=23&type=chunk) - Secured a contract to provide customized solids control solutions for a geothermal drilling project in Iceland, marking NOV's entry into the expanding Icelandic geothermal market[24](index=24&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) This section provides essential background on NOV, clarifies the use of non-GAAP financial measures, and includes cautionary notes regarding forward-looking statements [About NOV](index=4&type=section&id=About%20NOV) NOV is a global energy industry technology solutions provider with over **150 years** of history, dedicated to empowering customers to safely produce energy through innovation, while minimizing environmental impact and driving energy transition - NOV (NYSE: NOV) is dedicated to providing technology-driven solutions that empower the global energy industry[26](index=26&type=chunk) - With over **150 years** of innovation, the company helps customers safely produce abundant energy, minimize environmental impact, and facilitate the energy transition towards a more sustainable future[26](index=26&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP financial measures like free cash flow, excess free cash flow, and adjusted EBITDA, included in this release, are considered useful by management and investors for assessing the company's financial performance but are not substitutes for GAAP measures - Non-GAAP financial measures such as free cash flow, excess free cash flow, and adjusted EBITDA are considered useful tools by management and the investment community for evaluating NOV's overall financial performance, but they are not substitutes for GAAP financial measures[28](index=28&type=chunk) - Free cash flow and excess free cash flow do not represent the company's remaining cash flow available for discretionary expenditures, as their calculations do not account for certain debt repayment requirements or other non-discretionary outlays[28](index=28&type=chunk) - The company has not provided a reconciliation of projected adjusted EBITDA because management cannot reasonably predict certain necessary components of net income, such as other income (expense), with reasonable accuracy[29](index=29&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This document contains forward-looking statements involving risks and uncertainties, where actual results may differ materially from expectations, requiring investor caution, and the company undertakes no obligation to update these statements - This document contains forward-looking statements involving risks and uncertainties, where actual results may differ materially from expectations due to factors such as changes in oil and gas prices, customer demand, catastrophic events, intellectual property protection, legal compliance, and global economic activity, including Russian sanctions and changes in U.S. trade policy[30](index=30&type=chunk) - Investors should exercise caution with any such forward-looking statements, and the company undertakes no obligation to update any such factors or forward-looking statements to reflect future events or developments[30](index=30&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents NOV Inc.'s unaudited consolidated financial statements, including the statements of income, balance sheets, cash flows, and reconciliations of non-GAAP measures [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) This section presents NOV Inc.'s unaudited consolidated statements of income, covering financial performance for the three-month periods ended March 31, 2025, December 31, 2024, and March 31, 2024 NOV INC. Consolidated Statements of Income (Unaudited) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Energy Products and Services Revenue | $992 million | $1,017 million | $1,060 million | | Energy Equipment Revenue | $1,146 million | $1,178 million | $1,287 million | | Total Revenue | $2,103 million | $2,155 million | $2,308 million | | Gross Profit | $447 million | $458 million | $493 million | | Operating Profit | $152 million | $162 million | $207 million | | Net Income | $74 million | $121 million | $161 million | | Net Income Attributable to NOV Inc. | $73 million | $119 million | $160 million | | Basic Earnings Per Share | $0.19 | $0.30 | $0.41 | | Diluted Earnings Per Share | $0.19 | $0.30 | $0.41 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) This section presents NOV Inc.'s unaudited consolidated balance sheets, detailing assets, liabilities, and stockholders' equity as of March 31, 2025, and December 31, 2024 NOV INC. Consolidated Balance Sheets (Unaudited) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | $1,157 million | $1,230 million | | Accounts Receivable, Net | $1,790 million | $1,819 million | | Inventories, Net | $1,942 million | $1,932 million | | Contract Assets | $680 million | $577 million | | Total Current Assets | $5,784 million | $5,770 million | | Property, Plant and Equipment, Net | $1,953 million | $1,922 million | | Goodwill and Intangible Assets, Net | $2,127 million | $2,138 million | | Total Assets | $11,273 million | $11,361 million | | **Liabilities and Stockholders' Equity** | | | | Accounts Payable | $796 million | $837 million | | Accrued Liabilities | $685 million | $861 million | | Contract Liabilities | $520 million | $492 million | | Total Current Liabilities | $2,182 million | $2,347 million | | Long-Term Debt | $1,699 million | $1,703 million | | Total Liabilities | $4,779 million | $4,933 million | | Total Stockholders' Equity | $6,494 million | $6,428 million | | Total Liabilities and Stockholders' Equity | $11,273 million | $11,361 million | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides NOV Inc.'s unaudited consolidated statements of cash flows, detailing cash flows from operating, investing, and financing activities for the three-month periods ended March 31, 2025, and March 31, 2024 NOV INC. Consolidated Statements of Cash Flows (Unaudited) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $135 million | -$78 million | | Net Cash Used in Investing Activities | -$81 million | -$311 million | | Net Cash Used in Financing Activities | -$135 million | $43 million | | Effect of Exchange Rate Changes on Cash | $8 million | -$2 million | | Decrease in Cash and Cash Equivalents | -$73 million | -$348 million | | Cash and Cash Equivalents at End of Period | $1,157 million | $468 million | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides reconciliations of cash flow from operations to free cash flow and excess free cash flow, and net income to adjusted EBITDA, to help investors better understand the company's operational performance Reconciliation of Cash Flow from Operations to Free Cash Flow and Excess Free Cash Flow (Unaudited) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $135 million | -$78 million | | Capital Expenditures | -$84 million | -$69 million | | **Free Cash Flow** | **$51 million** | **-$147 million** | | Business Acquisitions, Net of Cash Acquired | — | -$243 million | | **Excess Free Cash Flow** | **$51 million** | **-$390 million** | Reconciliation of Net Income to Adjusted EBITDA (Unaudited) | Metric | March 31, 2025 | March 31, 2024 | December 31, 2024 | | :--- | :--- | :--- | :--- | | GAAP Net Income Attributable to NOV Inc. | $73 million | $119 million | $160 million | | Noncontrolling Interests | $1 million | $2 million | $1 million | | Provision for Income Taxes | $47 million | $44 million | $38 million | | Interest and Financing Costs | $22 million | $24 million | $24 million | | Interest Income | -$11 million | -$8 million | -$11 million | | Equity (Earnings) Loss in Unconsolidated Affiliates | — | -$29 million | $1 million | | Other (Income) Expense, Net | $20 million | $10 million | -$6 million | | Gain on Sale of Property, Plant and Equipment | -$2 million | -$1 million | — | | Depreciation and Amortization | $89 million | $83 million | $88 million | | Other Items, Net | $13 million | -$3 million | $7 million | | **Total Adjusted EBITDA** | **$252 million** | **$241 million** | **$302 million** |

NOV Inc. (NOV) reported first-quarter 2025 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 25 cents. The bottom line decreased from the year-ago quarter’s 30 cents. This underperformance can be attributed to margin pressures on projects within its Energy Equipment segment. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The oil and gas equipment and services company’s total revenues of $2.1 billion marginally beat the Zacks Consensus Estimate b ...

分组1 - Nov Inc. reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.25 per share, and down from $0.30 per share a year ago, representing an earnings surprise of -24% [1] - The company posted revenues of $2.1 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.21%, but down from year-ago revenues of $2.16 billion [2] - Over the last four quarters, Nov Inc. has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has lost about 15.6% since the beginning of the year, compared to the S&P 500's decline of -6.1% [3] - The current consensus EPS estimate for the coming quarter is $0.33 on $2.17 billion in revenues, and $1.36 on $8.79 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank for Oil and Gas - Mechanical and Equipment is currently in the bottom 8% of over 250 Zacks industries, indicating potential challenges for the sector [8]

NOV Inc. (NOV) is set to release first-quarter 2025 results on April 28, 2025. The Zacks Consensus Estimate for earnings is pegged at 25 cents per share and the same for revenues is pinned at $2.10 billion.Let us delve into the factors that are likely to have influenced the oilfield service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at NOV’s performance in the last reported quarter.Highlights of NOV’s Q4 Earnings & Surprise HistoryIn the last reported quarter, ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Nov Inc. due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Nov Inc. is expected to report quarterly earnings of $0.25 per share, reflecting a -16.7% change year-over-year, with revenues projected at $2.1 billion, down 2.6% from the previous year [3]. - The consensus EPS estimate has been revised 2.09% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4%, complicating predictions for an earnings beat [10][11]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise [8]. Historical Performance - In the last reported quarter, Nov Inc. exceeded expectations by delivering earnings of $0.41 per share against an expected $0.35, resulting in a surprise of +17.14% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Market Reaction Considerations - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [14]. - Despite not appearing as a compelling earnings-beat candidate, other factors should be considered when evaluating the stock ahead of its earnings release [16].

Group 1 - NOV Inc. has entered into an agreement with Petrobras S.A. to develop CO2-resistant flexible pipes for deepwater oil and gas operations, addressing the challenge of stress corrosion cracking (SCC) caused by high CO2 concentration [1][2] - The collaboration will focus on developing stainless steel armoring technology to combat SCC, with Petrobras investing in this technology while working closely with NOV [2] - The partners aim to create 6-inch and 8-inch production and gas injection risers along with associated flowlines designed to withstand high CO2 levels in deepwater environments [3] Group 2 - The new technology is intended to retain the core features of standard flexible pipes, such as easy installation and compatibility with existing oil and gas infrastructure, minimizing disruptions to ongoing operations [4] - NOV emphasizes that this innovative solution showcases how collaboration and knowledge sharing can advance technological developments that benefit the oil and gas industry as a whole [5] Group 3 - Both NOV and Petrobras currently hold a Zacks Rank 3 (Hold), indicating a neutral outlook [6] - Other energy sector companies with better rankings include Archrock Inc. with a Zacks Rank 1 (Strong Buy) and Nine Energy Service with a Zacks Rank 2 (Buy) [6]

Core Viewpoint - NOV Inc. is a well-established provider of advanced equipment and technology for the oil, gas, and renewable energy industries, with a significant role in global energy production and a focus on both traditional and renewable energy sources [1] Group 1: Growth Opportunities - Strong backlog growth and a resilient book-to-bill ratio have been maintained, with a book-to-bill ratio above 1 in 10 of the last 12 quarters, indicating the ability to secure new orders faster than product deliveries [3] - The company's backlog has grown by 22% over the past four years, providing strong visibility into future revenues, particularly for offshore and production-related equipment [3] - NOV generated $953 million in free cash flow in 2024, converting 86% of its EBITDA into cash, allowing for investment in growth initiatives and shareholder returns [4][6] - The company is gaining market share in high-growth segments, with a notable 89% year-over-year growth in friction reduction tools and downhole tools [7] - NOV is benefiting from rising offshore investments, particularly in deepwater projects, securing major FPSO equipment contracts in Brazil and West Africa [8] - Advancements in digital and automation solutions, such as the Max Edge platform, have seen strong adoption, positioning NOV for growth in high-tech energy services [9] Group 2: Risks and Challenges - Potential headwinds from commodity price volatility could pressure oil prices, leading to cuts in exploration and production spending, negatively impacting NOV's revenue outlook [10] - The offshore drilling market faces uncertainty, with many drilling contractors experiencing idle rigs, leading to lower aftermarket demand for NOV's offshore drilling equipment and services [11] - Weak demand for pressure pumping and stimulation equipment in North America is expected to weigh on NOV's revenues and margins in 2025 [12] - NOV's share price has underperformed compared to the Zacks Oil and Energy sector and the Mechanical and Equipment Oil and Gas sub-industry, dropping 12.6% over the past six months [13] - North America's drilling activity declined by 9% in 2024, impacting demand for NOV's short-cycle products [16] Group 3: Final Thoughts - NOV's strong backlog growth and free cash flow generation support long-term stability and investor confidence, despite facing potential challenges from commodity price volatility and market uncertainties [17][18]