Financial Data and Key Metrics Changes - For Q3 2025, NOV Inc. reported revenues of $2.18 billion, a slight decrease of less than 1% year-over-year and sequentially, with a net income of $42 million, or $0.11 per fully diluted share [3][16] - Adjusted EBITDA totaled $258 million, representing 11.9% of sales, with free cash flow generation remaining robust at $245 million [4][16] - Operating profit was $107 million, or 4.9% of sales, with EBITDA margins improving sequentially despite rising tariff and inflationary pressures [16] Business Line Data and Key Metrics Changes - The energy equipment segment generated $1.25 billion in revenue, up 2% year-over-year, with EBITDA increasing by $21 million to $180 million, resulting in a 14.4% EBITDA margin [18] - Capital equipment sales accounted for 63% of the energy equipment segment's revenue, increasing 20% year-over-year due to strong growth in offshore production equipment [18] - The intervention and stimulation capital equipment revenue fell double digits year-over-year due to a steep drop in demand for pressure pumping equipment in North America, partially offset by strong demand for coil tubing and wireline equipment [22] Market Data and Key Metrics Changes - North America represented 57% of the energy products and services segment revenue, growing 7% year-over-year, while international markets saw a 15% year-over-year revenue decrease due to activity declines in the Middle East and Latin America [25] - The global rig count declined by 8% year-over-year, impacting overall activity levels [25] - Offshore oil output is forecasted to rise to approximately 13 million barrels a day by 2026, making deepwater the leading source of incremental supply growth [12] Company Strategy and Development Direction - The company is focused on capitalizing on two major structural shifts: the globalization of unconventional shale development and the re-emergence of deepwater and offshore development [7][10] - NOV aims to leverage its technology and equipment to support the emerging build-out of international shale development and deepwater projects, which are expected to drive demand for its products for years to come [10][14] - The company is executing strategic sourcing initiatives to reduce tariff impacts and is focused on removing structural costs to improve margins and returns [17][18] Management's Comments on Operating Environment and Future Outlook - Management expects market conditions to remain soft through the next few quarters, with tariffs and inflation uncertainty weighing on margins [14] - Looking further ahead, the second half of 2026 and beyond is anticipated to see strengthening demand across both offshore and international land markets [14][29] - The company remains optimistic about the long-term outlook, driven by growing demand, natural decline rates, and a decade of underinvestment in exploration [29] Other Important Information - The company repurchased 6.2 million shares for $80 million and paid dividends of $28 million, bringing total capital return to shareholders year-to-date to $393 million [17] - Tariff expenses increased approximately $6 million sequentially, with expectations of around $25 million for the fourth quarter [17] Q&A Session Summary Question: Can the energy equipment business continue to show decent year-over-year growth through 2026 despite a softer near-term market? - Management indicated that while capital equipment demand remains strong, there are concerns about the general softness in the oilfield due to OPEC barrels affecting commodity prices [48][50] Question: What is the outlook for margins in 2026 considering the mix of capital equipment versus aftermarket? - Management expressed confidence in the capital equipment margins but noted that the timing of contracts and market conditions will be key variables [51][52] Question: What is the general outlook for orders in the fourth quarter? - Management expects orders to potentially slip below 100% book-to-bill but remains optimistic about the long-term trend [59][60] Question: Can you elaborate on the build-out of unconventionals in regions like Argentina and Saudi Arabia? - Management highlighted ongoing unconventional prospecting in various countries and the increasing demand for NOV's services in these markets [68][70] Question: What is the outlook for FPSOs and FIDs in 2025 and beyond? - Management noted a cautious outlook for FIDs in the near term but expects demand to pick up significantly in late 2026 and 2027 as the oil overhang is resolved [76]

Financial Data and Key Metrics Changes - For Q3 2025, NOV Inc. reported revenues of $2.18 billion, a slight decrease of less than 1% year-over-year and sequentially [3][4] - Net income was $42 million, or $0.11 per fully diluted share, with adjusted EBITDA totaling $258 million, representing 11.9% of sales [3][15] - Free cash flow generation remained robust at $245 million, with a 95% conversion rate during the quarter [15][16] Business Line Data and Key Metrics Changes - The energy equipment segment generated $1.25 billion in revenue, up 2% year-over-year, with EBITDA increasing by $21 million to $180 million, resulting in a 14.4% EBITDA margin [17][18] - Capital equipment sales accounted for 63% of the energy equipment segment's revenue, increasing 20% year-over-year due to strong growth in offshore production equipment [17][18] - The intervention and stimulation capital equipment revenue fell double digits year-over-year due to a steep drop in demand for pressure pumping equipment in North America [22] Market Data and Key Metrics Changes - North America represented 57% of the energy products and services segment revenue, growing 7% year-over-year, while international markets saw a 15% year-over-year decline [25] - The global rig count declined by 8% year-over-year, impacting overall activity levels [25][26] - Demand for unconventional resources is increasing in regions like Argentina, Saudi Arabia, and the UAE, with emerging interest in countries such as Algeria and Turkey [64][66] Company Strategy and Development Direction - The company is focused on capitalizing on key secular trends, including offshore production supplanting U.S. unconventional resources and the application of technology to drive efficiencies [30][31] - NOV aims to improve operational efficiencies while positioning itself to benefit from the anticipated recovery in demand starting in late 2026 [30][31] - The company is executing strategic sourcing initiatives to reduce tariff impacts and is on track to deliver over $100 million in annualized cost savings by the end of 2026 [16][17] Management's Comments on Operating Environment and Future Outlook - Management expects market conditions to remain soft through the next few quarters, with tariffs and inflationary uncertainty weighing on margins [13][30] - The outlook for the second half of 2026 and beyond is more positive, with expectations of strengthening demand across both offshore and international land markets [13][30] - Management highlighted the importance of technology and innovation in maintaining competitive advantage and driving future growth [40][45] Other Important Information - The company repurchased 6.2 million shares for $80 million and paid dividends of $28 million, bringing total capital return to shareholders year-to-date to $393 million [16] - The backlog at the end of Q3 was $4.56 billion, the highest since reporting energy equipment as a segment [18] Q&A Session Summary Question: About the energy equipment business and backlog - Management indicated that the backlog will help maintain decent year-over-year growth through 2026, despite a softer near-term market [48][49] Question: On margins and capital equipment - Management expressed optimism about maintaining margin profiles in 2026, driven by a favorable mix of capital equipment orders [52][53] Question: Outlook for orders and book-to-bill ratio - Management expects orders in Q4 to slip slightly below 100% book-to-bill but remains positive about the long-term trend [58][59] Question: Discussion on unconventionals and international markets - Management highlighted increasing demand for unconventional resources in regions like Argentina and Saudi Arabia, with a growing interest in other countries [64][66] Question: FPSOs and future FIDs - Management noted a cautious outlook for FPSOs in 2025 but expects demand to pick up in late 2026 and 2027 as the oil overhang is resolved [72]

Third Quarter 2025 Earnings Presentation NOV Inc. Safe Harbor / Forward Looking Statements / Non-GAAP Financial Measures © 2025 NOV Inc. All rights reserved. 2025 Earnings Presentation – 10/28/2025 3 Third Quarter 2025 Highlights Bookings Book-to-Bill of 141% 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 st ...

Financial Performance - Third quarter 2025 revenues were $2.18 billion, a decrease of 1% compared to Q3 2024[3] - Net income decreased 68% to $42 million, or $0.11 per share, and operating profit decreased 45% to $107 million, or 4.9% of sales[3] - Adjusted EBITDA decreased 10% year-over-year to $258 million, or 11.9% of sales[3] - Total revenue for Q3 2025 was $2,176 million, a slight decrease of 0.7% compared to $2,191 million in Q2 2024[33] - Gross profit margin decreased to 18.9% in Q3 2025 from 21.4% in Q2 2024, reflecting a decline in profitability[33] - Net income for Q3 2025 was $44 million, down 66.9% from $130 million in Q2 2024[33] - Operating profit for Q3 2025 was $107 million, a significant decrease from $194 million in Q2 2024[33] - Total operating profit for the three months ended September 30, 2025, was $107 million, a decrease from $194 million in the same period of 2024, representing a decline of 44.8%[43] - Adjusted EBITDA for the nine months ended September 30, 2025, was $762 million, down from $808 million in the same period of 2024, reflecting a decrease of 5.7%[43] - GAAP net income attributable to the company for the nine months ended September 30, 2025, was $223 million, down from $475 million in the same period of 2024, a decline of 53.1%[43] - The total operating profit percentage for the nine months ended September 30, 2025, was 6.2%, down from 10.2% in the same period of 2024[43] Cash Flow and Assets - Free cash flow was robust at $245 million during the quarter, supported by improved working capital management[4] - Free Cash Flow for Q3 2025 was $245 million, compared to $404 million in the same period last year[40] - The company reported a net cash provided by operating activities of $352 million for Q3 2025, down from $678 million in the same period last year[36] - Total current assets as of September 30, 2025, were $5,762 million, slightly down from $5,770 million at the end of 2024[35] - Total liabilities decreased to $4,826 million as of September 30, 2025, from $4,933 million at the end of 2024[35] - Cash and cash equivalents at the end of Q3 2025 were $1,207 million, compared to $1,230 million at the end of 2024[35] Segment Performance - Energy Products and Services generated revenues of $971 million, a decrease of 3% from Q3 2024, with operating profit at $38 million[8] - Energy Equipment revenues increased 2% to $1,247 million, with operating profit at $130 million, or 10.4% of sales[9] - Energy Products and Services segment reported an operating profit margin of 3.9% for Q3 2025, significantly lower than 11.4% in Q3 2024[43] - Energy Equipment segment maintained a stable operating profit margin of 10.4% for Q3 2025, slightly down from 10.6% in Q3 2024[43] - Energy Products and Services adjusted EBITDA for Q3 2025 was $135 million, a decrease from $172 million in Q3 2024, representing a decline of 21.5%[43] Future Outlook - For Q4 2025, management expects consolidated revenues to decline between 5% to 7%, with Adjusted EBITDA projected between $230 million and $260 million[11] - The backlog for capital equipment orders for Energy Equipment totaled $4.56 billion, an increase of $77 million from Q3 2024[10] Other Financial Metrics - Bookings totaled $951 million, resulting in a book-to-bill ratio of 141%[6] - Total other items net gain for the three months ended September 30, 2025, was $65 million, compared to a gain of $5 million in the same period of 2024[43] - Depreciation and amortization expenses totaled $89 million for Q3 2025, up from $86 million in Q3 2024, indicating a 3.5% increase[43] Contracts and Projects - NOV secured a contract for a monoethylene glycol reclamation system in the Black Sea, supporting natural gas developments across multiple regions[14]

Core Insights - Nov Inc. reported quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.33 per share a year ago, representing an earnings surprise of -54.17% [1] - The company posted revenues of $2.18 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.83%, but down from $2.19 billion year-over-year [2] - Nov Inc. shares have declined approximately 5.2% year-to-date, contrasting with the S&P 500's gain of 15.5% [3] Earnings Outlook - 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 current consensus EPS estimate for the next quarter is $0.24 on revenues of $2.16 billion, and for the current fiscal year, it is $0.97 on revenues of $8.58 billion [7] Estimate Revisions - Prior to the earnings release, the estimate revisions trend for Nov Inc. was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which Nov Inc. belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Another company in the same industry, Kodiak Gas Services, is expected to report quarterly earnings of $0.50 per share, reflecting a year-over-year increase of +22%, with a consensus EPS estimate revised 18.6% higher recently [9]

Core Insights - NOV Inc. reported third quarter 2025 revenues of $2.18 billion, a decrease of 1% compared to the same period in 2024, with net income down 68% to $42 million, or $0.11 per share [2][8] - The company experienced a significant decline in operating profit, which fell 45% to $107 million, representing 4.9% of sales, while Adjusted EBITDA decreased by 10% year-over-year to $258 million, or 11.9% of sales [2][8] - Despite the challenges, NOV's operational performance improved sequentially, driven by strong execution on offshore production backlog and disciplined cost control, resulting in robust free cash flow of $245 million during the quarter [3][5] Financial Performance - Revenues from Energy Products and Services were $971 million, down 3% from the previous year, with operating profit decreasing to $38 million, or 3.9% of sales [7] - Energy Equipment generated revenues of $1.25 billion, an increase of 2% year-over-year, with operating profit rising to $130 million, or 10.4% of sales [8][9] - The company returned $108 million to shareholders through share repurchases and dividends during the quarter [12] Market Demand and Outlook - Demand for NOV's production equipment remains strong, with bookings more than doubling sequentially, resulting in a book-to-bill ratio of 141% [4][10] - The company is optimistic about the resurgence in offshore investment and unconventional development in new regions, which are expected to rely on NOV's differentiated tools and technologies [5][6] - For Q4 2025, management expects consolidated revenues to decline between 5% to 7%, with Adjusted EBITDA projected to be between $230 million and $260 million [11] Strategic Developments - NOV announced the appointment of Jose Bayardo to the Board of Directors as part of its long-term succession plan [6] - The company secured several contracts for advanced technologies and systems, including a monoethylene glycol reclamation system and automation systems for offshore drilling [14][15][21] - NOV's ATOM™ RTX robotic technology was deployed in the U.S. land market, enhancing safety and drilling performance [16] Balance Sheet and Cash Flow - As of September 30, 2025, NOV had total debt of $1.73 billion, with $1.21 billion in cash and cash equivalents [13] - The company reported cash flow from operations of $352 million for the quarter, with free cash flow of $245 million after capital expenditures [12][41]

Core Insights - NOV Inc. is expected to report third-quarter 2025 results on October 27, with earnings estimated at 24 cents per share and revenues at $2.1 billion [1][9] Financial Performance - In the last reported quarter, NOV missed the consensus earnings estimate, reporting adjusted EPS of 29 cents against an expected 30 cents, while revenues were $2.2 billion, up 1.9% from the consensus [2] - Over the past four quarters, NOV has beaten the Zacks Consensus Estimate once and missed three times, resulting in an average negative surprise of 3.9% [3] Revenue and Expense Outlook - The Zacks Consensus Estimate predicts a 2.4% decline in third-quarter revenues compared to the previous year, with the Energy Products and Services segment expected to generate $983 million, down from $1,003 million [5][9] - Selling, general, and administrative expenses are projected to rise by approximately 12.4% year-over-year, reaching $309 million [5][9] - The cost of goods sold is anticipated to decrease to $1,679.7 million from $1,722 million in the prior year [6] Market Conditions - The company expects a slowdown in global drilling activity in the second half of 2025, with North American shale activity also projected to decline modestly [5] - NOV believes that conventional drilling in Saudi Arabia will not see a resurgence before 2026 [5] Earnings Prediction - The Zacks model does not predict an earnings beat for NOV this quarter, with an Earnings ESP of -7.29% [7][8]

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]

Market Overview - The Singapore Oilfield Services Market was valued at USD 1.55 Billion in 2024 and is projected to reach USD 2.52 Billion by 2032, with a CAGR of 6.2% from 2025 to 2032 [1][21]. Technological Advancements - Artificial intelligence is enhancing operational efficiency, safety standards, and resource utilization in the oilfield services industry, enabling predictive maintenance and advanced seismic interpretation [2][4]. - The integration of smart sensors and robotics is improving well integrity management and production optimization, leading to safer operations and reduced environmental impact [3][4]. Market Dynamics - The market is influenced by a global push towards sustainability and technological advancement, with new regulations emphasizing environmental performance and digital transformation [6][10]. - Singapore's strategic positioning as a regional energy hub, along with its robust regulatory environment, supports the growth of high-value services and technological innovation [7][8]. Key Players - Major companies in the oilfield services market include Schlumberger Limited, Halliburton Company, and Baker Hughes Company, focusing on sustainable and low-carbon solutions [11][16]. Growth Segments - The fastest-growing segments are expected to be analytical services and subsea services, driven by the need for data-driven insights and complex deepwater developments [24][28]. Future Outlook - The market outlook remains positive, with sustained energy demand and ongoing technological advancements expected to drive growth, particularly in specialized services related to digital transformation and decarbonization efforts [21][29].

Group 1 - NOV Inc. will hold a conference call to discuss its third quarter 2025 results on October 28, 2025, at 10 a.m. Central Time [1] - A press release with the company's results will be issued after the market closes on October 27, 2025 [1] - The conference call will be webcast live on the company's investor relations website [1] Group 2 - NOV has been delivering technology-driven solutions to the global energy industry for over 150 years [2] - The company focuses on innovations that enable safe and efficient energy production while minimizing environmental impact [2] - NOV positions itself as a key player in powering the industry that powers the world [2]