NOV(US:NOV)2025-02-05 14:00Revenue and Income - Fourth quarter 2024 revenues were $2.31 billion, a decrease of 1% year-over-year, while full-year revenues increased to $8.87 billion, up $287 million from 2023[3][4] - Fourth quarter net income was $160 million, or $0.41 per diluted share, compared to $598 million in the same quarter last year, which included a $485 million tax asset release[3][5] - Total revenue for the three months ended December 31, 2024, was $2,308 million, an increase from $2,191 million in the same period of 2023, representing a growth of 5.4%[35] - Net income attributable to the company for the three months ended December 31, 2024, was $160 million, a decrease from $598 million in the same period of 2023, indicating a decline of 73.3%[35] - GAAP net income attributable to the company for Q4 2024 was $160 million, compared to $598 million in Q4 2023, a decrease of 73.3%[45] Cash Flow and Capital - The company generated $591 million in cash flows from operations in the fourth quarter, with Free Cash Flow of $473 million, and for the full year, cash flows from operations were $1.30 billion with Free Cash Flow of $953 million[5][6] - Free Cash Flow for the year ended December 31, 2024, was $953 million, compared to a negative $140 million in 2023, showing a significant improvement[42] - Cash and cash equivalents at the end of the period increased to $1,230 million from $816 million, marking a growth of 50.7%[38] - The company plans to return at least 50% of Excess Free Cash Flow to shareholders annually, with $337 million returned in 2024[6][12] Operating Performance - Adjusted EBITDA for the fourth quarter was $302 million, representing 13.1% of sales, while full-year Adjusted EBITDA increased 11% to $1.11 billion, or 12.5% of sales[3][4] - Adjusted EBITDA for the year ended December 31, 2024, was $1.110 billion, compared to $1.001 billion in 2023, reflecting a 10.9% growth[45] - Operating profit for the three months ended December 31, 2024, was $207 million, compared to $194 million in the same period of 2023, reflecting an increase of 6.7%[35] - Total operating profit for Q4 2024 reached $207 million, up from $161 million in Q4 2023, representing a 28.6% increase[45] - The total operating profit percentage for the year improved to 9.9% from 7.6% in the previous year[45] Equipment Orders and Backlog - Capital equipment orders for the fourth quarter totaled $757 million, resulting in a book-to-bill ratio of 121%, while full-year capital equipment orders reached $2.75 billion, with a book-to-bill of 122%[5][9] - The backlog for capital equipment orders as of December 31, 2024, was $4.43 billion, an increase of $279 million from the previous year[9] Investments and Acquisitions - Business acquisitions net of cash acquired for the year ended December 31, 2024, amounted to $298 million, compared to $22 million in 2023, indicating increased investment in growth[42] Market Position and Strategy - NOV secured multiple contracts for advanced gas processing and water treatment equipment for newbuild FPSO units, highlighting its strong position in the offshore production equipment market[14] - The company is focusing on energy-efficient rig technologies and automation through a tri-party MoU in Malaysia, aiming to enhance operational efficiencies and safety[20] Financial Ratios and Margins - Gross profit for the year ended December 31, 2024, was $2,010 million, compared to $1,833 million in 2023, reflecting a year-over-year increase of 9.7%[35] - The company reported a gross profit margin of 21.4% for the year ended December 31, 2024, consistent with the previous year[35] - Energy Products and Services operating profit margin improved to 10.6% in Q4 2024 from 8.8% in Q4 2023[45] - Energy Products and Services adjusted EBITDA margin was 16.3% in Q4 2024, down from 18.0% in Q4 2023[45] Expenses and Liabilities - Total depreciation and amortization expenses for the year were $343 million, compared to $302 million in 2023, indicating a 13.6% rise[45] - Total liabilities decreased to $4,933 million as of December 31, 2024, from $5,052 million in 2023, representing a reduction of 2.4%[37] - Corporate costs and eliminations totaled $56 million in Q4 2024, compared to $46 million in Q4 2023, reflecting an increase of 21.7%[45]