NOV(US:NOV)2025-10-28 13:00Financial 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]