Core Insights - NOV Inc. reported first-quarter 2025 adjusted earnings of 19 cents per share, missing the Zacks Consensus Estimate of 25 cents, and down from 30 cents in the prior year, primarily due to margin pressures in the Energy Equipment segment [1] - Total revenues reached $2.1 billion, slightly exceeding the Zacks Consensus Estimate by 0.2%, driven by stronger-than-expected performance in the Energy Equipment segment, although revenues declined 8.9% year-over-year [1] Financial Performance - The Energy Products and Services segment reported revenues of $992 million, missing predictions and decreasing by 2.5% from the previous year due to lower industry activity levels [3] - Adjusted EBITDA was $145 million, falling short of the estimate of $153 million and down from $174 million in the same period of 2024 [4] - The Energy Equipment segment's revenues decreased 2.7% year-over-year to $1.1 billion but beat estimates by 1%, with the decline attributed to the sale of the Pole Products business and lower aftermarket support revenues [4] Shareholder Returns - In Q1 2025, NOV repurchased 5.4 million shares for $81 million and returned a total of $109 million to shareholders, including dividends [2] - The company plans to return at least 50% of excess free cash flow to shareholders through dividends and stock buybacks, aligning with its strategy to enhance shareholder value [7] Outlook - For Q2 2025, NOV expects consolidated revenues to decline by 1% to 4% year-over-year, with adjusted EBITDA projected between $250 million and $280 million [7] Segment Highlights - The Energy Equipment segment saw new orders of $437 million, an increase of $47 million from the previous year, resulting in a book-to-bill ratio of 80 [5] - As of March 31, 2025, the backlog for Energy Equipment capital orders was $4.4 billion, up by $458 million from the prior year [5] Balance Sheet - As of March 31, 2025, NOV had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion, with a debt-to-capitalization ratio of 20.7% [6] - The company generated $135 million in operating cash flow and $51 million in free cash flow during the quarter [6] Key Achievements - NOV secured significant contracts, including a partnership with Petrobras for deepwater CO2 applications and a contract for an advanced cable-lay system for a Japanese vessel [9][10] - The company entered the Icelandic geothermal market and achieved record drilling performance in the U.S. Utica shale [13]