Core Viewpoint - NOV Inc. reported a decline in revenues and net income for the second quarter of 2025, primarily due to previous year's gains from business sales and current market challenges affecting customer orders and margins [3][4][6]. Financial Performance - Revenues for Q2 2025 were $2.19 billion, a decrease of 1% year-over-year, but up 4% sequentially [3][9]. - Net income fell 52% to $108 million, or $0.29 per share, with operating profit down 54% to $143 million, representing 6.5% of sales [3][9]. - Adjusted EBITDA decreased 10% year-over-year to $252 million, or 11.5% of sales [3][9]. Segment Performance - **Energy Products and Services**: Generated revenues of $1.03 billion, down 2% from the previous year, with operating profit decreasing to $83 million (8.1% of sales) [7]. - **Energy Equipment**: Revenues remained flat at $1.21 billion, but operating profit decreased significantly due to prior year gains, while adjusted EBITDA increased to $158 million (13.1% of sales) [8]. Market Conditions - The company faced macroeconomic uncertainties, including OPEC+ production changes and geopolitical conflicts, leading to cautious customer behavior and deferred orders [4][5]. - North American customers reduced oil-directed drilling, partially offset by slight increases in gas drilling, while offshore activity remained strong despite project delays [5]. Future Outlook - The company anticipates continued lower industry activity levels through the second half of 2025, with expectations for offshore activity growth resuming in 2026 [6]. - Long-term demand for secure and cost-effective energy sources is expected to drive investment in core markets [6]. Capital Management - NOV returned $176 million to shareholders through share repurchases and dividends during the quarter [12]. - The company repurchased approximately 5.5 million shares for $69 million [12]. Order and Backlog - New orders totaled $420 million, a decrease of $557 million compared to the same quarter in 2024, with a book-to-bill ratio of 66% [10]. - As of June 30, 2025, the backlog for capital equipment orders was $4.30 billion, down $31 million from the previous year [10].