NOV Inc. (NOV)

NOV Inc. reported third-quarter 2026 revenue of $2.23 billion on October 27, up 2% from a year earlier 1. Net income was $90 million, or $0.25 per share 1.

Chairman and chief executive Jose Bayardo tied the growth to customers in the Middle East and to factories ramping against a growing backlog of capital equipment orders 1. He also said the company expects Middle East activity to moderate in the fourth quarter as certain customers adjust their drilling programs 1.

For the fourth quarter, management expects revenue roughly flat from a year earlier and adjusted EBITDA (operating profit before depreciation, amortization and some one-time items) of $260 million to $300 million 13. The third quarter's adjusted EBITDA was $281 million 1.

The open question is orders, as new bookings of $577 million were 91% of the $632 million shipped from backlog, while the capital equipment backlog fell to $3.98 billion from $4.56 billion a year earlier 12. Free cash flow was a use of $47 million because the Middle East conflict delayed milestone billings, according to the call transcript 6.

NOV makes and services equipment for oil and gas wells: drilling rigs, drill bits, pipe, pumps and offshore production systems 3. Its revenue follows how much its customers drill and build, which follows oil and gas activity 3.

Revenue was $8,583 million in 2023, $8,870 million in 2024 and $8,744 million in 2025 3. The 2024 gain came mostly from Energy Equipment, whose operating profit rose 63.9% in 2024 to $608 million 3.

In the second quarter of 2024 NOV sold its Pole Products business for a $130 million gain, which lifted 2024 operating profit to $876 million 3. That sale is why 2025 operating profit looks weak beside 2024: it fell to $494 million 3.

In 2025 revenue slipped 1% even though global drilling activity fell 7%, because offshore customers bought more capital equipment 3. The worldwide average rig count dropped from 1,950 to 1,821 3.

Net income in 2025 was $145 million, $490 million lower than in 2024 3. NOV named lower operating profit, a higher tax rate from valuation allowances on deferred tax assets, and more foreign earnings 3.

Charges also weighed on the year, as pre-tax Other Items, mostly one-time costs, totaled $183 million in 2025, including $70 million of goodwill and long-lived asset impairment and $89 million of severance and facility closures 3.

The company started a share repurchase program on April 25, 2024, for up to $1 billion of its stock over 36 months 2. Over the latest ten quarters it bought back 44.5 million shares for $689 million, according to the call transcript 6.

The first quarter of 2026 was hit by the war in the Middle East, which delayed deliveries and raised costs; NOV estimated the damage at $54 million of revenue and $32 million of adjusted EBITDA 5. Net income that quarter was $19 million 5.

The second quarter brought $2.13 billion of revenue and $112 million of net income, helped by a benefit of about $40 million from tariff refunds 4. Refunds of duties paid under the International Emergency Economic Powers Act added about $5 million more in the third quarter 2.

What the two segments sell

NOV reports two segments 3. Energy Products and Services sells shorter-cycle goods and services, such as drill bits, downhole tools, drill pipe, artificial lift pumps and digital data services 3. Energy Equipment builds long-lead capital equipment such as drilling rig packages, cranes, mooring systems and flexible subsea pipe 3.

In 2025 Energy Equipment had revenue of $4,934 million and Energy Products and Services $3,977 million, before $167 million of eliminations between them 3. Energy Equipment held a capital equipment backlog of $3.98 billion at September 30, 2026, about 57% offshore and 93% bound for international markets 2.

In the third quarter, drill bits had a record quarter and digital services won a contract covering more than 30 rigs for a large U.S. operator, according to the call transcript 6. Drill pipe and composite equipment drove segment revenue up 9% 2.

Offshore and project orders

Third-quarter orders included mooring systems for floating oil and gas production in the U.S., the Eastern Mediterranean and Angola, and an upgrade package for a drillship with a 1,435-ton hookload 1. NOV also took an initial order for 160 km of Fiberspar composite linepipe under a frame agreement in Oman for up to 300 km 1.

Plants, people and rivals

NOV owned or leased about 503 facilities worldwide at the end of 2025 and employed 31,605 people, 34% of them in the United States 3. Principal sites include Navasota, Conroe and Houston in Texas, Dubai, Al Jubail in Saudi Arabia, Kalundborg in Denmark and a subsea pipe plant in Brazil 3.

Jose Bayardo is chairman, president and chief executive, and Rodney Reed is senior vice president and chief financial officer 3. On March 17, 2026, the board added Sanjay Chowbey, chief executive of Kennametal, bringing it to nine directors, eight of them independent 9.

NOV names its competition as publicly traded oilfield service and equipment companies and smaller independent equipment makers 3. All nine directors were re-elected at the May annual meeting for terms to 2027 8.

Problems and open disputes

NOV is suing drill bit makers that stopped paying royalties under licenses for its diamond leaching patents 2. In late 2025 a district court ruled that NOV cannot collect royalties after each licensee stopped paying, and NOV is appealing to the Federal Circuit 2.

The balance sheet still holds royalty receivables of $144 million, net of $78 million of reserves, which NOV says it believes it is probable to collect 2. Middle East security has also delayed tenders and deliveries and raised freight costs about 20% year over year, according to the call transcript 6.

The umbrella, in words

NOV is the parent of a family of operating companies, and Exhibit 21.1 of its annual report lists them by name and country 10. The list includes Grant Prideco, APL Norway AS, Chemineer, Inc. and Fiber Glass Systems, L.P. 10.

Grant Prideco, Inc. is a plaintiff in the royalty suits against Schlumberger, Baker Hughes and Taurex Drill Bits 2. Products sold under NOV's own names include the TDS top drive and the Max digital platform 31.

NOV and its predecessor companies have spent over 160 years in oil and gas development, according to the 10-Q 2.

For the fourth quarter of 2026, NOV expects revenue roughly flat from a year earlier and adjusted EBITDA between $260 million and $300 million 1. The guidance assumes the Middle East stays as it was in the third quarter, apart from the expected easing in activity 1.

NOV reasonably expects about 15% of its capital equipment backlog to become revenue in the rest of 2026 and the remainder after that 2. Finance chief Rodney Reed said full-year capital spending should be $340 million to $360 million, with a tax rate around 30% 6.

Reed also said he expects free cash flow to improve significantly in the fourth quarter and the conversion of EBITDA to free cash flow to return to the 50% range in 2027 6. NOV expects to return at least 50% of Excess Free Cash Flow to shareholders through dividends, buybacks and an annual supplemental dividend 2.

Zacks Equity Research reported on November 2, 2026 that NOV expects more floating production projects to enter procurement through 2027 and 2028 7. The report says NOV puts its addressable equipment content at $100 million to $700 million per project, which is potential content and not expected revenue 7.

The royalty dispute continues at the Federal Circuit, where NOV is appealing the 2025 rulings 2. The board's directors serve until the 2027 annual meeting 8.