NOV Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.15%.
Did NOV Beat Earnings? Q2 2025 Results
NOV Inc. delivered a mixed second quarter, posting earnings of $0.29 per share on revenues of $2.19 billion as the oilfield equipment maker navigated a difficult backdrop of OPEC+ production quota unwinding, Middle East conflict, and mounting tariff pressures. Revenue edged down 1% year-over-year but rose 4% sequentially, with a shift toward capital equipment orders driving the top-line resilience even as it pressured margins — Adjusted EBITDA fell 10% to $252 million, representing an 11.5% margin, as higher-margin consumables and spare parts gave way to lower-margin capital gear. CEO Clay Williams acknowledged that softer oil and natural gas demand is making it harder to offset rising steel tariff costs, keeping customers cautious and pushing the U.S. rig count lower. A sharp drop in new Energy Equipment orders to $420 million from $977 million a year ago underscored the demand softness heading into the back half. Management guided Q3 revenues down 1-3% year-over-year with Adjusted EBITDA of $230-$250 million, projecting current headwinds to persist through 2025 before offshore activity resumes growth in 2026.
- Higher capital equipment revenues more than offsetting decline in spare parts and product sales
- Strong execution on higher-margin backlog in Energy Equipment segment
- Offshore activity remains comparatively strong despite certain project delays
- Steady application of unconventional technologies in new international basins
“Sales improved four percent sequentially, with an increase in capital equipment revenues more than offsetting a decline in spare part and product sales. Macroeconomic uncertainty, the rapid unwinding of OPEC+ production quotas, and conflict in the Middle East led to greater caution among our customers, deferred orders, and lower year-over-year revenues. These market headwinds and a shift in sales mix pressured margins during the quarter.”
NOV CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, management expects consolidated revenues to decline 1-3% year-over-year, with Adjusted EBITDA between $230 million and $250 million. Energy Products and Services revenue is expected to be flat to down 2% year-over-year with Adjusted EBITDA of $130-$150 million. Energy Equipment revenue is expected to decline 1-3% with Adjusted EBITDA of $145-$160 million. Management expects current soft market dynamics to persist through the second half of 2025, with offshore activity resuming growth in 2026. Longer-term, rising demand for secure, reliable, and lower-cost energy sources is expected to drive investment in NOV's core markets.
NOV YoY Financials
NOV Revenue by Segment
NOV Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.