NOV Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did NOV Beat Earnings? Q4 2025 Results
NOV Inc. delivered a sharply mixed fourth quarter for 2025, posting revenue of $2.28 billion — up 8.4% year-over-year and beating the $2.07 billion consensus by 10.10% — while swinging to a GAAP net loss that blindsided Wall Street on the bottom line. The company reported a loss of $0.21 per diluted share, missing the $0.1924 consensus estimate by 209.15%, as $86 million in goodwill and asset impairments combined with a $147 million income tax provision — inflated by valuation allowances on deferred tax assets — erased what would otherwise have been a profitable quarter. Analysts noted that NOV's free cash flow of $472 million, converting roughly 177% of Adjusted EBITDA, suggests the statutory loss understates underlying earnings power. Looking ahead, management issued cautious Q1 2026 guidance, projecting revenue down 1–3% year-over-year with Adjusted EBITDA of $200–$225 million, citing an oversupplied oil market and front-half budget softness from customers, though it sees offshore drilling bottoming and a meaningfully stronger operating environment emerging in 2027.
- Strong backlog execution in Energy Equipment segment drove sequential and year-over-year revenue growth
- Exceptional cash flow conversion — 177% of Adjusted EBITDA to free cash flow in Q4
- Working capital intensity improved 340 basis points year-over-year
- Market share gains partially offset lower global activity levels
- Energy Equipment posted fourth consecutive year of revenue growth and EBITDA margin expansion
“NOV delivered a strong finish to 2025, capping off a year in which solid execution and market share gains mostly offset lower levels of industry spend. The combination of our technology leadership across a diverse portfolio of critical products and services along with our efforts to improve operational efficiencies is evident in our results.”
NOV CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, NOV expects consolidated year-over-year revenue to decline 1-3%, with Adjusted EBITDA of $200-$225 million. By segment, Energy Products and Services revenue is expected down 6-8% YoY with Adjusted EBITDA of $105-$125 million, while Energy Equipment revenue is expected to increase 3-5% YoY with Adjusted EBITDA of $145-$165 million. For full-year 2026, management expects EBITDA in-line to slightly lower than 2025 levels, assuming commodity prices remain at or above current levels. Customer budgets are expected to be weighted toward the back half of 2026. Management sees offshore drilling activity bottoming and anticipates markets rebalancing in H2 2026, with a much more attractive operating environment expected in 2027 and beyond driven by higher offshore and international activity and prolonged industry underinvestment.
NOV YoY Financials
NOV Revenue by Segment
NOV Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.