second quarter 2026
Filed Jul 29, 2026NOV Reports Second quarter 2026 EARNINGS
Sequential revenue growth, sharply higher net income and Adjusted EBITDA, and $127 million of capital returned supported the quarter, although revenue declined year-over-year, Energy Products and Services revenue fell, and third-quarter revenue guidance is flat to up 2 percent year-over-year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $2.13 billion | up 4% | down 2% |
| Net incomeGAAP | $112 million | an increase of $93 million | an increase of $4 million |
| Net income per diluted shareGAAP | $0.31 per share | – | an increase of $0.02 per diluted share |
| Operating profitGAAP | $193 million | – | an increase of 35 percent |
| Operating profit marginGAAP | 9.0 percent of sales | – | – |
| Adjusted operating profitnon-GAAP | $190 million | – | an increase of 15 percent |
| Adjusted EBITDAnon-GAAP | $283 million | an increase of $106 million | an increase of $31 million |
| Adjusted EBITDA marginnon-GAAP | 13.3 percent of sales | – | – |
| Energy Equipment operating profitGAAP | $177 million | – | increased $55 million |
| Energy Equipment operating profit marginGAAP | 14.5 percent of sales | – | – |
| Energy Equipment Adjusted EBITDAnon-GAAP | $200 million | – | increased $42 million |
| Energy Equipment Adjusted EBITDA marginnon-GAAP | 16.4 percent of sales | – | – |
| Energy Equipment new orders bookedother | $474 million | – | an increase of $54 million |
| Energy Equipment orders shipped from backlogother | $638 million | – | an increase of $6 million |
| Energy Equipment book-to-billother | 74 percent | – | – |
| Energy Equipment backlog for capital equipment ordersother | $4.08 billion | – | a decrease of $220 million from June 30, 2025 |
| Energy Products and Services operating profitGAAP | $85 million | – | increased $2 million |
| Energy Products and Services operating profit marginGAAP | 8.7 percent of sales | – | – |
| Energy Products and Services Adjusted EBITDAnon-GAAP | $144 million | – | decreased $2 million |
| Energy Products and Services Adjusted EBITDA marginnon-GAAP | 14.8 percent of sales | – | – |
| Pre-tax Other Itemsother | $17 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Energy EquipmentStrong execution on offshore production projects nearing completion and a more favorable sales mix drove the improvement in revenue and profitability. | $1.22 billion | – | an increase of one percent |
| Energy Products and ServicesMarket share gains by the segment’s drill bit and artificial lift operations and continued growth in digital services were more than offset by lower capital equipment sales. | $974 million | – | a decrease of five percent |
third quarter of 2026 outlook
- Revenueyear-over-year consolidated revenues to be flat to up 2 percent
- NoteAdjusted EBITDA expected to be between $240 million and $270 million
Capital returns
- NOV repurchased approximately 3.2 million shares of common stock for $63 million.
- NOV paid $64 million in dividends.
- Total capital returned to shareholders was $127 million.
What drove it
- Strong execution on offshore production projects nearing completion and a more favorable sales mix benefited Energy Equipment.
- Market share gains by drill bit and artificial lift operations and continued growth in digital services supported Energy Products and Services.
- Improving demand in most major regions benefited the businesses.
- Adjusted operating profit and Adjusted EBITDA included a benefit of approximately $40 million related to tariff refunds.
Concerns
- Revenues decreased two percent compared to the second quarter of 2025.
- Energy Products and Services revenues decreased five percent from the second quarter of 2025.
- Recent price volatility and geopolitical uncertainty continue to cause temporary disruptions and project deferrals.
- Third-quarter guidance is subject to current uncertainty and conflict in the Middle East, and a worsening of conditions may cause actual results to differ materially from guidance.
- Energy Equipment backlog for capital equipment orders decreased $220 million from June 30, 2025.
What to watch
- Energy Equipment order conversion, with $474 million of new orders booked and $638 million of orders shipped from backlog.
- Whether orders booked in the first half of 2026 support higher Energy Products and Services shipments in the second half of the year.
- Third-quarter revenue performance versus guidance for flat to up 2 percent year-over-year consolidated revenues.
- Third-quarter Adjusted EBITDA relative to the expected range of $240 million to $270 million.
- Operating conditions in the Middle East and their effect on the outlook.
Balance sheet and cash flow
- As of June 30, 2026, total debt was $1,706 million.
- As of June 30, 2026, $1.50 billion was available on the revolving credit facility.
- As of June 30, 2026, cash and cash equivalents were $1,164 million.
Analysis
NOV reported second-quarter 2026 revenues of $2.13 billion, up 4% sequentially but down 2% year-over-year. Net income was $112 million, increasing $93 million sequentially and $4 million year-over-year. Operating profit was $193 million, or 9.0 percent of sales, while Adjusted EBITDA was $283 million, or 13.3 percent of sales. The release states that second-quarter Adjusted operating profit and Adjusted EBITDA included a benefit of approximately $40 million related to tariff refunds.
Energy Equipment generated $1.22 billion of revenue, up one percent year-over-year. The segment's operating profit increased $55 million to $177 million and Adjusted EBITDA increased $42 million to $200 million. NOV attributed the improvement to strong execution on offshore production projects nearing completion and a more favorable sales mix. New orders were $474 million, while orders shipped from backlog were $638 million, resulting in a 74 percent book-to-bill. Capital-equipment backlog was $4.08 billion as of June 30, 2026, down $220 million from June 30, 2025.
Energy Products and Services generated $974 million of revenue, down five percent year-over-year. Operating profit increased $2 million to $85 million, but Adjusted EBITDA decreased $2 million to $144 million. Market share gains in drill bit and artificial lift operations and growth in digital services were more than offset by lower capital equipment sales. NOV said orders booked in the first half of 2026 are expected to support higher shipments in the second half of the year.
NOV returned $127 million to shareholders, comprising approximately 3.2 million shares repurchased for $63 million and $64 million in dividends. At June 30, 2026, the company reported total debt of $1,706 million, $1.50 billion available on its revolving credit facility, and $1,164 million in cash and cash equivalents. The company also recorded $17 million in pre-tax Other Items, primarily related to severance, facility closures, and streamlining costs.
For the third quarter, NOV expects year-over-year consolidated revenues to be flat to up 2 percent and Adjusted EBITDA to be between $240 million and $270 million. The outlook assumes Middle East operating conditions remain consistent with the second quarter. Management identified ongoing price volatility, geopolitical uncertainty, temporary disruptions, and project deferrals as constraints, while highlighting a growing capital-equipment opportunity pipeline and improving short-cycle activity across most markets.
Management, verbatim
NOV’s second quarter results reflect outstanding execution by our team in a market that is demonstrating significantly improved underlying industry fundamentals.
Jose Bayardo, Chairman, President, and CEO
While recent price volatility and geopolitical uncertainty continue to cause temporary disruptions and project deferrals, we are encouraged by a growing pipeline of capital equipment opportunities and improving short cycle activity across most markets.
Jose Bayardo, Chairman, President, and CEO
We believe the actions our organization is taking, including continued investment in the development of superior solutions for our customers and initiatives to drive efficiencies across our operations, position NOV to demonstrate meaningfully higher earnings over the coming years.
Jose Bayardo, Chairman, President, and CEO
Not in the filing
stated, not guessed- Prior-quarter revenue amount
- Prior-year net income amount
- Prior-quarter net income amount
- Prior-year diluted EPS amount
- Prior-quarter diluted EPS amount
- Prior-year operating profit amount
- Prior-quarter operating profit amount
- Prior-year Adjusted operating profit amount
- Prior-quarter Adjusted operating profit amount
- Prior-year Adjusted EBITDA amount
- Prior-quarter Adjusted EBITDA amount
- GAAP gross profit and gross margin
- Operating cash flow
- Free Cash Flow value
- Excess Free Cash Flow value
- Prior-period outlook for comparison
- Third-quarter gross margin guidance
- Third-quarter operating expenses guidance
- Third-quarter tax-rate guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.