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Why Is Nov Inc. (NOV) Up 0.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Nov Inc. (NOV - Free Report) . Shares have added about 0.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nov Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
NOV Q3 Earnings Miss, Revenues Beat Estimates, Both Decrease Y/Y
NOV reported third-quarter 2025 adjusted earnings of 11 cents per share, which missed the Zacks Consensus Estimate of 24 cents. The bottom line also decreased from the year-ago quarter’s 33 cents due to the underperformance of the Energy Products and Services segment.
The oil and gas equipment and services company’s total revenues of $2.2 billion beat the Zacks Consensus Estimate by 1.9%, driven by stronger-than-expected revenues from the Energy Equipment segment, which was backed by its growing backlog. However, revenues declined 0.7% from the year-ago quarter’s figure due to the challenging macro environment and softening of oilfield activity.
In the third quarter, NOV repurchased approximately 6.2 million shares of common stock for a total of $80 million. The company paid a regular dividend of 7.5 cents per share, returning $28 million in dividends, resulting in a total of $108 million in capital to its shareholders during the quarter.
In the third quarter of 2025, NOV reported $65 million under Other Items, mainly associated with the write-down of certain assets and inventory, and severance charges incurred for facility consolidations and other restructuring activities.
Segmental Performances
Energy Products and Services: The unit reported third-quarter revenues of $971 million, which missed our estimate of $989 million. Additionally, the figure decreased from the prior-year quarter’s reported number by 3.2%. The drop in revenues was due to a decrease in worldwide drilling operations and delays in infrastructure projects that affected the timing of capital equipment orders.
Adjusted EBITDA of $135 million was below our estimate of $145.5 million. The reported actuals also decreased from $172 million in the corresponding period of 2024.
Energy Equipment: Revenues in this segment increased 2.3% year over year to $1247 million, beating our estimation by 4.8%, driven by strong demand for its growing production-related portfolio, leading to higher backlogs and record revenues from subsea flexible pipe and gas-focused process systems businesses.
Adjusted EBITDA of $180 million increased from the year-earlier quarter’s $159 million. Additionally, the metric beat our estimate of $150.4 million.
In the third quarter of 2025, the segment registered $951 million in new orders. Shipments from the backlog amounted to $674 million, resulting in a book-to-bill ratio of 141.
As of Sept. 30, 2025, the backlog for Energy Equipment capital orders was $4.6 billion, reflecting a $77 million rise from the prior year.
Balance Sheet
As of Sept. 30, 2025, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 20.6%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
The company generated $352 million in operating cash flow and $245 million in free cash flow in this quarter.
Significant & Strategic Advancements
NOV secured multiple global contracts across offshore and onshore markets, underscoring its growing role in automation, subsea systems and digital technologies. The company won a deal to supply a monoethylene glycol reclamation system for a Black Sea FPSO and several flexible riser and flowline system orders for projects in Guyana, Brazil and the Black Sea, including its advanced Active Heated riser system. NOV also received a second order for its APL™ Submerged Swivel and Yoke system to support Argentina’s FLNG development.
In automation, a Guyana deepwater floater using NOVOS™ and MMC achieved a 17% efficiency gain, while upgrades for three other floaters are underway. NOV’s ATOM™ RTX robotic system was deployed on a U.S. land rig, improving safety and consistency. The company’s Max™ Platform will power a U.S. operator’s new remote operating center. Additional highlights include record drilling performance in Colorado and the Permian Basin, advanced downhole tool use in Bahrain, major wireline intervention awards in the Middle East and fuel storage system supply for a U.S. data center expansion.
Q4 & 2025 Outlook
NOV projects a 5% to 7% decrease in consolidated revenues year over year for the fourth quarter of 2025, with adjusted EBITDA anticipated to range from $230 million to $260 million. The company anticipates an 8-10% decline in revenues for the Energy Products and Services segment, with adjusted EBITDA expected between $120 million and $140 million. Meanwhile, the Energy Equipment segment is expected to see a 2% to 4% revenue decrease, alongside adjusted EBITDA of $160 million to $180 million.
Furthermore, during 2025, NOV expects to significantly exceed its minimum threshold of returning 50% of excess free cash flow to shareholders. In addition, the company expects tariff costs to be around 25 million in the fourth quarter. It expects tariffs and inflation uncertainty to continue to weigh on margins in the near term and global drilling activity to drift lower.
Looking ahead, NOV expects that the exploration and production activity in North America will again trim short-cycle oil activity, which will further slow down seasonally in the fourth quarter. However, offshore, the company expects its customers to initiate a meaningful ramp-up in exploration and development drilling that will begin in late 2026.
In the short term, NOV expects market conditions to remain soft through the next few quarters. Tariffs and inflation uncertainty will continue to weigh on margins in the near term and global drilling activity will drift lower.
In 2025 and 2026, NOV expects to deliver roughly $1 billion in adjusted EBITDA, the same as generated in 2023 and 2024. The company expects Energy Equipment's contribution to EBITDA to be around 55% in 2025, while Energy Products and Services’ EBITDA contribution will move to about 45%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Nov Inc. has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Nov Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Nov Inc. (NOV) Up 0.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Nov Inc. (NOV - Free Report) . Shares have added about 0.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nov Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
NOV Q3 Earnings Miss, Revenues Beat Estimates, Both Decrease Y/Y
NOV reported third-quarter 2025 adjusted earnings of 11 cents per share, which missed the Zacks Consensus Estimate of 24 cents. The bottom line also decreased from the year-ago quarter’s 33 cents due to the underperformance of the Energy Products and Services segment.
The oil and gas equipment and services company’s total revenues of $2.2 billion beat the Zacks Consensus Estimate by 1.9%, driven by stronger-than-expected revenues from the Energy Equipment segment, which was backed by its growing backlog. However, revenues declined 0.7% from the year-ago quarter’s figure due to the challenging macro environment and softening of oilfield activity.
In the third quarter, NOV repurchased approximately 6.2 million shares of common stock for a total of $80 million. The company paid a regular dividend of 7.5 cents per share, returning $28 million in dividends, resulting in a total of $108 million in capital to its shareholders during the quarter.
In the third quarter of 2025, NOV reported $65 million under Other Items, mainly associated with the write-down of certain assets and inventory, and severance charges incurred for facility consolidations and other restructuring activities.
Segmental Performances
Energy Products and Services: The unit reported third-quarter revenues of $971 million, which missed our estimate of $989 million. Additionally, the figure decreased from the prior-year quarter’s reported number by 3.2%. The drop in revenues was due to a decrease in worldwide drilling operations and delays in infrastructure projects that affected the timing of capital equipment orders.
Adjusted EBITDA of $135 million was below our estimate of $145.5 million. The reported actuals also decreased from $172 million in the corresponding period of 2024.
Energy Equipment: Revenues in this segment increased 2.3% year over year to $1247 million, beating our estimation by 4.8%, driven by strong demand for its growing production-related portfolio, leading to higher backlogs and record revenues from subsea flexible pipe and gas-focused process systems businesses.
Adjusted EBITDA of $180 million increased from the year-earlier quarter’s $159 million. Additionally, the metric beat our estimate of $150.4 million.
In the third quarter of 2025, the segment registered $951 million in new orders. Shipments from the backlog amounted to $674 million, resulting in a book-to-bill ratio of 141.
As of Sept. 30, 2025, the backlog for Energy Equipment capital orders was $4.6 billion, reflecting a $77 million rise from the prior year.
Balance Sheet
As of Sept. 30, 2025, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 20.6%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
The company generated $352 million in operating cash flow and $245 million in free cash flow in this quarter.
Significant & Strategic Advancements
NOV secured multiple global contracts across offshore and onshore markets, underscoring its growing role in automation, subsea systems and digital technologies. The company won a deal to supply a monoethylene glycol reclamation system for a Black Sea FPSO and several flexible riser and flowline system orders for projects in Guyana, Brazil and the Black Sea, including its advanced Active Heated riser system. NOV also received a second order for its APL™ Submerged Swivel and Yoke system to support Argentina’s FLNG development.
In automation, a Guyana deepwater floater using NOVOS™ and MMC achieved a 17% efficiency gain, while upgrades for three other floaters are underway. NOV’s ATOM™ RTX robotic system was deployed on a U.S. land rig, improving safety and consistency. The company’s Max™ Platform will power a U.S. operator’s new remote operating center. Additional highlights include record drilling performance in Colorado and the Permian Basin, advanced downhole tool use in Bahrain, major wireline intervention awards in the Middle East and fuel storage system supply for a U.S. data center expansion.
Q4 & 2025 Outlook
NOV projects a 5% to 7% decrease in consolidated revenues year over year for the fourth quarter of 2025, with adjusted EBITDA anticipated to range from $230 million to $260 million. The company anticipates an 8-10% decline in revenues for the Energy Products and Services segment, with adjusted EBITDA expected between $120 million and $140 million. Meanwhile, the Energy Equipment segment is expected to see a 2% to 4% revenue decrease, alongside adjusted EBITDA of $160 million to $180 million.
Furthermore, during 2025, NOV expects to significantly exceed its minimum threshold of returning 50% of excess free cash flow to shareholders. In addition, the company expects tariff costs to be around 25 million in the fourth quarter. It expects tariffs and inflation uncertainty to continue to weigh on margins in the near term and global drilling activity to drift lower.
Looking ahead, NOV expects that the exploration and production activity in North America will again trim short-cycle oil activity, which will further slow down seasonally in the fourth quarter. However, offshore, the company expects its customers to initiate a meaningful ramp-up in exploration and development drilling that will begin in late 2026.
In the short term, NOV expects market conditions to remain soft through the next few quarters. Tariffs and inflation uncertainty will continue to weigh on margins in the near term and global drilling activity will drift lower.
In 2025 and 2026, NOV expects to deliver roughly $1 billion in adjusted EBITDA, the same as generated in 2023 and 2024. The company expects Energy Equipment's contribution to EBITDA to be around 55% in 2025, while Energy Products and Services’ EBITDA contribution will move to about 45%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Nov Inc. has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Nov Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.