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NOV Q4 Earnings Miss Estimates, Revenues Beat, Both Decrease Y/Y
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Key Takeaways
NOV posted Q4 EPS of 2 cents, falling sharply year over year on weaker Energy Products results.
NOV's revenues hit $2.3B, beating estimates as Energy Equipment benefited from strong backlog execution.
NOV returned $112M to shareholders via buybacks and dividends while forecasting softer near-term conditions.
NOV Inc. (NOV - Free Report) reported fourth-quarter 2025 adjusted earnings of 2 cents per share, which missed the Zacks Consensus Estimate of 25 cents. The bottom line also decreased significantly from the year-ago quarter’s 41 cents due to the underperformance of the Energy Products and Services segment.
The oil and gas equipment and services company’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4.9%, driven by stronger-than-expected revenues from the Energy Equipment segment, which was backed by strong execution on backlog. However, revenues fell 1.3% from the year-ago quarter’s figure due to a decline in global drilling activity of 6%.
In the fourth quarter, NOV repurchased approximately 5.7 million shares of common stock for a total of $85 million. The company paid a regular dividend of 7.5 cents per share, returning $27 million in dividends, resulting in a total of $112 million in capital to its shareholders during the quarter.
Segmental Performances of NOV
Energy Products and Services: The unit reported fourth-quarter revenues of $989 million, which beat our estimate of $963 million. However, the figure decreased from the prior-year quarter’s reported number by 6.7% due to reduced global activity. Adjusted EBITDA of $140 million beat our estimate of $132 million but decreased from $173 million in the corresponding period of 2024.
Energy Equipment: Revenues in this segment increased 3.6% year over year to $1.3 billion, beating our estimation by 6.9%, driven by strong execution on backlog.
Adjusted EBITDA of $180 million decreased from the year-earlier quarter’s $185 million. However, the metric beat our estimate of $173 million.
In the fourth quarter of 2025, the segment registered $532 million in new orders. Shipments from the backlog amounted to $728 million, resulting in a book-to-bill ratio of 73.
As of Dec. 31, 2025, the backlog for Energy Equipment capital orders was $4.3 billion, reflecting a $93 million decrease from the prior year.
NOV’s Balance Sheet
As of Dec. 31, 2025, the company had cash and cash equivalents of $1.6 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.1%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
This Zacks Rank #3 (Hold) company generated $573 million in operating cash flow and $472 million in free cash flow in this quarter.
NOV made meaningful strategic progress through technology commercialization, contract wins and expanded digital capabilities across energy markets. Downhole Broadband Solutions™ achieved record deployment, drilling over 750,000 feet in 2025, reflecting the rising adoption of real-time data to enhance drilling and completion efficiency. Automation and AI-driven systems, including NOVOS™, Kaizen™ and SoftSpeed™, delivered material offshore performance gains, cutting drilling days by 68% in their first Middle East deployment.
NOV also strengthened its offshore footprint with major rig equipment awards, cable-lay systems supporting offshore wind and advanced BOP-related technologies such as Rapid EDS™, improving well control safety and operational windows. In production and processing, the company secured gas dehydration projects in the Middle East, corrosion-resistant composite piping contracts for FPSOs and onshore assets and water injection solutions in Iraq. New ESCHP pump deployments demonstrated significantly longer run life in high gas environments, validating innovation in artificial lift. Additionally, NOV increased recurring digital revenues through multi-year global fleet contracts for RigSense™ and WellData™ platforms, reinforcing its data-driven service strategy.
NOV’s Q1 & 2026 Outlook
NOV projects a 1% to 3% decrease in consolidated revenues year over year for the first quarter of 2026, with adjusted EBITDA anticipated to range from $200 million to $225 million.
The company anticipates EBITDA-to-free-cash-flow conversion to moderate to 40%-50% in 2026. Capital expenditures are forecast in the range of $315 million to $345 million. A higher mix of foreign earnings is expected to increase the effective tax rate to approximately 34%-36%. The company maintains a constructive outlook on bookings, with the full-year 2026 book-to-bill ratio expected to be close to 100%.
For the first quarter, the Energy Equipment segment revenues are expected to rise 3%-5% year over year, with EBITDA of $145 million to $165 million. In contrast, the Energy Products and Services segment is expected to see a seasonal decline in the first quarter of 2026, with revenues down 6%-8% year over year and EBITDA in the range of $105 million to $125 million.
Cost-reduction initiatives focused on structural savings, process standardization and simplification, and system upgrades are expected to generate more than $100 million in annualized savings by the end of 2026.
Looking ahead, NOV expects that global industry spending and drilling activity will edge lower year over year, with U.S. activity declining by mid-single digits. Over the medium term, U.S. short-cycle activity is expected to remain highly price sensitive, allowing for a modest recovery by late 2026 and early 2027. Any rebound would likely drive outsized demand for capital equipment, presenting an attractive opportunity for NOV.
Over the longer term, U.S. activity is expected to grow modestly but steadily to sustain production as unconventional basins mature. In international markets, activity in 2026 is projected to be flat to slightly higher, supported by rig reactivations in Saudi Arabia and expanding unconventional development, with Venezuela offering longer-term upside. In offshore markets, offshore wind prospects have weakened, with turbine additions through 2030 down over 35%, limiting near-term visibility and keeping 2026 demand near 2025 levels. Offshore production and drilling equipment spending is expected to decline low- to mid-single digits in 2026, though FPSO demand remains solid, with up to 10 FIDs possible in 2026 and an average of eight annually through 2030.
Important Earnings at a Glance
While we have discussed NOV’s fourth-quarter results in detail, let us take a look at three other key reports in this space.
Suncor Energy Inc. (SU - Free Report) reported fourth-quarter 2025 adjusted operating earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 77 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined from the year-ago quarter’s reported figure of 89 cents due to lower upstream price realizations.
Suncor Energy’s operating revenues of $8.8 billion beat the Zacks Consensus Estimate by 4%, primarily driven by increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 1.3% year over year.
As of Dec. 31, 2025, SU had cash and cash equivalents of C$3.65 billion and long-term debt of C$9 billion. Its debt-to-capitalization was 16.7%.
Patterson-UTI Energy, Inc. (PTEN - Free Report) reported a fourth-quarter 2025 adjusted net loss of 2 cents per share, narrower than the Zacks Consensus Estimate of an 11-cent loss, and an improvement from the year-ago quarter's loss of 12 cents. The better-than-expected performance was primarily backed by improvement in the company’s Completions Services segment and a reduction in operating costs and expenses.
Patterson-UTI Energy’s total revenues of $1.2 billion beat the Zacks Consensus Estimate by 5%. This was driven by higher-than-expected revenues from Completion Services. The Completion Services segment reported revenues of $701.6 million, which beat the consensus mark of $647 million. However, the top line decreased about 1% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from the Drilling Services, Drilling Products and Other Services segments.
As of Dec. 31, 2025, PTEN had cash and cash equivalents worth $420.6 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.5%.
Another oil field service company, Liberty Energy Inc. (LBRT - Free Report) , reported a fourth-quarter 2025 adjusted net profit of 5 cents per share, beating the Zacks Consensus Estimate of a loss of 16 cents by a considerable margin. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 10 cents.
LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $862 million. The top line also increased from the prior-year quarter’s $944 million by 10%, driven by higher activity levels that meaningfully exceeded the industry.
As of Dec. 31, Liberty Energy had approximately $28 million in cash and cash equivalents. The pressure pumper’s long-term debt of $241.5 million represented a debt-to-capitalization of 10.4%.
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NOV Q4 Earnings Miss Estimates, Revenues Beat, Both Decrease Y/Y
Key Takeaways
NOV Inc. (NOV - Free Report) reported fourth-quarter 2025 adjusted earnings of 2 cents per share, which missed the Zacks Consensus Estimate of 25 cents. The bottom line also decreased significantly from the year-ago quarter’s 41 cents due to the underperformance of the Energy Products and Services segment.
The oil and gas equipment and services company’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4.9%, driven by stronger-than-expected revenues from the Energy Equipment segment, which was backed by strong execution on backlog. However, revenues fell 1.3% from the year-ago quarter’s figure due to a decline in global drilling activity of 6%.
NOV Inc. Price, Consensus and EPS Surprise
NOV Inc. price-consensus-eps-surprise-chart | NOV Inc. Quote
In the fourth quarter, NOV repurchased approximately 5.7 million shares of common stock for a total of $85 million. The company paid a regular dividend of 7.5 cents per share, returning $27 million in dividends, resulting in a total of $112 million in capital to its shareholders during the quarter.
Segmental Performances of NOV
Energy Products and Services: The unit reported fourth-quarter revenues of $989 million, which beat our estimate of $963 million. However, the figure decreased from the prior-year quarter’s reported number by 6.7% due to reduced global activity. Adjusted EBITDA of $140 million beat our estimate of $132 million but decreased from $173 million in the corresponding period of 2024.
Energy Equipment: Revenues in this segment increased 3.6% year over year to $1.3 billion, beating our estimation by 6.9%, driven by strong execution on backlog.
Adjusted EBITDA of $180 million decreased from the year-earlier quarter’s $185 million. However, the metric beat our estimate of $173 million.
In the fourth quarter of 2025, the segment registered $532 million in new orders. Shipments from the backlog amounted to $728 million, resulting in a book-to-bill ratio of 73.
As of Dec. 31, 2025, the backlog for Energy Equipment capital orders was $4.3 billion, reflecting a $93 million decrease from the prior year.
NOV’s Balance Sheet
As of Dec. 31, 2025, the company had cash and cash equivalents of $1.6 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.1%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
This Zacks Rank #3 (Hold) company generated $573 million in operating cash flow and $472 million in free cash flow in this quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NOV’s Significant & Strategic Advancements
NOV made meaningful strategic progress through technology commercialization, contract wins and expanded digital capabilities across energy markets. Downhole Broadband Solutions™ achieved record deployment, drilling over 750,000 feet in 2025, reflecting the rising adoption of real-time data to enhance drilling and completion efficiency. Automation and AI-driven systems, including NOVOS™, Kaizen™ and SoftSpeed™, delivered material offshore performance gains, cutting drilling days by 68% in their first Middle East deployment.
NOV also strengthened its offshore footprint with major rig equipment awards, cable-lay systems supporting offshore wind and advanced BOP-related technologies such as Rapid EDS™, improving well control safety and operational windows. In production and processing, the company secured gas dehydration projects in the Middle East, corrosion-resistant composite piping contracts for FPSOs and onshore assets and water injection solutions in Iraq. New ESCHP pump deployments demonstrated significantly longer run life in high gas environments, validating innovation in artificial lift. Additionally, NOV increased recurring digital revenues through multi-year global fleet contracts for RigSense™ and WellData™ platforms, reinforcing its data-driven service strategy.
NOV’s Q1 & 2026 Outlook
NOV projects a 1% to 3% decrease in consolidated revenues year over year for the first quarter of 2026, with adjusted EBITDA anticipated to range from $200 million to $225 million.
The company anticipates EBITDA-to-free-cash-flow conversion to moderate to 40%-50% in 2026. Capital expenditures are forecast in the range of $315 million to $345 million. A higher mix of foreign earnings is expected to increase the effective tax rate to approximately 34%-36%. The company maintains a constructive outlook on bookings, with the full-year 2026 book-to-bill ratio expected to be close to 100%.
For the first quarter, the Energy Equipment segment revenues are expected to rise 3%-5% year over year, with EBITDA of $145 million to $165 million. In contrast, the Energy Products and Services segment is expected to see a seasonal decline in the first quarter of 2026, with revenues down 6%-8% year over year and EBITDA in the range of $105 million to $125 million.
Cost-reduction initiatives focused on structural savings, process standardization and simplification, and system upgrades are expected to generate more than $100 million in annualized savings by the end of 2026.
Looking ahead, NOV expects that global industry spending and drilling activity will edge lower year over year, with U.S. activity declining by mid-single digits. Over the medium term, U.S. short-cycle activity is expected to remain highly price sensitive, allowing for a modest recovery by late 2026 and early 2027. Any rebound would likely drive outsized demand for capital equipment, presenting an attractive opportunity for NOV.
Over the longer term, U.S. activity is expected to grow modestly but steadily to sustain production as unconventional basins mature. In international markets, activity in 2026 is projected to be flat to slightly higher, supported by rig reactivations in Saudi Arabia and expanding unconventional development, with Venezuela offering longer-term upside. In offshore markets, offshore wind prospects have weakened, with turbine additions through 2030 down over 35%, limiting near-term visibility and keeping 2026 demand near 2025 levels. Offshore production and drilling equipment spending is expected to decline low- to mid-single digits in 2026, though FPSO demand remains solid, with up to 10 FIDs possible in 2026 and an average of eight annually through 2030.
Important Earnings at a Glance
While we have discussed NOV’s fourth-quarter results in detail, let us take a look at three other key reports in this space.
Suncor Energy Inc. (SU - Free Report) reported fourth-quarter 2025 adjusted operating earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 77 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined from the year-ago quarter’s reported figure of 89 cents due to lower upstream price realizations.
Suncor Energy’s operating revenues of $8.8 billion beat the Zacks Consensus Estimate by 4%, primarily driven by increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 1.3% year over year.
As of Dec. 31, 2025, SU had cash and cash equivalents of C$3.65 billion and long-term debt of C$9 billion. Its debt-to-capitalization was 16.7%.
Patterson-UTI Energy, Inc. (PTEN - Free Report) reported a fourth-quarter 2025 adjusted net loss of 2 cents per share, narrower than the Zacks Consensus Estimate of an 11-cent loss, and an improvement from the year-ago quarter's loss of 12 cents. The better-than-expected performance was primarily backed by improvement in the company’s Completions Services segment and a reduction in operating costs and expenses.
Patterson-UTI Energy’s total revenues of $1.2 billion beat the Zacks Consensus Estimate by 5%. This was driven by higher-than-expected revenues from Completion Services. The Completion Services segment reported revenues of $701.6 million, which beat the consensus mark of $647 million. However, the top line decreased about 1% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from the Drilling Services, Drilling Products and Other Services segments.
As of Dec. 31, 2025, PTEN had cash and cash equivalents worth $420.6 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.5%.
Another oil field service company, Liberty Energy Inc. (LBRT - Free Report) , reported a fourth-quarter 2025 adjusted net profit of 5 cents per share, beating the Zacks Consensus Estimate of a loss of 16 cents by a considerable margin. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 10 cents.
LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $862 million. The top line also increased from the prior-year quarter’s $944 million by 10%, driven by higher activity levels that meaningfully exceeded the industry.
As of Dec. 31, Liberty Energy had approximately $28 million in cash and cash equivalents. The pressure pumper’s long-term debt of $241.5 million represented a debt-to-capitalization of 10.4%.