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NOV Q1 Earnings Miss Estimates, Revenues Beat, Decrease Y/Y
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Key Takeaways
NOV Q1 EPS of 15 cents missed estimates and fell 21% year over year amid disruption impacts.
NOV revenues of $2.05B beat estimates but declined 2.4% due to weaker activity and tensions.
NOV cites Middle East conflict for delays, higher costs and pressure on segment profitability.
NOV Inc. (NOV - Free Report) reported first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate of 17 cents. The bottom line also decreased 21% from the year-ago quarter’s 19 cents.
The oil and gas equipment and services company’s total revenues of $2.05 billion beat the Zacks Consensus Estimate by 2 million but fell 2.4% from the year-ago quarter’s figure of $2.1 billion.
The lower-than-expected quarterly earnings of the company were primarily attributable to conflict in the Middle East, which disrupted logistics, delayed deliveries and increased operational costs.
In the first quarter, NOV repurchased approximately 3.5 million shares of common stock for a total of $67 million. The company also returned $33 million in dividends, resulting in a total of $100 million in capital to its shareholders during the quarter.
Segmental Performances of NOV
Energy Products and Services: The unit reported first-quarter revenues of $897 million, which missed our estimate of $918 million. Additionally, the figure decreased from the prior-year quarter’s reported number by 9.6% due to reduced global activity and increased geopolitical tensions. Adjusted EBITDA of $96 million missed our estimate of $109 million and decreased from $145 million in the corresponding period of 2025.
Energy Equipment: Revenues in this segment increased 3.8% year over year to $1.2 billion, beating our estimation by 0.7%.
Adjusted EBITDA of $131 million decreased from the year-earlier quarter’s $165 million and missed our estimate of $145 million. A less favorable sales mix and higher costs from the Middle East disruptions contributed to the segment’s lower profitability.
In the first quarter of 2026, the segment registered $520 million in new orders. Shipments from the backlog amounted to $650 million, resulting in a book-to-bill ratio of 80.
As of March 31, 2026, the backlog for Energy Equipment capital orders was $4.2 billion, reflecting a $184 million decrease from the prior year.
NOV’s Balance Sheet
As of March 31, the company had cash and cash equivalents of $1.3 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.2%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
This Zacks Rank #3 (Hold) company generated a negative operating cash flow of $26 million and a negative free cash flow of $91 million in this quarter.
NOV delivered strong operational and contract momentum, driven by advanced technologies and rising global demand. Its Downhole Broadband Solutions enabled record drilling footage of more than 750,000 ft in 2025, reflecting increased adoption of real-time data to enhance drilling efficiency and decision-making. The company also secured a major equipment package for the Kingdom 4 jack-up rig in Saudi Arabia and achieved significant performance gains through its surface automation suite, reducing drilling time by 68% in an offshore deployment.
NOV expanded its footprint with key awards across gas processing, offshore wind and subsea infrastructure, including a gas dehydration system in the Middle East and cable-lay equipment for renewable projects. Its ESCHP technology showed improved run-life in Permian Basin wells, boosting production efficiency. The company also secured multiple contracts for composite piping, emergency disconnect systems and water injection solutions, reinforcing its leadership in corrosion-resistant and safety-enhancing technologies.
Additionally, NOV strengthened its digital capabilities through a multi-year contract to deploy advanced drilling data and monitoring systems across a global fleet, supporting improved operational efficiency and standardized data access.
NOV’s Q1 & 2026 Outlook
For the second quarter of 2026, NOV expects year-over-year consolidated revenues to decline between 4% and 6%, with adjusted EBITDA expected to be between $185 million and $215 million.
NOV expects continued but moderating disruption from the Middle East conflict in the second quarter. The company assumes that the Strait will remain closed, keeping logistics complex and costly, though conditions have improved from peak disruption. The company indicated the financial impact in the second quarter will be slightly higher than the first quarter, but not materially worse, with shipment delays and cost pressures largely offset by some carryover deliveries from the first quarter.
Segment-wise, Energy Equipment revenue is expected to decline 2–4% year over year, with EBITDA of $135–$155 million, while Energy Products & Services revenue may fall 6–8% year over year, with EBITDA of $100–$120 million.
Visibility for the second half remains limited due to geopolitical uncertainty. However, NOV suggests that if conditions stabilize and the conflict eases, full-year 2026 performance could be broadly in line with 2025.
Operationally, margins are expected to improve in the second half of 2026, as cost-saving initiatives begin to outweigh tariff and inflation pressures. Free cash flow conversion is guided at 40–50% of EBITDA, with capex of $340–$370 million.
Important Earnings at a Glance
While we have discussed NOV’s first-quarter results in detail, let us take a look at three other key reports in this space.
BP p.l.c. (BP - Free Report) delivered an earnings beat in the first quarter of 2026, helped by standout downstream and trading contributions. The company reported earnings of $1.24 per American Depositary Share on a replacement-cost basis, up 134.0% from 53 cents a year ago and ahead of the Zacks Consensus Estimate of 91 cents by 36.3%.
Total revenues and other income came in at $53.4 billion, higher than $47.9 billion in the prior-year period, but missing the consensus mark of $57.6 billion by 7.4%. Operationally, upstream production held at 2,339 mboe/d despite disruption impacts, while refining availability remained above the company’s 96% target.
The strong quarterly earnings can be attributed to increased upstream production, significantly higher realized refining margins and a strong oil trading contribution. The positives were partly offset by lower hydrocarbon price realizations.
BP’s capital expenditure totaled $3.29 billion versus $3.62 billion a year ago and operating cash flow was $2.86 billion, higher than $2.83 billion a year ago
Enterprise Products Partners LP (EPD - Free Report) reported first-quarter 2026 adjusted earnings per limited partner unit of 68 cents, which missed the Zacks Consensus Estimate of 71 cents. The bottom line increased from the year-ago level of 64 cents.
Total quarterly revenues of $14.4 billion surpassed the Zacks Consensus Estimate of $13.1 billion. The top line declined from $15.4 billion in the prior-year quarter.
The lower-than-expected quarterly earnings were primarily attributable to weak margins in Crude Oil Pipelines & Services and Petrochemical & Refined Products Services.
As of March 31, the outstanding total debt principal was $34.2 billion, and consolidated liquidity amounted to $3.3 billion.
Halliburton Company (HAL - Free Report) reported first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents due to softer activity in the North American region and the negative impact of geopolitical conflict in the Middle East, which hurt both of the company’s segments.
Meanwhile, revenues of $5.4 billion were 0.3% lower year over year but beat the Zacks Consensus Estimate of $5.3 billion.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
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NOV Q1 Earnings Miss Estimates, Revenues Beat, Decrease Y/Y
Key Takeaways
NOV Inc. (NOV - Free Report) reported first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate of 17 cents. The bottom line also decreased 21% from the year-ago quarter’s 19 cents.
The oil and gas equipment and services company’s total revenues of $2.05 billion beat the Zacks Consensus Estimate by 2 million but fell 2.4% from the year-ago quarter’s figure of $2.1 billion.
The lower-than-expected quarterly earnings of the company were primarily attributable to conflict in the Middle East, which disrupted logistics, delayed deliveries and increased operational costs.
NOV Inc. Price, Consensus and EPS Surprise
NOV Inc. price-consensus-eps-surprise-chart | NOV Inc. Quote
In the first quarter, NOV repurchased approximately 3.5 million shares of common stock for a total of $67 million. The company also returned $33 million in dividends, resulting in a total of $100 million in capital to its shareholders during the quarter.
Segmental Performances of NOV
Energy Products and Services: The unit reported first-quarter revenues of $897 million, which missed our estimate of $918 million. Additionally, the figure decreased from the prior-year quarter’s reported number by 9.6% due to reduced global activity and increased geopolitical tensions. Adjusted EBITDA of $96 million missed our estimate of $109 million and decreased from $145 million in the corresponding period of 2025.
Energy Equipment: Revenues in this segment increased 3.8% year over year to $1.2 billion, beating our estimation by 0.7%.
Adjusted EBITDA of $131 million decreased from the year-earlier quarter’s $165 million and missed our estimate of $145 million. A less favorable sales mix and higher costs from the Middle East disruptions contributed to the segment’s lower profitability.
In the first quarter of 2026, the segment registered $520 million in new orders. Shipments from the backlog amounted to $650 million, resulting in a book-to-bill ratio of 80.
As of March 31, 2026, the backlog for Energy Equipment capital orders was $4.2 billion, reflecting a $184 million decrease from the prior year.
NOV’s Balance Sheet
As of March 31, the company had cash and cash equivalents of $1.3 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.2%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
This Zacks Rank #3 (Hold) company generated a negative operating cash flow of $26 million and a negative free cash flow of $91 million 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 delivered strong operational and contract momentum, driven by advanced technologies and rising global demand. Its Downhole Broadband Solutions enabled record drilling footage of more than 750,000 ft in 2025, reflecting increased adoption of real-time data to enhance drilling efficiency and decision-making. The company also secured a major equipment package for the Kingdom 4 jack-up rig in Saudi Arabia and achieved significant performance gains through its surface automation suite, reducing drilling time by 68% in an offshore deployment.
NOV expanded its footprint with key awards across gas processing, offshore wind and subsea infrastructure, including a gas dehydration system in the Middle East and cable-lay equipment for renewable projects. Its ESCHP technology showed improved run-life in Permian Basin wells, boosting production efficiency. The company also secured multiple contracts for composite piping, emergency disconnect systems and water injection solutions, reinforcing its leadership in corrosion-resistant and safety-enhancing technologies.
Additionally, NOV strengthened its digital capabilities through a multi-year contract to deploy advanced drilling data and monitoring systems across a global fleet, supporting improved operational efficiency and standardized data access.
NOV’s Q1 & 2026 Outlook
For the second quarter of 2026, NOV expects year-over-year consolidated revenues to decline between 4% and 6%, with adjusted EBITDA expected to be between $185 million and $215 million.
NOV expects continued but moderating disruption from the Middle East conflict in the second quarter. The company assumes that the Strait will remain closed, keeping logistics complex and costly, though conditions have improved from peak disruption. The company indicated the financial impact in the second quarter will be slightly higher than the first quarter, but not materially worse, with shipment delays and cost pressures largely offset by some carryover deliveries from the first quarter.
Segment-wise, Energy Equipment revenue is expected to decline 2–4% year over year, with EBITDA of $135–$155 million, while Energy Products & Services revenue may fall 6–8% year over year, with EBITDA of $100–$120 million.
Visibility for the second half remains limited due to geopolitical uncertainty. However, NOV suggests that if conditions stabilize and the conflict eases, full-year 2026 performance could be broadly in line with 2025.
Operationally, margins are expected to improve in the second half of 2026, as cost-saving initiatives begin to outweigh tariff and inflation pressures. Free cash flow conversion is guided at 40–50% of EBITDA, with capex of $340–$370 million.
Important Earnings at a Glance
While we have discussed NOV’s first-quarter results in detail, let us take a look at three other key reports in this space.
BP p.l.c. (BP - Free Report) delivered an earnings beat in the first quarter of 2026, helped by standout downstream and trading contributions. The company reported earnings of $1.24 per American Depositary Share on a replacement-cost basis, up 134.0% from 53 cents a year ago and ahead of the Zacks Consensus Estimate of 91 cents by 36.3%.
Total revenues and other income came in at $53.4 billion, higher than $47.9 billion in the prior-year period, but missing the consensus mark of $57.6 billion by 7.4%. Operationally, upstream production held at 2,339 mboe/d despite disruption impacts, while refining availability remained above the company’s 96% target.
The strong quarterly earnings can be attributed to increased upstream production, significantly higher realized refining margins and a strong oil trading contribution. The positives were partly offset by lower hydrocarbon price realizations.
BP’s capital expenditure totaled $3.29 billion versus $3.62 billion a year ago and operating cash flow was $2.86 billion, higher than $2.83 billion a year ago
Enterprise Products Partners LP (EPD - Free Report) reported first-quarter 2026 adjusted earnings per limited partner unit of 68 cents, which missed the Zacks Consensus Estimate of 71 cents. The bottom line increased from the year-ago level of 64 cents.
Total quarterly revenues of $14.4 billion surpassed the Zacks Consensus Estimate of $13.1 billion. The top line declined from $15.4 billion in the prior-year quarter.
The lower-than-expected quarterly earnings were primarily attributable to weak margins in Crude Oil Pipelines & Services and Petrochemical & Refined Products Services.
As of March 31, the outstanding total debt principal was $34.2 billion, and consolidated liquidity amounted to $3.3 billion.
Halliburton Company (HAL - Free Report) reported first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents due to softer activity in the North American region and the negative impact of geopolitical conflict in the Middle East, which hurt both of the company’s segments.
Meanwhile, revenues of $5.4 billion were 0.3% lower year over year but beat the Zacks Consensus Estimate of $5.3 billion.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.