NOV Inc. (NOV Quick QuoteNOV - Free Report) reported third-quarter 2026 earnings of 25 cents per share, beating the Zacks Consensus Estimate of 24 cents by 4.17%. The bottom line increased 127.3% from the year-ago quarter's 11 cents, supported by improved operational execution and cost efficiencies.

The oil and gas equipment and services company's revenues of $2.23 billion surpassed the Zacks Consensus Estimate of $2.2 billion by 1.2%. Revenues increased 2.3% year over year, driven by growth in Energy Products and Services. Energy Equipment's capital equipment bookings totaled $577 million, representing a book-to-bill ratio of 91%.

NOV Inc. Price, Consensus and EPS Surprise

NOV Inc. price-consensus-eps-surprise-chart | NOV Inc. Quote

NOV's Energy Equipment Performance

Energy Equipment reported third-quarter revenues of $1.22 billion, down 2% year over year but relatively flat sequentially. The decline reflected the completion of certain offshore production projects, which increased demand for other equipment and services could not fully offset.

Adjusted EBITDA increased to $187 million from $180 million in the year-ago quarter. The adjusted EBITDA margin expanded 90 basis points to 15.3%, reflecting a favorable project mix, improved backlog margins and disciplined execution.

The segment secured $577 million in new capital equipment orders, up 22% sequentially, against shipments of $632 million from backlog. As of Sept. 30, 2026, capital equipment backlog stood at $3.98 billion. Management expects offshore project sanctioning activity to translate into stronger bookings in 2027.

NOV's Energy Products and Services Results

Energy Products and Services generated revenues of $1.06 billion, increasing 9% year over year and sequentially. Growth was supported by higher manufacturing throughput against the growing backlog of drill pipe and composite equipment.

Adjusted EBITDA increased to $153 million from $135 million in the prior-year quarter. The adjusted EBITDA margin improved to 14.5% from 13.9%, reflecting continued cost-structure improvements and operational efficiencies.

The segment benefited from strong drill bit demand, record downhole motor revenues and growing adoption of digital technologies. International unconventional development and improving manufacturing productivity also supported its performance.

NOV's Profitability and Cost Dynamics

NOV reported third-quarter operating profit of $142 million, up 32.7% from $107 million in the year-ago period. The operating margin increased to 6.4% from 4.9%, supported by stronger operational execution.

Adjusted operating profit reached $188 million, up 11% year over year. Consolidated adjusted EBITDA increased 8.9% to $281 million, representing 12.6% of revenues. The figure included approximately $5 million in tariff refund benefits.

Gross profit increased to $439 million from $412 million a year earlier, while the gross margin expanded to 19.7% from 18.9%. Selling, general and administrative expenses declined to $297 million from $305 million.

NOV's Cash Flow and Financial Position

As of Sept. 30, 2026, NOV had cash and cash equivalents of $1.06 billion and total debt of $1.71 billion. The company also had $1.5 billion available under its revolving credit facility.

Operating cash flow totaled $41 million during the quarter, while capital expenditures were $88 million. Free cash flow was negative $47 million, reflecting delayed milestone billings and collections, alongside elevated inventory buffers associated with Middle East logistics disruptions.

NOV repurchased approximately 800,000 common shares for $15 million and distributed $32 million in dividends, returning $47 million to shareholders during the quarter.

NOV's Strategic and Technology Advancements

NOV secured multiple offshore equipment contracts, including mooring systems for floating production projects in the United States, the Eastern Mediterranean and Angola. The company also received an upgrade contract for a drillship incorporating advanced lifting capacity, automation and multi-machine controls.

Its digital services business secured remote monitoring and data aggregation contracts supporting offshore drilling operations. The Max Platform enables customers to improve operational visibility and decision-making through real-time information.

The Zacks Rank #4 (Sell) company also received orders for composite pipeline systems in Oman and electrification upgrades for well servicing equipment. Strong demand for drilling technologies and production optimization solutions supported opportunities across international energy markets.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NOV's Fourth-Quarter and Longer-Term Outlook

For the fourth quarter of 2026, NOV expects consolidated revenues to remain roughly flat year over year, with adjusted EBITDA between $260 million and $300 million. The outlook assumes broadly consistent Middle East operating conditions, although management anticipates some moderation in regional activity.

Management expects significant sequential improvement in free cash flow during the fourth quarter, supported by working-capital normalization. Full-year capital expenditures are projected between $340 million and $360 million, with an effective tax rate of approximately 30%.

Looking ahead, NOV anticipates stronger offshore equipment bookings in 2027 as accelerating floating production project approvals translate into procurement activity. Management also expects EBITDA-to-free-cash-flow conversion to return to approximately 50% in 2027, supported by operating efficiencies and improved working-capital management.

Important Earnings at a Glance

While we have discussed NOV’s third-quarter results in detail, let us take a look at three other key reports in this space.

Halliburton Company (HAL Quick QuoteHAL - Free Report) reported third-quarter 2026 adjusted earnings of 60 cents per share, surpassing both the Zacks Consensus Estimate and the year-ago adjusted earnings of 58 cents. The improvement was supported by stronger drilling activity and international operations.

Revenues of $5.7 billion rose 1.8% year over year and surpassed the Zacks Consensus Estimate by 2%. The top-line improvement was driven by Drilling and Evaluation growth, while lower North American stimulation activity remained a headwind.

As of Sept. 30, 2026, the company held $1.84 billion in cash and equivalents and $7.1 billion in long-term debt. Total shareholders' equity stood at $11.16 billion.

Kinder Morgan, Inc. (KMI Quick QuoteKMI - Free Report) reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents by 6.1%. Earnings increased 20.7% from 29 cents in the year-ago quarter.

Revenues increased 9.3% year over year to $4.53 billion from $4.15 billion. Revenues surpassed the consensus estimate of $4.38 billion by 3.4%.

Strong quarterly results benefited from higher natural gas transportation and gathering volumes, alongside improved contributions from the Terminals and CO2 businesses.

As of Sept. 30, 2026, cash and cash equivalents totaled $918 million, compared with $63 million at 2025-end. Net debt stood at $32.23 billion.

Phillips 66 (PSX Quick QuotePSX - Free Report) reported third-quarter 2026 adjusted earnings of $14.08 per share, up 458.7% from $2.52 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $11.97 by 17.6%.

Total revenues and other income increased 47.2% to $51.51 billion from $34.98 billion a year earlier. The top line beat the consensus estimate of $33.72 billion by 52.7%.

Stronger refining margins and higher processed volumes supported the results. Refining crude capacity utilization reached 98%, while clean product yield was 86%.

As of Sept. 30, 2026, total debt stood at $18.53 billion, down from $20.57 billion at the end of June. Net debt declined to $12.68 billion at the end of the quarter. Cash and cash equivalents totaled $5.85 billion, while the net debt-to-capital ratio improved to 26%.