National Oilwell Varco Stock Earnings Reports

NOV Inc. reported Q1 2026 revenue of $2.05 billion and GAAP net income of $19 million ($0.05 per share). Adjusted EBITDA was $177 million (9% of sales). The conflict in the Middle East materially disrupted shipments, logistics and aftermarket activity, which management estimates reduced Q1 revenue by ~$54 million and EBITDA by ~$32 million; guidance for Q2 assumes the Strait remains closed and continued logistics constraints. Energy Equipment bookings were $520 million in Q1 (book-to-bill 80%) with an ending backlog of $4.23 billion; subsea flexible pipe and offshore production-related businesses were highlights, and NOV approved a $200 million expansion of its subsea flexible pipe facility in Brazil. Energy Products & Services revenue declined (~10% YoY) driven by delayed deliveries and lower global activity, but drill pipe and fiberglass bookings were strong and backlog levels are elevated. Management reiterated a focus on cost reduction (8% headcount reduction, >40 facility exits, shared service center), expects tariff headwinds (~$30M run-rate) but has filed for a potential AIPA refund (~$40M paid historically), and remains active on capital returns (Q1 repurchases $67M, dividends $33M, supplemental dividend planned). Capital expenditures for 2026 are guided to $340–$370 million, and management expects 40–50% conversion of 2026 EBITDA to free cash flow with cash generation improving later in the year. Management believes recent events have shifted the market from surplus to deficit, accelerating a multi-quarter upcycle in capital investment and service activity, positioning NOV to benefit from higher long-term demand.