NOV (NOV) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $2.05 billion, with net income of $19 million ($0.05 per share), and adjusted EBITDA of $177 million (8.6% of sales); results were negatively impacted by $54 million in revenue and $32 million in EBITDA due to Middle East conflict.

• Record EBITDA was achieved in subsea flexible pipe and process systems, with strong bookings in composite solutions.

• $100 million was returned to shareholders in Q1, totaling over $900 million in the past eight quarters.

• Operational efficiency initiatives continued, and record safety performance was achieved despite disruptions.

• Market outlook shifted from oversupply to deficit due to conflict, driving urgency for reinvestment and a new capital equipment cycle.

Financial highlights

• Revenue decreased 2% year-over-year; adjusted operating profit was $85 million (4% of sales), and operating profit was $47 million.

• Adjusted EBITDA margin was 8.6% (down from 12.0% year-over-year); Energy Equipment EBITDA margin 11.0%, Energy Products and Services 10.7%.

• Gross profit for Q1 2026 was $379 million, down from $447 million in Q1 2025.

• Free cash flow for Q1 2026 was negative $91 million; cash and cash equivalents at quarter-end were $1.34 billion, with total debt at $1.72 billion.

• Tariff costs increased $30 million year-over-year, offsetting some cost reduction efforts.

Outlook and guidance

• Q2 2026 consolidated revenue expected to decline 4–6% year-over-year; adjusted EBITDA projected between $185 million and $215 million.

• Energy Equipment Q2 revenue expected down 2–4% year-over-year, EBITDA $135–$155 million; Energy Products and Services Q2 revenue expected down 6–8% year-over-year, EBITDA $100–$120 million.

• Guidance assumes no further deterioration in Middle East conditions; worsening could materially affect results.

• Full-year 2026 book-to-bill expected near 100%; backlog and order intake remain strong.

• Cost savings expected to offset tariffs and inflation in the second half of 2026.