NOV (NOV) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $2.2 billion, up 4% sequentially and down 1% year-over-year, with net income of $108 million and EPS of $0.29 per diluted share; net income fell 52% due to a prior-year gain and restructuring costs.

• Adjusted EBITDA was $252 million (11.5% of sales), down 10% year-over-year, reflecting strong capital equipment execution but pressured by unfavorable sales mix, tariffs, and inflation.

• Free cash flow for the quarter was $108 million, with 83% EBITDA conversion over the last 12 months.

• Achieved multi-year contracts for digital services and advanced equipment, including FLNG and offshore automation projects.

• Offshore activity remains strong, but North American oil-directed drilling declined; cost control and digital initiatives are being implemented.

Financial highlights

• Energy Equipment segment revenue grew 5% sequentially to $1.21 billion, flat year-over-year; Energy Products and Services revenue grew 3% sequentially to $1.03 billion, down 2% year-over-year.

• Adjusted EBITDA for Energy Products and Services was $146 million (14.2% margin), down year-over-year; Energy Equipment EBITDA was $158 million (13.1% margin), up year-over-year.

• Gross profit for Q2 2025 was $446 million, with a gross margin of 20.4%, down from 26.6% a year ago.

• Working capital as a percentage of revenue improved by 300 basis points year-over-year.

• Cash and cash equivalents at June 30, 2025 were $1.08 billion; total debt was $1.73 billion.

Outlook and guidance

• Q3 2025 consolidated revenue expected to decline 1–3% year-over-year; adjusted EBITDA forecasted at $230–$250 million.

• Energy Products and Services Q3 revenue expected flat to down 2% year-over-year, EBITDA $130–$150 million; Energy Equipment revenue expected down 1–3%, EBITDA $145–$160 million.

• Full-year tax rate expected between 26% and 28%.

• Offshore activity and international unconventionals expected to drive growth in 2026; management expects continued growth in wind, geothermal, and carbon capture projects.