NOV (NOV) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $2.13 billion, up 4% sequentially but down 2% year-over-year, with net income of $112 million and adjusted EBITDA of $283 million, including a $40 million tariff refund benefit.

• Record EBITDA margins in Energy Equipment and Subsea flexible pipe, driven by operational improvements and favorable sales mix.

• Over $1 billion returned to shareholders since 2024, with $127 million returned in Q2 2026.

• Secured major offshore production and digital solutions contracts, including AI-enabled diagnostics and robotics.

• Safety performance reached record levels, with improved incident rates for the second consecutive quarter.

Financial highlights

• Adjusted EBITDA was $283 million (13.3% of sales), including a $40 million tariff refund; Energy Equipment revenue was $1.22 billion, Energy Products & Services revenue was $974 million.

• Operating profit was $193 million (9% of sales), up 35% year-over-year; adjusted operating profit was $190 million.

• Free cash flow was negative $64 million for Q2 2026, mainly due to milestone billing timing and elevated inventory.

• Cash and cash equivalents at June 30, 2026 were $1.16 billion; total debt was $1.71 billion.

• Gross profit for Q2 2026 was $521 million (24.4% margin), up from $446 million (20.4%) in Q2 2025.

Outlook and guidance

• Q3 2026 revenue is expected to be flat to up 2% year-over-year, with adjusted EBITDA guidance of $240 million–$270 million.

• Energy Equipment segment revenue is expected to be 1%-3% lower year-over-year in Q3, with EBITDA between $160 million-$190 million.

• Energy Products and Services segment revenue is expected to increase 5%-7% year-over-year in Q3, with EBITDA of $130 million-$150 million.

• Full-year 2026 Energy Equipment book-to-bill is expected to be 90%-100%, with a meaningful increase in 2027.

• Capital expenditures for 2026 are projected at $340 million-$370 million; effective tax rate between 34%-36%.