NOV (NOV) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $2.13 billion, up 4% sequentially and down 2–2.5% 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.

• Major offshore production and digital services contracts secured, 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), or $243 million excluding the $40 million tariff benefit.

• 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, with working capital expected to benefit cash generation in H2 2026.

• Capital expenditures were $81 million for Q2 and $146 million for 1H26; full-year guidance is $340–$370 million.

• Cash and equivalents at quarter-end were $1.16 billion; total debt was $1.71 billion.

Outlook and guidance

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

• Energy Equipment revenue expected to be down 1–3% year-over-year in Q3, with EBITDA of $160–$190 million.

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

• Free cash flow conversion of 40–50% of 2026 EBITDA is anticipated.

• Guidance assumes stable Middle East conditions; escalation could materially impact results.