NOV (NOV) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $2.18 billion, down 1% year-over-year; net income fell 68% to $42 million, or $0.11 per share, and operating profit dropped 45% to $107 million, or 4.9% of sales.

• Adjusted EBITDA was $258 million (11.9% margin), down 10% year-over-year but up 2% sequentially; free cash flow was $245 million.

• Book-to-bill ratio reached 141%, with bookings of $951 million and record segment backlogs.

• Major contract wins in MEG reclamation, deepwater rig automation, and subsea flexible riser systems supported growth.

• $65 million in Other Items impacted Q3, mainly from asset and inventory write-downs, litigation charges, and restructuring.

Financial highlights

• Q3 2025 consolidated revenue was $2.18 billion, down 1% year-over-year and sequentially.

• Adjusted EBITDA for Q3 2025 was $258 million, with a margin of 11.9%.

• Free cash flow for Q3 2025 was $245 million, with conversion at 95% for the quarter.

• Energy Equipment segment revenue grew 2% year-over-year to $1.25 billion; Energy Products and Services declined 3% to $971 million.

• Net income attributable to the company was $42 million, compared to $130 million in Q3 2024.

Outlook and guidance

• Q4 2025 consolidated revenues expected to decline 5–7% year-over-year; Adjusted EBITDA projected between $160 million and $180 million.

• Energy Equipment segment revenue projected down 8% to 10% year-over-year; Energy Products and Services down 5% to 7%.

• Offshore drilling outlook improving for late 2026 and beyond, with anticipated demand growth in deepwater and international markets.

• Free cash flow conversion expected to remain strong, with 50%-55% conversion sustainable into 2026.

• Management expects continued growth in wind, geothermal, and carbon capture projects.