NOV (NOV) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $2.226B, up 4% sequentially and 2% YoY; Adjusted EBITDA was $281M, including a ~$5M tariff-refund benefit.

• Margin gains and operational efficiencies, alongside offshore and international growth opportunities, supported management’s confidence in stronger earnings potential; $1.5B annual EBITDA represents capacity, not a timed forecast.

Financial highlights

• GAAP net income attributable was $90M, or $0.25 per diluted share; operating profit was $142M and adjusted operating profit was $188M.

• Adjusted EBITDA was $281M, or 12.6% of sales; gross profit was $439M, versus $412M YoY.

• Free cash flow was a $47M use, with delayed Middle East milestone billings and collections and logistics-related inventory buffers weighing on cash flow.

• Nine-month revenue was $6.41B versus $6.47B; net income attributable was $221M versus $223M, and diluted EPS was $0.61 versus $0.59.

• Q3 operating profit included $28M in pretax Other Items and an $18M net fixed-asset write-down, primarily related to facility closures.

Outlook and guidance

• Q4 revenue is expected roughly flat YoY, with Adjusted EBITDA of $260M–$300M; Energy Equipment revenue is expected down 4%–6% and EBITDA $175M–$205M, while Energy Products and Services revenue is expected up 6%–8% and EBITDA $140M–$160M.

• Including Q4 guidance, H2 2026 revenue is expected to grow ~7% from H1, with mid-40% incremental EBITDA margins excluding tariff refunds; FY capex is forecast at $340M–$360M and the annual effective tax rate at ~30%.

• Q4 working capital is expected to be ~25% of annualized revenue; EBITDA-to-free-cash-flow conversion is expected to return to the 50% range in 2027.

• Management expects 2027 offshore bookings to meaningfully exceed 2026 and 2025; equipment order intake and revenue momentum may build as projects move from sanctioning to procurement.

• Energy Equipment backlog was $3.978B at September 30, with ~15% expected to convert to revenue in the remainder of 2026; remaining performance obligations totaled $4.27B.