NOV (NOV) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue was $2.28 billion, up 5% sequentially but down 1% year-over-year, with a net loss of $78 million due to impairments and higher tax rates; full-year revenue was $8.74 billion and net income $145 million.

• Full-year EBITDA exceeded $1 billion for the third consecutive year; Q4 Adjusted EBITDA was $267 million (11.7% margin).

• Free cash flow reached $876 million in 2025, with $472 million generated in Q4 and $1.8 billion over the last two years; free cash flow conversion exceeded 85% for the second consecutive year.

• Working capital intensity improved by 340 basis points year-over-year, dropping to 22%, the lowest in 10 years.

• Notable technology achievements included record annual footage drilled using Downhole Broadband Solutions, major equipment awards in Saudi Arabia, and strong customer recognition for subsea flexible pipe business.

Financial highlights

• Q4 revenue increased 5% sequentially to $2.28 billion, but decreased 1% year-over-year; Adjusted EBITDA margin was 11.7%.

• Adjusted operating profit for Q4 was $177 million (7.8% of sales); Q4 operating profit was $92 million, both down from prior year.

• Net loss in Q4 was impacted by an $86 million impairment charge and a higher effective tax rate.

• Bookings for the year totaled $2.34 billion, with an ending backlog of $4.34 billion; book-to-bill for 2025 was 91%.

• $505 million was returned to shareholders in 2025 via share repurchases and dividends.

Outlook and guidance

• Q1 2026 revenue expected to decline 1–3% year-over-year; Adjusted EBITDA guidance is $200–$225 million.

• Full-year 2026 revenue expected to be slightly lower than 2025, with EBITDA in line to slightly lower; improved performance anticipated in Q4 2026 and beyond.

• EBITDA free cash flow conversion expected to decrease to 40%-50% in 2026.

• Capital expenditures for 2026 projected at $315-$345 million; effective tax rate expected at 34%-36%.

• Offshore and international markets expected to outperform North America, with a cautious start to 2026 and stronger second half.