NOV Q3 profit climbs $48 million on Energy Products and Services growth

NOV Inc. (NYSE: NOV) said on Oct. 27 that third-quarter net income rose $48 million from a year earlier to $90 million, or 25 cents per diluted share.

Revenue was $2.23 billion, in line with the $2.22 billion consensus estimate compiled by Finnhub. Diluted EPS was in line with the 25 cents per share estimate from the same source.

The Houston-based company delivers technology-driven solutions to the global energy industry.

Here’s how the company did:

• Revenue: $2.23 billion, up 2% from a year earlier, in line with the $2.22 billion consensus estimate
• Diluted EPS: 25 cents, up from 11 cents a year earlier, in line with the 25 cents per share consensus estimate compiled by Finnhub
• Adjusted EBITDA: $281 million, up $23 million from a year earlier and down $2 million from the second quarter

Revenue growth came from Energy Products and Services, where sales rose 9% from a year earlier to $1.06 billion. Energy Equipment revenue fell 2% to $1.22 billion, as the completion of certain offshore production projects was not fully offset by demand for the segment’s other products and services.

“NOV delivered another strong quarter, building on the operational momentum established earlier this year,” said Chairman, President and CEO Jose Bayardo.

Segment results

Energy Equipment Adjusted EBITDA rose $7 million from a year earlier to $187 million, or 15.3% of sales. Its backlog for capital equipment orders totaled $3.98 billion as of Sept. 30, and new orders were $577 million, a book-to-bill of 91%.

Energy Products and Services Adjusted EBITDA rose $18 million from a year earlier to $153 million, or 14.5% of sales. Revenue growth was led by increasing manufacturing throughput against the segment’s growing backlog of drill pipe and composite equipment.

Fourth-quarter guidance

The company expects fourth-quarter consolidated revenue to be roughly flat year over year, with Adjusted EBITDA of $260 million to $300 million. The outlook assumes Middle East operating conditions remain consistent with the third quarter, other than an expected moderation in activity as certain customers adjust their drilling programs. A worsening of those conditions may cause actual results to differ materially.

On July 29 the company had expected third-quarter Adjusted EBITDA of $240 million to $270 million. The $281 million it reported came in above that range.

Costs and capital returns

The company recorded $28 million in pre-tax Other Items, mainly severance and inventory write-downs and costs tied to streamlining its operations. It also recorded $18 million in net write-downs of fixed assets, mainly related to facility closures.

The company repurchased about 0.8 million shares for $15 million and paid $32 million in dividends, returning $47 million to shareholders in the quarter. Tariff refunds added about $5 million to Adjusted EBITDA.

At Sept. 30, total debt was $1.71 billion, with $1.50 billion available on its revolving credit facility and $1.06 billion in cash and cash equivalents.

According to its SEC filings, net income swung from a profit of $42.0 million in the third quarter of 2025 to a loss of $78.0 million in the fourth quarter, then to a profit of $19.0 million in the first quarter of 2026.