NOV's Q2 revenue falls but beats expectations

NOV

28/07/2025 23:02

Overview

NOV Q2 revenue of $2.19 bln beats analyst expectations, per LSEG data

Net income for Q2 down 52% yr/yr, impacted by prior year's business sale gain

Adjusted EBITDA for Q2 down 10% yr/yr due to macroeconomic uncertainties

Outlook

Company expects Q3 2025 revenue to decline 1-3% year-over-year

NOV projects Q3 2025 Adjusted EBITDA between $230 mln and $250 mln

Company anticipates lower industry activity levels through H2 2025

NOV sees offshore activity growth resuming in 2026

Result Drivers

MACROECONOMIC UNCERTAINTY - NOV cites macroeconomic uncertainty and unwinding of OPEC+ quotas as factors leading to deferred orders and lower revenues

SALES MIX SHIFT - Increase in capital equipment revenues offset by decline in spare part and product sales, impacting margins

DRILLING ACTIVITY - Lower global drilling activity reduced demand for consumable products, affecting Energy Products and Services segment

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$2.19 bln
$2.14 bln (16 Analysts)
Q2 EPS
$0.29
Q2 Net Income
$114 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the oil related services and equipment peer group is "buy"

Wall Street's median 12-month price target for Nov Inc is $16.00, about 11.5% above its July 28 closing price of $14.16

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX3B4GR3

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)