NOV Q1 revenue falls on disruptions from Middle East conflict

NOV

27/04/2026 22:59

Overview

U.S. energy equipment provider's Q1 revenue declined 2% yr/yr, meeting analyst expectations

Net income for Q1 dropped to $19 mln from $73 mln a year earlier

Company cited Middle East conflict disruptions as key factor impacting revenue and profit

Outlook

Company expects Q2 2026 revenue to decline 4-6% year-over-year

Company sees Q2 2026 Adjusted EBITDA between $185 mln and $215 mln

Company says outlook assumes Middle East conditions do not deteriorate further

Result Drivers

MIDDLE EAST DISRUPTIONS - Co said conflict in the Middle East delayed deliveries, disrupted offshore service activity, and increased costs, reducing Q1 revenue by $54 mln and adjusted EBITDA by $32 mln

AFTERMARKET SALES IMPACT - Lower sales of aftermarket parts and services due to Middle East disruptions weighed on Energy Equipment segment results

LOWER DRILLING ACTIVITY - Reduced global drilling activity, along with Middle East disruptions, contributed to lower Energy Products and Services revenue

Company press release: ID:nGNX6s9fW0

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Meet
$2.05 bln
$2.05 bln (15 Analysts)
Q1 Net Income attributable to Company
$19 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 12 "hold" and 1 "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 $21.00, about 0.9% above its April 27 closing price of $20.82

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)