NOV (NOV) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $2.10 billion, down 2% year-over-year; net income was $73 million ($0.19 per share), and adjusted EBITDA rose 5% to $252 million (12% margin, up 80 bps year-over-year).

• Returned $109 million to shareholders in Q1 2025 through $81 million in share repurchases and $28 million in dividends.

• Energy equipment segment margins rose 430 bps year-over-year, driven by deep-water demand and cost reductions.

• Signed a major agreement with Petrobras for advanced flexible pipe design for high CO2 deepwater wells.

• Strong cash flow from operations reached $135 million; free cash flow was $51 million.

Financial highlights

• Consolidated revenue decreased 2% year-over-year; adjusted EBITDA rose 5% to $252 million, with margin at 12.0%.

• EBITDA margin improved to 12%, marking 14 consecutive quarters of year-over-year margin growth.

• Cash and cash equivalents at March 31, 2025, were $1.16 billion; total debt was $1.74 billion.

• Returned $426 million to shareholders in the last 12 months.

• Supplemental dividend of ~$80 million expected in mid-June to reach 50% of 2024 excess free cash flow.

Outlook and guidance

• Q2 2025 consolidated revenue expected to decline 1–4% year-over-year; adjusted EBITDA guidance is $250–$280 million.

• Energy Equipment segment Q2 revenue expected flat to up 1% year-over-year, EBITDA $155–$175 million.

• Energy Products and Services Q2 revenue expected down 5–8% year-over-year, EBITDA $140–$160 million.

• Management anticipates incrementally lower activity in the second half of 2025 due to macroeconomic and geopolitical uncertainties.

• Expects to return at least 50% of excess free cash flow to shareholders annually.