NOV (NOV) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $2.2 billion, up 4% sequentially and down 1% year-over-year, with net income of $108 million and adjusted EBITDA of $252 million (11.5% of sales); net income fell 52% due to a prior-year gain and restructuring costs.

• Strong execution on capital equipment backlog and major contract wins for digital services and automation, but lower aftermarket and consumable sales, inflation, and tariffs pressured margins.

• Free cash flow was robust at $108 million for the quarter, with EBITDA-to-free-cash-flow conversion exceeding 80% over the last 12 months.

• Cost reduction and process improvement initiatives are underway, targeting over $100 million in annual savings by end of 2026, with $19 million in restructuring and streamlining charges recorded in Q2.

• $176 million was returned to shareholders via share repurchases and dividends in Q2 2025.

Financial highlights

• GAAP net income was $108 million, or $0.29 per diluted share, for Q2 2025; adjusted EBITDA reached $252 million, representing 11.5% of sales.

• Free cash flow for the quarter was $108 million; cash and cash equivalents at June 30, 2025 were $1.08 billion.

• Share repurchases totaled 10.9 million shares for $150 million in H1 2025; dividends paid YTD totaled $135 million.

• Cash flow from operations for the first six months was $326 million; capital expenditures were $167 million.

• Total debt stood at $1.73 billion, with $1.50 billion available on the credit facility.

Outlook and guidance

• Q3 2025 consolidated revenue expected to decline 1–3% year-over-year; adjusted EBITDA forecasted at $230–$250 million.

• Energy Products and Services segment Q3 revenue expected flat to down 2% year-over-year, with EBITDA of $130–$150 million.

• Energy Equipment segment Q3 revenue expected to decrease 1–3% year-over-year, with adjusted EBITDA of $145–$160 million.

• Full-year tax rate expected between 26% and 28%; management anticipates lower industry activity through H2 2025, with offshore and international growth resuming in 2026.

• Management expects continued growth in wind, geothermal, and carbon capture projects.