NOV (NOV) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $2.18 billion, down 1% year-over-year; net income fell 68% to $42 million, or $0.11 per share, and adjusted EBITDA was $258 million (11.9% margin), reflecting strong execution despite a challenging macro environment and softening oilfield activity.

• Free cash flow was $245 million, with a 95% EBITDA-to-free-cash-flow conversion, driven by strong project execution and working capital efficiency.

• Bookings reached $951 million, with a record energy equipment backlog of $4.56 billion and a book-to-bill ratio of 141%, more than doubling sequentially.

• Major contract wins included MEG reclamation systems, deepwater rig automation, and subsea flexible riser systems, highlighting technology leadership.

• $65 million in Other Items impacted Q3, mainly from asset and inventory write-downs, litigation-related charges, and restructuring.

Financial highlights

• Q3 2025 consolidated revenue was $2.18 billion, down 1% year-over-year and sequentially.

• Net income was $42 million, or $0.11 per diluted share, down from $130 million in Q3 2024.

• Adjusted EBITDA was $258 million (11.9% of sales), down 10% year-over-year but up 2% sequentially.

• Free cash flow for Q3 2025 was $245 million.

• Operating profit for Q3 2025 was $107 million, down 45% year-over-year.

Outlook and guidance

• Q4 2025 consolidated revenue expected to decline 5–7% year-over-year, with adjusted EBITDA projected between $160–$260 million.

• Energy Equipment segment Q4 revenue expected to decline 2–4% year-over-year, with EBITDA of $160–$180 million.

• Energy Products and Services segment Q4 revenue expected to decline 8–10% year-over-year, with EBITDA of $120–$140 million.

• Near-term market conditions expected to remain soft, with global drilling activity likely to drift lower and tariffs/inflation weighing on margins.

• Offshore drilling and FPSO activity expected to pick up in late 2026 and 2027, driving stronger demand and higher earnings amplitude as cycles converge.