NOV (NOV) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue was $8.87 billion, with adjusted EBITDA of $1.11 billion and free cash flow of $953 million, representing 86% of EBITDA.

• Q4 2024 revenue was $2.31 billion, net income $160 million, and adjusted EBITDA $302 million (13.1% margin).

• Book-to-bill ratio was 122% for the year, with $2.75 billion in new orders and backlog up 7% YoY to $4.43 billion.

• Major contract wins included FPSO equipment in Brazil, West Africa, and Turkey, and a Saudi jack-up rig package.

• Returned $337 million to shareholders in 2024 through dividends and buybacks.

Financial highlights

• Q4 net income was $160 million ($0.41 per share); full-year net income was $635 million ($1.60 per share).

• Q4 adjusted EBITDA margin was 13.1%; full-year margin was 12.5%.

• Q4 free cash flow was $473 million; full-year free cash flow was $953 million.

• Q4 cash flow from operations was $591 million; capex was $118 million in Q4 and $351 million for the year.

• Net debt leverage ratio was under 1x, and gross debt leverage ratio under 2x at year-end.

Outlook and guidance

• 2025 revenue expected to be flat, with margin improvement of 50–150 basis points possible.

• Q1 2025 revenue expected to decline 1–3% YoY; adjusted EBITDA guidance is $235–$265 million.

• Energy Equipment segment revenue projected down 3–5% in Q1 2025, with adjusted EBITDA of $135–$150 million.

• Free cash flow conversion from EBITDA expected to remain above 50% in 2025.

• Shareholder returns to exceed 50% of excess free cash flow in 2025, including a supplemental dividend.