NOV (NOV) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue rose 5% sequentially to $2.28 billion but declined 1% year-over-year; net loss was $78 million, or $0.21 per share, due to higher tax rates and asset impairments.

• Full-year 2025 revenue was $8.74 billion, with net income of $145 million, or $0.39 per share; adjusted EBITDA exceeded $1 billion for the third consecutive year.

• Free cash flow conversion was strong, reaching $876 million for 2025 and $472 million in Q4; working capital intensity improved by 340 basis points year-over-year.

• The company maintained a strong balance sheet, with net debt to EBITDA at 0.2x and significant capital returned to shareholders.

• Operational efficiencies, process improvements, and technology achievements, including record footage drilled and major equipment awards, drove strong cash conversion and margin resilience.

Financial highlights

• Q4 2025 revenue: $2.28 billion; net loss: $78 million, or $0.21 per share, impacted by higher tax rate and asset impairments.

• Adjusted EBITDA for Q4: $267 million (11.7% of sales); adjusted operating profit: $177 million (7.8% of sales); full-year adjusted EBITDA: $1.03 billion (11.8% of sales).

• Free cash flow for 2025: $876 million; two-year free cash flow: $1.8 billion; Q4 free cash flow: $472 million.

• Returned $505 million to shareholders in 2025 via buybacks and dividends; $842 million over two years.

• Bookings for the year totaled $2.34 billion, with an ending backlog of $4.34 billion.

Outlook and guidance

• 2026 revenue expected to be slightly lower than 2025, with EBITDA in line to slightly lower; Q1 2026 revenue expected to decline 1–3% year-over-year, with adjusted EBITDA guidance of $200–$225 million.

• EBITDA free cash flow conversion projected at 40%-50% for 2026; CapEx guidance: $315-$345 million.

• Book-to-bill for 2026 expected near 100%; cautious start to the year but stronger second half anticipated.

• Higher effective tax rate expected (34%-36%) due to increased foreign earnings.

• Anticipates improved financial performance in Q4 2026 and a more favorable operating environment in 2027 and beyond.