NOV Inc. NOV reported first-quarter 2025 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 25 cents. The bottom line decreased from the year-ago quarter’s 30 cents. This underperformance can be attributed to margin pressures on projects within its Energy Equipment segment. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The oil and gas equipment and services company’s total revenues of $2.1 billion marginally beat the Zacks Consensus Estimate by 0.2%, driven by stronger-than-expected revenues from the Energy Equipment segment. The segment’s revenues surpassed the Zacks Consensus Estimate by 1.6%. However, revenues declined 8.9% from the year-ago quarter’s reported figure.
During the first quarter of 2025, NOV repurchased 5.4 million shares of common stock for $81 million. Including dividend payments, the company returned a total of $109 million in capital to its shareholders.
Additionally, NOV recorded $13 million in Other Items, primarily due to severance expenses and the deconsolidation of its Russian subsidiaries, following the imposition of new U.S. sanctions on the country’s operations during the quarter.
NOV Inc. Price, Consensus and EPS Surprise
NOV Inc. Price, Consensus and EPS Surprise
NOV Inc. price-consensus-eps-surprise-chart | NOV Inc. Quote
NOV’s Segmental Performances
Energy Products and Services: The unit reported first-quarter revenues of $992 million, which missed our prediction of $998.6 million. The figure also decreased from the prior-year quarter’s reported number by 2.5%, primarily caused by lower industry activity levels, which disproportionately impacted demand for the segment’s shorter-cycle capital equipment offerings.
Adjusted EBITDA of $145 million missed our estimate of $153 million. The reported actuals also decreased from $174 million in the corresponding period of 2024.
Energy Equipment: Revenues in this segment decreased 2.7% year over year to $1.1 billion. However, the figure beat our estimation by 1%. The year-over-year drop in revenues was mostly because the company sold its Pole Products business in early 2024 and saw lower revenues from aftermarket support.
Adjusted EBITDA of $165 million beat our estimate of $139.9 million. The reported actuals also increased from $119 million in the corresponding period of 2024.
This segment experienced strong demand with new orders of $437 million in the quarter, indicating an increase of $47 million from a year ago, resulting in a book-to-bill ratio of 80.
As of March 31, the backlog for Energy Equipment capital orders was $4.4 billion, indicating an increase of $458 million from the prior year.
NOV’s Balance Sheet
As of March 31, 2025, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 20.7%. The company had $1.5 billion available on its primary revolving credit facility during the same time.
NOV generated $135 million in operating cash flow and $51 million in free cash flow in this quarter.
NOV’s Q2 2025 Outlook
For the second quarter of 2025, this Zacks Rank #3 (Hold) company expects consolidated revenues to decline 1% to 4% year over year, with adjusted EBITDA predicted to be between $250 million and $280 million.
The company plans to return at least 50% of its excess free cash flow to shareholders through a combination of quarterly dividends, opportunistic stock buybacks and a supplemental dividend, aligning with the strategy to enhance shareholder value.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Achievements
NOV made notable progress, securing important contracts and strengthening its leadership in advanced technologies across multiple energy sectors.
Petrobras Agreement: The company signed a partnership with Petrobras to develop flexible pipes for deepwater CO2 applications, strengthening its subsea technology leadership.
Japanese Cable-Lay Contract: NOV was awarded a contract to supply an advanced cable-lay system for a Japanese vessel, highlighting its leadership in offshore wind infrastructure.
Middle East TEG Project: The company secured a gas dehydration project with a National Oil Company, strengthening its presence in natural gas technologies.
Record Drilling Performance: NOV set two record-breaking drilling runs in the U.S. Utica shale, showcasing the strength of its ERT power sections.
GranMorgu Project: The company will supply deepwater conductor casing connectors for a major development project in Suriname, enhancing safety and efficiency.
Middle East Drilling Solutions: NOV’s integrated BHA solutions set a new record for 12-inch hole drilling in the Middle East, demonstrating superior performance.
DBA Solution Expansion: The company’s AI-driven DBA solution is now applied across 20 million feet of drilling operations globally, preventing costly issues like washouts.
Composite Pipeline Contracts: NOV was awarded contracts for STAR composite pipelines, reinforcing its position in non-corrosive infrastructure solutions.
Thermal Coating for Shale Plays: The company delivered Tuboscope’s TK Drakon thermal coating to operators in high-pressure shale plays, enhancing downhole tool protection.
Rig Upgrade & Digital Solutions: NOV upgraded a U.S. well service rig to AC electrical operation, integrating remote monitoring for enhanced efficiency.
Geothermal Drilling in Iceland: The company entered the Icelandic geothermal market, providing a customized solids control solution for a new drilling campaign.
These achievements highlight NOV’s ongoing commitment to innovation and leadership in energy technologies, positioning it for continued growth and success.
Important Earnings at a Glance
While we have discussed NOV’s first-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider, Liberty Energy LBRT, reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.
As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.
Another oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton’s revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.
As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.
Houston, TX-based oil and gas equipment and services provider, Baker Hughes BKR, reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
