NOV Q2 Revenue Edges Up 4% Sequentially on $40M Tariff Refund Boost

NOV Inc. reported second-quarter revenue of $2.13 billion, up 4% from the first quarter but down 2% from a year earlier. Net income rose to $112 million, or $0.02 per diluted share, from $108 million in the same period of 2025. Adjusted EBITDA came in at $283 million, or 13.3% of sales, a $31 million year-over-year gain. That included a $40 million benefit from tariff refunds, the company said.

For the third quarter, management expects revenue to be flat to up 2% from a year earlier. Adjusted EBITDA is forecast between $240 million and $270 million. The guidance assumes the operating environment in the Middle East stays consistent with conditions during the second quarter, NOV said. A worsening of regional conditions could cause results to differ materially.

“NOV’s second quarter results reflect outstanding execution by our team in a market that is demonstrating significantly improved underlying industry fundamentals,” Chairman, President, and CEO Jose Bayardo said. He pointed to improving demand in most major regions and a growing pipeline of capital equipment opportunities. Bayardo said the industry is starting a synchronized global recovery driven by depleting inventories, a heightened focus on energy security, and a decade of constrained investment. That should drive meaningful demand for NOV’s technology and equipment over the next several years, he said.

Energy Equipment generated $1.22 billion in revenue, up 1% from a year earlier. Operating profit rose $55 million to $177 million, or 14.5% of sales. Adjusted EBITDA in the segment rose $42 million to $200 million, including $14 million in tariff refunds. Strong execution on offshore production projects nearing completion and a more favorable sales mix drove the improvement, NOV said.

Energy Products and Services posted $974 million in revenue, down 5% from the second quarter of 2025. Operating profit edged up $2 million to $85 million. Adjusted EBITDA fell $2 million to $144 million, including $26 million in tariff refunds. Market share gains in drill bits and artificial lift operations and continued growth in digital services were more than offset by lower capital equipment sales, NOV said.

New orders in Energy Equipment totaled $474 million, up from $420 million a year earlier. Orders shipped from backlog were $638 million, representing a book-to-bill of 74%. Backlog for capital equipment orders stood at $4.08 billion as of June 30, down $220 million from a year earlier.

NOV repurchased 3.2 million shares for $63 million and paid $64 million in dividends during the quarter, returning $127 million to shareholders. Total debt was $1.71 billion, with $1.50 billion available on its revolving credit facility and $1.16 billion in cash and cash equivalents.

The company won several technology orders during the quarter. NOV will supply gas dehydration and seawater treatment systems for a newbuild FPSO in West Africa and topside modules and subsea structures for an offshore gas field development in Indonesia. It secured drill pipe awards for offshore projects in Brazil and Suriname and orders for its Bondstrand fiberglass piping systems for an FPSO in Suriname. NOV also signed an agreement with a major operator to deploy its Downhole Broadband Solutions for a North Sea drilling campaign expected to begin in 2027.

NOV’s robotics and automation technologies continued to gain traction, with new orders for ATOM RTX robotics packages and NOVOS automation systems across offshore and land drilling operations. The company also expanded its digital portfolio through the acquisition of Rigsmart and Cranesmart, further complementing its wireless monitoring and data acquisition technologies.

Bayardo said recent oil price volatility and geopolitical uncertainty continue to cause temporary disruptions and project deferrals. He noted a growing pipeline of opportunities and improving short-cycle activity across most markets. The industry’s underlying fundamentals are improving significantly, he said.

NOV will hold a conference call to discuss results on July 29 at 10 a.m. Central Time.