NOV Reports Q1 2026 Earnings: Revenue Holds Steady at $2.05 Billion Amid Middle East Disruptions; Management Eyes Multi-Year Capital Equipment Cycle

Houston, TX – April 29, 2026 – NOV Inc. (NYSE: NOV), a leading provider of oilfield equipment and technologies, reported first-quarter 2026 results that reflected resilience in its diversified portfolio despite significant headwinds from the ongoing conflict in the Middle East. Consolidated revenues reached $2.05 billion, a 2% decline from the prior-year period, while net income fell to $19 million, or $0.05 per diluted share. Adjusted EBITDA totaled $177 million (8.6% of sales), down $75 million year-over-year.

The company highlighted an estimated $54 million revenue and $32 million Adjusted EBITDA impact from the Middle East conflict, driven by delayed shipments of capital equipment and spare parts, elevated freight costs (at times 3–4x normal), and reduced manufacturing absorption. Excluding these disruptions, underlying performance remained solid, with strong execution on backlog and growth in key areas such as subsea flexible pipe and process systems.

Segment Performance Energy Equipment: Revenues rose 4% year-over-year to $1.19 billion. Adjusted EBITDA was $131 million (11.0% margin). Capital equipment sales (63% of segment revenue) increased 16%, offsetting a 12% drop in aftermarket parts and services impacted by regional disruptions. A less favorable sales mix and higher costs further pressured margins.

Energy Products and Services: Revenues declined 10% to $897 million. Adjusted EBITDA fell to $96 million (10.7% margin). Lower global drilling activity and Middle East disruptions weighed on the segment, though drill bit market share gains and digital services provided partial offsets.

Bookings, Backlog, and Capital Returns
Energy Equipment bookings totaled $520 million during the quarter, up $83 million year-over-year and marking the strongest first-quarter order intake since 2019. This produced an 80% book-to-bill ratio. Capital equipment backlog stood at $4.23 billion at quarter-end. Strong orders were also noted in fiberglass and drill pipe within Energy Products and Services.

NOV returned $100 million to shareholders in Q1 through $67 million in share repurchases (approximately 3.5 million shares) and $33 million in dividends. As of March 31, 2026, the company held $1.34 billion in cash and cash equivalents with $1.50 billion available on its revolving credit facility.

Q2 2026 Guidance and Forward-Looking Statements
Management provided the following outlook for the second quarter of 2026 (constituting forward-looking statements subject to risks, including further developments in the Middle East): Consolidated revenues expected to decline 4% to 6% year-over-year.
Adjusted EBITDA in the range of $185 million to $215 million.

Segment-level expectations include Energy Equipment revenues down 2–4% with Adjusted EBITDA of $135–155 million, and Energy Products and Services revenues down 6–8% with Adjusted EBITDA of $100–120 million. Guidance assumes current Middle East conditions persist (strait closed but no further deterioration).

For the full year, NOV maintained its target of a book-to-bill ratio near 100%. Capital expenditures are projected at $340–370 million, with free cash flow conversion expected at 40–50% of 2026 EBITDA, ramping through the year. Cost-reduction initiatives (including an 8% headcount reduction and exit of more than 40 facilities) are anticipated to offset tariffs and inflation in the second half. Management noted that resolution of the Middle East conflict and reopening of key shipping routes could allow full-year results to align more closely with 2025 levels.

Management Commentary and Market Outlook
Chairman, President, and CEO Jose Bayardo stated: “The conflict in the Middle East created significant operational disruptions during the first quarter, but also reinforced and accelerated market trends that we believe will drive a meaningfully more constructive environment for NOV.” He emphasized the shift from an expected oversupplied market to one now facing significant deficits, with approximately 10 MMbpd of production shut-in and infrastructure damage. This dynamic, combined with heightened energy security focus after years of underinvestment, is expected to spur urgency in industry activity and investment.

Bayardo added that NOV is well-positioned for a multi-year capital equipment cycle, citing strong performance in subsea flexible pipe (backlog extending into 2028 and capacity expansion underway in Brazil), process systems, composites, and CO₂ treatment solutions. Recent contract wins include flexible risers for deepwater Brazil, rig reactivations in the North Sea, and fiberglass grating for floating production units.

Analyst Perspectives
Wall Street’s reaction was mixed, with NOV shares declining approximately 3–5% in post-earnings trading amid the GAAP EPS miss ($0.05 vs. consensus estimates around $0.14–$0.16). Revenue was roughly in line or slightly below expectations ($2.05 billion vs. ~$2.06 billion), and Adjusted EBITDA met estimates.

Analyst consensus remains a Hold rating with an average price target in the $20–$22 range. Some firms have revised near-term earnings estimates downward due to ongoing geopolitical uncertainty, though longer-term views highlight potential margin recovery and leverage from a capital spending upcycle in offshore, unconventional, and energy transition-adjacent applications.

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