Download PDF

1. Company Snapshot

1.a. Company Description

NOV Inc.designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors worldwide.The company operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies.


It also provides solids control and waste management equipment and services; portable power generation products; drill and wired pipes; drilling optimization and automation services; tubular inspection, repair, and coating services; instrumentation; measuring and monitoring services; downhole and fishing tools; steerable technologies; and drill bits.The company offers equipment and technologies for hydraulic fracture stimulation, including downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration and injection units, flowline, and manifolds; coiled tubing units, and wireline units and tools; connections and liner hangers; onshore production consists of composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, such as floating production systems and subsea production technologies, as well as manufactures industrial pumps and mixers.It also provides substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; mud pumps; pressure control equipment; drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; equipment components for offshore wind construction vessels; and pipelay and construction systems.


NOV Inc.offers spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training.The company was formerly known as National Oilwell Varco, Inc.


and changed its name to NOV Inc.in January 2021.NOV Inc.


was founded in 1862 and is based in Houston, Texas.

Show Full description

1.b. Last Insights on NOV

NOV Inc.'s recent performance was positively driven by a strong book-to-bill ratio of 141% and significant cash flow generation, with $352 million in cash flow from operations and $245 million in free cash flow. The company also returned $108 million to shareholders through share repurchases and dividends. Additionally, NOV announced a strategic collaboration with Armada to bring AI-powered solutions to the edge, which could enhance its offerings. The company's board declared a regular quarterly dividend of $0.075 per share, showcasing its commitment to shareholder returns.

1.c. Company Highlights

2. NOV's Q3 2025 Earnings: A Resilient Performance Amidst Industry Shifts

NOV reported revenues of $2.18 billion, with a net income of $42 million or $0.11 per fully diluted share, missing analyst estimates of $0.24. Adjusted EBITDA totaled $258 million, representing 11.9% of sales. The Energy Equipment segment saw revenue grow 2% year-over-year to $1.25 billion, with EBITDA increasing by $21 million to $180 million, driven by strong performances in subsea flexible pipe and Process Systems businesses.

Publication Date: Oct -29

📋 Highlights
  • Revenue & Profitability:: Q3 2025 revenue reached $2.18B with net income of $42M ($0.11/share), adjusted EBITDA at $258M (11.9% of sales).
  • Energy Equipment Growth:: Segment revenue rose 2% YoY to $1.25B, EBITDA increased $21M to $180M driven by strong subsea pipe and Process Systems performance.
  • Structural Cost Reductions:: CFO highlighted facility consolidation, process standardization, and exiting underperforming product lines to improve profitability.
  • Backlog & Future Demand:: Record backlog and $1B+ adjusted EBITDA in 2023-2024, with 141% book-to-bill ratio in Energy Equipment signaling robust order intake.
  • Offshore & Deepwater Outlook:: Expected 2026-2027 offshore production surge, with deepwater costs outpacing shales, and 5% capex growth in drill pipe sales due to inventory replenishment.

Segment Performance

The Energy Equipment segment's strong execution was a highlight, with revenue growth and EBITDA expansion driven by the subsea flexible pipe business and Process Systems. In contrast, the Energy Products and Services segment saw revenue decline modestly year-over-year, with EBITDA of $135 million or 13.9% of sales. Coating and inspection revenue decreased due to lower demand in Latin America and the Eastern Hemisphere, but was partially offset by strong growth in North America coating sales.

Operational Efficiencies and Cost Reduction

Rodney Reed, CFO, emphasized the company's focus on removing structural costs, including consolidating facilities, standardizing internal processes, and rationalizing product lines or regions that don't meet profitability requirements. This focus on operational efficiencies is expected to drive improved margins and position NOV for growth in the medium to long term.

Industry Outlook and NOV's Positioning

NOV is optimistic about the industry's and its own outlook, driven by growing demand, natural decline rates, and underinvestment in exploration. The company's unique portfolio of solutions, serving multiple end markets, provides operational and financial resilience. With a strong track record of innovation and a focus on digitization and automation, NOV is well-positioned to capitalize on key secular trends, including offshore production and international unconventional basins.

Valuation and Outlook

With a P/E Ratio of 14.44 and an EV/EBITDA of 7.15, NOV's valuation suggests a moderate growth outlook is priced in. The company's strong backlog and high-quality order book provide visibility into future growth, but the impact of OPEC barrels on commodity prices and the subsequent effect on capital spend remains a risk. NOV's expected free cash flow conversion rate of around 50% in 2026 and a dividend yield of 3.41% are also positives.

3. NewsRoom

Card image cap

NOV Stock Up 33% in 6 Months: Should Investors Hold or Move On?

Dec -04

Source: zacks.com

Card image cap

National Energy Services Reunited (NASDAQ:NESR) vs. NOV (NYSE:NOV) Head-To-Head Comparison

Dec -04

Source: defenseworld.net

Card image cap

NOV Target of Unusually High Options Trading (NYSE:NOV)

Nov -27

Source: defenseworld.net

Card image cap

NOV Declares Regular Quarterly Dividend

Nov -20

Source: globenewswire.com

Card image cap

NOV Announces Retirement of Clay Williams and Appointment of Jose Bayardo as CEO, Effective January 1, 2026

Nov -19

Source: globenewswire.com

Card image cap

Armada and NOV Collaborate to Bring AI-Powered Solutions to the Edge

Nov -17

Source: prnewswire.com

Card image cap

Analyzing North American Construction Group (NYSE:NOA) and NOV (NYSE:NOV)

Nov -05

Source: defenseworld.net

Card image cap

Top Renewable Energy Stocks Worth Watching – October 28th

Oct -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.90%)

6. Segments

Wellbore Technologies

Expected Growth: 4%

Wellbore Technologies from NOV Inc. growth driven by increasing demand for drilling and completion services, rising oil prices, and growing adoption of digital technologies. Additionally, expansion into new markets, strategic acquisitions, and innovative product offerings contribute to the 4% growth rate.

Completion & Production Solutions

Expected Growth: 3%

The 3% growth of Completion & Production Solutions from NOV Inc. is driven by increasing demand for efficient well intervention and production optimization, coupled with the adoption of digital technologies and automation in the oil and gas industry. Additionally, the growing need for operators to maximize hydrocarbon recovery and reduce costs is also contributing to this growth.

Rig Technologies

Expected Growth: 5%

Rig Technologies from NOV Inc. growth driven by increasing demand for drilling and completion services, rising oil prices, and growing adoption of digitalization and automation in the oil and gas industry, leading to a 5% growth rate.

Eliminations and Corporate

Expected Growth: 2%

NOV Inc.'s Eliminations and Corporate segment growth is driven by increasing demand for oilfield equipment and services, coupled with strategic cost reductions and operational efficiencies. Additionally, the company's focus on digital transformation and investments in emerging markets are expected to contribute to the 2% growth rate.

7. Detailed Products

Drilling Technologies

Provides drilling equipment and services, including drill bits, drilling fluids, and rig equipment

Wellbore Technologies

Offers downhole drilling tools, including drill pipes, tubing, and casing

Completion & Production Solutions

Provides equipment and services for well completion and production, including artificial lift systems and production optimization

Land Rigs

Manufactures and operates land-based drilling rigs for oil and gas exploration and production

Offshore Rigs

Manufactures and operates offshore drilling rigs for oil and gas exploration and production

8. NOV Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for NOV Inc. is medium due to the availability of alternative products and services in the oil and gas industry.

Bargaining Power Of Customers

The bargaining power of customers for NOV Inc. is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for NOV Inc. is medium due to the company's dependence on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants for NOV Inc. is low due to the high barriers to entry in the oil and gas industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for NOV Inc. is high due to the competitive nature of the oil and gas industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.77%
Debt Cost 3.95%
Equity Weight 77.23%
Equity Cost 12.69%
WACC 10.70%
Leverage 29.49%

11. Quality Control: NOV Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Archrock

A-Score: 5.9/10

Value: 4.2

Growth: 4.6

Quality: 5.2

Yield: 8.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
NOV

A-Score: 5.0/10

Value: 7.6

Growth: 5.6

Quality: 5.1

Yield: 4.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Oceaneering

A-Score: 4.4/10

Value: 6.0

Growth: 4.6

Quality: 6.0

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Weatherford

A-Score: 4.4/10

Value: 6.1

Growth: 7.4

Quality: 5.9

Yield: 1.0

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Cactus

A-Score: 4.4/10

Value: 5.4

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Tidewater

A-Score: 4.3/10

Value: 6.4

Growth: 7.2

Quality: 7.2

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.17$

Current Price

16.17$

Potential

-0.00%

Expected Cash-Flows