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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.

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1.b. Last Insights on NOV

NOV Inc.'s recent performance was driven by a record $4.56 billion backlog, offshore momentum, and automation gains, lifting visibility into 2026. The company's Q4 2025 earnings report showed revenues of $2.28 billion, a 5% sequential increase, and a net loss of $78 million. A Barclays analyst upgraded the stock to equal weight, citing a $20.00 price target. NOV also returned $505 million of capital to shareholders during the year through share buybacks, a positive event that reduces outstanding shares.

1.c. Company Highlights

2. NOV's Q4 2025 Earnings: A Strong Performance Amidst Turbulent Market Environment

NOV reported revenues of $2.28 billion and a net loss of $78 million in the fourth quarter of 2025. The company's EBITDA was $267 million, up $9 million sequentially, and for the full year, revenue decreased 1% to $8.74 billion, and EBITDA exceeded $1 billion for the third straight year. The company's adjusted operating profit was $177 million, or 7.8% of sales, and adjusted EBITDA totaled $267 million, representing 11.7% of sales. The earnings per share (EPS) came out at $0.02, significantly lower than the estimated $0.25.

Publication Date: Feb -10

📋 Highlights
  • Q4 Revenue & Net Loss:: NOV reported Q4 revenues of $2.28 billion and a net loss of $78 million, with full-year revenues at $8.74 billion and net income of $145 million.
  • EBITDA Performance:: Sequential EBITDA rose to $267 million in Q4 (up $9M), with full-year EBITDA exceeding $1 billion for the third consecutive year.
  • Free Cash Flow Efficiency:: Generated $472 million in free cash flow during Q4, achieving an 85% conversion rate and maintaining strong operational cash flow management.
  • Energy Equipment Segment Strength:: The segment delivered $1.33 billion in Q4 revenue (up 7% sequentially), $180 million adjusted EBITDA (13.5% margin), and a $4.34 billion backlog.
  • Offshore Market Growth:: Offshore drilling tendering surged to 59 contracts (vs. 33 prior year), driven by FPSO FID growth and demand for cranes/drilling equipment in international markets.

Segmental Performance

The Energy Equipment segment's fourth-quarter revenue was $1.33 billion, a 7% sequential increase and 4% year-over-year increase. Adjusted EBITDA for the quarter was $180 million, or 13.5% of sales. The Energy Products and Services segment generated revenue of $989 million during the quarter, a 2% sequential increase driven by higher sales of composite solutions and seasonal bulk sales of downhole products. However, compared to the fourth quarter of 2024, segment revenue declined 7%.

Operational Efficiencies and Growth Opportunities

NOV has demonstrated resilience in a challenging market, with strong demand for offshore production technologies and solid execution on backlog. The company is focused on driving operational efficiencies and leaning into growth opportunities, with a strong market position in almost everything it does, a fortress balance sheet, and exceptional leadership. As Jose Bayardo mentioned, "We're excited about the organic growth opportunities in front of us, with new technologies being commercialized and a favorable market outlook."

Outlook and Valuation

Looking ahead, NOV expects global industry spend and drilling activity to decline slightly year-over-year in 2026. However, the company sees potential growth opportunities in international markets, particularly in the Middle East, Latin America, and Australia. With a current P/E Ratio of 47.6 and EV/EBITDA of 10.05, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 3.1%, which may not be sufficient to justify the current valuation multiples.

Cash Flow and Return on Investment

NOV generated $472 million in free cash flow in the quarter, with a strong conversion rate of 85%. The company anticipates 40% to 50% free cash flow conversion in 2026, based on a CapEx range of $315 million to $345 million. The return on invested capital (ROIC) is currently at 2.52%, which is relatively low. However, the company's Net Debt / EBITDA ratio is 1.6, indicating a manageable debt burden.

3. NewsRoom

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NOV Q4 Earnings Miss Estimates, Revenues Beat, Both Decrease Y/Y

Feb -06

Source: zacks.com

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NOV Inc. (NOV) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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NOV (NYSE:NOV) Sets New 1-Year High Following Analyst Upgrade

Feb -05

Source: defenseworld.net

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Stock Traders Buy High Volume of Put Options on NOV (NYSE:NOV)

Feb -05

Source: defenseworld.net

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Nov Inc. (NOV) Q4 Earnings Lag Estimates

Feb -05

Source: zacks.com

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NOV Reports Fourth Quarter and Full-Year 2025 Earnings

Feb -04

Source: globenewswire.com

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Can These 3 Energy Stocks Surpass Q4 Earnings Estimates?

Feb -03

Source: zacks.com

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300,206 Shares in NOV Inc. $NOV Bought by Keybank National Association OH

Feb -02

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: 5.6/10

Value: 3.9

Growth: 4.9

Quality: 5.9

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
NOV

A-Score: 5.4/10

Value: 7.7

Growth: 5.4

Quality: 5.0

Yield: 4.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Tidewater

A-Score: 5.2/10

Value: 6.7

Growth: 7.2

Quality: 7.0

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Weatherford

A-Score: 4.7/10

Value: 5.9

Growth: 7.2

Quality: 6.1

Yield: 1.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Cactus

A-Score: 4.4/10

Value: 5.5

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Oceaneering

A-Score: 4.2/10

Value: 6.3

Growth: 4.6

Quality: 6.2

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.99$

Current Price

19.99$

Potential

-0.00%

Expected Cash-Flows