Summary of NOV Inc. Q1 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $2.05 billion, a 2% decrease year-over-year.

Net Income: $19 million, or $0.05 per fully diluted share.

Adjusted EBITDA: $177 million, representing 9% of sales.

Operating Profit: $47 million, impacted by $37 million in non-cash charges.

Bookings: $520 million in the Energy Equipment segment, resulting in a book-to-bill ratio of 80%.

Backlog: Ending backlog of $4.23 billion.

2Strategic Updates and Business Highlights

Achieved the lowest total recordable incident rate and lost time incident rate in company history, reflecting a strong commitment to health, safety, and environmental (HSE) performance.

Significant disruptions due to the Middle East conflict, which negatively impacted revenue by approximately $54 million and EBITDA by $32 million.

Strong performance in the subsea flexible pipe business, with record quarterly EBITDA for three consecutive quarters and a backlog extending into 2028.

Expansion of subsea flexible pipe manufacturing facility in Brazil with a $200 million investment to address anticipated capacity shortfalls.

3Forward Guidance and Outlook

Q2 2026 Guidance: Revenue expected to decrease by 2% to 4% year-over-year, with EBITDA projected between $135 million to $155 million.

Anticipated continued challenges due to the Middle East conflict but expect improvements in logistics and operations.

Long-term outlook remains positive, with expectations for a new capital equipment cycle driven by increased investment in energy infrastructure and recovery in offshore activities.

4Bad News, Challenges, or Points of Concern

Ongoing disruptions from the Middle East conflict affecting logistics, delivery schedules, and operating costs, with freight expenses increasing significantly.

Decline in revenue from the aftermarket business due to reduced offshore rig activity and logistical challenges.

Tariff costs and inflationary pressures continue to impact margins, with a notable decrease in aftermarket revenue due to project completions in 2025.

Uncertainty regarding the duration of the conflict and its potential long-term impacts on production capacity and investment.

5Notable Q&A Insights

Management expressed confidence in the recovery of the market once the conflict stabilizes, with increased urgency for energy security likely driving demand for NOV's products and services.

Discussions with customers indicate a broadening recovery across various markets, with operators starting to reactivate previously shelved projects.

The company is shifting from a defensive to an offensive growth strategy, focusing on organic growth opportunities and potential M&A as market conditions improve.

Management highlighted that while Q2 may see some benefits from delayed deliveries from Q1, ongoing logistics issues could offset these gains, leading to a net wash in performance. Overall, NOV Inc. is navigating significant challenges due to geopolitical disruptions while positioning itself for future growth amid a recovering energy market.