From The Motley Fool · Motley Fool Transcribing · · 2m
NOV Q3 2026 Earnings Report Highlights
NOV reports 4% sequential revenue growth with strong Middle East performance despite security challenges.
In brief
NOV reports 4% sequential revenue growth with strong Middle East performance despite security challenges. NOV Inc. reported $2.23 billion quarterly revenue, 4% sequential growth, and 2% year-over-year increase in net income of $90 million. Originally reported by The Motley Fool.
Q3 Revenue
NOV reported $2.23 billion quarterly revenue, representing 4% sequential growth and 2% year-over-year increase.
Net Income
Net income reached $90 million, or $0.25 per diluted share, with adjusted EBITDA of $281 million.
Middle East Performance
Middle East revenue grew over 20% year over year despite security challenges and logistical disruptions.
Energy Products Growth
Energy Products and Services revenue increased 9% both sequentially and year over year to $1.06 billion.
Book-to-Bill Ratios
Fiberglass Systems backlog increased 30% year over year with four consecutive quarters of book-to-bill ratio above 100%.
Drill Pipe Backlog
Drill Pipe Backlog rose 50% year over year with trailing 12-month book-to-bill ratio of 120%.
Q4 Guidance
Consolidated Q4 revenue expected to grow 6% to 8% year over year with adjusted EBITDA between $260 million and $300 million.
Middle East Security
Maritime security deteriorated, causing logistical disruptions and higher costs for equipment deliveries and spare parts.
Free Cash Flow
Free cash flow was a use of $47 million due to delayed milestone billings and elevated inventory buffers.
Argentina Growth
Argentina revenue achieved double-digit year-over-year growth for three consecutive quarters driven by Vaca Muerta development.
Offshore Floater Rates
Offshore floater rates approaching $500,000 per day for high-specification rigs supporting increased demand for upgrades.
Capital Returns
Returned $47 million to shareholders through $32 million in dividends and $15 million in share repurchases.
EBITDA Conversion
Targeting a return to 50% EBITDA-to-free-cash-flow conversion rate in 2027.
Energy Equipment
Energy Equipment segment revenue grew 4% sequentially with EBITDA of $187 million, 15.3% of sales.
Capital Equipment Bookings
Capital Equipment Bookings reached $577 million with a book-to-bill ratio of 91%.
Q4 Outlook
Energy Equipment Q4 revenue expected to decrease 4% to 6% year over year with EBITDA between $175 million and $205 million.
The key point
NOV Inc. reported $2.23 billion quarterly revenue, 4% sequential growth, and 2% year-over-year increase in net income of $90 million.
