Key Takeaways:
- Revenue of $2.13B, up 4% sequentially but down 2% year over year
- Adjusted EBITDA of $283M, including a $40M benefit from tariff refunds
- Q3 guidance calls for flat to 2% revenue growth with EBITDA of $240M to $270M
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NOV Q2 revenue hits $2.13B as tariff refunds boost adjusted EBITDA
NOV Inc. reported second-quarter revenue of $2.13 billion, beating the $2.08 billion consensus estimate, as adjusted EBITDA jumped 12% year over year to $283 million on a $40 million benefit from tariff refunds.
"The results reflect outstanding execution by our team in a market that is demonstrating significantly improved underlying industry fundamentals," Chief Executive Officer Jose Bayardo said.
Net income rose to $112 million, or 31 cents a diluted share, from $108 million a year earlier, topping the 16-cent consensus by 94%. Operating profit increased 35% to $193 million, or 9% of sales. Adjusted operating profit, which excludes gains on asset sales and restructuring costs, rose 15% to $190 million.
The Houston-based oilfield equipment maker posted a 74% book-to-bill ratio in the quarter, with $474 million in new orders versus $638 million shipped from backlog. Capital equipment backlog stood at $4.08 billion at quarter-end, down $220 million from a year earlier.
Segment performance diverged. Energy Equipment generated $1.22 billion in revenue, up 1% year over year, with adjusted EBITDA of $200 million, or 16.4% of sales, helped by strong execution on offshore production projects. Energy Products and Services revenue fell 5% to $974 million, and adjusted EBITDA slipped 1% to $144 million, as market share gains in drill bits and artificial lift were offset by lower capital equipment sales.
NOV returned $127 million to shareholders during the quarter through $63 million in share repurchases and $64 million in dividends. The company held $1.16 billion in cash and $1.71 billion in total debt as of June 30.
For the third quarter, management expects consolidated revenue to be flat to up 2% year over year, with adjusted EBITDA between $240 million and $270 million. The guidance assumes the operating environment in the Middle East remains consistent with second-quarter conditions.
The results signal that a decade of underinvestment in oilfield assets is beginning to drive a recovery in equipment demand. Investors will watch the company's July 29 earnings call for updates on offshore project momentum and the trajectory of capital equipment orders through the second half of the year.
This article is for informational purposes only and does not constitute investment advice.
