Description

NOV’s $64 Million Cash Flow Deficit: Timing Issue Or Deeper Warning?

NOV Inc. reported second quarter 2026 revenues of $2.13 billion, marking a 4% sequential increase but a 2.5% decline year-over-year. Net income reached $112 million, or $0.31 per diluted share, supported by adjusted EBITDA of $283 million, which included a $40 million benefit from tariff refunds related to IEEPA. Excluding this one-time benefit, adjusted EBITDA was $243 million, with approximately 80% incremental EBITDA conversion on sequential revenue growth, highlighting operational efficiencies partially offsetting rising tariff expenses. The company continues to navigate geopolitical challenges, particularly in the Middle East, where logistical complexities and conflict have restrained regional activity below pre-conflict levels but improved somewhat as kinetic activity waned. NOV’s Energy Equipment segment generated $1.22 billion in revenue, showing 2% sequential and 1% year-over-year growth. Adjusted EBITDA for the segment advanced $42 million year-over-year to $200 million, achieving a record 16.