Description

Why NOV Earns An Underperform Despite A $4.23 Billion Backlog And 8% Cost Cuts!

NOV Inc., a global provider of capital equipment and technologies for the oil and gas industry, reported first quarter 2026 revenues of $2.05 billion, representing a 2% year-over-year decline, and net income of $19 million ($0.05 per diluted share). Adjusted EBITDA reached $177 million, or 9% of sales, reflecting operational pressures primarily related to external geopolitical disruptions and cost inflation. The quarter was marked by significant operational challenges stemming from the conflict in the Middle East, which negatively impacted revenue and EBITDA by approximately $54 million and $32 million, respectively. Disruptions affected capital equipment shipments, spare parts deliveries, manufacturing throughput, and increased freight costs by three to four times typical levels. Safety concerns and logistical complexities further delayed deliveries, particularly in the region’s capital equipment and aftermarket operations. Despite these headwinds, the company achieved its lowest ever total recordable incident rate, underscoring a strong safety culture.