NOV Q3 2026 Revenue Rises 2% as Products and Services Grows

NOV Inc. reported modest year-over-year revenue growth for the third quarter of 2026 as expansion in Energy Products and Services offset lower Energy Equipment sales. Profitability improved sequentially but remained slightly below the prior-year level, while management expects fourth-quarter revenue to be roughly flat from a year earlier.

The oilfield technology and equipment company generated third-quarter revenue of $2.23 billion, up 4% sequentially and 2% year over year. Adjusted EBITDA was $281 million, compared with $258 million in the second quarter and $283 million a year earlier. The adjusted EBITDA margin was 12.6%, up from 11.9% sequentially but below 13.3% in the prior-year quarter.

Third-quarter adjusted EBITDA included approximately $5 million of tariff refund benefits. Excluding those benefits, NOV said sequential incremental margins were about 35%. GAAP net income attributable to the company was $90 million, down from $112 million a year earlier but more than double the $42 million reported in the second quarter.

Products and Services Drives Growth

Energy Products and Services revenue increased 9% both sequentially and year over year to $1.06 billion. Growth was led by higher manufacturing throughput against an expanding backlog of drill pipe and composite equipment.

The segment’s adjusted EBITDA rose to $153 million from $144 million a year earlier and $135 million in the second quarter. Its adjusted EBITDA margin was 14.5%, compared with 14.8% a year earlier and 13.9% sequentially. Excluding tariff refund benefits, the margin improved 30 basis points year over year and 210 basis points sequentially, reflecting cost-structure improvements and operating efficiencies.

NOV also reported record revenue in its Production Midstream business, supported by international pipeline-capacity expansion and production-optimization projects. Digital Services reached record revenue as well, which the company attributed to market-share gains and increased adoption of digital completion solutions.

International activity included more than 20% year-over-year growth in Argentina and growth exceeding 20% both sequentially and year over year in the Middle East. Subsea flexible pipe posted its seventh consecutive quarter of year-over-year increases in revenue, adjusted EBITDA and adjusted EBITDA margin.

Equipment Margins Expand Despite Lower Revenue

Energy Equipment revenue was $1.22 billion, essentially unchanged sequentially and down 2% year over year. NOV said the completion of certain offshore production projects was not fully offset by stronger demand for other equipment and services.

Segment adjusted EBITDA totaled $187 million, up from $180 million a year earlier but down from $200 million in the second quarter. The adjusted EBITDA margin expanded 90 basis points year over year to 15.3%, driven by a favorable project mix and improved margins in backlog.

Energy Equipment ended the quarter with backlog of $3.98 billion, down $102 million sequentially and $577 million year over year. Net orders were $577 million, representing a book-to-bill ratio of 91%. Orders increased 22% from the previous quarter but declined 39% from a year earlier.

During the period, NOV secured data aggregation and remote-monitoring work for a supermajor’s global offshore drilling fleet. It also received several mooring-system orders for floating oil and gas production projects and won an upgrade package for a high-specification drillship that includes higher lifting capacity and additional automation.

Fourth-Quarter Revenue Expected to Be Roughly Flat

For the fourth quarter of 2026, NOV expects consolidated revenue to be roughly flat from a year earlier and adjusted EBITDA of $260 million to $300 million.

Energy Equipment revenue is expected to decrease 4% to 6% year over year, with adjusted EBITDA of $175 million to $205 million. Energy Products and Services revenue is expected to rise 6% to 8%, with adjusted EBITDA of $140 million to $160 million.

The outlook assumes that the Middle East operating environment remains consistent with third-quarter conditions, apart from an expected moderation in activity referenced by the company. NOV cautioned that worsening regional conditions could cause actual results to differ materially from its guidance.

Management also highlighted prospective offshore production opportunities tied to anticipated floating production, storage and offloading projects through 2030. NOV estimates its addressable content at $100 million to $700 million per FPSO, depending on project scope and operating conditions, with harsh-environment vessels potentially supporting the upper end. The estimates are not revenue or bookings guidance, and actual awards depend on competition, customer decisions and project timing.

Cash Flow and Capital Allocation

Cash flow from operating activities was $41 million in the quarter, while capital expenditures of $88 million resulted in negative free cash flow of $47 million. For the first nine months of 2026, operating cash flow was $32 million and free cash flow was negative $202 million, compared with positive free cash flow of $404 million in the prior-year period.

NOV spent $234 million on capital expenditures through the third quarter and expects full-year spending of $340 million to $360 million. The company repurchased 7.5 million shares for $145 million and paid $129 million in dividends during the first nine months. Capital returned totaled $242 million when excluding the $32 million supplemental dividend paid in the second quarter.

NOV said it expects to return at least 50% of excess free cash flow through base dividends, opportunistic share repurchases and an annual supplemental dividend. Its outlook remains subject to oil and gas prices, customer demand, Middle East operating challenges, tariffs and trade-policy changes, sanctions, broader economic conditions and the timing of offshore project awards.