NOV Inc. (NYSE: NOV) reported first‑quarter 2026 financial results that showed a 2 % year‑over‑year decline in revenue to $2.05 billion, a drop of $54 million from the $2.10 billion earned in the same period last year. The decline was driven largely by a 10 % drop in the Energy Products and Services segment, which generated $897 million, while the Energy Equipment segment grew 4 % to $1.19 billion, reflecting stronger demand for capital‑equipment projects.
Net income fell to $19 million, a sharp decline from the $73 million earned in Q1 2025, and adjusted EBITDA contracted to $177 million, down 8.6 % from $192 million in the prior quarter. The company’s gross margin compressed to 18.5 % from 21.3 % a year earlier, a result of higher raw‑material costs and logistics disruptions in the Middle East that added $32 million to the adjusted EBITDA hit reported by management.
The company’s earnings per share were $0.05 on a GAAP basis, missing the consensus estimate of $0.15–$0.16. Adjusted EPS of $0.15, however, aligned closely with analyst expectations, indicating that the miss was largely due to the impact of the Middle East conflict on revenue and the associated cost inflation. Management attributed the revenue shortfall to a $54 million loss from the region and highlighted that the conflict delayed deliveries and increased freight costs.
Guidance for the second quarter of 2026 signals continued headwinds: consolidated revenue is expected to decline 4 %–6 % year‑over‑year, and adjusted EBITDA is projected to be $185 million to $215 million. The company also confirmed a $100 million return to shareholders through share repurchases and dividends, with $67 million in buybacks and $33 million in dividends. New orders booked in Q1 2026 totaled $520 million, and the Energy Equipment backlog stood at $4.23 billion as of March 31 2026, underscoring ongoing demand for capital equipment.
Management emphasized resilience in its diverse portfolio, noting that outside the Middle East the business performed well and that higher commodity prices and a renewed focus on energy security are expected to drive a new capital‑equipment cycle. CEO Jose Bayardo said, “The conflict in the Middle East created significant operational disruptions during the first quarter, but also reinforced and accelerated market trends that we believe will drive a meaningfully more constructive environment for NOV.”
The results illustrate the company’s exposure to geopolitical risk and cost inflation, while the strong backlog and new order intake suggest that demand for its core equipment remains robust. The EPS miss and cautious revenue guidance highlight the short‑term impact of the Middle East conflict, but the company’s strategic investments and focus on high‑margin segments position it to navigate the current headwinds and capitalize on the expected rebound in the energy sector.
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