NOV Inc. Reports Q1 2025 Financial Results with Revenue of $2.10 Billion

NOV Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $2.10 billion, a decrease of 2% from $2.16 billion in the same period last year. The company's net income fell 39% to $73 million, or $0.19 per share, compared to $119 million, or $0.30 per share, in the first quarter of 2024. Operating profit also declined by 6% to $152 million, representing 7.2% of sales. The decrease in profitability was attributed to lower industry activity levels and a less favorable sales mix, compounded by $13 million in charges related to severance and the deconsolidation of Russian subsidiaries due to U.S. sanctions.

In terms of segment performance, the Energy Products and Services segment generated $992 million in revenue, down 2% from $1.02 billion in the prior year, with operating profit decreasing to $83 million from $121 million. The decline was primarily due to reduced international revenue, which fell by 8%, despite a 3% increase in North American revenue driven by higher service and rental activity. Conversely, the Energy Equipment segment reported revenues of $1.15 billion, a 3% decrease from $1.18 billion, but its operating profit increased to $134 million from $95 million, reflecting improved pricing and execution on higher-margin projects.

The company’s operational metrics showed a total backlog for capital equipment orders in the Energy Equipment segment of $4.41 billion, an increase of $458 million from the previous year. New orders booked during the quarter totaled $437 million, up from $390 million in the first quarter of 2024. The book-to-bill ratio improved to 80% from 77% year-over-year, indicating a positive trend in order fulfillment. However, the overall market environment remains challenging, with geopolitical uncertainties and fluctuating oil prices impacting capital investment decisions.

Cash flows from operating activities were $135 million, a significant improvement compared to a cash outflow of $78 million in the same quarter last year. The company utilized $81 million for capital expenditures and paid $28 million in dividends. Additionally, NOV repurchased 5.4 million shares for $81 million under its share repurchase program initiated in April 2024. As of March 31, 2025, the company held $1.16 billion in cash and cash equivalents, with total debt at $1.74 billion, maintaining a debt-to-capitalization ratio of 23.6%.

Looking ahead, NOV's management expressed caution regarding the outlook for the oil and gas market, citing potential economic slowdowns and oversupply risks that could lead to reduced customer spending. However, they remain optimistic about the long-term trends favoring international and offshore resources, as well as the application of emerging technologies to enhance operational efficiencies. The company continues to focus on developing innovative products and services aimed at reducing the environmental footprint of energy production while improving cost-effectiveness.