NOV Inc. Reports Decline in Revenue and Net Income in Q2 2025

NOV Inc. reported its financial results for the second quarter of 2025, revealing a slight decline in revenue and significant drops in net income and operating profit compared to the same period in 2024. The company generated revenues of $2.19 billion, a decrease of 1.3% from $2.22 billion in the prior year. Net income attributable to the company fell 52% to $108 million, or $0.29 per share, down from $226 million, or $0.57 per share, in the second quarter of 2024. Operating profit also decreased by 54% to $143 million, representing 6.5% of sales, compared to $313 million, or 14.1% of sales, in the previous year.

The decline in profitability was largely attributed to a pre-tax gain of approximately $130 million from the sale of a business in the second quarter of 2024, which did not recur in 2025. Additionally, the company incurred $19 million in charges related to severance costs and restructuring efforts during the quarter. Adjusted EBITDA, which excludes certain items, decreased by 10% year-over-year to $252 million, or 11.5% of sales.

In terms of operational performance, NOV's Energy Products and Services segment reported revenues of $1.03 billion, down 2% from $1.05 billion in the same quarter last year. Operating profit for this segment decreased to $83 million from $128 million. The Energy Equipment segment, however, saw a slight increase in revenue to $1.21 billion, compared to $1.20 billion in the prior year, but its operating profit dropped significantly from $232 million to $122 million. The company noted a decrease in new orders booked during the quarter, totaling $420 million, down from $977 million in the second quarter of 2024.

Geographically, NOV operates in 57 countries, and its revenue is influenced by global oil and gas drilling activity. The company reported a 6% year-over-year decrease in the worldwide rig count, which has impacted demand for its products. As of June 30, 2025, the backlog for capital equipment orders stood at $4.30 billion, a slight decrease from the previous year. The company continues to focus on developing innovative products and services aimed at reducing the environmental footprint of energy production.

Looking ahead, NOV's management expressed caution regarding the macroeconomic environment, citing geopolitical conflicts and fluctuating oil prices as potential challenges. Despite these uncertainties, the company remains committed to advancing its competitive position through technological innovation and operational efficiencies. The outlook for the remainder of 2025 remains cautious, with management expecting continued volatility in the market but maintaining a focus on long-term growth strategies.