NOV Q3 2026 Earnings Call: EBITDA Reaches $281 Million
Source Tradingkey
Core Takeaways
- NOV Inc. reported Q3 2026 revenue of $2.23 billion, up 4% sequentially and 2% year over year. Adjusted EBITDA reached $281 million, representing a 12.6% margin.
- Net income was $90 million, or $0.25 per diluted share. Adjusted operating profit was $188 million, equal to 8.4% of sales.
- Energy Products & Services revenue increased 9% both sequentially and year over year to $1.06 billion, supported by drill bits, downhole tools, fiberglass systems, artificial lift and digital solutions.
- Energy Equipment generated $1.22 billion of revenue and $187 million of EBITDA. Capital equipment orders rose 22% sequentially to $577 million, although the segment’s book-to-bill ratio remained below 1.0x at 91%.
- Free cash flow was negative $47 million because Middle East disruptions delayed milestone billings and collections, while NOV maintained additional inventory buffers. Management expects free cash flow to improve significantly in Q4 and EBITDA-to-free-cash-flow conversion to return to approximately 50% in 2027.
- Management said NOV’s demonstrated portfolio capacity supports a path toward $1.5 billion in annual EBITDA, but stressed that this is not a forecast with a defined timeline. The opportunity depends on broader market improvement, operational efficiencies and growth in offshore and international unconventional markets.
Core Financial Data
| Metric | Q3 2026 | Change / Commentary |
|---|---|---|
| Revenue | $2.23 billion | Up 4% sequentially and 2% year over year |
| Net income | $90 million | $0.25 per diluted share |
| Operating profit | $142 million | Included $28 million of pretax other items and an $18 million net fixed-asset write-down |
| Adjusted operating profit | $188 million | 8.4% of sales |
| Adjusted EBITDA | $281 million | 12.6% of sales |
| Free cash flow | $(47) million | Affected by delayed Middle East billings and collections and higher inventory buffers |
| Dividends paid | $32 million | Q3 2026 |
| Share repurchases | $15 million | 800,000 shares repurchased during the quarter |
| Energy Equipment revenue | $1.22 billion | Flat sequentially; down 2% year over year |
| Energy Equipment EBITDA | $187 million | 15.3% margin; up about 90 basis points year over year |
| Energy Products & Services revenue | $1.06 billion | Up 9% sequentially and year over year |
| Energy Products & Services adjusted EBITDA | $153 million | 14.5% margin |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
This Thursday (October 29), the US will release the September Personal Consumption Expenditures (PCE) price index. However, since the PCE report will be released after the Federal Reserve
Brent's $115 front month sits $4.6 above January — the $14 spread to WTI is the supply-risk premiumDecember Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
Bitcoin is back above $80,000 — but 75% of the bounce was shorts, not buyersBitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.
Bitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.
Gold price (XAU/USD) jumps to around $4,065 during the early Asian session on Wednesday, bolstered by lower oil prices. Traders await the Federal Reserve's (Fed) policy meeting later on Wednesday for signals on the future path of US interest rates.
Fed October Rate Decision Preview: Rate Hike Pause Has Become Consensus, How Will US Stocks, Dollar, and Gold React?The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
