NOV Profit More Than Doubles, but Company Expects Middle East Activity to Moderate

NOV said it expects Middle East drilling activity to moderate in the fourth quarter as some customers adjust their programs, tempering a third quarter in which the oilfield equipment maker grew revenue and more than doubled its net income from a year earlier.

The Houston-based company reported third-quarter revenue of $2.23 billion, up 4% from the second quarter and up 2% year over year, according to its earnings release filed with an 8-K on Wednesday. Net income rose $48 million from a year earlier to $90 million, or 25 cents per share, though it fell $22 million from the prior quarter.

Fourth-quarter outlook

For the fourth quarter, NOV expects consolidated revenue to be roughly flat year over year, with adjusted EBITDA of $260 million to $300 million. The company said the guidance assumes conditions in the Middle East stay consistent with the third quarter, apart from the expected moderation, and warned that "a worsening of such conditions" could cause results to differ materially.

"We expect geopolitical events will continue to create near-term disruptions," Chairman, President and CEO Jose Bayardo said. He added that the backdrop "continues to reinforce the need to strengthen energy security, diversify sources of supply, and replenish global inventories."

Profit and margins

Operating profit was $142 million, or 6.4% of sales, up 33% from the third quarter of 2025. Adjusted EBITDA rose $23 million to $281 million, or 12.6% of sales. That figure includes a benefit of approximately $5 million tied to tariff refunds, down from about $40 million in the second quarter.

Two segments, two directions

Energy Products and Services drove the growth. Revenue rose 9% to $1.06 billion as the unit increased manufacturing throughput against a growing backlog of drill pipe and composite equipment. Operating profit jumped $50 million to $88 million.

Energy Equipment revenue slipped 2% to $1.22 billion after certain offshore production projects were completed. Its adjusted EBITDA still rose $7 million to $187 million, or 15.3% of sales, on a favorable project mix and better margins in backlog.

New orders for the segment totaled $577 million, a book-to-bill of 91% against $632 million shipped from backlog. Capital equipment backlog stood at $3.98 billion at Sept. 30.

Costs and capital returns

NOV recorded $28 million of pre-tax other items in the quarter, primarily severance, inventory write-downs and costs tied to streamlining operations, plus $18 million of net fixed-asset write-downs mostly related to facility closures.

The company repurchased approximately 0.8 million shares for $15 million and paid $32 million in dividends, returning $47 million to shareholders. It ended the quarter with $1.06 billion in cash and cash equivalents, total debt of $1.71 billion and $1.50 billion available on its revolving credit facility.

By the numbers

• Revenue: $2.23 billion, up 2% year over year
• Net income: $90 million, or 25 cents per share
• Adjusted EBITDA: $281 million, 12.6% of sales
• Energy Equipment backlog: $3.98 billion
• Q4 adjusted EBITDA outlook: $260 million to $300 million

Sources

1. NOV Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001193125-26-435237)

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