NOV Inc Q2 revenue beats estimates, helped by offshore project strength

Overview

• U.S. energy equipment provider's Q2 revenue beat analyst expectations, up 4% sequentially

• Adjusted EPS for Q2 was $0.31, net income rose $4 mln yr/yr

• Company returned $127 mln to shareholders via buybacks and dividends

Outlook

• NOV expects Q3 2026 consolidated revenue to be flat to up 2% year-over-year

• Company sees Q3 2026 Adjusted EBITDA between $240 mln and $270 mln

• NOV says outlook assumes stable Middle East conditions; worsening could impact results

Result Drivers

• OFFSHORE PROJECT EXECUTION - Co said strong execution on offshore production projects nearing completion and a more favorable sales mix boosted Energy Equipment revenue and profitability

• TARIFF REFUNDS - Adjusted operating profit and Adjusted EBITDA included a benefit of about $40 mln from tariff refunds

• LOWER CAPITAL EQUIPMENT SALES - Energy Products and Services revenue fell as market share gains and digital services growth were more than offset by lower capital equipment sales

Company press release: ID:nGNX51y4KH

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for Nov Inc is $22.00, about 11% above its July 28 closing price of $19.82

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 27 - Baker Hughes flags lower spending by oil and gas producers in 2026

• July 28 - Saipem cuts 2026 forecast, signals Middle East hit for energy contractors

• July 28 - Expro Group Q2 adjusted EPS misses estimates on Middle East conflict

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)