NOV Rebounds After Middle East War Hit First-Quarter Sales

The Tip Desk · July 29, 2026 · 3 min read

Second-quarter revenue reached $2.13 billion, up 4% sequentially, as Energy Equipment operating profit more than doubled from the prior quarter.

NOV Inc. (NOV) reported second-quarter 2026 revenue of $2.13 billion, up 4% sequentially and down 2% from a year earlier, as the oilfield-equipment maker said it was better able to navigate Middle East logistical disruptions that had cut first-quarter results.

Net income attributable to the company was $112 million, or $0.31 a share, an increase of $93 million from the first quarter. Adjusted EBITDA was $283 million, or 13.3% of sales, up $106 million sequentially. The quarter included an approximately $40 million benefit related to tariff refunds.

The sequential rebound reversed a first quarter in which the company said the Middle East conflict had reduced revenue by an estimated $54 million and Adjusted EBITDA by about $32 million. Chairman, President and CEO Jose Bayardo said the team was better able to navigate continued logistical challenges in the region and that businesses benefited from improving demand in most major regions.

Energy Equipment generated $1.22 billion of revenue, up 1% from the second quarter of 2025. Operating profit rose $55 million from the year-earlier quarter to $177 million, or 14.5% of sales, and adjusted EBITDA rose $42 million to $200 million, or 16.4% of sales, including about $14 million of tariff refunds. Strong execution on offshore production projects nearing completion and a more favorable sales mix drove the improvement. Sequentially, Energy Equipment revenue rose from $1.19 billion in the first quarter, when operating profit was $93 million, or 7.8% of sales.

New orders in Energy Equipment totaled $474 million, a book-to-bill of 74%, versus $420 million of orders and a 66% book-to-bill a year earlier. Orders shipped from backlog were $638 million. Capital-equipment backlog was $4.08 billion as of June 30, 2026.

Energy Products and Services generated $974 million of revenue, down 5% from the second quarter of 2025. Operating profit was $85 million, or 8.7% of sales, and adjusted EBITDA was $144 million, or 14.8% of sales, including about $26 million of tariff refunds. Market-share gains in drill bits and artificial lift and growth in digital services were more than offset by lower capital-equipment sales, despite first-half 2026 orders expected to support higher shipments in the second half. Sequentially, the segment’s revenue rose from $897 million in the first quarter, when operating profit was $26 million, or 2.9% of sales.

Consolidated operating profit was $193 million, or 9.0% of sales, up 35% versus the second quarter of 2025. Adjusted operating profit was $190 million, up 15% year-over-year. Gross profit was $521 million, or 24.4% of sales.

NOV recorded $17 million of pre-tax Other Items in the quarter, primarily related to severance, facility closures, and costs associated with streamlining operations. Cash and cash equivalents were $1,164 million and total debt was $1,706 million as of June 30, 2026. The company returned $127 million to shareholders through $63 million of share repurchases and $64 million of dividends.

Bayardo said recent price volatility and geopolitical uncertainty continue to cause temporary disruptions and project deferrals, and that the company is encouraged by a growing pipeline of capital-equipment opportunities and improving short-cycle activity. He said depleting inventories, a heightened focus on energy security, and a decade of constrained investment are starting a synchronized global recovery that should drive demand for NOV’s technology over the next several years.

For the third quarter of 2026, management expects year-over-year consolidated revenues to be flat to up 2%, with Adjusted EBITDA of $240 million to $270 million. The company’s outlook assumes the Middle East operating environment remains consistent with second-quarter conditions and that a worsening of those conditions may cause actual results to differ materially.