It has been about a month since the last earnings report for Nov Inc. (NOV). Shares have added about 3.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nov Inc. due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for NOV Inc. before we dive into how investors and analysts have reacted as of late.
NOV Q4 Earnings Miss Estimates, Revenues Beat
NOV reported fourth-quarter 2025 adjusted earnings of 2 cents per share, which missed the Zacks Consensus Estimate of 25 cents. The bottom line also decreased significantly from the year-ago quarter’s 41 cents due to the underperformance of the Energy Products and Services segment.
The oil and gas equipment and services company’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4.9%, driven by stronger-than-expected revenues from the Energy Equipment segment, which was backed by strong execution on backlog. However, revenues fell 1.3% from the year-ago quarter’s figure due to a decline in global drilling activity of 6%.
In the fourth quarter, NOV repurchased approximately 5.7 million shares of common stock for a total of $85 million. The company paid a regular dividend of 7.5 cents per share, returning $27 million in dividends, resulting in a total of $112 million in capital to its shareholders during the quarter.
Segmental Performances
Energy Products and Services: The unit reported fourth-quarter revenues of $989 million, which beat our estimate of $963 million. However, the figure decreased from the prior-year quarter’s reported number by 6.7% due to reduced global activity. Adjusted EBITDA of $140 million beat our estimate of $132 million but decreased from $173 million in the corresponding period of 2024.
Energy Equipment: Revenues in this segment increased 3.6% year over year to $1.3 billion, beating our estimation by 6.9%, driven by strong execution on backlog.
Adjusted EBITDA of $180 million decreased from the year-earlier quarter’s $185 million. However, the metric beat our estimate of $173 million.
In the fourth quarter of 2025, the segment registered $532 million in new orders. Shipments from the backlog amounted to $728 million, resulting in a book-to-bill ratio of 73.
As of Dec. 31, 2025, the backlog for Energy Equipment capital orders was $4.3 billion, reflecting a $93 million decrease from the prior year.
Balance Sheet
As of Dec. 31, 2025, the company had cash and cash equivalents of $1.6 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.1%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
The company generated $573 million in operating cash flow and $472 million in free cash flow in this quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -20.92% due to these changes.
VGM Scores
At this time, Nov Inc. has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Nov Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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NOV Inc. (NOV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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