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NOVBullishEarningsShort Term

High materiality8/10

NOV Reports Second Quarter 2026 Earnings

StockNews.AIJul 28, 5:45 PM EDT1 source

Trading thesisImportance 8/10

Bullish bias for NOV into 2H 2026 on improving industry fundamentals and tariff-related tailwinds; confirm with Q3 results and backlog trends (1–3 quarters).

AI summary

What happened and why it matters

NOV reported Q2 2026 revenues of $2.13B, up sequentially but slightly below year-ago levels. Adjusted EBITDA reached $283M, aided by roughly $40M tariff refunds, with a $127M capital return to shareholders via buybacks and dividends. The company guided Q3 revenue flat-to-up 2% and EBITDA of $240–$270M, underscoring an improving but still cautious demand backdrop and a growing backlog, especially in Energy Equipment.

Tariff refunds (~$40M) boosted Q2 Adjusted EBITDA and visibility on earnings.
Q3 guidance implies flat-to-light growth; potential near-term price reaction hinges on region mix.
Energy Equipment backlog remains substantial at $4.08B, though down vs. 6/30/2025.
Capital deployment continues (buybacks ~3.2M shares; $127M returned).

Sentiment rationale

Solid quarterly beat on EBITDA, tariff refunds aiding profitability, and robust energy-equipment backlog support a constructive setup; guidance remains modest but favorable as supply-demand improves, though Middle East risk and project deferrals could cap upside near term.

Key facts

01
Q2 2026 revenue $2.13B; up 4% sequential, down 2% YoY.
02
Net income $112M; Adjusted EBITDA $283M, includes ~$40M tariff refunds.
03
Bookings $474M; book-to-bill 74%; Energy Equipment backlog $4.08B.
04
Q3 2026 guidance: revenues flat to up 2%; Adj EBITDA $240–$270M; tariff tailwinds noted.

Earnings

Earnings; the release centers on quarterly results, backlog, and forward guidance, with emphasis on tariff-related EBITDA benefits and a multi-year recovery thesis in offshore/energy capex. It also highlights NOV’s strategic digital investments and capacity to convert digital offerings into revenue.