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NOVBullishEarningsShort Term

High materiality7/10

NOV Reports Second Quarter 2026 Earnings

StockNews.AIJul 28, 5:45 PM EDT1 source

Trading thesisImportance 7/10

Bullish near-term on earnings strength and solid bookings; upside if backlog stability supports above-guidance growth over the next 1–3 quarters.

AI summary

What happened and why it matters

NOV reported Q2 2026 revenue of $2.134B, up 4% sequentially and down 2% YoY. Net income was $112M; Adjusted EBITDA reached $283M, aided by roughly $40M tariff refunds. Bookings were $474M (book-to-bill 74%), with Energy Equipment backlog at $4.08B. The company also highlighted AI-enabled solutions and digital initiatives as growth drivers, and issued a cautious but favorable Q3 outlook with revenue seen flat to up 2% and EBITDA guidance of $240–$270M.

Tariff refunds add roughly $40M to Q2 Adjusted EBITDA, boosting profitability.
Book-to-bill 74% and $474M bookings signal improving demand and visibility.
Q3 guidance implies modest growth; upgrades hinge on Middle East stability and project timing.
NOV's AI and automation push (Max Platform, ATOM RTX, NOVOS) expands long-term margin potential.

Sentiment rationale

Q2 beat/margin boost from tariff refunds, healthy bookings, and a supportive guidance imply re-rating potential, though geopolitical risk remains a near-term headwind.

Key facts

01
Q2 2026 revenue $2.134B; up 4% sequential, down 2% YoY.
02
Net income $112M; EPS $0.31; Adj EBITDA $283M; tariff refunds included.
03
Bookings $474M; book-to-bill 74%; Energy Equipment backlog $4.08B.
04
Energy Equipment revenue $1.218B; Adj EBITDA $200M; tariff refunds ~$14M.
05
Q3 2026 guidance: revenue flat to up 2%; Adj EBITDA $240–270M.

Earnings

Earnings; corporate updates and product/AI initiatives frame a constructive growth narrative within a recovering offshore market.