Tue, Apr 29, 5:27 PM (23 days ago)
### Summary of NOV Inc. (NOV) Q1 2025 Financial Performance **Company Overview:** NOV Inc. (NOV) is a leading provider of equipment and technology to the global energy industry. The company operates through two segments: Energy Products and Services, and Energy Equipment. **Financial Performance:** - **Revenue:** $2.10 billion, a 2% decrease from Q1 2024. - **Net Income:** $73 million, a 39% decrease from $119 million in Q1 2024. - **Operating Profit:** $152 million, a 6% decrease from $162 million in Q1 2024. - **Adjusted EBITDA:** $252 million, a 5% increase from $241 million in Q1 2024. **Segment Performance:** - **Energy Products and Services:** Revenue decreased by 2% to $992 million. Operating profit decreased by $38 million to $83 million due to lower activity levels and a less favorable sales mix. - **Energy Equipment:** Revenue decreased by 3% to $1.15 billion. Operating profit increased by $39 million to $134 million due to strong execution on higher-margin projects. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $1.157 billion as of March 31, 2025. - **Total Debt:** $1.737 billion. - **Net Cash Provided by Operating Activities:** $135 million, driven by changes in working capital components. - **Capital Expenditures:** $84 million. - **Dividend Payments:** $28 million. - **Share Repurchases:** $81 million. **Market and Outlook:** - **Geopolitical Uncertainties:** Intensified due to trade policies and OPEC+ decisions, leading to lower oil prices and market volatility. - **Industry Trends:** Continued focus on international and offshore resources, natural gas from deepwater and unconventional resources, and emerging technologies. - **Future Operations:** NOV remains focused on developing innovative products and services to lower the cost and environmental footprint of energy production. **Risks and Uncertainties:** - **Legal and Regulatory Risks:** Ongoing litigation related to royalty payments and intellectual property. - **Market Risks:** Exposure to changes in foreign currency exchange rates and interest rates. - **Operational Risks:** Supply chain disruptions, labor shortages, and geopolitical events. **Future Operations Impact:** NOV is committed to returning at least 50% of Excess Free Cash Flow to shareholders through dividends and stock buybacks. The company expects to fund future acquisitions primarily with cash flow from operations and borrowings. **Conclusion:** NOV's Q1 2025 financial performance reflects a challenging market environment with geopolitical uncertainties and lower oil prices. Despite these challenges, the company remains focused on innovation and operational efficiency to maintain its competitive position.