In Q1 2025, NOV Inc reported total revenue of $2.10 billion, marking a two percent decline compared to the same period in 2024. The net income stood at $73 million, or $0.19 per share, a decrease of 39 percent year-over-year. Despite these challenges, NOV's adjusted EBITDA—an important performance metric indicating earnings before interest, taxes, depreciation, and amortization—showcased a positive surge, with a five percent increase to $252 million, representing 12.0 percent of total sales.

Nov Inc Financial Metrics

Metric	Q1 2025	Q1 2024	YoY Change
Total Revenue ($B)	2.10	2.14	-2%
Net Income ($M)	73	119	-39%
EPS ($)	0.19	0.30	-36%
Adjusted EBITDA ($M)	252	241	+5%

Revenue Breakdown by Segment

Segment	Q1 2025 Revenue ($M)	Q1 2024 Revenue ($M)	YoY Change
Energy Products and Services	992	1,012	-2%
Energy Equipment	1,150	1,187	-3%

Energy Products and Services

The Energy Products and Services segment saw revenues of $992 million, reflecting a two percent contraction compared to 2024. The operating profit also decreased by $38 million to $83 million, largely due to reduced demand for shorter-cycle capital equipment amidst lower industry-wide activities.

Energy Equipment

Conversely, the Energy Equipment segment posted revenues of $1.15 billion, a slight decline from the previous year. However, the segment showed resilience with a significant increase in operating profit by $39 million, attributed to improving pricing strategies and efficient execution. New orders totaling $437 million marked a promising uptick compared to $390 million in the previous year, hinting at strong market demand and strategic backlog management.

Key Developments and Operational Highlights

Throughout Q1 2025, NOV Inc achieved significant milestones, reinforcing its market presence and technological prowess:

Strategic Alliances and Contracts : NOV signed a pivotal agreement with Petrobras to innovate flexible pipes for deepwater applications, bolstering its leading status in subsea infrastructure technology.
Recognition for Technological Innovations : The company received a contract to provide an integrated cable-lay system for a Japanese vessel, demonstrating its competence in advanced cable-lay technologies.
Operational Records : NOV's downhole technology facilitated record-breaking drilling runs in the U.S. and Middle Eastern markets, showcasing the capabilities of their proprietary ERT power sections.

Comments from Company Officers

Clay Williams, Chairman and CEO, expressed confidence in NOV's performance, stating, “NOV posted solid results in the first quarter of 2025, with higher cash flow and adjusted EBITDA than last year. We’ve navigated through global challenges and declining revenues by focusing on operational efficiencies and innovative technologies.”

Dividends and Share Repurchases

During Q1 2025, NOV returned $109 million to its shareholders through a strategic blend of share repurchases and dividends, underscoring its shareholder-focused capital allocation strategy. With 5.4 million common shares repurchased for $81 million and a continued commitment to returning at least 50 percent of Excess Free Cash Flow to shareholders, NOV maintains a robust approach to enhancing shareholder value.

Nov Inc Stock Forecast

Considering the present scenario, NOV Inc shows potential for moderate growth if macroeconomic conditions stabilize. Based on Q1 2025 performance, institutional strategies, and ongoing market uncertainties, the stock projections are currently aligned in a cautious spectrum. High projections estimate the stock value could rise to approximately $21, contingent on stronger macroeconomic recovery and improved energy demand. Conversely, a lower projection might foresee values around $15 if the global economic constraints persist longer than anticipated.

In conclusion, NOV Inc's determination and adaptability in Q1 2025 have set strong foundations to navigate ongoing challenges while striving for growth in both technological advances and market presence. As geopolitical and economic landscapes continue to pose uncertainties, NOV’s strategic maneuvering reveals its perseverance and commitment to capitalizing on promising opportunities in the energy sector.