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Jun 30, 2024
NOV Q2 2024 Earnings Report
Reported second quarter 2024 results with revenue increase and improved profitability.
Key Takeaways
NOV Inc. reported a solid second quarter in 2024, with revenues of $2.22 billion, a 6% increase year-over-year. Net income was $226 million, and free cash flow reached $350 million. The company saw strong international growth offsetting declining activity in North America, with bookings of $977 million and a backlog at its highest level since 2015.
Revenue increased by 6% year-over-year to $2.22 billion.
Net income was $226 million, up $71 million year-over-year.
Free cash flow was $350 million for the quarter.
Bookings reached $977 million, representing a 177% book-to-bill ratio.
NOV
NOV
NOV Revenue by Segment
Revenue by Segment
Energy Products & Svcs Revenue
CapyFin.comEnergy Equipment Revenue
CapyFin.com Forward Guidance
The company provided financial guidance for the third quarter and full year 2024, anticipating flat to low-single digit revenue growth for Q3 and low- to mid-single digit revenue growth for the full year. Adjusted EBITDA is expected to be between $270 million and $305 million for Q3 and in the range of $1.10 billion to $1.18 billion for the full year.
Positive Outlook
- Year-over-year consolidated revenues to be flat to up in the low-single digit percent range for Q3.
- Adjusted EBITDA to be between $270 million and $305 million for Q3.
- Consolidated company revenue growth in the low- to mid-single digit percent range for full year 2024.
- Adjusted EBITDA to be in the range of $1.10 billion to $1.18 billion for full year 2024.
- Strong financial results, orders and free cash flow during the second quarter highlight the strength we see in offshore and international markets and underpin our expectation of continued return of excess free cash flow to our shareholders in coming years.
Challenges Ahead
- Guidance is subject to a number of known and unknown uncertainties and risks.
- Actual results may differ materially from the guidance set forth.
- Declining activity in North America.
- Less favorable sales mix led to the lower level of profitability compared to the prior year for Energy Products and Services.
- The Company has not provided a reconciliation of projected Adjusted EBITDA
Revenue & Expenses
Visualization of income flow from segment revenue to net income