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Sep 30, 2023

NOV Q3 2023 Earnings Report

NOV's Q3 2023 earnings were reported, featuring revenue and margin improvements driven by strong international and offshore markets, which offset the impact of softened North American land activity.

Key Takeaways

NOV Inc. reported Q3 2023 revenues of $2.19 billion, a 16% increase year-over-year. Net income was $114 million, and operating profit was $183 million. Adjusted EBITDA increased to $267 million, or 12.2 percent of sales.

Revenue reached $2.19 billion, reflecting a 4% sequential increase and a 16% year-over-year increase.

Operating profit was $183 million, up $2 million sequentially and $128 million year-over-year.

Net income amounted to $114 million, a sequential decrease of $41 million but an increase of $82 million year-over-year.

Fully diluted earnings per share were $0.29, down $0.10 sequentially but up $0.21 year-over-year.

Total Revenue
$2.19B
Previous year: $1.89B
+15.7%
EPS
$0.29
Previous year: $0.08
+262.5%
Gross Profit
$468M
Previous year: $368M
+27.2%
Cash and Equivalents
$513M
Previous year: $998M
-48.6%
Free Cash Flow
-$34M
Previous year: -$165M
-79.4%
Total Assets
$10.5B
Previous year: $9.76B
+7.6%

NOV

NOV

NOV Revenue by Segment

Forward Guidance

NOV anticipates working capital to normalize, leading to positive free cash flow in the fourth quarter and improved cash generation in 2024. They expect rising demand and improved cost structure to drive better profitability, greater cash flow, and higher returns on capital employed.

Positive Outlook

  • Normalization of working capital expected, leading to positive free cash flow in Q4.
  • Improved cash generation is anticipated in 2024.
  • Rising demand is expected to improve profitability.
  • Actions to improve cost structure should drive improved profitability.
  • Technically differentiated products are driving customer adoption.