NOV Inc.

Strong quarter results & margin momentum - Q3 2026 revenue: $2.23B (+4% sequential, +2% YoY). - Net income: $90M ($0.25/share). - Adjusted EBITDA: $281M (+12.6% margin), with operational execution and efficiency gains improving profitability across segments. - Incremental EBITDA margin: 35% sequential (vs 80% incremental in Q2), reflecting improving cost structure but with normalization after earlier gains.

Cash flow headwind; dividend + buybacks supported but FCF pressured - Free cash flow (FCF): -$47M (use) in the quarter due to Middle East conflict delaying milestone billings/collections and supply-chain inventory buffers. - Improvement expected: Management expects FCF to improve significantly with working capital/annualized revenue ~25% in Q4. - EBITDA→FCF conversion: expected to return to ~50% range in 2027. - Returns to shareholders: $32M dividends; $15M share repurchases in the quarter (800k shares). Over 10 quarters: 44.5M shares for $689M (>10% of shares outstanding).

Outlook/forecast: better 2H26 + continued margin strength - Company expects ~7% revenue growth from 1H26 to 2H26 with strong incremental EBITDA margins in the mid-40% range (excluding tariff refund benefits). - Full-year capex: $340M–$360M; effective tax rate ~30%.