NOV Q1 Earnings Report: Revenue Down, EBITDA Up, Analysts Predict Upside

NOV Inc. reports Q1 earnings decline with a 2.8% decrease in revenue to $2.1 billion and a $46 million decline in net income to $73 million. However, adjusted EBITDA increased by $11 million to $252 million. Analysts predict a significant upside with an average price target of $17.91, suggesting a potential 46.32% growth from the current stock price of $12.24. GuruFocus estimates a substantial upside based on its GF Value analysis, projecting a future valuation of $21.37.

NOV Inc. (NYSE: NOV) reported its first-quarter 2025 earnings, with a 2.8% decrease in revenue to $2.1 billion and a $46 million decline in net income to $73 million. However, the company saw an improvement in adjusted EBITDA, which increased by $11 million to $252 million. Analysts predict a significant upside, with an average price target of $17.91, suggesting a potential 46.32% growth from the current stock price of $12.24. GuruFocus estimates a substantial upside based on its GF Value analysis, projecting a future valuation of $21.37.

NOV's Q1 2025 results present a mixed financial picture. While net income fell 39% year-over-year to $73 million ($0.19 per share) and revenue declined 2% to $2.10 billion, the company delivered operational improvements with Adjusted EBITDA increasing 5% to $252 million and improved margins of 12.0% [1].

The segment performance reveals divergent trends. Energy Products and Services saw decreases in both revenue (-2%) and profitability, with operating profit dropping to $83 million. In contrast, Energy Equipment demonstrated substantial profitability improvements despite a 3% lower revenue, with operating profit increasing $39 million to $134 million [1].

The company's financial flexibility remains solid with $1.16 billion in cash and $1.50 billion available credit. NOV generated $135 million in operating cash flow and $51 million in free cash flow, enabling it to return $109 million to shareholders through share repurchases and dividends [1].

Management's outlook indicates caution, citing increasing macroeconomic uncertainties and global trade tensions. While they expect modest sequential revenue improvement in Q2 2025, they anticipate lower activity in the second half of the year, guiding to a 1-4% year-over-year revenue decline for Q2 [1].

Analysts are forecasting an earnings per share (EPS) of $0.26, indicating a year-over-year decrease of 13.3%. Revenue projections stand at $2.1 billion, representing a 2.8% drop compared to the previous year. This outlook comes amidst 10 downward revisions for EPS and 12 revisions for revenue in recent months, highlighting a cautious sentiment in the market [2].

Market analysts have provided one-year price targets for NOV Inc. (NOV, Financial), averaging at $18.00, with a spectrum ranging from a high of $26.00 to a low of $10.00. This average target translates to a potential upside of 45.99% from the current stock price of $12.33. For more detailed estimates, investors can visit the NOV Inc. (NOV) Forecast page [2].

The consensus from 23 brokerage firms currently positions NOV Inc. (NOV, Financial) with an average recommendation of 2.5, categorizing the stock as having "Outperform" potential. It's important to note that the rating scale ranges from 1 to 5, where 1 signifies "Strong Buy" and 5 indicates "Sell" [2].

According to GuruFocus' calculations, the estimated GF Value for NOV Inc. (NOV, Financial) in the next year is $21.37. This suggests a potential upside of 73.32% from its current price of $12.33. The GF Value is a proprietary metric that assesses the fair trading value of a stock by considering its historical trading multiples, prior business growth, and future performance projections. More comprehensive data is available on the NOV Inc. (NOV) Summary page [2].

References:
[1] https://www.stocktitan.net/news/NOV/nov-reports-first-quarter-2025-2qefhzx1r7os.html
[2] https://www.gurufocus.com/news/2806841/nov-nov-awaits-first-quarter-earnings-estimates-suggest-declines