NOV NOV Inc.

Overview and Growth

NOV Inc. generated $8.74B of revenue in fiscal 2025, with net income of $145.00M and an operating cash inflow of $1.25B. At $8.74B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 1.4% below fiscal 2024 revenue of $8.87B, marking a top-line contraction. Diluted earnings per share were $0.39, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS decreased by 75.6% from $1.60 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.77x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $1.77B as gross profit before recognizing operating expenses and other items. Gross margin was 20.2%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced $494.00M of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 5.6%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $145.00M, after the operating, financing, tax, and other items recognized for the period. Net margin was 1.7%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $375.00M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 4.3% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $224.00M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 59.7% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

At period end, the $11.29B asset base was financed through $4.97B of liabilities and $6.32B of equity. At period end, current assets of $5.82B compared with current liabilities of $2.41B, defining the company’s short-term resource position. The current ratio was 2.42x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $1.55B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 64.5% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $1.72B, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 0.27x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 15.2%, showing how much of the asset base was matched by borrowing. Liabilities represented 44.0% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 13.7% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

The company reported $1.25B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 8.63x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $375.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 30.0%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $876.00M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 10.0%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 7.8%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.