HOUSTON - NOV Inc. (NYSE:NOV) said Wednesday that operational disruptions from the war in the Middle East will cause first quarter 2026 revenue and earnings to fall below prior guidance.
The company expects to report revenues of $2.05 billion, operating profit of $47 million, and Adjusted EBITDA of $177 million for the quarter, according to a press release statement. The shortfall comes as 5 analysts have revised their earnings downwards for the upcoming period, according to InvestingPro data. The energy technology provider carries a market capitalization of $6.89 billion.
The conflict created safety and logistical challenges during the first quarter, adversely impacting revenue by an estimated $54 million and Adjusted EBITDA by approximately $32 million, according to Jose Bayardo, Chairman, President, and CEO.
Quarter-end deliveries of capital equipment and products, including spare parts, in the region were disproportionately affected, while service-oriented offerings experienced less impact. Higher shipping and freight costs and reduced absorption in manufacturing facilities further affected margins.
The operational challenges come despite strong recent stock performance, with shares delivering a 65% return over the past year and trading near their 52-week high of $20.86. InvestingPro analysis indicates the stock is slightly overvalued at current levels.
The company said its facilities have not been damaged and that conditions in the region remain volatile. NOV stated its business remains solid throughout the rest of the world. The company has maintained dividend payments for 18 consecutive years, demonstrating financial resilience even during challenging periods.
The company is finalizing its financial close process for the first quarter and will provide complete results in a press release after market close on Monday, April 27, 2026. NOV will conduct a conference call on Tuesday, April 28, 2026 at 10 a.m. Central Time.
The preliminary financial information is an estimate based on currently available information and has not been reviewed or audited by the company's independent registered public accounting firm. The figures are subject to adjustments or changes pending finalization of the financial reporting process.
NOV delivers technology-driven solutions to the global energy industry.
In other recent news, NOV Inc. announced a significant expansion of its manufacturing capacity in Brazil. The company plans to invest $200 million over the next three years to double the capacity of its subsea flexible pipe facility in Açu, aiming to meet rising demand from deepwater developments. Additionally, NOV Inc. has raised its quarterly dividend by 20% to $0.09 per share, with payments scheduled for March 27, 2026, to stockholders of record as of March 13, 2026.
BMO Capital recently raised its price target for NOV Inc. to $20 from $19, maintaining a Market Perform rating. This adjustment follows the company's fourth-quarter 2025 results, which showed slightly higher revenue projections but unchanged EBITDA and reduced EPS estimates due to increased taxes. Meanwhile, RBC Capital downgraded NOV Inc. from Outperform to Sector Perform, citing a less compelling risk/reward outlook.
In corporate governance news, Ben A. Guill has resigned from NOV Inc.'s board of directors due to personal commitments. The company clarified that Guill's departure was not due to any disagreements with NOV Inc.'s operations or policies. These developments reflect the company's ongoing strategic adjustments and financial outlook.