
NOV Announces Strong Fourth Quarter and Full-Year 2024 Financial Performance
NOV Inc. announced today its financial results for the fourth quarter of 2024, reporting revenues of $2.31 billion, marking a one percent decrease compared to the fourth quarter of 2023. Net income for the quarter was $438 million, equating to $1.10 per diluted share, reflecting a decline from $598 million in the previous year.
The reduction in net income was primarily influenced by the release of valuation allowances on deferred tax assets amounting to $485 million in 2023. Despite the revenue decrease, NOV’s operating profit saw a significant 29 percent increase, reaching $207 million, which constitutes 9.0 percent of sales. Additionally, the company recorded $7 million in pre-tax charges categorized under Other Items. Adjusted EBITDA for the quarter increased three percent year-over-year to $302 million, representing 13.1 percent of sales.
For the full-year 2024, NOV reported revenues of $8.87 billion, reflecting an increase of $287 million compared to 2023. Net income for the year was $635 million, down from $993 million in 2023, with the previous year’s figure including the release of valuation allowances on deferred tax assets. Operating profit for 2024 increased 35 percent to $876 million, accounting for 9.9 percent of sales. Adjusted EBITDA for the full year rose 11 percent, reaching $1.11 billion, equivalent to 12.5 percent of sales.
“NOV’s fourth quarter capped off a strong year where we expanded our backlog, increased revenue, and improved profitability while generating substantial cash flow,” said Clay Williams, Chairman, President, and CEO of NOV. “Throughout 2024, we grew revenues by three percent, with 38 percent Adjusted EBITDA flow through, leading to fully diluted earnings per share of $1.60. Our long-cycle capital equipment businesses experienced a seven percent increase in backlog, driven largely by robust demand in offshore production. Additionally, market share gains from our high-margin new technology offerings continued to enhance our growth and profitability.”
Williams further highlighted the company’s strong cash generation, stating, “Our improved profitability, coupled with a normalization of the global supply chain and working capital efficiencies, allowed us to convert 86 percent of our Adjusted EBITDA into Free Cash Flow. Consequently, we increased our cash balance by $414 million and returned $337 million in cash to our shareholders, amounting to 41 percent of our Excess Free Cash Flow. Looking ahead, we remain committed to returning at least 50 percent of our Excess Free Cash Flow annually, and we anticipate achieving this threshold for 2024 through a supplemental dividend in the first half of 2025.”
Looking toward 2025, NOV anticipates a more challenging macroeconomic environment alongside geopolitical uncertainties, which could lead to flat-to-lower global industry activity levels. However, Williams expressed confidence in NOV’s growing backlog of higher-margin offshore production-related capital equipment and increasing adoption of its innovative technologies, which are expected to drive improved profitability and healthy cash flow generation throughout the year.
Segment Performance
Energy Products and Services
The Energy Products and Services segment recorded fourth-quarter 2024 revenues of $1.06 billion, a one percent decrease from the previous year’s fourth quarter. The slight revenue decline was attributed to lower global drilling activity levels. Despite this, the segment’s operating profit increased by $18 million year-over-year, reaching $112 million, or 10.6 percent of sales, including $3 million in Other Items. Adjusted EBITDA for the segment declined by $20 million from the previous year to $173 million, or 16.3 percent of sales. The company attributed this decline to reduced drilling activity, though it was partially offset by growing market adoption of its technologically advanced product offerings.
Energy Equipment
The Energy Equipment segment generated revenues of $1.29 billion for the fourth quarter of 2024, a decrease of one percent from the same period in 2023. The revenue decline was primarily due to the divestiture of the Pole Products business and lower aftermarket support revenue. However, these declines were largely offset by increased revenue from the segment’s growing backlog. Operating profit rose by $31 million year-over-year to $152 million, or 11.8 percent of sales, including $4 million in Other Items. Adjusted EBITDA grew by $38 million to $185 million, or 14.4 percent of sales, driven by strong execution on higher-margin projects.
During the fourth quarter, new orders booked for the Energy Equipment segment totaled $757 million, representing a book-to-bill ratio of 121 percent compared to the $628 million shipped from backlog. As of December 31, 2024, the backlog for capital equipment orders stood at $4.43 billion, an increase of $279 million from the previous year’s fourth quarter.
2025 First Quarter Outlook
NOV provided financial guidance for the first quarter of 2025, forecasting year-over-year consolidated revenues to decrease between one and three percent. The company expects Adjusted EBITDA for the quarter to be in the range of $235 million to $265 million. This guidance is based on NOV’s current market outlook and strategic plans but remains subject to various risks and uncertainties.

Corporate Developments
NOV repurchased 7.5 million shares of its common stock for $112 million during the fourth quarter. Over the full year, the company repurchased 14.2 million shares for a total expenditure of $229 million. Including dividend payments, NOV returned $337 million in capital to shareholders in 2024. The company has committed to returning at least 50 percent of Excess Free Cash Flow annually through a combination of base dividends, stock repurchases, and a supplemental dividend.
As of December 31, 2024, NOV reported total debt of $1.74 billion, with $1.50 billion available on its primary revolving credit facility and a cash balance of $1.23 billion.
Major Achievements
Throughout the quarter, NOV secured multiple high-value contracts and strategic partnerships:
- FPSO Projects: NOV received orders for advanced gas processing and water treatment equipment for three newbuild floating production storage and offloading (FPSO) units slated for deployment in Brazil and West Africa.
- Offshore Drilling Equipment: The company secured a contract to supply drilling equipment for a new jack-up rig in Saudi Arabia, reinforcing its position as a leader in offshore drilling solutions.
- Carbon Capture & Storage: NOV was awarded a contract to supply mooring and injection systems for an offshore carbon capture project in Denmark, marking a milestone in its expansion into CO2 sequestration technologies.
- Digital Solutions Expansion: NOV’s Max™ digital solutions saw increased adoption, particularly in frac operations in the Williston, Eagleford, and Haynesville Basins.
- LNG Fleet Expansion: NOV’s Bondstrand™ composite piping was selected for a major energy company’s LNG fleet expansion, showcasing its leadership in advanced material solutions for the marine industry.