NOV Inc. 10-Q

Item 1. Financial Statements NOV INC. CONSOLIDATED BALANCE SHEETS (In millions, except share data) June 30, December 31, 2026 2025 ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 1,164 $ 1,552 Receivables, net 1,813 1,701 Inventories, net 1,947 1,799 Contract assets 666 596 Prepaid and other current assets 199 172 Total current assets 5,789 5,820 Property, plant and equipment, net 2,016 2,050 Lease right-of-use assets, operating 320 315 Lease right-of-use assets, financing 180 187 Deferred income taxes 342 358 Goodwill 1,584 1,582 Intangibles, net 438 455 Investment in unconsolidated affiliates 159 163 Other assets 371 361 Total assets $ 11,199 $ 11,291 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 858 $ 831 Accrued liabilities 781 822 Contract liabilities 596 565 Current portion of lease liabilities 100 101 Current portion of long-term debt 14 30 Accrued income taxes 41 57 Total current liabilities 2,390 2,406 Long-term debt 1,692 1,688 Lease liabilities 520 521 Deferred income taxes 83 93 Other liabilities 253 261 Total liabilities 4,938 4,969 Commitments and contingencies Stockholders’ equity: Common stock - par value $ .01 ; 1 billion shares authorized; 357,299,308 and 360,803,354 shares issued and outstanding at June 30, 2026 and December 31, 2025 4 4 Additional paid-in capital 8,270 8,361 Accumulated other comprehensive loss ( 1,430 ) ( 1,424 ) Retained deficit ( 639 ) ( 673 ) Total Company stockholders’ equity 6,205 6,268 Noncontrolling interests 56 54 Total stockholders’ equity 6,261 6,322 Total liabilities and stockholders’ equity $ 11,199 $ 11,291 See notes to unaudited consolidated financial statements. 2 NOV INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 2,134 $ 2,188 $ 4,186 $ 4,291 Cost of revenue 1,613 1,742 3,286 3,398 Gross profit 521 446 900 893 Selling, general and administrative 328 303 660 598 Operating profit 193 143 240 295 Interest and financial costs ( 21 ) ( 22 ) ( 43 ) ( 44 ) Interest income 8 10 19 21 Equity income (loss) in unconsolidated affiliates ( 5 ) 1 ( 8 ) 1 Other expense, net ( 18 ) ( 17 ) ( 16 ) ( 37 ) Net income before income taxes 157 115 192 236 Provision for income taxes 41 1 56 48 Net income 116 114 136 188 Net income attributable to noncontrolling interests 4 6 5 7 Net income attributable to Company $ 112 $ 108 $ 131 $ 181 Net income attributable to Company per share: Basic $ 0.31 $ 0.29 $ 0.36 $ 0.48 Diluted $ 0.31 $ 0.29 $ 0.36 $ 0.48 Cash dividends per share $ 0.18 $ 0.285 $ 0.27 $ 0.36 Weighted average shares outstanding: Basic 359 375 360 378 Diluted 362 376 364 380 See notes to unaudited consolidated financial statements. 3 NOV INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (In millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 116 $ 114 $ 136 $ 188 Currency translation adjustments ( 5 ) 104 ( 3 ) 193 Changes in derivative financial instruments, net of tax ( 4 ) 11 ( 5 ) 20 Changes in defined benefit plans, net of tax 1 1 2 1 Comprehensive income 108 230 130 402 Comprehensive income attributable to noncontrolling interests 4 6 5 7 Comprehensive income attributable to Company $ 104 $ 224 $ 125 $ 395 See notes to unaudited consolidated financial statements. 4 NOV INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In millions) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 136 $ 188 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 185 176 Deferred income taxes 5 14 Stock-based compensation 41 33 Other, net 3 50 Change in operating assets and liabilities, net of acquisitions: Receivables ( 111 ) 24 Inventories ( 170 ) ( 18 ) Contract assets ( 70 ) ( 78 ) Prepaid and other current assets ( 27 ) ( 3 ) Accounts payable 27 ( 14 ) Accrued liabilities ( 60 ) ( 120 ) Contract liabilities 31 21 Income taxes payable ( 15 ) 2 Other assets/liabilities, net 16 51 Net cash provided by (used in) operating activities $ ( 9 ) $ 326 Cash flows from investing activities: Purchases of property, plant and equipment ( 146 ) ( 167 ) Business acquisitions, net of cash acquired ( 13 ) — Proceeds from sales of fixed assets 45 5 Net cash used in investing activities $ ( 114 ) $ ( 162 ) Cash flows from financing activities: Payments against lines of credit and other debt ( 13 ) ( 13 ) Cash dividends paid ( 97 ) ( 135 ) Share repurchases ( 130 ) ( 150 ) Financing leases ( 16 ) ( 14 ) Other ( 7 ) ( 21 ) Net cash used in financing activities ( 263 ) ( 333 ) Effect of exchange rates on cash ( 2 ) 19 Decrease in cash and cash equivalents ( 388 ) ( 150 ) Cash and cash equivalents, beginning of period 1,552 1,230 Cash and cash equivalents, end of period $ 1,164 $ 1,080 Supplemental disclosures of cash flow information: Cash payments during the period for: Interest $ 40 $ 42 Income taxes $ 79 $ 86 See notes to unaudited consolidated financial statements. 5 NOV INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (In millions) Shares Issued and Outstanding Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Deficit Total Company Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Balance at December 31, 2025 361 $ 4 $ 8,361 $ ( 1,424 ) $ ( 673 ) $ 6,268 $ 54 $ 6,322 Net income — — — — 19 19 1 20 Other comprehensive income — — — 2 — 2 — 2 Cash dividends, $ 0.09 per common share — — — — ( 33 ) ( 33 ) — ( 33 ) Stock-based compensation — — 26 — — 26 — 26 Common stock issued 3 — — — — — — — Stock options exercised 1 — 15 — — 15 — 15 Withholding taxes ( 1 ) — ( 19 ) — — ( 19 ) — ( 19 ) Share repurchases ( 4 ) — ( 67 ) — — ( 67 ) — ( 67 ) Other — — 1 — — 1 1 2 Balance at March 31, 2026 360 $ 4 $ 8,317 $ ( 1,422 ) $ ( 687 ) $ 6,212 $ 56 $ 6,268 Net income — — — — 112 112 4 116 Other comprehensive loss — — — ( 8 ) — ( 8 ) — ( 8 ) Cash dividends, $ 0.18 per common share — — — — ( 64 ) ( 64 ) — ( 64 ) Transactions with non-controlling interests — — — — — — ( 3 ) ( 3 ) Stock-based compensation — — 15 — — 15 — 15 Stock options exercised — — 3 — — 3 — 3 Share repurchases ( 3 ) — ( 63 ) — — ( 63 ) — ( 63 ) Other — — ( 2 ) — — ( 2 ) ( 1 ) ( 3 ) Balance at June 30, 2026 357 $ 4 $ 8,270 $ ( 1,430 ) $ ( 639 ) $ 6,205 $ 56 $ 6,261 Shares Issued and Outstanding Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Deficit Total Company Stockholders’ Equity Noncontrolling Interests Total Stockholders’ Equity Balance at December 31, 2024 382 $ 4 $ 8,625 $ ( 1,625 ) $ ( 628 ) $ 6,376 $ 52 $ 6,428 Net income — — — — 73 73 1 74 Other comprehensive income — — — 98 — 98 — 98 Cash dividends, $ 0.075 per common share — — — — ( 28 ) ( 28 ) — ( 28 ) Stock-based compensation — — 16 — — 16 — 16 Common stock issued 3 — — — — — — — Withholding taxes ( 1 ) — ( 13 ) — — ( 13 ) — ( 13 ) Share repurchases ( 5 ) — ( 81 ) — — ( 81 ) — ( 81 ) Other ( 1 ) — ( 1 ) — — ( 1 ) 1 — Balance at March 31, 2025 378 $ 4 $ 8,546 $ ( 1,527 ) $ ( 583 ) $ 6,440 $ 54 $ 6,494 Net income — — — — 108 108 6 114 Other comprehensive income — — — 116 — 116 — 116 Cash dividends, $ 0.285 per common share — — — — ( 107 ) ( 107 ) — ( 107 ) Transactions with non-controlling interests — — — — — — ( 5 ) ( 5 ) Stock-based compensation — — 17 — — 17 — 17 Share repurchases ( 6 ) — ( 69 ) — — ( 69 ) — ( 69 ) Other 1 — ( 1 ) — — ( 1 ) ( 1 ) ( 2 ) Balance at June 30, 2025 373 $ 4 $ 8,493 $ ( 1,411 ) $ ( 582 ) $ 6,504 $ 54 $ 6,558 See notes to unaudited consolidated financial statements. 6 NOV INC. Notes to Consolidated Financial Statements (Unaudited) 1. Basis of Presentation The accompanying unaudited consolidated financial statements of NOV Inc. (“NOV” or the “Company”) present information in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. They do not include all information or footnotes required by GAAP for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company’s 2025 Annual Report on Form 10-K. Certain reclassifications have been made to prior period financial information in order to conform with current period presentation. In our opinion, the consolidated financial statements include all adjustments, which are of a normal recurring nature unless otherwise disclosed, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The fair values of cash and cash equivalents, receivables and payables were approximately the same as their presented carrying values because of the short maturities of these instruments. The fair value of long-term debt is provided in Note 8, and the fair values of derivative financial instruments are provided in Note 11. 2. Inventories, net Inventories consist of (in millions): June 30, 2026 December 31, 2025 Raw materials and supplies $ 487 $ 456 Work in process 221 217 Finished goods and purchased products 1,505 1,387 2,213 2,060 Less: Inventory reserve ( 266 ) ( 261 ) Total $ 1,947 $ 1,799 3. Accrued Liabilities Accrued liabilities consist of (in millions): June 30, 2026 December 31, 2025 Compensation $ 236 $ 278 Vendor costs 160 165 Taxes (non-income) 98 102 Warranties 58 68 Insurance 57 46 Commissions 18 15 Derivatives 15 4 Interest 11 10 Other 128 134 Total $ 781 $ 822 7 4. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows (in millions): Derivative Employee Currency Financial Benefit Translation Instruments, Plans, Adjustments Net of Tax Net of Tax Total Balance at December 31, 2025 $ ( 1,375 ) $ 2 $ ( 51 ) $ ( 1,424 ) Accumulated other comprehensive loss before reclassifications ( 3 ) — — ( 3 ) Amounts reclassified from accumulated other comprehensive loss — ( 5 ) 2 ( 3 ) Balance at June 30, 2026 $ ( 1,378 ) $ ( 3 ) $ ( 49 ) $ ( 1,430 ) The components of amounts reclassified from accumulated other comprehensive loss during the three and six months ended June 30, 2026 represent gains and losses reclassified on cash flow hedges when the hedged transaction occurs (see Note 11 to the Consolidated Financial Statements for further discussion) and the amortization of net actuarial gains and losses, prior service credits, settlements, and curtailments, which are included in the computation of net periodic pension cost. 5. Segments The Company has two reportable segments, Energy Equipment and Energy Products and Services, based on the products and services provided, customer base, and operating environment. These reportable segments are determined as those businesses for which results are reviewed regularly by our Chief Executive Officer , who is identified as the Chief Operating Decision Maker (“CODM”), in allocating resources and assessing performance. The following tables present financial data by business segment (in millions): Three Months Ended June 30, 2026 2025 Energy Equipment Energy Products and Services Energy Equipment Energy Products and Services Revenue from external customers $ 1,198 $ 936 $ 1,190 $ 998 Intersegment revenue 20 38 17 27 Total revenue 1,218 974 1,207 1,025 Less significant segment expenses: Cost of revenue 878 701 918 753 Selling, general, and administrative 140 129 131 126 Depreciation and amortization 28 63 28 57 Gain on sales of fixed assets ( 7 ) ( 13 ) ( 1 ) — Total significant segment expenses $ 1,039 $ 880 $ 1,076 $ 936 Other segment items (1) 2 9 9 6 Segment operating profit $ 177 $ 85 $ 122 $ 83 Three Months Ended June 30, 2026 2025 Energy Equipment Energy Products and Services Elims. and corporate costs (2) Total Energy Equipment Energy Products and Services Elims. and corporate costs (2) Total Segment operating profit $ 177 $ 85 $ — $ 262 $ 122 $ 83 $ — $ 205 Corporate and other unallocated (3) — — ( 69 ) ( 69 ) — — ( 62 ) ( 62 ) Interest and financial costs — — ( 21 ) ( 21 ) — — ( 22 ) ( 22 ) Interest income — — 8 8 — — 10 10 Equity income (loss) in unconsolidated affiliates 2 ( 7 ) — ( 5 ) ( 1 ) 2 — 1 Other expenses, net — — ( 18 ) ( 18 ) — — ( 17 ) ( 17 ) Income before income taxes $ 179 $ 78 $ ( 100 ) $ 157 $ 121 $ 85 $ ( 91 ) $ 115 Other segment information: Capital expenditures $ 21 $ 59 $ 1 $ 81 $ 33 $ 48 $ 2 $ 83 8 Six Months Ended June 30, 2026 2025 Energy Equipment Energy Products and Services Energy Equipment Energy Products and Services Revenue from external customers $ 2,377 $ 1,809 $ 2,322 $ 1,969 Intersegment revenue 31 62 31 48 Total revenue 2,408 1,871 2,353 2,017 Less significant segment expenses: Cost of revenue 1,803 1,371 1,779 1,475 Selling, general, and administrative 274 260 251 251 Depreciation and amortization 57 124 56 116 Goodwill and long-lived asset impairment — — — — Gain on sales of fixed assets ( 7 ) ( 12 ) ( 1 ) ( 2 ) Total significant segment expenses $ 2,127 $ 1,743 $ 2,085 $ 1,840 Other segment items (1) 11 17 12 11 Segment operating profit $ 270 $ 111 $ 256 $ 166 Six Months Ended June 30, 2026 2025 Energy Equipment Energy Products and Services Elims. and corporate costs (2) Total Energy Equipment Energy Products and Services Elims. and corporate costs (2) Total Segment operating profit $ 270 $ 111 $ — $ 381 $ 256 $ 166 $ — $ 422 Corporate and other unallocated (3) — — ( 141 ) ( 141 ) — — ( 127 ) ( 127 ) Interest and financial costs — — ( 43 ) ( 43 ) — — ( 44 ) ( 44 ) Interest income — — 19 19 — — 21 21 Equity income (loss) in unconsolidated affiliates 4 ( 12 ) — ( 8 ) 3 ( 2 ) — 1 Other expenses, net — — ( 16 ) ( 16 ) — — ( 37 ) ( 37 ) Income before income taxes $ 274 $ 99 $ ( 181 ) $ 192 $ 259 $ 164 $ ( 187 ) $ 236 Other segment information: Capital expenditures $ 37 $ 106 $ 3 $ 146 $ 66 $ 97 $ 4 $ 167 Investment in unconsolidated affiliates $ 9 $ 145 $ 5 $ 159 $ 9 $ 169 $ — $ 178 Goodwill $ 777 $ 807 $ — $ 1,584 $ 816 $ 807 $ — $ 1,623 Intangibles, net $ 124 $ 314 $ — $ 438 $ 129 $ 367 $ — $ 496 Total assets $ 4,765 $ 5,053 $ 1,381 $ 11,199 $ 4,966 $ 5,152 $ 1,245 $ 11,363 (1) Other segment items represent amounts necessary to reconcile segment revenue less significant expenses categories to segment operating profit and include items such as restructuring charges, other non-recurring items, and amounts not regularly reviewed by the CODM. (2) Sales from one segment to another generally are priced at estimated equivalent commercial selling prices; however, segments originating an external sale are credited with the full profit to the Company. Eliminations and corporate costs include intercompany transactions conducted between the two reporting segments and with Corporate that are eliminated in consolidation, as well as corporate costs not allocated to the segments. Intercompany transactions within each reporting segment are eliminated within each reporting segment. Also included in the eliminations and corporate costs column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash, fixed assets, and right-of-use assets. (3) Includes certain corporate expenses not allocated to the segments, restructuring related to centrally managed initiatives and other non-recurring items. 9 6. Revenue Disaggregation of Revenue The following tables disaggregate our revenue by destinations and revenue streams, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors (in millions). In the table below, North America includes only the U.S. and Canada: Three Months Ended June 30, 2026 2025 Energy Energy Energy Products Energy Products Equipment and Services Eliminations Total Equipment and Services Eliminations Total North America $ 213 $ 565 $ — $ 778 $ 271 $ 570 $ — $ 841 International 985 371 — 1,356 919 428 — 1,347 Intersegment revenue 20 38 ( 58 ) — 17 27 ( 44 ) — $ 1,218 $ 974 $ ( 58 ) $ 2,134 $ 1,207 $ 1,025 $ ( 44 ) $ 2,188 Land $ 397 $ 713 $ — $ 1,110 $ 418 $ 737 $ — $ 1,155 Offshore 801 223 — 1,024 772 261 — 1,033 Intersegment revenue 20 38 ( 58 ) — 17 27 ( 44 ) — $ 1,218 $ 974 $ ( 58 ) $ 2,134 $ 1,207 $ 1,025 $ ( 44 ) $ 2,188 Six Months Ended June 30, 2026 2025 Energy Energy Energy Products Energy Products Equipment and Services Elims. Total Equipment and Services Elims. Total North America $ 450 $ 1,083 $ — $ 1,533 $ 532 $ 1,121 $ — $ 1,653 International 1,927 726 — 2,653 1,790 848 — 2,638 Intersegment revenue 31 62 ( 93 ) — 31 48 ( 79 ) — $ 2,408 $ 1,871 $ ( 93 ) $ 4,186 $ 2,353 $ 2,017 $ ( 79 ) $ 4,291 Land $ 745 $ 1,386 $ — $ 2,131 $ 819 $ 1,492 $ — $ 2,311 Offshore 1,632 423 — 2,055 1,503 477 — 1,980 Intersegment revenue 31 62 ( 93 ) — 31 48 ( 79 ) — $ 2,408 $ 1,871 $ ( 93 ) $ 4,186 $ 2,353 $ 2,017 $ ( 79 ) $ 4,291 In the table below, the revenue streams of Energy Equipment are categorized as long-lived capital equipment sales and aftermarket sales and services. The revenue streams of the Energy Products and Services segment are categorized as services and rentals, sales of shorter-lived capital equipment, and sales of consumable products. Three Months Ended June 30, 2026 2025 Energy Equipment: Capital equipment $ 751 $ 733 Aftermarket 447 457 Intersegment revenue 20 17 Total 1,218 1,207 Energy Products and Services: Services & rental $ 494 $ 501 Capital equipment 282 335 Product sales 160 162 Intersegment revenue 38 27 Total 974 1,025 Eliminations ( 58 ) ( 44 ) Total consolidated $ 2,134 $ 2,188 10 Six Months Ended June 30, 2026 2025 Energy Equipment: Capital equipment $ 1,497 $ 1,374 Aftermarket 880 948 Intersegment revenue 31 31 Total 2,408 2,353 Energy Products and Services: Services & rental $ 967 $ 1,008 Capital equipment 534 623 Product sales 308 338 Intersegment revenue 62 48 Total 1,871 2,017 Eliminations ( 93 ) ( 79 ) Total consolidated $ 4,186 $ 4,291 Performance Obligations Net revenue recognized from performance obligations satisfied in previous periods was not material for the six months ended June 30, 2026. Remaining performance obligations represent the transaction price of firm orders for all revenue streams for which work has not been performed on contracts with original expected duration of one year or more. We do not disclose the remaining performance obligations of royalty contracts, service contracts for which there is a right to invoice, and short-term contracts that are expected to have a duration of one year or less. As of June 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 4,443 million. Although numerous factors can affect timing of revenue recognized on performance obligations, such as customer change orders, supplier accelerations or delays, and the current uncertainty and conflict in the Middle East, the Company expects to recognize approximately $ 1,071 million in revenue for the remaining performance obligations in the remainder of 2026 , $ 1,588 million in 2027 , $ 586 million in 2028 , and $ 1,198 million thereafter . Contract Assets and Liabilities Contract assets include unbilled amounts when revenue recognized exceeds the amount billed to the customer under contracts where revenue is recognized over-time. There were no impairment losses recorded on contract assets for the three and six months ended June 30, 2026 and 2025. Contract liabilities consist of advance payments, billings in excess of revenue recognized and deferred revenue. The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions): Contract Assets Contract Liabilities Balance at December 31, 2025 $ 596 $ 565 Billings ( 910 ) 689 Revenue recognized 1,023 ( 634 ) Currency translation adjustments and other ( 43 ) ( 24 ) Balance at June 30, 2026 $ 666 $ 596 11 Allowance for Credit Losses The Company estimates its allowance for credit losses using information about past events, current conditions and risk characteristics of each customer, and reasonable and supportable forecasts relevant to assessing risk associated with the collectability of receivables and contract assets. The Company’s customer base, mostly in the oil and gas industry, have generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers. As of June 30, 2026, the allowance for credit losses on accounts receivable and contract assets totaled $ 52 million. The changes in the carrying amount of the allowance for credit losses are as follows (in millions): Balance at December 31, 2025 $ 64 Provision for expected credit losses 2 Recoveries collected ( 8 ) Write-offs ( 11 ) Reclass for long-term receivables 8 Other ( 3 ) Balance at June 30, 2026 $ 52 7. Leases The Company leases certain facilities and equipment to support its operations around the world. These leases generally require the Company to pay maintenance, insurance, taxes and other operating costs in addition to rent. Renewal options are common in longer term leases; however, it is rare that the Company intends to exercise a lease option at inception due to the cyclical nature of the Company’s business. Residual value guarantees are not typically part of the Company’s leases. Occasionally, the Company sub-leases excess facility space, generally at terms similar to the source lease. The Company reviews new agreements to determine if they include a lease and, when they do, uses its incremental borrowing rate to determine the present value of the future lease payments as most do not include implicit interest rates. Components of leases are as follows (in millions): June 30, 2026 December 31, 2025 Current portion of lease liabilities: Operating $ 70 $ 71 Financing 30 30 Total $ 100 $ 101 Long-term portion of lease liabilities: Operating $ 293 $ 289 Financing 227 232 Total $ 520 $ 521 8. Debt Debt consists of (in millions): June 30, 2026 December 31, 2025 $ 1.1 billion in Senior Notes, interest at 3.95 % payable semiannually, principal due on December 1, 2042 $ 1,092 $ 1,092 $ 0.5 billion in Senior Notes, interest at 3.60 % payable semiannually, principal due on December 1, 2029 497 497 Other debt 117 129 Total debt 1,706 1,718 Less current portion 14 30 Long-term debt $ 1,692 $ 1,688 12 The Company has a revolving credit facility with a borrowing capacity of $ 1.5 billion through September 12, 2030 . The Company has the right to increase the aggregate commitments under this agreement to an aggregate amount of up to $ 2.5 billion upon the consent of only those lenders holding any such increase. Interest under the multicurrency facility is based upon Secured Overnight Financing Rate (SOFR), Euro Interbank Offered Rate (EURIBOR), Sterling Overnight Index Average (SONIA), Canadian Overnight Repo Rate Average (CORRA), or Norwegian Interbank Offered Rate (NIBOR), plus 1.25 % subject to a ratings-based grid or the U.S. prime rate. The credit facility contains a financial covenant establishing a maximum debt-to-capitalization ratio of 60 %. As of June 30, 2026, the Company was in compliance with a debt-to-capitalization ratio of 23.9 % and had no outstanding borrowings or letters of credit issued under the facility, resulting in $ 1.5 billion of available funds. A consolidated joint venture of the Company borrowed $ 120 million against a $ 150 million bank line of credit, payable by June 2032 , for the construction of a facility in Saudi Arabia. Interest under the bank line of credit is based upon SOFR plus 1.40 %. The bank line of credit contains a financial covenant regarding maximum debt-to-equity ratio of 75 %. As of June 30, 2026, the joint venture was in compliance and will not have future borrowings on the line of credit. As of June 30, 2026, the Company had $ 78 million in borrowings related to this line of credit. The carrying value of debt under the Company’s consolidated joint venture approximates fair value because the interest rates are variable and reflective of current market rates. The Company has $ 12 million in payments related to this line of credit due in the next twelve months. The Company can repay the entire outstanding facility balance without penalty at its sole discretion. Other debt at June 30, 2026 included $ 38 million of amounts owed to current minority interest partners of NOV consolidated joint ventures, of which $ 2 million is due in the next twelve months. The Company had $ 909 million of outstanding letters of credit at June 30, 2026, primarily in the United States and Norway, that are under various bilateral letter of credit facilities. Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds. At June 30, 2026 and December 31, 2025, the fair value of the Company’s unsecured Senior Notes approximated $ 1,345 million and $ 1,353 million, respectively. The fair value of the Company’s debt is estimated using Level 2 inputs in the GAAP fair value hierarchy and is based on quoted prices for those of similar instruments. At June 30, 2026 and December 31, 2025 , the carrying value of the Company’s unsecured Senior Notes approximated $ 1,589 million at both reporting dates. 9. Income Taxes The effective tax rate for the three and six months ended June 30, 2026 was 26.1 % and 29.2 % , respectively, compared to 0.9 % and 20.3 % for the same period in 2025. The U.S. statutory tax rate was 21 % for all periods. The effective tax rate for the three months ended June 30, 2026 was negatively impacted by a mix of earnings in higher tax rate jurisdictions, partially offset by the release of previously recorded reserves for unrecognized tax benefits and adjustments to prior year taxes. The effective tax rate for the six months ended June 30, 2026 was negatively impacted by a mix of earnings in higher tax rate jurisdictions and a shortfall related to previously recognized stock compensation deductibility, partially offset by the release of previously recorded reserves for unrecognized tax benefits and adjustments to prior year taxes. The effective tax rate for the six months ended June 30, 2025 was positively impacted by the release of previously recorded reserves for unrecognized tax benefits of $ 58 million, partially offset by an increase to reserves for unrecognized tax benefits of $ 23 million, unfavorable adjustments related to the carrying value of deferred tax assets of $ 14 million, changes in certain foreign currency exchange rates of $ 4 million, and a mix of earnings in higher tax rate jurisdictions. 10. Stock-Based Compensation The Company’s stock-based compensation plan, known as the NOV Inc. Long-Term Incentive Plan (the “NOV Plan”), was approved by shareholders on May 11, 2018 and amended and restated on May 24, 2022 and May 20, 2025. The NOV Plan provides for the granting of stock options, restricted stock, restricted stock units, performance awards, phantom shares, stock appreciation rights, stock payments and substitute awards. The number of shares authorized under the NOV Plan is 70.9 million. At June 30, 2026 , approximately 13.7 million shares remained available for future grants under the NOV Plan. The Company also has outstanding awards under its former stock-based compensation plan known as the National Oilwell Varco, Inc. Long-Term Incentive Plan (the “Former Plan”); however, the Company is no longer granting new awards under the Former Plan. On May 20, 2026, under the NOV Plan, the Company granted 75,656 restricted stock units (“RSUs”) with a fair value of $ 21.15 per share. The awards were granted to non-employee members of the board of directors and vest on the first anniversary of the grant date. Total expense for all stock-based compensation arrangements was $ 15 million and $ 41 million for the three and six months ended June 30, 2026, respectively, and $ 17 million and $ 33 million for the three and six months ended June 30, 2025, respectively. The total income tax expense (benefit) recognized in the Consolidated Statements of Income for stock-based compensation arrangements was $( 2 ) million for each of the three and six months ended June 30, 2026 , respectively, and $( 3 ) million and $ 6 million for the three and six months ended 2025 , respectively. 13 11. Derivative Financial Instruments The Company uses forward currency contracts to manage the foreign currency exchange rate risk on forecasted revenues and expenses denominated in currencies other than the functional currency of the operating unit (cash flow hedge). The Company also executes forward currency contracts to manage the foreign currency exchange rate risk on recognized nonfunctional currency monetary accounts (non-designated hedge). The fair values of these derivative financial instruments are determined using Level 2 inputs (inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability) in the fair value hierarchy as the fair value is based on publicly available foreign exchange and interest rates at each financial reporting date. Forward currency contracts consist of (in millions): Currency Denomination Currency June 30, 2026 December 31, 2025 South Korean Won KRW 37,280 49,790 Norwegian Krone NOK 2,118 2,756 U.S. Dollar USD 875 827 Euro EUR 166 190 Japanese Yen JPY 31 569 Singapore Dollar SGD 13 18 British Pound Sterling GBP — 3 Cash Flow Hedging Strategy To protect against the volatility of forecasted foreign currency cash flows resulting from forecasted revenues and expenses, the Company maintains a cash flow hedging program. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is recorded in accumulated other comprehensive loss and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in “revenues” when the hedged transactions are cash flows associated with forecasted revenues). The Company includes time value in hedge relationships. The Company expects accumulated other comprehensive loss of $ 2 million will be reclassified into earnings within the next twelve months. Non-designated Hedging Strategy The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts. The gain or loss on the derivative instrument is recognized in earnings in “other expense, net”, together with the changes in the hedged nonfunctional monetary accounts. The amount of gain (loss) recognized in “other expense, net” was $ ( 1 ) million for both the three and six months ended June 30, 2026, compared to $ 13 million and $ 16 million for the three and six months ended June 30, 2025, respectively. The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions): Asset Derivatives Liability Derivatives Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Location 2026 2025 Location 2026 2025 Derivatives designated as hedging instruments Foreign exchange contracts Prepaid and other current assets $ 3 $ 3 Accrued liabilities $ 7 $ 1 Foreign exchange contracts Other assets — — Other liabilities — — Designated total $ 3 $ 3 $ 7 $ 1 Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid and other current assets $ 3 $ 2 Accrued liabilities $ 8 $ 3 Foreign exchange contracts Other assets — — Other liabilities — — Non-designated total $ 3 $ 2 $ 8 $ 3 Total $ 6 $ 5 $ 15 $ 4 14 12. Net Income Attributable to Company Per Share The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Numerator: Net income attributable to Company $ 112 $ 108 $ 131 $ 181 Denominator: Basic—weighted average common shares outstanding 359 375 360 378 Dilutive effect of employee stock options and other unvested stock awards 3 1 4 2 Diluted—weighted average common shares outstanding 362 376 364 380 Net income attributable to Company per share: Basic $ 0.31 $ 0.29 $ 0.36 $ 0.48 Diluted $ 0.31 $ 0.29 $ 0.36 $ 0.48 Cash dividends per share $ 0.18 $ 0.285 $ 0.27 $ 0.36 Companies with unvested participating securities are required to utilize a two-class method for the computation of net income attributable to Company per share. The two-class method requires a portion of net income attributable to Company to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents if declared. Net income attributable to the Company allocated to these participating securities was immaterial for each of the three and six months ended June 30, 2026 and 2025 , respectively. The Company had stock options and restricted shares ou tstanding that were anti-dilutive totaling 6 million and 7 million shares for the three and six months ended June 30, 2026, compared to 19 million and 16 million shares for the three and six months ended June 30, 2025 . 15 13. Cash Dividends Cash dividends were $ 64 million and $ 97 million for the three and six months ended June 30, 2026, compared to $ 107 million and $ 135 million for the three and six months ended June 30, 2025. The declaration and payment of future dividends is at the discretion of the Company’s Board of Directors and will be dependent upon the Company’s results of operations, financial condition, capital requirements and other factors deemed relevant by the Company’s Board of Directors. 14. Share Repurchase Program On April 25, 2024, the Company established a share repurchase program for up to $ 1 billion of the currently outstanding shares of the Company’s common stock over a period of 36 months. Under the share repurchase program, the Company may repurchase shares from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934 (the “Exchange Act”), as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18. The timing and total amount of any stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations. The Company intends to fund the repurchases using its available U.S. cash balances, which may involve the repatriation of foreign earnings not indefinitely reinvested. However, depending on U.S. cash balances, the Company may choose to borrow against its revolving credit facility or issue new debt to finance the repurchases. As shares are repurchased, they are constructively retired and returned to an unissued state. During the three and six months ended June 30, 2026, the Company repurchased approximately 3.2 million shares of common stock under the program for an aggregate amount of $ 63 million and 6.7 million shares of common stock under the program for an aggregate amount of $ 130 million, respectively. During the three and six months ended June 30, 2025, the Company repurchased approximately 5.5 million shares of common stock under the program for an aggregate amount of $ 69 million, and 10.9 million shares of common stock under the program for an aggregate amount of $ 150 million, respectively. 15. Commitments and Contingencies From time to time, the Company is involved in various claims, regulatory agency audits, investigations and legal actions involving a variety of matters. As of June 30, 2026, in the ordinary course of business, the Company recorded reserves in an amount believed to be sufficient, given the estimated range of potential outcomes, for contingent liabilities believed to be probable. These estimated liabilities are based on the Company’s assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as management’s experience. The litigation process and the outcome of regulatory oversight is inherently uncertain, and our best judgment concerning the probable outcome of litigation or regulatory enforcement matters may prove to be incorrect. No assurance can be given as to the outcome of these matters. The total potential loss on these matters cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise provided for, should not materially affect our financial position, cash flows or results of operations. Developments in global trade policy, including tariffs, geopolitical tensions, sanctions, and regulatory changes, have impacted and may continue to influence our operations. In February 2026, the U.S. Supreme Court determined that certain tariffs were unlawful, effectively nullifying the legal basis for some incremental tariffs implemented since February 2025 and sending related cases back to the Court of International Trade. In response, the U.S. administration introduced new tariffs under different authorities, increasing uncertainty around the scope, duration, and potential changes to current and future tariffs, as well as the risk of retaliatory measures. We have submitted Consolidated Administration and Processing of Entries (“CAPE”) Declarations for International Emergency Economic Powers Act (“IEEPA”) duty refunds and are closely monitoring developments to better understand the government’s next steps. For the three months ended June 30, 2026 , we have recorded a benefit of approximately $ 40 million, within “Cost of revenue” in the Consolidated Statements of Income to reflect any benefit from such refunds, of which we have received $ 17 million through June 30, 2026. The remaining outstanding balance is reported within “Receivables, net” in the Consolidated Balance Sheets. 16 The Company is currently pursuing litigation against several companies involving royalties due under licenses for technology related to drill bits. This technology resulted in a portfolio of patents related to leaching technology, a revolutionary technology owned by the Company that improves the performance of drill bits and other products utilizing certain synthetic diamond parts. The Company previously sued several drill bit manufacturers for patent infringement and those lawsuits were resolved by a series of licensing agreements with various drill bit manufacturers (the “License Agreements”). To settle and end litigation or to avoid litigation, the licensees were provided access to the portfolio of leaching patents owned by the Company in exchange for a royalty payment, as defined in each License Agreement. The companies agreed to pay the royalties for the right to use the portfolio of patents, whether they used some, all or none of the specific patented claims in any particular patent. The license agreements provide that they terminate on the date of the last to expire of the patents in the licensed portfolio. Having obtained the benefit of these licenses for more than a decade, all of the drill bit manufacturer licensees unilaterally stopped making royalty payments even though all of the patents in the portfolio have not expired. These companies have asserted, among other reasons, that they are entitled to stop making these payments because they claim to not manufacture products covered by the unexpired patents. Some of these companies stopped making payments upon expiration of what are allegedly the patents in the portfolio that they elected to use. Others paid for some period of time after that date but have since stopped making payments. The Company has sued asserting that failure to pay the royalties is a breach of the License Agreements. The Company is in litigation with most of the licensees seeking a judicial determination that it is entitled to be paid royalties pursuant to the terms of the License Agreements. The licensees have responded with a number of alleged defenses and requests for declaratory judgment all focused on avoiding the payments called for under the License Agreements. The parties’ legal filings to date can be found in the following cases: Grant Prideco, Inc., et al. v. Schlumberger Technology Corp., et al., No. 4:23-cv-00730; Halliburton Energy Services, Inc. v. Grant Prideco, Inc., et al., No. 4:23-cv-01789; and Grant Prideco, Inc., et al. v. Baker Hughes Oilfield Operations Inc., et al., No. 4:25-cv-03459, all in the United States District Court for the Southern District of Texas. We have also subsequently initiated litigation against Taurex Drill Bits. The legal filings to date for that proceeding can be found in the case Grant Prideco, Inc., et al. v. Taurex Drill Bits, L.L.C., No. 25-BC11B-0065, in the Eleventh Business Court Division for Harris County, Texas. On September 29, 2025, and October 7, 2025, in the lawsuits against Halliburton, Ulterra and Varel, the district court issued rulings, the effect of which is that NOV cannot collect royalties under the License Agreements after the date each licensee stopped making royalty payments. NOV believes the court’s ruling is incorrect and is appealing the court’s decision, which can be found in the case: Halliburton Energy Services, Inc. v. Grant Prideco, Inc. et al., Nos. 26-1256, 26-1266, In the United States Court of Appeals for the Federal Circuit. The Company continues to strongly believe that the royalties for which it has sued are due and owing pursuant to the terms of the License Agreements. Of course, there is inherent risk with the related litigation and the Company makes no assurances as to the outcome of such litigation. As of June 30, 2026 , royalty receivables of $ 140 million, net of related reserves of $ 78 million and the remaining timing related discount of $ 40 million, are included in “Other assets” on the Consolidated Balance Sheets. While we continue to believe it is probable the Company will collect all or substantially all of the consideration to which it is entitled pursuant to the terms of the licensing agreements, the Company will also continue to evaluate the collectability of the receivables in accordance with t he allowance for credit losses p olicy described in Note 6. 17