Oil and gas industry cyclicality
Demand depends on rig counts, drilling activity, and customer capex.
- Scope
- Global drilling and workover markets
- Materiality
- high
NOV Inc.
NOV Inc. is a U.S.-based industrial equipment and technology company serving the oilfield and broader energy infrastructure markets. It designs, manufactures, rents, and services equipment used in drilling, well construction, production, and related energy applications through two reporting segments: Energy Products and Services and Energy Equipment.
9,7 %
20,2 %
1,7 %
−1,4 %
2.42
1.67
| % | |
|---|---|
| Energy Products and Services | 48% Consumables, rentals, aftermarket parts, and field services for drilling and well operations. |
| Energy Equipment | 52% Capital equipment, engineered systems, and large project deliveries for oilfield customers. |
| Emerging Energy Applications | 0% Products and engineering capabilities applied to geothermal, CCS, and nuclear markets. |
NOV sells primarily to oil and gas producers, oilfield service companies, drilling contractors, and shipyards...
- Oil and gas producersprimary
Buy drilling, completion, and production-related equipment to lower operating cost and improve uptime.
- Oilfield service companiesprimary
Purchase tools, systems, and technologies used in field operations and well construction.
- Drilling contractorsprimary
Buy rig packages, pipe, and related equipment for land and offshore drilling programs.
- Shipyards and offshore operatorssecondary
Use offshore systems such as mooring, turret, and marine handling equipment.
- Emerging energy developersemerging
Buy engineering and industrial capabilities for geothermal, CCS, and nuclear applications.
NOV operates globally and reports operations in 57 countries, with sales and service activity spread across North...
- •Operations span 57 countries across a broad global service network
- •North America is important for drilling activity and service demand
- •International markets drive a large share of capital equipment backlog
- •Offshore projects are a major end market for large equipment deliveries
- •Global footprint supports local content, distribution, and aftermarket reach
NOV’s strategy centers on developing proprietary technologies that reduce the marginal cost and environmental footprint...
01
Commercialize proprietary technologiesmedium-term
Differentiated products help reduce customer operating cost and support pricing power.
02
Expand across fragmented end marketsmedium-term
Serving many operators and contractors reduces dependence on any single customer group.
03
Support offshore and international growthmedium-term
These markets are important for future incremental oil and gas supply and large project demand.
04
Preserve operational flexibility through cyclesshort-term
The business is exposed to drilling and commodity cycles, so capacity and cost flexibility matter.
NOV is exposed to oil and gas drilling cycles, commodity prices, and customer capital-spending decisions, which...
Backlog execution and contract risk
Large capital equipment orders can be delayed, repriced, or canceled.
- Scope
- Energy Equipment backlog
- Materiality
- high
Supply chain, tariffs, and trade restrictions
The company relies on third-party parts and global manufacturing flows.
- Scope
- International sourcing and delivery
- Materiality
- high
Cybersecurity and systems disruption
NOV depends on information systems for operations, finance, and customer data.
- Scope
- Enterprise IT and customer-facing systems
- Materiality
- medium
Geopolitical and sanctions exposure
Trade restrictions and sanctions can affect sales, collections, and subsidiaries.
- Scope
- Russia and other restricted markets
- Materiality
- medium
Revenue recognition on long-term construction contracts
Can shift reported revenue and margin between periods
Backlog conversion timing
Creates quarter-to-quarter volatility in revenue
Goodwill and indefinite-lived intangible impairment
Can materially reduce earnings and equity
Asset impairments and restructuring-type charges
Can distort comparability across periods
: 29.4.2026