NOV Earnings: Offshore Remains Central Performance Driver as North American Markets Remain Subdued

NOV delivered solid third-quarter results, almost entirely driven by its offshore operations, which represent a bit under half of the firm’s overall business. This offsets adverse impacts from comparatively sluggish North American land markets, which we expect will remain subdued into early 2024. Revenue and adjusted EBITDA margin each expanded sequentially by 4% and 50 basis points, respectively. We maintain our no-moat rating and $23 fair value estimate following the results.