NOV

NOV is a global oilfield-equipment and technology supplier whose FY2025 results show a clear cyclical downturn in spending. Revenue slipped 1.4% to $8.74B, but profitability fell hard: gross profit dropped 12.1%, operating income fell 43.6% to $494M (a 5.6% margin), and net income collapsed 77.2% to $145M (EPS $0.39). Returns are depressed — 2.3% ROE — and the 47.8x P/E reflects trough earnings, not an expensive stock. On sales the valuation is undemanding at 0.8x.

The balance sheet and cash generation are the offsetting strengths. NOV is debt-light at 0.79x liabilities/equity ($1.69B long-term debt against $6.27B equity and $1.55B cash, up 26%), and it generated $1.25B of operating cash flow despite the earnings drop — confirming this is a cyclically-low-margin year, not a broken business. Capital return accelerated: $315M of buybacks (+38%) cut shares 5.4%, and the dividend rose 76% to $190M.