Financial Analysis

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 Companys assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as managements 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 …

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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 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 c …

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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 …

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10. Stock-Based Compensation The Companys 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 compensa …

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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.

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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 …

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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 ) ( …

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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 Companys 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 …

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