NOV Inc Pledges $200M Brazil Expansion as Q1 Orders Jump $83M
NOV Inc. saw a 10% year-over-year revenue drop in its Energy Products & Services segment due to Middle East disruptions and softer global activity. The company is investing $200 million to expand Brazil subsea flexible pipe capacity as Q1 orders rose $83 million, the strongest first quarter since 2019.
1. Energy Products & Services revenue decline
NOV Inc.’s Energy Products & Services segment recorded a 10% revenue decline year over year as Middle East disruptions and reduced global activity weighed on shipments and aftermarket parts deliveries.
2. Energy Equipment bookings surge
Bookings in the Energy Equipment segment improved by $83 million year over year, marking the strongest first quarter order intake since 2019 and reflecting increased demand for drilling and production equipment.
3. Brazil subsea pipe facility expansion
The company is committing $200 million to expand its subsea flexible pipe manufacturing facility in Brazil, targeting a capacity shortfall driven by new project development and aging infrastructure replacement cycles.
4. Tariffs, cost measures and margin outlook
A potential $40 million refund from EPA tariffs and current quarterly tariff costs of about $30 million will influence cash flow, while ongoing headcount and facility reductions aim to drive margin improvements in the second half of 2026 and into 2027.