NOV shares traded lower Wednesday as the market kept pressuring the name following the company’s latest quarterly update, which quantified operational and logistics disruptions linked to the Middle East conflict and flagged that near-term disruption is expected to persist into the second quarter. NOV’s Q1 report showed revenue of $2.05 billion, net income of $19 million ($0.05 per share), adjusted EBITDA of $177 million, and bookings of $520 million (book-to-bill of 0.8x), metrics that highlighted weaker profitability versus last year and a softer conversion of backlog into earnings power.

In its Q1 release, NOV said war-driven logistics delays and cost inflation hit quarter-end deliveries, disrupted offshore service and repair activity, and increased operating costs in-region, estimating a $54 million revenue impact and a $32 million adjusted EBITDA impact in Q1. Management also guided Q2 results below prior expectations: consolidated revenue expected to decline 4%–6% year over year, with adjusted EBITDA expected to be $185 million–$215 million, and cautioned that guidance assumes conditions do not deteriorate further.

NOV returned $100 million in Q1 through repurchases ($67 million) and dividends ($33 million) and ended the quarter with $1.342 billion in cash and cash equivalents and $1.50 billion available on its revolving credit facility, which can help cushion volatility. Still, the market’s focus remains on the earnings bridge—whether deferred deliveries convert cleanly into revenue and margin recovery, and whether higher freight and operating costs unwind fast enough to stabilize segment profitability.