NOV Inc.

Good day and thank you for standing by. Welcome to NOV's second quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today. Amy D'Ambrosio, Director of Investor Relations, please go ahead.

Welcome everyone to NOV's second quarter 2025 earnings conference call. With me today are Clay Williams, our Chairman and Chief Executive Officer, Jose Bayardo, our President and Chief Operating Officer, and Rodney Reed, our Senior Vice President and Chief Financial Officer. Before we begin, I would like to remind you that some of today's comments are forward-looking statements within the meaning of the federal securities laws. They involve risks and uncertainty, and actual results may differ materially. No one should assume these forward-looking statements remain valid later in the quarter or later in the year. For a more detailed discussion of the major risk factors affecting our business, please refer to our latest Forms 10-K and 10-Q filed with the Securities and Exchange Commission. Our comments also include non-GAAP measures. Reconciliations to the nearest corresponding GAAP measures are in our earnings release available on our website. On a US GAAP basis for the second quarter of 2025, NOV reported revenues of $2.2 billion and net income of $108 million or 29 cents per fully diluted share. Our use of the term EBITDA throughout this morning's call corresponds with the term adjusted EBITDA as defined in our earnings release. Later in the call, we will host a question and answer session. Please limit yourself to one question and one follow-up to permit more participation. Now, let me turn the call over to Clay.

Thank you, Amy. For the second quarter of 2025, revenue of $2.2 billion was up 4% from the first quarter of 2025 and down 1% from the second quarter of 2024. EBITDA was $252 million or 11.5% of sales. Our energy equipment segment grew revenues 5% sequentially, as strong execution of capital equipment sales were able to more than offset a significant reduction in demand for aftermarket parts and services. However, the resulting unfavorable mixed shift drove margins sequentially lower. Nevertheless, the segment delivered its 12th straight quarter of year-over-year margin expansion. Energy products and services' solid 3% sequential topline growth handily outperformed a 6% decline in global drilling activity, buoyed by higher capital equipment sales and greater penetration of our efficiency-enabling technologies in key markets. That strength was partially offset by sharply lower demand for quick-term consumable drilling and completion products in North America, Saudi Arabia, and Latin America, along with tariff-related and inflationary cost pressure, factors that together compress segment margins. Against this backdrop, both segments remain focused on structural cost reduction and process improvement. Jose will provide additional detail on these initiatives later in the call. The 6% sequential decline in global drilling activity underscores market conditions that are growing more challenging. Macroeconomic uncertainty, the rapid unwinding of OPEC Plus production quotas, and conflict in the Middle East have made customers more cautious. In North America, exploration and production companies moved decisively to curtail short cycle activity. The U.S. oil-directed rig count declined roughly 9% since March, and modest gas rig additions could not fully offset the drop. Pricing pressure is intensifying. Internationally, conventional activity also eased. Saudi Arabia suspended additional onshore rigs, and Argentina operators shifted focus from mature Comodoro operations toward the unconventional Baja Muerta play. In offshore markets, tariffs and cost inflation are prompting some operators to slow walk certain projects, which probably delays some final investment decisions. Importantly, we aren't seeing these projects cancel, and we are continuing to advance discussions and feed studies on multiple deepwater programs. Our offshore drilling contractor customers expect their white space utilization challenges to ease in 2026. On the whole, the remainder of 2025 will be tough. We expect North American shale activity to drift modestly lower through year-end, while Saudi conventional drilling may not reaccelerate before 2026. We think global drilling activity will slow further through the second half, Nevertheless, we expect NOV's backlog and fourth quarter seasonal bulk tool purchases from international markets to support second half sales that are flat to up modestly compared to the first half. For the third quarter, we forecast year-over-year consolidated revenue to decline between 1% to 3% with adjusted EBITDA to land in the range of $230 million to $250 million. Looking past near-term turbulence, NOV's opportunity landscape is compelling. We expect offshore activity to accelerate in 2026, and our healthy pipeline of prospective FPSO awards should drive demand for NOV's production technologies. Globally, the push for secure, affordable energy is accelerating investment in LNG and unconventional gas, areas where our composite pipe, high pressure, high temperature solutions, and gas processing equipment excel. Our expanding digital automation platform is delivering measurable efficiency gains for customers. Importantly, our significant backlog and strong balance sheet give us the confidence and capacity to invest in these technologies. Overall, growing offshore drilling and development activity, stabilizing rig counts in the Middle East, incremental growth in Middle Eastern and Latin American unconventionals set up a more favorable market for 2026, in our view, assuming commodity prices are reasonably well-behaved. To all my fellow NOV employees listening today, I want to thank you for the terrific job that you are doing. Our customers count on you and me every day to help them navigate tough market conditions. And Jose, Rodney, Amy, and I appreciate all that you do to support them and each other. With that, let me turn it over to Rodney to review the results for the second quarter.