Cash generation remains highly volatile, with free cash flow swinging from a $472 million surplus in 2025Q4 to a $91 million deficit in 2026Q1, complicating the company's capital allocation strategy.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.09B | 1.24B | 1.3B | 143M | -179M | 291M | 926M | 714M | 521M | 832M | 960M | 1.33B | 2.61B | 3.4B | 620M | 2.14B | 1.54B | 2.1B | 2.29B | 1.19B | 1.22B | 77.5M | 166.2M | 31.01M | 104.04M | -35.38M | 26.61M | 84.5M | 37.5M | -800K | -1.3M |
| Operating CF Margin % | - | 14.17% | 14.7% | 1.67% | -2.47% | 5.27% | 15.21% | 8.42% | 6.16% | 11.39% | 13.24% | 9.03% | 12.19% | 17.67% | 3.61% | 14.62% | 12.69% | 16.48% | 17.08% | 12.14% | 17.32% | 1.67% | 7.17% | 1.55% | 6.84% | -2.02% | 2.31% | 10.06% | 2.59% | -0.07% | -0.17% |
| Operating CF Growth % | -180.04% | -4.98% | 811.89% | 179.89% | -161.51% | -68.57% | 29.69% | 37.04% | -37.38% | -13.33% | -27.93% | -49.04% | -23.05% | 447.9% | -71.07% | 38.98% | -26.4% | -8.68% | 93.11% | -2.36% | 1469.94% | -53.37% | 435.96% | -70.19% | 394.1% | -232.93% | -68.51% | 125.33% | 4787.5% | 38.46% | - |
| Net Income | 91M | 145M | 635M | 993M | 155M | -245M | -2.54B | -6.09B | -22M | -236M | -2.42B | -767M | 2.46B | 2.33B | 2.48B | 1.99B | 1.66B | 1.47B | 1.95B | 1.34B | 684M | 286.9M | 110.2M | 76.82M | 73.07M | 104.06M | 13.14M | 1.5M | 68.9M | 51.3M | 200K |
| Depreciation & Amortization | 358M | 355M | 343M | 302M | 301M | 306M | 352M | 533M | 690M | 698M | 703M | 747M | 778M | 755M | 628M | 555M | 507M | 490M | 401.6M | 214.1M | 160.6M | 114.6M | 44M | 39.18M | 25.05M | 38.87M | 35.03M | 23.2M | 19.2M | 14.7M | 3.6M |
| Stock-Based Compensation | 17M | 0 | 70M | 66M | 67M | 78M | 105M | 130M | 110M | 124M | 107M | 109M | 101M | 92M | 80M | 73M | 66M | 68M | 66.8M | 43.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 79M | 93M | 49M | -489M | -2M | 11M | -65M | -426M | -63M | -341M | -198M | -258M | -300M | -333M | -97M | -352M | -165M | 185M | -109.2M | 20.7M | 0 | 0 | -6.7M | 6.84M | 11.45M | 7.85M | -5.86M | 7.9M | -4.1M | -3.1M | -2.4M |
| Other Non-Cash Items | 42M | 237M | -8M | -145M | 62M | -89M | 1.85B | 296M | -47M | 139M | 1.72B | 1.97B | 374M | 67M | 62M | 46M | 106M | -99M | 128.3M | 20.2M | 44.9M | 48.4M | -1.7M | 10.9M | -638K | 1.59M | 26.44M | 100K | 14.6M | 100K | 22.8M |
| Working Capital Changes | 503M | 409M | 215M | -584M | -762M | 230M | 1.22B | 6.27B | -147M | 448M | 1.04B | -466M | -794M | 488M | -2.54B | -164M | -631M | -22M | -145.4M | -447.2M | 327.2M | -372.4M | 20.4M | -102.73M | -4.88M | -187.75M | -42.14M | 51.2M | -61.1M | -73.2M | -25.5M |
| Change in Receivables | 164M | 203M | 255M | -324M | -440M | -52M | 574M | 275M | -72M | 72M | 845M | 1.09B | -153M | -493M | -517M | -740M | -189M | -122M | -625.9M | -464.8M | -442.1M | -293.9M | -8.6M | -6.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 118M | 97M | 270M | -361M | -480M | 17M | 429M | 104M | -7M | 229M | 782M | 410M | -710M | 396M | -1.06B | -591M | 39M | 468M | -643M | -757.6M | -619.9M | -215.4M | -98.4M | -51.3M | 25.19M | -71.91M | -27.22M | -6M | 15.7M | -65M | 600K |
| Change in Payables | 35M | -6M | -87M | -4M | 289M | 118M | -226M | -19M | 196M | 86M | -243M | -570M | 95M | 9M | -19M | 205M | 40M | -1.43B | 95.3M | 84.2M | -93.5M | 68.1M | 174.3M | 61.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -345M | -362M | -471M | -293M | -238M | -196M | -144M | -315M | -457M | -245M | -488M | -514M | -1.1B | -2.96B | -3.43B | -1.46B | -743M | -552M | -2.47B | -574.9M | -530.1M | 38M | -6M | -102.5M | -225.32M | -57.95M | -64.54M | -50.1M | -148.8M | -47.2M | -109.2M |
| Capital Expenditures | -356M | -375M | -351M | -283M | -214M | -201M | -226M | -233M | -244M | -192M | -284M | -453M | -699M | -669M | -583M | -483M | -232M | -250M | -378.5M | -251.8M | -200.4M | -105M | -39M | -32.38M | -24.8M | -27.36M | -24.56M | -82.4M | -158.7M | -51.9M | -109.4M |
| CapEx % of Revenue | 4.1% | 4.29% | 3.96% | 3.3% | 2.96% | 3.64% | 3.71% | 2.75% | 2.89% | 2.63% | 3.92% | 3.07% | 3.26% | 3.48% | 3.39% | 3.3% | 1.91% | 1.97% | 2.82% | 2.57% | 2.85% | 2.26% | 1.68% | 1.61% | 1.63% | 1.57% | 2.14% | 9.81% | 10.95% | 4.73% | 14.36% |
| Acquisitions | 0 | 0 | -122M | -22M | -49M | -52M | -14M | -180M | -280M | -86M | -230M | -86M | -291M | -2.37B | -2.88B | -1.04B | -556M | -573M | -2.21B | -323.9M | -329.7M | 148M | -2.8M | -78M | -213.05M | -38.52M | -48.21M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 11M | 13M | 2M | 12M | 25M | 57M | 96M | 98M | 67M | 33M | 26M | 25M | -114M | 72M | 35M | 63M | 45M | 20M | 112.2M | 800K | 0 | -5M | 35.8M | 7.89M | 12.53M | 7.93M | 8.23M | 32.3M | 9.9M | 4.7M | 200K |
| Cash from Financing | -564M | -584M | -406M | -103M | -96M | -189M | -259M | -647M | -30M | -595M | -1.14B | -2.16B | -1.34B | -305M | 2.58B | -464M | -102M | -491M | -74M | 149.6M | 41.1M | -40.4M | -95.3M | 25.21M | 194.98M | 95.69M | 32.76M | -34.1M | 103.2M | 60.1M | 114.9M |
| Debt Issued (Net) | 2M | -23M | -39M | -31M | -8M | -149M | -212M | -521M | -8M | -506M | -900M | 762M | 18M | 0 | 2.64B | -391M | -13M | -40M | -189M | 35.4M | -5.1M | -152.3M | -109.9M | 15.5M | 191.27M | 86.41M | 19.17M | -33.6M | 109.4M | 19.9M | 14.1M |
| Equity Issued (Net) | -234M | -315M | -229M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.22B | -779M | 0 | 0 | 0 | 73M | 0 | 78M | 91.3M | 32.7M | 111.9M | 14.6M | 9.7M | 2.34M | 9.29M | 14.25M | 164K | 1M | 43.8M | 108.2M |
| Dividends Paid | -195M | -190M | -108M | -79M | -78M | -20M | -19M | -77M | -76M | -76M | -230M | -710M | -703M | -389M | -209M | -191M | -172M | -460M | -112.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -234M | -315M | -229M | 0 | 0 | 0 | 0 | 0 | 0 | -3M | 0 | -2.22B | -779M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -137M | -56M | -30M | 7M | -10M | -20M | -28M | -49M | 54M | -13M | -11M | 6M | 121M | 84M | 154M | 118M | 10M | 9M | 37M | 22.9M | 13.5M | 0 | 0 | 10K | 1.36M | 0 | -662K | -667K | -2.27M | -3.6M | -7.4M |
| Net Change in Cash | 185M | 322M | 414M | -253M | -522M | -101M | 521M | -256M | -10M | 29M | -672M | -1.46B | 100M | 117M | -216M | 202M | 711M | 1.08B | -299M | 884.4M | 748M | 66.7M | 68.5M | -44.12M | 75.12M | 761K | -5.63M | 400K | -8.3M | 8M | 4.2M |
| Free Cash Flow | 734M | 864M | 953M | -140M | -393M | 90M | 700M | 481M | 277M | 640M | 676M | 879M | 1.92B | 2.73B | 37M | 1.66B | 1.31B | 1.84B | 1.92B | 936.2M | 1.02B | -27.5M | 127.2M | -1.37M | 79.24M | -62.73M | 2.05M | 2.1M | -121.2M | -52.7M | -110.7M |
| FCF Margin % | 8.44% | 9.88% | 10.74% | -1.63% | -5.43% | 1.63% | 11.49% | 5.67% | 3.28% | 8.76% | 9.32% | 5.96% | 8.93% | 14.19% | 0.22% | 11.32% | 10.78% | 14.51% | 14.26% | 9.56% | 14.47% | -0.59% | 5.49% | -0.07% | 5.21% | -3.59% | 0.18% | 0.25% | -8.36% | -4.8% | -14.53% |
| FCF Growth % | -36.23% | -9.34% | 780.71% | 64.38% | -536.67% | -87.14% | 45.53% | 73.65% | -56.72% | -5.33% | -23.09% | -54.1% | -29.8% | 7272.97% | -97.77% | 26.72% | -29% | -3.69% | 104.61% | -7.88% | 3795.64% | -121.62% | 9398.25% | -101.73% | 226.3% | -3157.21% | -2.29% | 101.73% | -129.98% | 52.39% | - |
| FCF per Share | 2.02 | 2.30 | 2.41 | -0.35 | -1.00 | 0.23 | 1.82 | 1.26 | 0.73 | 1.70 | 1.80 | 2.27 | 4.45 | 6.37 | 0.09 | 3.92 | 3.13 | 4.42 | 4.80 | 2.63 | 2.87 | -0.09 | 0.74 | -0.01 | 0.48 | -0.38 | 0.01 | 0.01 | -0.89 | -0.49 | -1.36 |
| FCF Conversion (FCF/Net Income) | 8.07x | 8.54x | 2.05x | 0.14x | -1.15x | -1.16x | -0.36x | -0.12x | -16.81x | -3.51x | -0.40x | -1.73x | 1.04x | 1.46x | 0.25x | 1.07x | 0.93x | 1.43x | 1.18x | 0.89x | 1.78x | 0.27x | 1.44x | 0.39x | 1.42x | -0.34x | 2.03x | -9.00x | 0.46x | -0.01x | -0.21x |
| Interest Paid | 81M | 85M | 86M | 85M | 75M | 76M | 0 | 85M | 90M | 97M | 101M | 103M | 102M | 111M | 40M | 44M | 56M | 56M | 76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 91M | 106M | 161M | 114M | 117M | 78M | 0 | 144M | 64M | 50M | 181M | 782M | 1.38B | 1.1B | 1.57B | 945M | 551M | 929M | 1.26B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Cash Flow Volatility
As reported in recent quarterly filings, NOV's operating cash flow to net income ratio has exhibited extreme volatility, ranging from a negative 7.35 in 2025Q4 to a positive 8.38 in 2025Q3, indicating that reported net income is a poor proxy for actual cash generation.
The significant divergence between net income and operating cash flow suggests that non-cash charges and working capital swings are heavily distorting the company's bottom-line performance. Investors should monitor this disconnect closely, as it implies that earnings quality remains highly sensitive to accounting accruals rather than consistent operational cash inflows.
Based on the provided financial data, NOV's free cash flow trajectory has been erratic, swinging from a peak margin of 20.7% in 2025Q4 to a negative 4.4% in 2026Q1, reflecting the inherent difficulty in maintaining consistent cash conversion during periods of revenue stagnation.
The inability to sustain positive free cash flow margins suggests that the company's capital-intensive business model is highly vulnerable to cyclical downturns. This trend warrants further investigation into whether the recent negative cash flow is a temporary timing issue or a structural shift in the company's ability to monetize its backlog.
According to the cash flow statements, working capital changes have been a primary driver of liquidity fluctuations, with a massive $416 million inflow in 2025Q4 followed by a $311 million outflow in 2024Q1, highlighting the company's reliance on inventory and receivable management to fund operations.
These sharp swings in working capital suggest that NOV's cash position is heavily dependent on the timing of large project milestones and customer payments. Such volatility may indicate that the company lacks the operational flexibility to smooth out cash flows, leaving it exposed to sudden liquidity constraints during project delays.
As indicated by recent financial statements, NOV has continued to prioritize shareholder returns through dividends and buybacks, even as free cash flow turned negative in 2026Q1, with $33 million paid in dividends despite the $91 million free cash flow deficit.
The decision to maintain dividend payments during periods of negative free cash flow suggests a management commitment to shareholder returns that may be unsustainable if the current cyclical downturn persists. This capital allocation strategy warrants further investigation into the company's long-term ability to fund both growth initiatives and investor payouts.
Quick answers to the most common questions about buying NOV stock.
NOV Inc. (NOV) generated $1.24B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NOV Inc. (NOV) generated $864.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
NOV Inc. (NOV) spent $375.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, NOV Inc. (NOV) returned $190.0M to shareholders via cash dividends and spent $315.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.