NOV Inc. (NOV): Business Model Canvas [Dec-2025 Updated]

You're digging into a company that powers the world's energy extraction, and frankly, NOV Inc.'s current state is fascinating: they're sitting on a huge $4.56 billion equipment backlog while chasing the future with digital tools. As a former BlackRock analyst, I can tell you that understanding this dual focus-massive physical equipment sales alongside a push for low-carbon solutions that brought in $339 million in 2024-is key to valuing them right now. This Business Model Canvas cuts through the noise, showing you exactly how their $8.78 billion TTM revenue is generated across their nine core segments. This isn't just about selling big steel anymore. Dive in below to see the precise map of their operating model, from key partnerships to their cost structure.

NOV Inc. (NOV) - Canvas Business Model: Key Partnerships

You're looking at how NOV Inc. builds its external muscle, which is critical when you consider their scale. Their Key Partnerships block isn't just about suppliers; it's about integrating specialized technology to drive their digital and sustainability agendas. Honestly, for a company with a trailing twelve month revenue of $8.78 billion as of September 30, 2025, these alliances are how they maintain that top-line performance across their global footprint of over 500 locations on six continents.

Here's a breakdown of the most significant recent collaborations shaping NOV Inc.'s operational model as of late 2025:

The collaboration with Armada, for instance, directly supports the digital push. This partnership launched the Beacon edge device, designed for remote, space-constrained environments like offshore rigs. At the time of the announcement, NOV's market capitalization stood at $5.73 billion.

The focus on digital technology extends internally through the NOV Supernova Accelerator. This program operates on a venture client model, often serving as a first-client relationship for startups. The goal is to test and implement new technologies quickly without a full acquisition. Startups like AnyLog, which offers an edge data management platform, and Equipt, with its AI-powered self-serve platform for field service performance, are being integrated to refine product-market fit against NOV's pressing enterprise needs.

For the global supply chain, NOV's structure is built for scale. International markets account for nearly two thirds of the company's annual revenue. This global reach is supported by a network that allows for materials procurement from lower-cost sources, leveraging economies of scale in manufacturing.

The Well Data Labs integration is a direct play on operational efficiency, moving analysis from post-job review to real-time action. This means operators can make critical, stage-specific adjustments during the current frac stage, rather than waiting for the next one.

NOV Inc.'s commitment to ESG is formalized through external alignment, such as the strategic alliance with JTC, which began in March 2025. This partnership aims to embed sustainability reporting and advisory services directly into the client offering, complementing NOV's internal efforts, which in 2024 included generating $339 million in revenue from low carbon solutions.

Finance: review Q4 2025 backlog growth against the $4.56 billion Energy Equipment backlog reported at the end of Q3 2025.

NOV Inc. (NOV) - Canvas Business Model: Key Activities

You're looking at the core engine of NOV Inc. right now, the things they absolutely must do well to keep the lights on and the stock moving. It's a mix of heavy industry and high-tech execution.

Manufacturing and global distribution of complex equipment remains central. In the third quarter of 2025, the Energy Equipment segment brought in revenues of $1.25 billion. Within that segment, capital equipment sales-the actual manufacturing and delivery-made up 63% of the total revenue for the quarter, showing the sheer scale of their production activity.

The focus on Research and development (R&D) in digital and low-carbon technologies is evident in their contract wins. For instance, major contract wins in the third quarter of 2025 included deepwater rig automation and subsea flexible riser systems, clearly pointing to technology leadership in complex energy infrastructure. NOV Inc. is leveraging its proprietary technologies across drilling, completion, and production to advance automation and predictive analytics.

Global supply chain management to mitigate tariff and inflation costs is a constant pressure point. Management has explicitly stated that uncertainty around tariffs and inflation will keep weighing on margins in the near term. The company's ability to manage this directly impacts profitability, as seen when their Q3 2025 Adjusted EBITDA margin was 11.9% of sales, or $258 million.

Aftermarket service, repair, and equipment rentals provide a crucial, though sometimes volatile, revenue stream. The Energy Products and Services unit, which houses much of this activity, recorded revenues of $971 million in the third quarter of 2025. However, the company expected rig aftermarket revenues to decline mid-to-upper single digits for the full year 2025.

The Execution of the $4.56 billion Energy Equipment backlog is what provides revenue visibility. As of September 30, 2025, the backlog for Energy Equipment capital orders stood at a record $4.6 billion. Shipments from this backlog totaled $674 million during that same third quarter.

Here's a quick look at how the two main operational segments contributed to the overall financial picture in Q3 2025:

The operational focus is clearly on converting that large order book while managing the service side. You can see the split in expected EBITDA contribution for 2025:

• Energy Equipment segment EBITDA contribution expected around 55% for 2025.
• Energy Products and Services segment EBITDA contribution expected around 45% for 2025.
• Total expected adjusted EBITDA for 2025 is roughly $1 billion, the same as generated in 2024.

The company generated $245 million in free cash flow in the third quarter, converting 95% of its Adjusted EBITDA to cash that quarter. Finance: draft 13-week cash view by Friday.

NOV Inc. (NOV) - Canvas Business Model: Key Resources

You're looking at the core assets that let NOV Inc. operate and compete in the global energy sector as of late 2025. These aren't just assets; they are the foundation for their technology-driven service delivery.

Proprietary drilling, completion, and production technologies represent decades of innovation. NOV's deep expertise allows them to design and manufacture everything from massive mobile machines, like offshore drilling rigs, down to precision sensors. This technological depth is what enables their comprehensive digital energy solutions development.

The company's physical reach is substantial, supporting its global customer base. NOV Inc. conducts operations in over 500 locations across six continents. This footprint is critical for deploying and servicing complex equipment worldwide.

A key indicator of future revenue visibility is the order book. As of the third quarter of 2025, the Energy Equipment segment reported a large, high-margin capital equipment backlog of $4.56 billion. This figure was driven by strong bookings in subsea flexible pipe and process systems, particularly from the offshore sector.

Digital transformation is anchored by the Max Platform and other digital/AI-driven software solutions. This platform is a holistic suite designed to acquire, aggregate, visualize, and analyze data in real-time, using both edge and cloud capabilities. NOV also continues to integrate AI, evidenced by a partnership in November 2025 for new AI-driven use cases at the edge.

The execution of this strategy relies on its people. The highly specialized engineering and field service workforce is the engine behind the technology deployment and support. This team includes a wide array of specialists necessary for complex operations.

Here's a quick look at some of the quantifiable resources as of late 2025:

The specialized workforce composition is vital for leveraging these technologies. The team includes professionals across many disciplines needed to design, build, and service advanced equipment.

• Inventors, designers, and engineers (mechanical, electrical, software, data analytics)
• Technical sales, marketing, and training professionals
• Supply chain, logistics, and quality testing professionals
• Machinists, welders, and other skilled trade professionals
• Field service engineers, mechanics, and technicians

The Max Platform itself is built upon core components that ensure data integrity and accessibility for the field and remote users. If onboarding takes 14+ days, churn risk rises, so the ease of deploying these digital tools is a key operational advantage.

• Max Edge™: Visualization and analytics at the field level
• Max Core™: Foundational layer for secure, organized data services
• Max Portal™: Visualization interface for simultaneous remote and field access

Finance: draft 13-week cash view by Friday.

NOV Inc. (NOV) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose NOV Inc. (NOV) over alternatives, which boils down to their integrated offering across the entire energy development lifecycle. This isn't just about selling a single piece of equipment; it's about providing solutions spanning the three main areas: Rig Technologies, Wellbore Technologies, and Completion & Production Solutions. This full-cycle approach captures value from the initial drilling phase right through to optimizing the well's productive life.

The value proposition is heavily weighted toward digital transformation, helping operators boost output while cutting downtime. For instance, a deepwater floater using NOV's latest NOVOS and Multi Machine Control (MMC) automation systems saw more than a 17% improvement in connection time compared to its previous run. Also, one specific solution helped achieve a rate of penetration field record for a 12-in. hole size after completing 24 wells with it. This focus on integrated physical and digital technologies, like downhole broadband services, enables real-time decision-making that matters when you're operating in tough spots.

Speaking of tough spots, NOV Inc. is a go-to for high-performance equipment in challenging environments. The company's technology is driving significant gains in deepwater, where high-spec 7th generation rigs are now drilling 30-40% faster than they were a decade ago, thanks in large part to the equipment and technology NOV delivers. This reliability is reflected in the backlog; as of the third quarter of 2025, capital equipment orders in Energy Equipment totaled $951 million, contributing to a total backlog of $4.56 billion, driven by strong offshore production demand. Still, you see the market pressure, with Q2 2025 consolidated revenue at $2.19 billion, down 1% year-over-year.

NOV Inc. is also positioning itself for the energy transition, which is a clear financial driver. Revenue generated by NOV's low carbon solutions amounted to $339 million in 2024. This revenue stream is supported by growing business in electrified equipment and carbon capture, helping to offset other market sluggishness. For context on their operational footprint, in 2024, NOV produced 411,023 metric tons of CO2 equivalent (MT CO2e) in Scope 1 and 2 emissions, broken down into 135,554 MT CO2e from stationary combustion and 275,469 MT CO2e from purchased electricity.

The tangible financial results from these propositions are clear when you look at profitability improvements driven by technology adoption and execution on backlog. For the first quarter of 2025, despite a 2% year-over-year revenue decrease to $2.10 billion, Adjusted EBITDA increased 5% to $252 million, or 12.0% of sales. The Energy Equipment segment saw its margins hit 14.4% of sales in Q1 2025, a 430 basis point increase compared to Q1 2024. The overall focus on efficiency and higher-margin backlog is working; Q3 2025 saw sequential EBITDA improve to $258 million with a 95% quarterly EBITDA conversion rate on Free Cash Flow of $245 million.

Here's a quick look at the financial scale supporting these value propositions as of mid-to-late 2025:

The company's ability to deliver these solutions is underpinned by its technology portfolio, which includes:

• Control systems, automation, machine learning, and AI algorithms.
• Wired drill pipe for high-speed data transmission.
• Managed pressure drilling equipment.
• Submerged Swivel and Yoke system for FLNG projects.
• ATOM RTX robotic system installations.
• Monoethylene Glycol (MEG) Reclamation System contracts.

Finance: draft 13-week cash view by Friday.

NOV Inc. (NOV) - Canvas Business Model: Customer Relationships

You're dealing with major energy players, so your customer relationships have to be rock solid, built on more than just a single sale. NOV Inc. serves a specific B2B clientele, primarily major integrated oil and gas companies, national oil companies, independent E&P firms, drilling contractors, and well service companies across the upstream and midstream sectors.

Dedicated, long-term contracts for capital equipment and services are a cornerstone, giving both you and the customer predictability. You can see this commitment reflected in the Energy Equipment segment's backlog, which totaled an impressive \$4.56 Billion as of the third quarter of 2025. That backlog represents future work, often tied to large, multi-year projects, like the integrated cable-lay system contract awarded to a Japanese customer. Also, a recent agreement reinforced the long-term partnership with Petrobras for subsea production infrastructure.

High-touch, expert-led field service and aftermarket support are crucial, though subject to market swings. The Energy Products and Services segment generated revenues of \$1.03 billion in the second quarter of 2025. Still, you saw lower demand for aftermarket parts and services in the first quarter of 2025, which was partially offset by higher sales from the segment's capital equipment offerings in the second quarter. This shows how transactional sales for consumables and spare parts can fluctuate based on immediate drilling activity.

Co-development and integration of digital solutions with major operators are where you build deep, sticky relationships. You're not just selling a piece of iron; you're selling efficiency. For example, NOV is using AI-driven insights in the Delaware Basin to significantly reduce non-productive time for a leading operator. This focus on technology-driven retrofits and digital solutions extends asset life and performance, like the upgrade mentioned in Q1 2025 that enhanced operational efficiency.

Customer training and remote equipment monitoring fall under this digital umbrella. The push for digital tools helps customers manage the complexity of modern operations. You're helping them move toward higher efficiency and lower cost, which is why you're seeing a focus on higher margin, lower risk contracts going forward.

Here's a quick look at how the revenue streams related to these customer interactions break down based on recent performance:

Your customer engagement strategy relies on a few key interaction types:

• Securing large, multi-year capital equipment orders.
• Providing expert field service for installed base.
• Integrating digital tools for performance gains.
• Handling transactional sales of spare parts.
• Delivering technology-driven retrofits and monitoring.

The overall consolidated revenue for the trailing twelve months ending September 30, 2025, was \$8.775B. Finance: draft 13-week cash view by Friday.

NOV Inc. (NOV) - Canvas Business Model: Channels

You're looking at how NOV Inc. gets its equipment, parts, and digital services into the hands of global energy producers, and it's a multi-pronged approach built on physical presence and digital reach.

Direct global sales force handles the big-ticket items, the large capital equipment orders that drive significant portions of the Energy Equipment segment revenue. This direct engagement is crucial for complex, customized projects.

The extensive network of service centers is the backbone for the aftermarket business, supporting parts sales and repairs, which is a key component of the Energy Products and Services segment. This network supports the installed base globally.

Digital delivery is increasingly important. The Max Platform acts as the channel for data delivery and visualization. This IIoT platform uses the Max Core foundational software layer to deliver organized, secure data, supporting applications like Max Completions and third-party analytics via the Max Portal visualization interface, which serves both field and remote users with one source of truth. This platform enables real-time insights to drive data-driven decision-making across the well lifecycle.

Global distribution centers move product sales and rentals. This infrastructure supports the global reach necessary to serve customers across six continents. For context on the scale of international business, for the twelve months trailing September 30, 2025, International Revenue stood at $5.49B out of a total revenue of $8.78B.

Regional offices are key facilitators for international sales. The prompt specifies that these offices supported 61% of Q1 2025 revenue, underscoring the reliance on localized international presence for a significant portion of the business flow.

Here's a quick look at the scale of the business that these channels support, based on the first quarter of 2025 results:

The digital channel is evolving rapidly, focusing on integrating best-in-class technologies. For example, the Max Platform hosts partner solutions like AKM's ProACT drilling data analytics solution, providing users with single sign-on access to solutions both at the edge and in the cloud.

The physical channel infrastructure is vast:

• Operations span more than 500 locations across six continents.
• The network supports aftermarket parts and repairs through an unmatched global aftermarket facilities network.
• The company uses its distribution capabilities to accelerate commercialization of new technologies.

Finance: draft 13-week cash view by Friday.

NOV Inc. (NOV) - Canvas Business Model: Customer Segments

You're looking at the core buyers for NOV Inc., the ones who actually sign the checks for the big equipment and services that keep the energy flowing. Honestly, their customer base is a who's who of the global energy extraction world.

The company serves customers across the upstream (drilling, completion, production) and midstream (transportation, storage) sectors of the energy industry. NOV serves major-diversified, national, and independent service companies, contractors, and energy producers in 61 countries globally. International markets contribute nearly two thirds of NOV Inc.'s annual revenue.

Here's a quick look at the financial backdrop as of late 2025, which frames the spending power of these segments:

The primary customer segments that drive this revenue and backlog include:

• Major integrated oil and gas companies (Supermajors).
• National Oil Companies (NOCs) globally.
• Independent Exploration and Production (E&P) companies.
• Drilling contractors and well service companies.

Major integrated oil and gas companies and large drilling contractors typically contribute the largest share of revenue due to their significant capital expenditures. The company's ability to adapt to market dynamics, including the integration of natural gas and renewable energy, is key to serving this diverse clientele.

Specific customer types served by NOV Inc. include:

• Well-servicing companies.
• Rig fabricators.
• Pressure pumping companies.
• Service companies, oil and gas companies, and shipyards are predominant customers.

The company holds an estimated 14.7% market share in the Oil and Gas Drilling Equipment Manufacturing industry. This fragmented customer base, spanning 61 countries, is a strategic focus to avoid concentration risk.

NOV Inc. (NOV) - Canvas Business Model: Cost Structure

You're looking at the cost side of the NOV Inc. ledger as of late 2025. It's a structure heavily weighted toward the physical creation of equipment, but with growing, non-trivial costs tied to future-proofing the business through technology and managing global trade friction. Honestly, looking at the margins, you see the immediate pressure points clearly.

The core cost driver remains the production of physical goods. While the company is focused on executing higher-margin backlog, the sheer scale of manufacturing means the Cost of Goods Sold (COGS) is substantial. For instance, in Q2 2025, with revenues at $2.19 billion, the implied COGS was approximately $1.744 billion, based on the reported gross profit of $446 million.

This cost base is under pressure. The gross margin for the third quarter of 2025 compressed to 18.9%, down from 21.4% in Q2 2025, reflecting the impact of mix shifts and external costs.

NOV Inc. is definitely spending to stay ahead, which shows up in R&D, even if the exact dollar amount isn't always isolated in the top-line summaries. The focus here is on digital transformation; digital revenue grew +25% year-over-year in Q2 2025, signaling where capital is being deployed for future value capture.

Operating expenses include necessary, but non-recurring, charges related to efficiency drives. You see this in the 'Other Items' line:

• Restructuring and severance costs recorded in Q2 2025 totaled $19 million.
• In Q3 2025, 'Other Items,' which included asset/inventory write-downs and litigation charges alongside restructuring, amounted to $65 million.

The global footprint creates unavoidable logistics costs. Tariffs and inflation are explicitly called out as margin detractors. The tariff expense, which was approximately $11 million in Q2 2025, was projected to step up to between $25 to $30 million by the fourth quarter of 2025. To counter this and other pressures, management has identified over $100MM of savings to capture by the end of 2026 through process centralization and strategic sourcing.

The overhead to run the global enterprise is captured in SG&A. For the twelve months ending September 30, 2025, NOV Inc.'s SG&A expenses were $1.189 billion.

Here's a quick look at key cost-related metrics from the latest reported periods:

The company is actively managing these costs, aiming for structural savings while absorbing near-term shocks like tariffs. Finance: draft 13-week cash view by Friday.

NOV Inc. (NOV) - Canvas Business Model: Revenue Streams

You're looking at how NOV Inc. actually brings in its money, which is key for understanding its financial stability. As of late 2025, the revenue picture is split across its two main segments: Energy Products and Services and Energy Equipment. For the second quarter of 2025, total consolidated revenue hit $2.19 billion.

The breakdown of revenue streams within those segments tells a more granular story about where the dollars are coming from. It's not just about selling big things; the recurring and consumable revenue streams are vital, even if they fluctuate with drilling activity. Honestly, the mix shift in Q2 2025 showed some pressure on certain areas.

Here's the quick math on the revenue mix for the two segments in Q2 2025:

The Energy Products and Services segment brought in $1.03 billion in revenue for the second quarter of 2025, down 2% year-over-year, largely due to lower global drilling activity impacting shorter cycle consumable products.

The Energy Equipment segment was flat year-over-year at $1.21 billion in revenue for Q2 2025. This segment's revenue mix shows a heavy reliance on capital equipment sales, which offset lower sales of aftermarket parts and services.

Drilling down into the specific revenue types you asked about:

• Sales of capital equipment (e.g., rigs, pumps, subsea systems) are a major component, making up 34% of the Energy Products and Services revenue mix in Q2 2025.
• Services and rentals represented exactly 50% of the Energy Products and Services Q2 2025 revenue, holding flat year-over-year due to market share gains.
• Sales of consumable products, which includes items like drill bits, made up 16% of the Energy Products and Services revenue in Q2 2025.
• Aftermarket parts and repair services are captured within the Energy Equipment segment's 38% share of that segment's revenue in Q2 2025, though sales were lower year-over-year.
• Revenue from low-carbon solutions is emerging, with notable Q2 2025 achievements including contracts for digital services, engineering and supplying a MEG recovery system, and delivering a Submerged Swivel and Yoke system for an FLNG project.

For the Energy Equipment segment in Q2 2025, capital equipment accounted for 62% of its revenue, while the aftermarket portion was 38%. This segment saw improved profitability driven by strong execution on higher-margin backlog, which helped overcome the lower aftermarket sales.

Finance: draft 13-week cash view by Friday.