Glaukos 2026 Net Sales Guidance and Q1 Performance Analysis

NOV’s strategic positioning and growth outlook in Q1 2026 (amid increased industry activity)

1) What changed in the industry during Q1 2026—and how NOV framed it

NOV reported that the first quarter of 2026 unfolded amid a “rapidly changing backdrop” due to the Middle East conflict, which disrupted logistics and delivery cadence even while demand remained supported in parts of the business. ¹ NOV also characterized the environment as shifting toward a new capital equipment cycle, arguing that the industry’s underinvestment means it is not starting from a position of excess capacity, so “demand” does not require an immediate supply catch-up to translate into incremental investment needs. ²

Key industry-setting implication: NOV sees the “demand picture” improving while the conflict mainly affects execution timing (deliveries, site access, goods movement) rather than eliminating the underlying need for capital equipment and enabling tools. ¹²

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2) Evidence of demand strength: bookings momentum and record backlog

Even with delivery constraints near quarter-end, NOV showed clear demand indicators:

• Energy Equipment segment bookings: $520 million in Q1 2026, resulting in a book-to-bill of 0.80, while orders improved by $83 million year over year and represented NOV’s strongest first quarter order intake since 2019. ¹
• Strong order intake despite disruption: NOV specifically noted that the most pronounced impacts of the conflict were on capital equipment and aftermarket operations through constrained movement/access/logistics affecting quarter-end deliveries. ¹
• Fiberglass bookings and backlog: NOV stated fiberglass achieved record quarterly bookings, and that backlog is at the highest level in ten quarters (with backlog supported by bookings plus delivery delays). ³

Bottom line: NOV’s Q1 pattern is consistent with increasing industry activity (orders and backlog building) while the Middle East largely delayed some fulfillment rather than collapsing demand. ¹³

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3) NOV’s strategic positioning: “capacity tightness” + execution leverage across cycles

NOV’s strategic positioning rests on four connected ideas emphasized in the call:

A. Being positioned for an eventual “full-cycle” upturn across businesses

NOV explicitly linked its positioning to the industry moving into a period of increased reinvestment:

• NOV said it is targeting an environment “late this year and into 2027” where it could see “all eight cylinders” and “significantly higher earnings power” than in the “limited market” of recent years. ⁴
• NOV also described the broader setup as “increasingly constructive”, expecting that when conditions stabilize, delayed activity resumes and underlying demand becomes clearer. ⁵

B. Anticipated industry capacity shortage creates opportunities for NOV

NOV argued that mapping capacity vs. competitors suggests:

• The industry will be “short on capacity” in a few years, and NOV sees a “great opportunity” to step in and support customers. ⁶

This supports NOV’s positioning as a provider capable of supplying equipment/enabling tools when the industry’s ability to deliver lags behind reinvestment needs. ⁶⁷

C. Global footprint and portfolio diversification provide “earnings leverage”

NOV stated it has “a global footprint”, an “intentional and diverse portfolio”, and “strong market positions” that can provide earnings leverage as conditions improve. ⁸

This is important because NOV also reported that disruptions were uneven across end markets (more disruption for land-based and logistics-sensitive capital equipment; substantially less disruption for some service/rental operations, particularly supporting land-based operations). ¹

D. NOV’s operational culture and HSE performance as a support for customer service

NOV emphasized safety and operational quality:

• It achieved its lowest ever total recordable incident rate and lost time incident rate in Q1 2026. ¹
• Management linked HSE performance to higher quality, reduced downtime, and better service, which supports execution during volatile conditions. ¹

While not a direct “growth driver,” this reinforces NOV’s capacity to convert demand into delivered work/services when logistics and schedules are stressed. ¹

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4) Growth outlook: where NOV expects increased activity to translate into future demand

A. Offshore drilling: contracting activity increasing; NOV ties it to more upgrades/reactivations and recurring parts

NOV described offshore drilling customers increasing contracting activity:

• It said customers are seeing an increasing pace of contracting activity and meaningful increases in the duration of new contracts. ⁵
• NOV expects the number of drillships under contract in 2027 to reach the highest level since 2015. ⁵
• NOV linked higher future activity to reactivations and upgrades (including a rig reactivation example) and additional recurring spare part sales. ⁵

Management also acknowledged long timelines, but argued the outlook is more compelling as energy security concerns increase urgency and operators begin increasing exploration budgets and accelerating development (including brownfield expansions). ⁵

B. Deepwater investment acceleration (2026–2028)

NOV explicitly called for an acceleration in investment:

• It expects an acceleration in deepwater investment project activity over the coming years. ⁵
• It also stated it is preparing for a more constructive environment where delayed activity resumes and demand trends become more visible. ⁵⁴

C. Service/technologies growth supported by “pull-through” from activity and lead-time visibility

NOV provided examples of technology pull-through:

• In flexibles, NOV noted bookings outlook is very favorable and lead times extending into 2028 for some projects, while also pointing to Brazil growth and pipeline ramp. ⁹
• NOV discussed downhole broadband services and wired drill pipe adoption via its digital services, describing continued expansion and adoption of real-time broadband data transmission. ¹⁰

This suggests NOV expects that increased industry activity will not only lift capital equipment demand but also increase adoption of service/digital enabling technologies that have longer-term operating utility once installations are made. ⁹¹⁰

D. Specific capacity and expansion steps (subsea flexible pipe in Brazil)

NOV is backing its outlook with capacity expansion:

• NOV approved a $200 million expansion of its subsea flexible pipe manufacturing facility in Brazil to address a developing capacity shortfall as offshore activity increases. ¹¹
• Management connected bookings for offshore production-related equipment being healthy in Q1 2026, supported by a large subsea flexible pipe order for Brazil and a large FEED study tied to a complex FPSO environment. ¹¹

This is a direct “positioning” action: NOV is ensuring it has production capacity aligned with the expected increase in offshore development and replacement needs. ¹¹

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5) Near-term constraints and how NOV says it will manage them

NOV is candid that execution timing is still an issue:

• It estimated the Middle East conflict negatively impacted revenue by ~$54 million and EBITDA by ~$32 million. ¹
• NOV said conflict escalations constrained movement/access/logistics, significantly affecting quarter-end deliveries particularly in capital equipment and aftermarket operations. ¹
• NOV also noted materials and market conditions affecting product costs and performance, such as tungsten carbide costs up ~400% since 2025, requiring mitigation via sourcing/pricing/operations. ¹⁰

At the same time, NOV expects normalization in deliveries and stronger results:

• For Q2, NOV said it expects second quarter results to meaningfully improve and revenue in the second half to further increase compared to the first half, supported by robust demand and execution on strong backlog. ³

So the growth outlook is positive but staged: NOV expects the “activity wave” to convert into financial performance as delivery timing normalizes and backlog is worked. ³

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Overall conclusion

Amid increased industry activity indicators, NOV’s strategic positioning in Q1 2026 is built around: (1) demand strength visible in bookings/orders and elevated backlog despite delivery disruptions; (2) conviction that the industry is heading toward capacity tightness and a new capital equipment cycle; and (3) execution leverage from a diversified global portfolio plus targeted capacity expansion (notably Brazil flexibles). ¹⁶⁸¹¹ Management’s growth outlook centers on an upcycle that becomes more clearly evident as Middle East conditions stabilize—especially in offshore drilling and deepwater investment—with medium-term expectations that contracting duration, drillship utilization/under-contract levels, and reactivation/upgrade demand will increase recurring and service pull-through into 2027. ⁵⁴³