Shell (SHEL) Q4 2025 earnings summary

Executive summary

• Achieved $18.5 billion in adjusted earnings for 2025, with Q4 at $3.3 billion, supported by strong operational performance despite lower commodity prices and non-cash tax impacts.

• Delivered $5.1 billion in structural cost reductions by end-2025, three years ahead of schedule, with a cumulative target of $5–7 billion by 2028.

• Distributed over $22 billion to shareholders in 2025, representing 52% of CFFO, with a 4% dividend increase and a $3.5 billion buyback, marking 17 consecutive quarters of $3 billion+ buybacks.

• Maintained a robust safety focus, achieving a 30% reduction in process safety incidents year-over-year.

• Executed major portfolio actions, including divestments in Nigeria and Singapore, and growth in LNG and deepwater assets.

Financial highlights

• Full-year 2025 adjusted earnings were $18.5 billion, with cash flow from operations at $42.9 billion and free cash flow at $26.1 billion.

• Q4 2025 adjusted EBITDA was $12.8 billion; Q4 CFFO was $9.4 billion.

• Upstream and Integrated Gas segments delivered strong results, with LNG sales up 11% year-over-year and production increases in key regions.

• Mobility and lubricants achieved record margins and ROACE, with mobility over 15% and lubricants over 21%.

• Dividend per share increased to $0.372 for Q4 2025.

Outlook and guidance

• Cash CapEx for 2026 is guided at $20–22 billion, with the same range targeted through 2028.

• Targeting over 10% annual growth in normalized free cash flow per share through 2030.

• Committed to distributing 40–50% of CFFO to shareholders through the cycle.

• Further cost reductions and performance improvements expected, with AI as a transformative enabler.

• Structural cost reduction target of $5–7 billion by end-2028.