Shell (SHEL) Q4 2025 earnings summary

Executive summary

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

• Delivered over $5.1 billion in structural cost reductions since 2022, ahead of schedule, with a target of $5–7 billion by 2028.

• Distributed more than $22 billion to shareholders in 2025, representing 52% of cash flow from operations.

• Maintained a resilient balance sheet with net debt at $45.7 billion and gearing at 20.7%.

• Portfolio strengthened through divestments, acquisitions, and growth in LNG and deepwater assets.

Financial highlights

• Full year 2025 adjusted earnings were $18.5 billion; cash flow from operations was $42.9 billion, and free cash flow reached $26.1 billion.

• Q4 2025 adjusted earnings were $3.3 billion; adjusted EBITDA for Q4 was $12.8 billion.

• Dividend per share increased by 4% to $0.372, with a $3.5 billion buyback program announced.

• Upstream and integrated gas segments delivered strong results, with high-margin upstream volumes and LNG sales up 11% year-over-year.

• Net debt at year-end was $45.7 billion.

Outlook and guidance

• Cash capex for 2026 is set at $20–22 billion, with the same range targeted for 2025–2028.

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

• Shareholder distributions to remain at 40–50% of CFFO through the cycle.

• Continued focus on operational improvements, cost reductions, and leveraging AI for future gains.

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