SLB (SLB) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 2025 operational and financial performance, with 9% sequential revenue growth, margin expansion, and robust cash flow, driven by international and North American markets, digital, and Production Systems.

• All geographies showed sequential growth for the first time since Q2 2024, signaling stabilization and early rebound in global upstream activity.

• Digital and Data Center Solutions businesses delivered strong growth, with Digital ARR surpassing $1 billion (up 15% YoY) and Data Center Solutions revenue up 121% year-over-year.

• ChampionX acquisition contributed $300 million to Q4 revenue and $1.46 billion in 2025, with accretive margins, and is expected to add $1.8 billion in 2026.

• Positioned to benefit from international market rebound, especially in the Middle East, Latin America, Asia, and Sub-Saharan Africa.

Financial highlights

• Q4 revenue was $9.75 billion, up 9% sequentially and 5% year-over-year; $300 million from ChampionX consolidation.

• Adjusted Q4 EPS was $0.78, up $0.09 sequentially but down $0.14 year-over-year; net charges of $0.23 per share included goodwill impairment, merger costs, and workforce reductions.

• Q4 adjusted EBITDA was $2.33 billion (up 13% sequentially); adjusted EBITDA margin for Q4 was 23.9%, up 83 basis points sequentially, driven by digital performance.

• Generated $3 billion in Q4 operating cash flow and $2.3 billion in free cash flow; full-year free cash flow was $4.1 billion.

• Net debt reduced by $1.8 billion in Q4, ending at $7.4 billion.

Outlook and guidance

• 2026 revenue expected between $36.9 billion and $37.7 billion, assuming oil prices in the high $50s to low $60s.

• Adjusted EBITDA guidance for 2026 is $8.6–$9.1 billion, with margins in line with 2025.

• Over $4 billion to be returned to shareholders in 2026 via increased dividends and share repurchases.

• Q1 2026 revenue expected to decline high single digits sequentially due to seasonality, with a rebound in Q2 and further expansion in H2, led by international markets.

• CapEx for 2026 set at $2.5 billion, supporting growth in digital, data centers, and production recovery.