SLB (NYSE: SLB) reported fourth-quarter and full-year 2025 results. Q4 showed sequential growth across metrics. The company raised its dividend and pledged over $4 billion in shareholder returns for 2026.
Q4 2025 Financial Highlights
Revenue reached $9.75 billion, up 9% sequentially and 5% year-on-year. GAAP EPS was $0.55, up 10% sequentially but down 29% year-on-year. Adjusted EPS hit $0.78, up 13% sequentially and down 15% year-on-year.
Net income attributable to SLB totaled $824 million, up 12% sequentially and down 25% year-on-year. Adjusted EBITDA was $2.33 billion, up 13% sequentially and down 2% year-on-year. Cash flow from operations was $3.01 billion. Free cash flow reached $2.29 billion.
The ChampionX acquisition, closed in Q3 2025, contributed $879 million in revenue for the full quarter.
Full-Year 2025 Performance
Revenue totaled $35.71 billion, down 2% year-on-year. GAAP EPS was $2.35, down 24%. Adjusted EPS stood at $2.93, down 14%.
Net income attributable to SLB was $3.37 billion, down 24%. Adjusted EBITDA fell 7% to $8.46 billion. Cash flow from operations was $6.49 billion. Free cash flow was $4.11 billion, after $276 million in acquisition payments.
Excluding ChampionX, full-year revenue declined 6%. International revenue dropped 6%; North America fell 2%.
Revenue by Geography and Division
By Geography:
Q4 revenue grew sequentially in all regions for the first time since Q2 2024. Latin America revenue rose 12% to $1.68 billion. Europe & Africa increased 3% to $2.53 billion. Middle East & Asia gained 7% to $3.23 billion. North America climbed 15% to $2.21 billion.
Excluding ChampionX, international revenue rose 7% sequentially; North America 6%.
By Division:
Digital revenue hit $825 million, up 25% sequentially and 17% year-on-year. Annual recurring revenue exceeded $1 billion, up 15%. Reservoir Performance revenue was $1.75 billion, up 4% sequentially. Well Construction revenue fell 1% to $2.95 billion. Production Systems revenue surged 17% to $4.08 billion, boosted by ChampionX.
CEO Commentary and Strategic Focus
CEO Olivier Le Peuch highlighted strong Q4 driven by Production Systems, Digital, and Reservoir Performance. Global upstream activity stabilized. Revenue grew in both North America and international markets.
Despite 2025 challenges like lower commodity prices and oversupply, SLB emphasized production and recovery. ChampionX added $1.46 billion in revenue. Digital grew 9% with 35% EBITDA margin. Data Center Solutions expanded 121%.
Le Peuch expects Middle East rig activity to rise in 2026. The company prioritizes intervention, artificial lift, and chemicals.
Shareholder Returns and Dividend
SLB repurchased 60 million shares for $2.41 billion in 2025. The board approved a 3.5% dividend hike to $0.295 per share, payable April 2, 2026. SLB commits to returning over $4 billion in 2026 via dividends and buybacks.
Key Contracts and Technology Wins
Notable awards included Aramco’s five-year stimulation contract in Saudi Arabia, BP’s subsea boosting for Tiber, and PTTEP’s EPC contracts in Malaysia.
Technology highlights featured OnWave autonomous logging in Italy, Reda Agile pump in Libya, and AI-powered AiPSO with ADNOC. Digital launches included Tela agentic-AI assistant and partnerships with Shell and BP.
Outlook and Growth Areas
SLB anticipates gradual activity improvement in 2026. Production and recovery demand rises. Digital and Data Center Solutions offer high-margin growth. Expansions include Shreveport facility for data centers and geothermal partnership with Ormat.
Takeaway
SLB ended 2025 with a strong fourth quarter, as revenue, net income, and adjusted EBITDA all increased sequentially and reflected more stable upstream activity across geographies. ChampionX provided a meaningful incremental contribution in the quarter and is positioned to support further momentum as integration continues.
The company also underscored its shareholder-return framework by increasing the quarterly dividend to $0.295 per share and reaffirming a commitment to return more than $4 billion through dividends and share repurchases in 2026.
While full-year 2025 results declined year-on-year, SLB emphasized cash flow generation and identified production, recovery, Digital, and Data Center Solutions as key levers for growth heading into 2026.
