Oilfield services company SLB closed Q4 with impressive results, boasting $9.7 billion in revenue (up 9%), an EBITDA margin of 23.9%, $2.3 billion in free cash flow, and reduced net debt to $7.4 billion. They also returned $4.0 billion to shareholders in 2025. Revenue was driven by Digital and Production Systems, with new AI initiatives and an ADNOC partnership. For 2026, SLB expects revenue of $36.9–$37.7 billion and adjusted EBITDA of $8.6–$9.1 billion, highlighting growth in subsea tendering and data centers.

SLB executives highlighted a strong finish in 2025, expanding growth avenues in digital, production recovery, and data centers. CEO Olivier Le Peuch noted operational and financial success despite challenges, with a sequential revenue increase and substantial cash flow generation. Revenue for the quarter was $9.7 billion, with $500 million of organic growth. Sequential growth was seen across all geographies for the first time since 2024, showing signs of a rebound in key markets.

Production Systems and Digital led SLB’s results in Q4, with an adjusted EBITDA margin of 23.9%, up 83 bps sequentially. Digital revenue reached $825 million, up 25% sequentially, with an EBITDA margin of 35% for the full year. Subsea trees, reservoir performance, and well construction also showed growth. SLB generated $3.0 billion in cash flow and $2.3 billion in free cash flow in Q4, reducing net debt to $7.4 billion.

Looking ahead, SLB expects to return over $4 billion to shareholders in 2026 through dividends and buybacks. The company aims to maintain a 3.5% dividend increase, targeting buybacks of $2.4 billion in 2026. Despite near-term oversupply challenges, SLB anticipates a rebound in international markets and offshore activity. It expects to exit 2026 at a higher level than 2025 as supply and demand rebalance into 2027.

In subsea, SLB anticipates awarding over 500 subsea trees in 2026-2027, with cumulative bookings exceeding $9 billion. The data center solutions business is expanding, targeting a $1 billion annual run rate by the end of 2026. SLB is actively operating in Venezuela, with the potential to ramp up activity quickly if conditions permit. Founded in 1926, SLB is a global provider of technology and services for the energy industry, offering solutions for oil and gas exploration, drilling, and production.

Read more at Yahoo Finance: SLB Q4 Earnings Call Highlights