Schlumberger(US:SLB)2026-01-23 12:06Financial Performance - Fourth-quarter revenue of $9.75 billion increased 9% sequentially and 5% year on year[2] - Fourth-quarter GAAP EPS of $0.55 increased 10% sequentially but decreased 29% year on year[2] - Fourth-quarter net income attributable to SLB of $824 million increased 12% sequentially but decreased 25% year on year[2] - Full-year revenue of $35.71 billion decreased 2% year on year[2] - Full-year net income attributable to SLB of $3.37 billion decreased 24% year on year[2] - Total revenue for SLB in 2025 was $35.7 billion, a decrease of 2% compared to $36.3 billion in 2024[10] - SLB reported Q4 2025 revenue of $9,745 million, a 5% increase from $9,284 million in Q4 2024[57] - Net income attributable to SLB for Q4 2025 was $824 million, down 25% from $1,095 million in Q4 2024[57] - SLB's total revenue for the twelve months ended December 31, 2025, was $35,708 million, a decrease of 1.6% compared to $36,289 million in 2024[57] - Net income for the twelve months ended December 31, 2025, was $4,291 million, a decrease from $5,672 million in the previous year, representing a decline of 24.4%[66] Cash Flow and Dividends - Full-year cash flow from operations was $6.49 billion and free cash flow was $4.11 billion[2] - SLB generated $6.5 billion in cash flow from operations and $4.1 billion in free cash flow in 2025, returning $4.0 billion to shareholders[16][22] - Free cash flow for the fourth quarter of 2025 was $2,289 million, compared to $3,005 million in the previous quarter, reflecting a decrease of 23.8%[62] - Cash flow from operations for the twelve months ended December 31, 2025, was $6,489 million, slightly down from $6,602 million in the previous year[62] - The board approved a 3.5% increase in quarterly cash dividend to $0.295 per share[2] - The company paid dividends totaling $426 million in the fourth quarter of 2025, compared to $1,602 million in the previous quarter[62] Revenue Segmentation - Digital segment revenue increased 25% sequentially and 13% year on year, reflecting strong growth[6] - Digital revenue increased by 9% year-on-year to $2.66 billion, with an adjusted EBITDA margin of 34.9%[10][20] - Production Systems revenue grew by 12% year-on-year to $13.33 billion, with a pretax segment operating income of $2.18 billion, reflecting a 15% increase[10] - North America revenue increased by 12% year-on-year to $7.52 billion, while international revenue decreased by 5% to $27.94 billion[12] - Digital revenue reached $825 million, increasing 25% sequentially and 17% year-over-year, driven by strong growth in Digital Exploration and Digital Operations[35] - Reservoir Performance revenue was $1.75 billion, a 4% sequential increase, but a 3% year-over-year decline primarily due to reduced activity in Saudi Arabia and Europe[39] - Well Construction revenue decreased 1% sequentially to $2.95 billion and declined 10% year-over-year, impacted by reduced drilling activity across multiple regions[42] - Production Systems revenue increased 17% sequentially to $4.08 billion and 30% year-over-year, significantly boosted by the acquisition of ChampionX, which contributed $874 million in revenue[44] - Digital Division revenue increased by 9% year-on-year to $2.660 billion in 2025, with pretax operating income rising 22% to $745 million[97] - Data Center Solutions revenue surged 121% year-on-year to $460 million in 2025, compared to $208 million in 2024[102] Acquisitions and Strategic Initiatives - SLB acquired ChampionX, contributing $879 million in revenue and $206 million in adjusted EBITDA in the fourth quarter[3] - The acquisition of ChampionX contributed $1.46 billion in revenue during 2025, with $879 million in the fourth quarter alone[10][19][25] - The company anticipates benefits from the ChampionX acquisition, focusing on successful integration and achieving anticipated synergies[107] - SLB's partnership with Shell aims to develop AI solutions to enhance upstream operations, focusing on performance and efficiency gains[55] Operational Highlights - The company secured a five-year contract with Aramco for stimulation services in Saudi Arabia, part of a multi-billion dollar contract[53] - SLB's new technology, the OnWave™ platform, was deployed in Italy, enhancing data acquisition and well control, significantly improving fracture characterization[54] - The Reda Agile™ pump system installed in Libya achieved an initial flow rate of approximately 2,000 barrels of fluid per day[54] - SLB's cumulative incremental oil recovery in Oman exceeded 580,000 barrels over 33 jobs within 7 years[54] - The company expanded its operations in Shreveport, Louisiana, nearly doubling its facility footprint to meet growing data center demand[56] Future Outlook and Strategic Goals - SLB expects to return over $4 billion to shareholders in 2026, with a 3.5% increase in quarterly dividends starting April 2026[23][24] - The company is committed to achieving net-zero carbon emissions goals and interim emissions reduction goals, although these are subject to various risks and uncertainties[108] - SLB's business strategies include digital initiatives and "fit for basin" approaches, aimed at improving operational efficiencies and adapting to market conditions[107] - The company acknowledges potential impacts from global economic and geopolitical conditions on energy supply and operational performance[107] - SLB is focused on enhancing its technology to meet new challenges in exploration and addressing competitiveness from alternative energy sources[108] - The company is monitoring changes in exploration and production spending by customers, which could affect its financial performance[108] - SLB's operational modifications and supply chain challenges may influence its ability to achieve intended benefits from business strategies[108] - The company disclaims any obligation to update forward-looking statements, emphasizing the evolving nature of its sustainability-related goals[108]