Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $9.7 billion, an increase of $817 million or 9% sequentially, with approximately $300 million attributed to the acquisition of ChampionX [20][19] - Adjusted EBITDA margin for the fourth quarter was 23.9%, an increase of 83 basis points sequentially, driven by strong digital performance [20][19] - Earnings per share, excluding charges and credits, was $0.78, reflecting a sequential increase of $0.09 but a decrease of $0.14 compared to the same quarter last year [19] Business Line Data and Key Metrics Changes - Digital revenue reached $825 million, a 25% sequential increase, with a pre-tax operating margin of 34%, up 557 basis points [21] - Reservoir Performance revenue was $1.7 billion, a 4% sequential increase, driven by strong international activity [21] - Production Systems revenue increased by 17% sequentially to $4.1 billion, reflecting a full quarter of activity from ChampionX [22] Market Data and Key Metrics Changes - Internationally, organic revenue increased by 7%, with North America seeing a 6% increase [6] - The Middle East showed increased activity, particularly in Saudi Arabia and UAE, contributing to the overall revenue growth [6][12] - The company noted a stabilization in global upstream activity, with key markets showing early signs of a rebound [6] Company Strategy and Development Direction - The company aims to leverage technology and digital solutions to enhance operational efficiency and reduce costs for customers [10][11] - There is a focus on production recovery as a critical domain for value creation, integrating equipment with intelligent digital capabilities [11][66] - The company anticipates a gradual recovery in upstream investment, particularly in international markets, as supply and demand rebalance [10][12] Management's Comments on Operating Environment and Future Outlook - Management expects near-term oversupply to exert downward pressure on commodity prices, but geopolitical uncertainties may provide a price floor [9][10] - The outlook for 2026 includes revenue expectations between $36.9 billion and $37.7 billion, driven by a full year of ChampionX activity and growth in digital operations [15][16] - The company is optimistic about the recovery in international markets, particularly in Latin America and the Middle East, while anticipating slight declines in Europe and Africa [15] Other Important Information - The company generated $3 billion in cash flow from operations during the fourth quarter, with free cash flow of $2.3 billion [22] - A total of $4 billion was returned to shareholders in 2025, with plans for a similar amount in 2026 through dividends and stock buybacks [26] - The company is the only international service provider actively operating in Venezuela, with plans to ramp up activities as conditions allow [18][56] Q&A Session Summary Question: CapEx trends and capital intensity - Management indicated a slight increase in CapEx to $2.5 billion for 2026, emphasizing improved capital efficiency compared to the past [31][32] Question: Customer mix and market opportunities in the Middle East - Management expressed confidence in national companies executing capital programs and noted a rebound in Saudi Arabian drilling activity [35][36] Question: Exit rate expectations for 2026 - Management expects the fourth quarter of 2026 to be higher than that of 2025, driven by international market recovery [45][46] Question: Digital business penetration - Management highlighted the potential for digital platforms to transform the industry, with increasing customer adoption of digital solutions [47][48] Question: Opportunities in Venezuela - Management noted readiness to ramp up operations in Venezuela, leveraging historical partnerships and existing assets [56][58] Question: Offshore market outlook - Management anticipates improved offshore activity in 2026, supported by FID and project developments in various regions [91][92]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $9.7 billion, an increase of $817 million or 9% sequentially, with approximately $300 million attributed to the acquired ChampionX businesses [20] - Adjusted EBITDA margin for the fourth quarter was 23.9%, an increase of 83 basis points sequentially, driven by strong digital performance [20] - Earnings per share, excluding charges and credits, was $0.78, reflecting a sequential increase of $0.09 but a decrease of $0.14 compared to the same quarter last year [19] Business Line Data and Key Metrics Changes - Digital revenue for the fourth quarter was $825 million, a 25% sequential increase, with a pre-tax operating margin expanding to 34% [21] - Reservoir Performance revenue increased by 4% sequentially to $1.7 billion, driven by strong international activity, particularly in Saudi Arabia and East Asia [21] - Production Systems revenue rose by 17% sequentially to $4.1 billion, reflecting a full quarter of activity from ChampionX, with an 11% increase when excluding ChampionX [22] Market Data and Key Metrics Changes - International markets are stabilizing, with Latin America and the Middle East leading the rebound in 2026 [12] - The Middle East is expected to see a resurgence in drilling and workover activity, particularly in Saudi Arabia, with rig counts potentially returning to early 2025 levels by the end of 2026 [12] - Offshore markets are anticipated to present long-term growth opportunities, particularly in deepwater, with over 500 subsea trees expected to be awarded in 2026 and 2027 [13] Company Strategy and Development Direction - The company aims to leverage its integrated portfolio, including ChampionX, to meet the growing demand in production recovery and optimization [11] - A focus on digital solutions and technology integration is emphasized to enhance efficiency and reduce costs for customers [10] - The company is strategically positioned to capitalize on the expected rebound in international activity as supply and demand rebalances [14] Management's Comments on Operating Environment and Future Outlook - Management anticipates near-term oversupply may exert downward pressure on commodity prices, but geopolitical uncertainties could provide a price floor [9] - The company expects 2026 revenue to be between $36.9 billion and $37.7 billion, benefiting from a full year of ChampionX activity and stronger offshore activity [15] - Management expressed confidence in the gradual recovery of upstream investment, particularly in key international markets, as economic growth and infrastructure investments drive demand [10] Other Important Information - The company generated $3 billion of cash flow from operations in the fourth quarter, with free cash flow of $2.3 billion [22] - A total of $4 billion was returned to shareholders in 2025, with plans to return more than $4 billion in 2026 through dividends and stock buybacks [26] - The company is the only international service company actively operating in Venezuela, with plans to ramp up activities as conditions allow [18] Q&A Session Summary Question: CapEx trends and capital intensity - Management indicated a slight increase in CapEx to $2.5 billion for 2026, emphasizing improved capital efficiency and readiness to capture new opportunities as activity recovers [32] Question: Customer mix and market opportunities in the Middle East - Management reinforced confidence in national companies executing capital programs and noted a rebound in Saudi Arabian drilling activity, with positive momentum in Kuwait and UAE [35] Question: Exit rate expectations for 2026 - Management expects the fourth quarter of 2026 to be higher than the fourth quarter of 2025, driven by international market recovery [45] Question: Digital business penetration - Management highlighted the significant potential of digital solutions to transform the industry, with increasing customer adoption of platforms like Lumi and Tela [48] Question: Opportunities in Venezuela - Management expressed readiness to ramp up operations in Venezuela, citing historical partnerships and existing local resources [56] Question: Data center infrastructure business growth - Management anticipates reaching a $1 billion run rate in revenue for the data center solutions business by year-end, with plans for international expansion [59]

Group Structure Reorganization - AS Ekspress Grupp is reorganizing its group structure by transferring the shareholding of its subsidiary OÜ Geenius Meedia to AS Delfi Meedia to leverage Delfi Meedia's expertise and focus on content development [1] - Geenius Meedia OÜ will continue to operate as a separate media company despite the structural change [1] Company Overview - Geenius Meedia OÜ, founded in 2015, reported a turnover of 2.24 million euros in 2024 and employs 34 people with nearly 7,000 digital subscriptions [2] - Delfi Meedia AS is recognized as Estonia's fastest and most innovative media company, owning the largest news portal Delfi and publishing various newspapers and magazines [3] - AS Ekspress Grupp is the leading Baltic media group, involved in web media content production, publishing, electronic ticket sales, and organizing events, employing around 1,000 people [3]