Key Awards And Outlook: In Q4 2025, SLB secured new awards concentrated in international and offshore markets. In Saudi Arabia, Aramco awarded SLB a five-year stimulation contract for unconventional gas, covering advanced stimulation, intervention, automation, and digital services. Offshore, SLB OneSubsea won multiple EPC contracts, including bp’s Tiber and Kaskida projects in the Gulf of America and field expansions offshore Malaysia. Additional drilling and reservoir performance awards in West Africa and Kuwait further strengthened SLB’s international backlog.
Looking ahead, SLB expects global upstream activity to stabilize and gradually improve into 2026. A challenging 2025 was marked by lower commodity prices and geopolitical uncertainty. International markets appear better positioned than North America over the medium term, despite North America’s stronger sequential rebound in Q4. Offshore activity, production and recovery work, and digital adoption remain the key demand drivers. Consistent with management commentary, international markets are expected to lead the next phase of activity recovery, supported by sustained investment in oil capacity, gas expansion projects, and a constructive outlook for deepwater developments.
North American Sales Outperformed in Q4
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SLB’s Digital segment posted the strongest quarter-over-quarter revenue growth in Q4 (+25%), alongside a sharp increase in operating income (+50%). Production Systems followed, with revenue up 17% and operating income rising 19%. Well Construction saw marginal sequential declines in both revenue and operating income, while Reservoir Performance delivered modest growth across both metrics. Overall, adjusted EBITDA increased 13% quarter over quarter. Geographically, North America outpaced international markets sequentially, with revenue up 14.6% versus a 7.8% increase internationally.
SLB’s Q4 results reflected stronger international execution and favorable activity mix. Production Systems and Digital led performance, supported by a full quarter of ChampionX, solid year-end product sales, and higher offshore activity. Digital demand rose across exploration and operations, while Production Systems benefited from growth in completions, production chemicals, and subsea systems. North America improved sequentially on offshore and production systems work, but U.S. land activity remained flat. Margins expanded on higher-margin digital sales, improved Production Systems profitability, and continued cost discipline, partially offset by weakness in Well Construction.
Cash Flows and Equity: SLB's cash flow from operations decreased marginally in FY2025 compared to a year ago, driven by lower revenues. Free cash flow increased modestly year over year, supported primarily by lower capital spending. Due to higher shareholders’ equity, debt-to-equity decreased (0.43x) compared to 0.54x in FY2024. SLB increased its quarterly dividend by 4%.
Thanks for reading the SLB take three, which is designed to give you three critical takeaways from SLB's earnings report. Soon, we will present a second update on SLB earnings highlighting its current strategy, news, and notes we extracted from our deeper dive.
