Q2 2026 SLB NV Earnings Call Transcript
Key Points
- SLB Ltd (SLB) reported broad-based international growth and a rebound in North America, with significant offshore activity in Latin America, Europe, Africa, and Asia.
- Production Systems and Digital divisions showed continued momentum, with Production Systems achieving adjusted EBITDA margins above 20% and Digital reaching approximately 35% for the quarter.
- Data Center Solutions experienced strong growth, with revenue increasing 33% sequentially and 80% year-on-year, supported by new hyperscaler customers and expanded offerings.
- SLB Ltd (SLB) is well-positioned to benefit from the expected increase in final investment decisions for long-cycle projects, which are anticipated to grow by approximately 30% year-on-year in 2026.
- The company is confident in its strategic growth areas, including Digital and Data Center Solutions, which are expected to drive long-term growth and expand SLB Ltd (SLB)'s reach into critical infrastructure for the AI economy.
- Operations in the Middle East remain constrained by security challenges, particularly in Iraq, affecting revenue and activity levels.
- Revenue in Well Construction and Reservoir Performance divisions declined slightly due to activity disruption in the Middle East.
- The company faces cost inflation in chemicals, impacting margins despite sequential margin expansion in some divisions.
- SLB Ltd (SLB) anticipates a potential downside scenario in the Middle East, which could result in a $150 million revenue shortfall and a $75 million adjusted EBITDA headwind in the third quarter.
- The geopolitical volatility in the Middle East presents ongoing uncertainties, which could impact the pace of recovery and overall financial performance.
Good morning. My name is Sarah and I will be your conference operator today and would like to welcome everyone to the second quarter SLB earnings call. (Operator Instructions) As a reminder, this call is being recorded. I will now turn the call over to James R. McDonald, Senior Vice President of Investor Relations and Industry Affairs. Please go ahead.
Thank you, Sarah. Good morning, and welcome to the SLB second quarter 2026 earnings conference Call. Today's call is being hosted from London following our Board meeting held earlier this week. Joining us on the call are Olivier Le Peuch, Chief Executive Officer; and Stephane Biguet, Chief Financial Officer.
Before we begin, I would like to remind all participants that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. For more information, please refer to our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
