Q4 2025 Slb NV Earnings Call Transcript
Key Points
- SLB Ltd (SLB) achieved strong operational and financial performance in Q4 2025, with sequential revenue growth, margin expansion, and substantial cash flow generation.
- The company reported a 9% sequential increase in revenue, driven by high single-digit growth internationally and mid-teens growth in North America.
- Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%, highlighting the strength of SLB Ltd (SLB)'s digital operations.
- SLB Ltd (SLB) announced several digital milestones, including launching Tela, an AI assistant, and forming a partnership with ADNOC for an AI-powered Production System Optimization platform.
- The company generated $3 billion of cash flow from operations and $2.3 billion of free cash flow in Q4, marking the third consecutive year with free cash flow at or above $4 billion.
- SLB Ltd (SLB) anticipates near-term oversupply to exert downward pressure on commodity prices through the first half of 2026.
- The company recorded $0.23 of net charges in Q4, including a $0.11 goodwill impairment charge related to its carbon capture business.
- Adjusted EBITDA margin growth was constrained by a loss in a carbon capture project, negatively impacting margins by approximately 50 basis points.
- SLB Ltd (SLB) expects revenue to decline by high single-digits sequentially in Q1 2026 due to outsized year-end product sales and project milestones in the prior quarter.
- The company faces pricing pressure in international markets, which remains highly competitive for larger tenders.
Good morning. My name is Meghan and I'll be your conference operator today, and I would like to welcome everyone to the fourth-quarter and full-year 2025 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, Meghan. Good morning, and welcome to the SLB fourth-quarter and full-year 2025 earnings conference call.
Todayâs call is being hosted from Houston, 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
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