Q1 2026 Slb NV Earnings Call Transcript
Key Points
- SLB Ltd (SLB) reported a 23% year-on-year revenue increase in Production Systems, driven by the acquisition of ChampionX, which continues to deliver accretive growth.
- Digital revenue increased by 9% year on year, with a notable 145% increase in automated footage drilled, reflecting strong adoption of digital and AI-powered solutions.
- Data Center solutions experienced a 45% growth year on year, with SLB Ltd (SLB) serving as the modular design partner for NVIDIA DSX AI factories.
- SLB Ltd (SLB) anticipates a constructive macro environment for upstream investment, driven by efforts to restore production capacity and diversify supply.
- The company is well-positioned to benefit from increased investment in production and recovery technologies, digital solutions, and data centers, aligning with long-term industry trends.
- First-quarter revenue and earnings were negatively impacted by severe disruptions in the Middle East, particularly in Qatar and Iraq, due to operational shutdowns and security conditions.
- Unfavorable activity mix and higher costs, especially in OneSubsea, further weighed on the quarter's performance.
- Reservoir Performance and Well Construction divisions saw declines due to the impact of the Middle East conflict.
- Company-wide adjusted EBITDA margin for the first quarter was down 346 basis points year on year, affected by high decrementals on Middle East revenue impact.
- SLB Ltd (SLB) faced increased logistics and materials costs due to supply chain disruptions stemming from the Middle East conflict.
Good morning. My name is Megan, and I will be your conference operator today and would like to welcome everyone to the first 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.
Good morning, and welcome to the SLB first-quarter 2026 earnings conference call. Today's 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 statements. For more information, please refer to our
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