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SLB LIMITED/NV

SLB
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Business Summary

SLB is a global technology company driving energy innovation for a balanced planet, with a presence in more than 100 countries and employees representing almost twice as many nationalities. The company operates in the energy services industry, which is characterized by competition based on technological innovation, quality of service, and price differentiation. The world faces the challenge of providing secure and affordable energy to meet growing demand while rapidly decarbonizing for a sustainable future, and SLB is positioned to provide solutions to this trilemma.

SLB's primary customers are national oil companies, large integrated oil companies, and independent operators, and no single customer exceeded 10% of SLB's consolidated revenue during each of 2025, 2024, and 2023. The principal methods of competition within the energy services industry are technological innovation, quality of service, and price differentiation, and SLB has numerous competitors, both large and small. SLB owns or controls one of the industry's leading portfolios of intellectual property, including but not limited to patents, proprietary information, trade secrets, and software tools and applications that, in the aggregate, are material to SLB's business.

SLB generates revenue through four Divisions: Digital, Reservoir Performance, Well Construction, and Production Systems, with an All Other category that includes Asset Performance Solutions, Data Center Solutions, and SLB Capturi. Revenue is generated from services and product sales, with services revenue of $21.200 billion and product sales revenue of $14.508 billion in 2025. The Digital Division generates revenue from four key solutions: Platforms & Applications, Digital Operations, Digital Exploration, and Professional Services, with revenue recognized in both the respective Core division and the Digital Division for digital operations, an effect eliminated in consolidation.

The Digital Division is comprised of SLB's industry-leading digital solutions and data products that span the energy value chain from subsurface characterization through field development and hydrocarbon production to carbon management and the integration of adjacent energy systems. Digital revenue was $2.660 billion in 2025, with a pretax operating margin of 28% . Reservoir Performance consists of reservoir-centric technologies and services critical to optimizing reservoir productivity and performance, with primary offerings including Evaluation, Stimulation, and Intervention; its revenue was $6.820 billion in 2025, with a pretax operating margin of 18% . Well Construction combines the full portfolio of products and services to optimize well placement and performance, maximize drilling efficiency, and improve wellbore assurance, with offerings including Measurements, Drilling Fluids, Equipment, Drilling, and Integrated Well Construction; its revenue was $11.856 billion in 2025, with a pretax operating margin of 19% . Production Systems develops technologies and provides expertise that enhances production and recovery of oil and gas assets from subsurface reservoirs to the surface, into pipelines, and to refineries, with offerings including Subsea Production Systems, Artificial Lift, Completions, Surface Production Systems, Process Technologies and Solutions, Production Chemical Technologies, and Valves; its revenue was $13.325 billion in 2025, with a pretax operating margin of 16% . The All Other category primarily consists of Asset Performance Solutions, Data Center Solutions, and SLB Capturi, with revenue of $1.987 billion in 2025 and pretax operating income of $498 million .

During 2025, SLB acquired ChampionX Corporation in an all-stock transaction, issuing 141 million shares of its common stock valued at $4.9 billion . The acquisition strengthens SLB's leadership in the production and recovery space. SLB also completed the sale of its interest in the Palliser APS project in Canada during the second quarter of 2025, receiving net cash proceeds of $338 million and recording a gain of $149 million . During the third quarter of 2025, the ChampionX Drilling Technologies business was disposed of and SLB received $286 million of proceeds. SLB cumulatively repurchased $5.9 billion of its common stock under its $10 billion share repurchase program as of December 31, 2025, with $2.414 billion in repurchases during 2025 at an average price of $40.23 per share for 60.0 million shares. Dividends paid during 2025 were $1.602 billion .

Global revenue of $35.708 billion declined 2% year on year, while the company generated $6.489 billion of cash flow from operations and $4.115 billion of free cash flow, enabling a return of $4.0 billion to shareholders. Excluding the $1.5 billion of revenue from the acquisition of ChampionX, revenue declined 6% year on year as growth in Digital and Data Center Solutions businesses were more than offset by declines in Saudi Arabia, Mexico, and offshore Sub-Saharan Africa. International revenue declined 5% year on year, while North America revenue grew 12% driven by the ChampionX acquisition. Net income was $3.451 billion in 2025, compared to $4.579 billion in 2024 and $4.275 billion in 2023.

Business Outlook

SLB announced a 3.5% increase to its quarterly cash dividend from $0.285 per share of outstanding common stock to $0.295 per share, beginning with the dividend payable in April 2026. The company is committed to returning more than $4 billion to shareholders in 2026 through dividends and share repurchases. Capital investments during 2026 are expected to be approximately $2.5 billion .

SLB expects that Data Center Solutions will be its fastest growing business for years to come, and Digital will continue to grow at highly accretive margins. The company anticipates that activity will gradually improve in the key markets where it operates, giving confidence that it will generate strong cash flows in 2026. SLB expects rig activity in the Middle East to increase compared to today's level, and its footprint in the region positions it to benefit from this recovery. Production and recovery activity is becoming a strategic priority for customers to unlock incremental barrels at the lowest cost, translating into higher demand particularly for intervention services, artificial lift, production chemicals, and SLB OneSubsea.

Digital revenue increased 9% on a full-year basis driven by significant uptake in Digital Operations as well as steady growth in Platforms & Applications as customers continued to invest in automated solutions to improve performance and efficiency. Data Center Solutions grew 121% year on year, and this business is expanding rapidly as SLB strengthens strategic partnerships with hyperscalers to leverage its modular data center manufacturing capabilities.

Digital pretax operating margin expanded 291 bps year on year to 28% , primarily driven by higher revenue and efficiency gains. Reservoir Performance pretax operating margin contracted 191 bps year on year to 18% due to lower evaluation and stimulation activity. Well Construction pretax operating margin declined 220 bps year on year to 19% driven by widespread activity reductions. Production Systems pretax operating margin of 16% was essentially flat year on year.

Capital investments (consisting of capital expenditures, APS investments, and exploration data capitalized) were $2.4 billion in 2025, and $2.6 billion in both 2024 and 2023. Capital investments during 2026 are expected to be approximately $2.5 billion . SLB has a $10 billion share repurchase program, under which it cumulatively repurchased $5.9 billion as of December 31, 2025. The company announced a 3.5% increase to its quarterly cash dividend from $0.285 per share to $0.295 per share, beginning with the dividend payable in April 2026.

The headwinds experienced in key regions in 2025 are believed to be behind the company as it moves into 2026. Lower commodity prices, geopolitical uncertainty, and an oversupplied oil market presented a challenging backdrop for the industry in 2025. The company experienced sequential organic revenue growth both in North America and in the international markets in the fourth quarter of 2025, driven by higher offshore activity and strong year-end product and digital sales in Latin America, the Middle East and Asia, across Sub-Saharan Africa, and in North America Offshore.

Risk Factors

Demand for SLB's products and services is substantially dependent on the levels of expenditures by customers, which can change based on many factors including fluctuations in oil and gas prices, and oil and gas industry downturns have resulted in reduced demand and lower expenditures. SLB's non-US operations accounted for approximately 82% of consolidated revenue in 2025, 85% in 2024, and 84% in 2023, exposing the company to geopolitical instability, expropriation, nationalization, and other governmental actions. Russia represented approximately 4% of worldwide revenue during 2025, with the carrying value of net assets in Russia approximately $0.7 billion as of December 31, 2025, consisting of $0.2 billion of cash and short-term investments, $0.4 billion of receivables, $0.3 billion of fixed assets, $0.2 billion of other assets, and $0.4 billion of current liabilities. The company may fail to realize the anticipated benefits of the ChampionX acquisition, and failure to effectively and timely address the energy transition could adversely affect its reputation, business, results of operations, and cash flows.

Management Priorities

Management's message to shareholders emphasizes that despite a challenging backdrop in 2025 with lower commodity prices, geopolitical uncertainty, and an oversupplied oil market, the company continued to build resilience across its portfolio by accelerating its strategy. The completion of the ChampionX acquisition in an all-stock transaction valued at $4.9 billion was highlighted, along with increased deployment of AI solutions and the rapid expansion of the Data Center Solutions business. Management stated that the company is committed to returning more than $4 billion to shareholders in 2026 through dividends and share repurchases, and expressed confidence that activity will gradually improve in key markets, enabling strong cash flow generation in 2026. The strategic priorities emphasized for the period ahead include growing the Core business, expanding Digital capabilities, and scaling New Horizons of Growth, particularly Data Center Solutions and new energy systems.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 8, Consolidated Statement of Income
  2. [2] Item 8, Consolidated Statement of Income
  3. [3] Item 7, MD&A — Full-Year 2025 Results
  4. [4] Item 7, MD&A — Full-Year 2025 Results
  5. [5] Item 7, MD&A — Full-Year 2025 Results
  6. [6] Item 7, MD&A — Full-Year 2025 Results
  7. [7] Item 7, MD&A — Full-Year 2025 Results
  8. [8] Item 7, MD&A — Full-Year 2025 Results
  9. [9] Item 7, MD&A — Full-Year 2025 Results
  10. [10] Item 7, MD&A — Full-Year 2025 Results
  11. [11] Item 7, MD&A — Full-Year 2025 Results
  12. [12] Item 7, MD&A — Full-Year 2025 Results
  13. [13] Item 1, Business — ChampionX Transaction
  14. [14] Item 7, MD&A — Liquidity and Capital Resources
  15. [15] Item 7, MD&A — Charges and Credits
  16. [16] Item 7, MD&A — Liquidity and Capital Resources
  17. [17] Item 7, MD&A — Liquidity and Capital Resources
  18. [18] Item 5, Market for Registrant's Common Equity — Share Repurchases
  19. [19] Item 7, MD&A — Liquidity and Capital Resources
  20. [20] Item 7, MD&A — Liquidity and Capital Resources
  21. [21] Item 7, MD&A — Liquidity and Capital Resources
  22. [22] Item 7, MD&A — Liquidity and Capital Resources
  23. [23] Item 8, Consolidated Statement of Income
  24. [24] Item 7, MD&A — Liquidity and Capital Resources
  25. [25] Item 7, MD&A — Liquidity and Capital Resources
  26. [26] Item 7, MD&A — 2025 Executive Overview
  27. [27] Item 7, MD&A — 2025 Executive Overview
  28. [28] Item 7, MD&A — 2025 Executive Overview
  29. [29] Item 8, Consolidated Statement of Income
  30. [30] Item 8, Consolidated Statement of Income
  31. [31] Item 8, Consolidated Statement of Income
  32. [32] Item 7, MD&A — Liquidity and Capital Resources
  33. [33] Item 7, MD&A — Liquidity and Capital Resources
  34. [34] Item 7, MD&A — 2025 Executive Overview
  35. [35] Item 7, MD&A — Liquidity and Capital Resources
  36. [36] Item 7, MD&A — 2025 Executive Overview
  37. [37] Item 7, MD&A — Full-Year 2025 Results
  38. [38] Item 7, MD&A — Full-Year 2025 Results
  39. [39] Item 7, MD&A — Full-Year 2025 Results
  40. [40] Item 7, MD&A — Full-Year 2025 Results
  41. [41] Item 7, MD&A — Liquidity and Capital Resources
  42. [42] Item 7, MD&A — Liquidity and Capital Resources
  43. [43] Item 7, MD&A — Liquidity and Capital Resources
  44. [44] Item 5, Market for Registrant's Common Equity — Share Repurchases
  45. [45] Item 7, MD&A — Liquidity and Capital Resources
  46. [46] Item 7, MD&A — Liquidity and Capital Resources
  47. [47] Item 7, MD&A — Liquidity and Capital Resources
  48. [48] Item 1A, Risk Factors — Business and Operational Risks
  49. [49] Item 1A, Risk Factors — Business and Operational Risks
  50. [50] Item 1A, Risk Factors — Business and Operational Risks
  51. [51] Item 1A, Risk Factors — Business and Operational Risks
  52. [52] Item 1A, Risk Factors — Business and Operational Risks
  53. [53] Item 1A, Risk Factors — Business and Operational Risks
  54. [54] Item 1A, Risk Factors — Business and Operational Risks
  55. [55] Item 1A, Risk Factors — Business and Operational Risks
  56. [56] Item 1A, Risk Factors — Business and Operational Risks
  57. [57] Item 1A, Risk Factors — Business and Operational Risks
  58. [58] Item 1, Business — ChampionX Transaction
  59. [59] Item 7, MD&A — 2025 Executive Overview
  60. [60] Item 8, Consolidated Statement of Income
  61. [61] Item 8, Consolidated Statement of Income
  62. [62] Item 8, Consolidated Statement of Income
  63. [63] Item 8, Consolidated Statement of Income
  64. [64] Item 8, Consolidated Statement of Income
  65. [65] Item 8, Consolidated Statement of Income
  66. [66] Item 8, Consolidated Statement of Income
  67. [67] Item 8, Consolidated Statement of Income
  68. [68] Item 8, Consolidated Statement of Income
  69. [69] Item 8, Consolidated Statement of Income
  70. [70] Item 8, Consolidated Statement of Income
  71. [71] Item 8, Consolidated Statement of Income
  72. [72] Item 7, MD&A — Liquidity and Capital Resources
  73. [73] Item 7, MD&A — Liquidity and Capital Resources
  74. [74] Item 7, MD&A — Liquidity and Capital Resources
  75. [75] Item 7, MD&A — Liquidity and Capital Resources
  76. [76] Item 7, MD&A — Liquidity and Capital Resources
  77. [77] Item 7, MD&A — Liquidity and Capital Resources
  78. [78] Item 7, MD&A — Liquidity and Capital Resources
  79. [79] Item 7, MD&A — Liquidity and Capital Resources
  80. [80] Item 7, MD&A — Liquidity and Capital Resources
  81. [81] Item 7, MD&A — Charges and Credits
  82. [82] Item 7, MD&A — Charges and Credits
  83. [83] Item 8, Consolidated Statement of Income
  84. [84] Item 8, Consolidated Statement of Income
  85. [85] Item 7, MD&A — Charges and Credits
  86. [86] Item 7, MD&A — Charges and Credits
  87. [87] Item 8, Consolidated Statement of Income
  88. [88] Item 7, MD&A — Charges and Credits
  89. [89] Item 7, MD&A — Charges and Credits
  90. [90] Item 7, MD&A — Full-Year 2025 Results
  91. [91] Item 7, MD&A — Full-Year 2024 Results
  92. [92] Item 7, MD&A — Full-Year 2025 Results
  93. [93] Item 7, MD&A — Full-Year 2024 Results
  94. [94] Item 7, MD&A — Full-Year 2025 Results
  95. [95] Item 7, MD&A — Full-Year 2024 Results
  96. [96] Item 7, MD&A — Full-Year 2025 Results
  97. [97] Item 7, MD&A — Full-Year 2024 Results

Analysis on 6/21/2026