SLB reported fourth‑quarter 2025 revenue of $9.745 billion, up 5% from $9.28 billion in the same period a year earlier, and adjusted earnings per share of $0.78, beating consensus estimates of $0.74. The company also raised its quarterly dividend by 3.5% to 29.5 cents per share, its highest dividend ever, and reaffirmed a commitment to return more than $4 billion to shareholders in 2026 through dividends and share repurchases.
The revenue increase was driven largely by the full integration of ChampionX, which contributed $879 million in revenue and $106 million in pretax operating income. ChampionX’s production‑chemicals and artificial‑lift businesses added a new revenue stream that offset modest declines in some legacy segments, resulting in a net top‑line gain. The 5% year‑over‑year growth reflects both the ChampionX contribution and a modest uptick in demand across SLB’s core service lines.
Adjusted earnings per share of $0.78 beat estimates by $0.04, a 5.4% lift, largely because the company maintained disciplined cost control while benefiting from the higher‑margin ChampionX mix. The diluted EPS, however, was $0.55, below the consensus of $0.75, illustrating the impact of higher share dilution and the company’s focus on adjusted metrics for operational performance. The adjusted EPS beat signals that core operating efficiency improved even as the company navigated a slightly tighter cost environment.
Adjusted EBITDA for the quarter was $2.331 billion, a contraction from $2.382 billion in Q4 2024. The margin compression was driven by increased input costs and a shift toward lower‑margin service contracts, offset by the higher‑margin ChampionX contribution. Despite the contraction, the company’s EBITDA remained above the prior year’s figure, indicating that the integration of ChampionX helped preserve profitability.
CEO Jim Henneman said the company’s recent regional challenges are behind it and that SLB is positioned to benefit from rising international activity. He emphasized that the company’s focus on cost discipline and strategic investments in high‑return segments will support continued growth. The reaffirmed $4 billion shareholder‑return target underscores management’s confidence in the company’s cash‑flow generation and long‑term value creation.
In comparison, Q4 2024 revenue was $9.28 billion and adjusted EPS was $0.92, showing that while top‑line growth has slowed, the company has maintained a strong earnings base and is executing on its integration strategy.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.