Schlumberger Q4 Revenue Jumps 9% to $9.7 B, EBITDA Margin Hits 23.9%
SLB’s Q4 revenue rose sequentially by 9% to $9.7 billion, driven by a $300 million ChampionX consolidation and 6% organic growth, lifting adjusted EBITDA margin by 83 bps to 23.9%. The company generated $2.3 billion free cash flow, cut net debt by $1.8 billion, and announced a 3.5% dividend increase with $2.4 billion buyback target.
1. Q4 Sequential Revenue Growth and Consolidation Benefits
SLB delivered fourth-quarter revenue of $9.7 billion, up $817 million or 9% sequentially. Roughly $300 million of the increase reflected the extra month of ChampionX consolidation; excluding that, organic revenue grew 6% quarter-on-quarter. CEO Olivier Le Peuch highlighted that this marked the first quarter of sequential growth across all regions since Q2 2024, signaling stabilization in global upstream activity and early signs of recovery in key international markets.
2. Division-Level Momentum Driving Margins
Digital and Production Systems led performance in Q4. Digital generated $825 million in revenue, a 25% sequential increase, with pre-tax operating margin expanding 557 basis points to 34%. Production Systems posted $4.1 billion, up 17% sequentially (11% ex-ChampionX), driven by completions, artificial lift sales and process technology milestones. Reservoir Performance grew 4% to $1.7 billion, while Well Construction dipped 1% to $2.9 billion. Adjusted EBITDA margin rose 83 basis points to 23.9%, partially offset by a 50-basis-point drag from a carbon capture contract.
3. Strong Cash Generation and Capital Allocation
The company generated $3.0 billion of operating cash flow and $2.3 billion of free cash flow in the quarter, bringing full-year free cash flow to $4.1 billion for the third consecutive year above the $4 billion mark. Net debt fell by $1.8 billion to $7.4 billion. In 2025 SLB returned $4.0 billion to shareholders—$2.4 billion in buybacks and $1.6 billion in dividends—and announced a 3.5% dividend increase plus a planned $2.4 billion of repurchases for 2026, with the potential for further buybacks subject to cash flow visibility.
4. 2026 Guidance Reflects Stable Margins and Regional Dynamics
Assuming oil prices remain in the high-50s to low-60s per barrel, SLB expects 2026 revenue of $36.9–37.7 billion and adjusted EBITDA of $8.6–9.1 billion, with margins in line with 2025. North America is set to benefit from seven months of ChampionX integration and stronger offshore activity, while land activity may decline. International revenue should trend upward overall—led by Latin America, Middle East and Asia—despite modest declines in Europe and Africa. Q1 revenue is forecast to dip high-single digits sequentially, with a rebound and margin expansion slated for H2 as project milestones normalize.