SLB at 10.3X EV/EBITDA Eyes $9B in Subsea Contracts and $4B Returns
SLB trades at a trailing 12-month EV/EBITDA of 10.28X versus the industry’s 10.48X and peers Baker Hughes 14.23X and Halliburton 8.25X, winning $4B in subsea contracts last year with $9B projected over two years. It forecasts 20% more subsea tree orders and plans $4B in 2026 returns.
1. Valuation Comparison
SLB trades at a trailing 12-month EV/EBITDA of 10.28X versus the industry average of 10.48X and peers Baker Hughes at 14.23X and Halliburton at 8.25X, reflecting a relative discount among major oilfield service providers.
2. Subsea Business Outlook
The company secured $4 billion in subsea equipment contracts last year and projects over $9 billion in awards through 2027, expecting a 20% increase in subsea tree orders in 2026–2027 as offshore activity strengthens.
3. Capital Returns and Near-Term Outlook
SLB plans to return more than $4 billion to shareholders in 2026 via repurchases and dividends, although management forecasts a temporary slowdown early in the year and notes that the stock’s 22% gain trails the industry’s 40% advance.