SLB N.V. Earnings Call Transcripts
Fiscal Year 2026
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The acquisition of Kelvion strengthens the company's position in the fast-growing AI data center infrastructure market by adding critical thermal management technologies and expanding its modular solutions. The $3.4 billion deal, expected to close in H1 2027, targets significant synergies, robust revenue growth, and enhanced global reach.
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Q2 saw strong international and North American growth, offsetting Middle East disruptions. Digital and Production Systems delivered robust margins, while data center solutions surged. Outlook remains positive, with sequential revenue and margin growth expected, and data center solutions set to exceed $2B run rate by 2027.
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Digital and AI are now central to energy operations, driving structural change and rapid growth. Proprietary platforms, deep domain expertise, and strategic partnerships position the company to double digital recurring revenue and EBITDA by 2030, with expanding margins and a strong competitive moat.
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Q1 results were impacted by Middle East disruptions, causing revenue and margin declines, but Production Systems and Digital grew year-over-year. Strategic initiatives in Digital, data centers, and production recovery are driving long-term growth, with a positive outlook as market conditions stabilize.
Fiscal Year 2025
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Q4 saw strong sequential revenue and margin growth, led by digital and production systems, with robust cash flow and a positive outlook for 2026. International markets, digital, and data center solutions are key growth drivers, while over $4 billion will be returned to shareholders.
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Sequential revenue growth was driven by ChampionX integration, digital expansion, and resilient core operations. Digital revenue rose 11% sequentially, with ARR up 7% year-over-year, and Production Systems saw an 18% sequential increase. Q4 is expected to deliver high single-digit top-line growth and margin expansion.
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Second quarter results showed steady revenue and margin expansion despite market volatility, with international growth offsetting North American declines. The ChampionX acquisition is expected to drive synergies, margin accretion, and digital growth, with a strong outlook for H2 2025 and beyond.
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Revenue declined 3% year-on-year, with margin expansion driven by digital and production systems growth. North America outperformed, offsetting international declines, while cost discipline and diversification into digital and low-carbon markets supported resilience. Commitment to $4B shareholder returns in 2025 remains firm.
Fiscal Year 2024
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Solid 2024 results featured record international revenue, strong digital growth, and robust free cash flow. 2025 guidance calls for flat or higher revenue and EBITDA, with at least $4B in shareholder returns and continued digital and low-carbon expansion.
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Q3 saw strong margin expansion and record digital revenue, with robust free cash flow and continued shareholder returns. The outlook for 2024-2025 is for muted revenue growth but further margin gains, driven by digital, cost optimization, and international exposure.
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Second quarter results showed 5% sequential revenue growth, 11% higher adjusted EBITDA, and strong international and offshore momentum. Full-year adjusted EBITDA growth is now guided at 14%-15% with margins at or above 25%, and $3 billion in shareholder returns targeted for 2024.