SLB builds momentum on production systems and digital as global markets stabilize

(WO) - SLB closed 2025 with strong fourth-quarter momentum as global upstream activity stabilized and operators increasingly shifted focus toward production optimization, recovery and digital efficiency, according to the company’s year-end results.

Chief Executive Officer Olivier Le Peuch said the quarter marked the first time since mid-2024 that revenue increased sequentially across all geographies, reflecting improved activity in both North America and international markets. Growth was driven primarily by Production Systems, Digital and Reservoir Performance, supported by offshore project execution and strong year-end technology sales.

While 2025 was characterized by lower commodity prices, geopolitical uncertainty and an oversupplied oil market, SLB continued to reposition its portfolio toward segments offering more resilient demand. “Production and recovery activity is becoming a strategic priority for our customers as they seek to unlock incremental barrels at the lowest cost,” Le Peuch said, noting rising demand for intervention services, artificial lift, production chemicals and subsea production systems.

A key contributor to this shift was SLB’s acquisition of ChampionX, which closed in July 2025. The transaction strengthened SLB’s Production Systems division, adding scale in production chemicals and artificial lift while enhancing margins. ChampionX contributed approximately $1.5 billion in revenue during the second half of the year, and SLB expects further benefits in 2026 as synergies are captured and the portfolio expands into new international markets.

Digital and data-driven services also emerged as core growth engines. Digital revenue increased year on year, with demand driven by AI-enabled operations, automation and cloud-based workflows. SLB’s digital annualized recurring revenue surpassed $1 billion by year-end, reflecting deeper integration of digital platforms into customer operations. The company also reported rapid expansion of its Data Center Solutions business, supported by partnerships with hyperscalers to deliver modular data center manufacturing solutions.

Offshore and international project activity remained a focal point. During the quarter, SLB secured major contract awards including subsea boosting systems for bp’s Tiber and Kaskida developments in the Gulf of America, offshore drilling services for Tullow Ghana, managed pressure drilling services for Kuwait Oil Company, and multiple subsea EPC contracts offshore Malaysia. SLB also entered a strategic alliance to accelerate development of the Kuda Tasi and Jahal oil fields offshore Timor-Leste.

Technology deployment continued across mature and frontier assets. Highlights included autonomous logging in Italy, new ESP installations in Libya, AI-enabled formation evaluation in Nigeria, and reservoir-centric stimulation campaigns in Oman. Digital collaborations expanded as well, with Shell, ADNOC, bp and other operators adopting AI-driven platforms for production optimization, remote operations and seismic processing.

Looking ahead to 2026, SLB expects activity to gradually improve in key markets, particularly in the Middle East, where rig activity is anticipated to rebound. Le Peuch said the company believes the regional headwinds experienced in 2025 are easing, positioning SLB to benefit from renewed investment while maintaining capital discipline.

As operators balance cost pressures with long-term supply needs, SLB is aligning its portfolio around production enhancement, digital integration and selective growth opportunities, reinforcing its role in supporting efficiency-driven upstream development globally.