Broad Growth & AI Infrastructure
SLB expects international growth to strengthen into 2027. The view is supported by deepwater projects, reserve replacement and production optimization. Although Middle East activity remains exposed to disruption, its gradual recovery and stronger offshore demand across Latin America, Europe & Africa and Asia are improving the outlook. Recent subsea contract awards are also increasing backlog and revenue visibility into 2027.
Data Center Solutions is emerging as another growth driver. SLB is preparing a Canadian assembly and testing facility to support its Meta data-center partnership. The planned $3.4 billion acquisition of Kelvion would add thermal-management technology and broaden SLB’s integrated data-center offering.
SLB secured several international contracts in Q3, including subsea production systems for Mozambique’s Rovuma LNG project, integrated well-construction services in Saudi Arabia, and a multi-year reservoir-stimulation agreement with Equinor in Norway. These awards strengthen its international backlog and improve revenue visibility into 2027.
Production Systems Leads Sequential Growth
In Q3, SLB’s Production Systems revenue rose 6% sequentially, supported by completions, production chemicals, artificial lift and OneSubsea activity; adjusted EBITDA increased 8%. Reservoir Performance and Well Construction revenue each rose 5% as Middle East activity recovered and offshore markets strengthened. Digital revenue slipped 1%. Overall adjusted EBITDA rose 9% sequentially to $2.07 billion, but its margin remained below year-ago levels.
Cash Flow, Debt and Shareholder Returns
SLB’s operating cash flow and FCF decreased in 9M 2026 compared to a year earlier. It repurchased $656 million of shares in Q3. Net debt was up 25% since year-end 2025. This material increase merits monitoring alongside growth investments, including the planned Kelvion acquisition for $3.4 billion in cash plus assumed debt of ~$0.7 billion.
Thanks for reading the SLB Take Three, designed to give you three critical takeaways from SLB's earnings report. Soon, we will present a second update on SLB earnings highlighting its current strategy, news, and notes from our deeper dive.
