SLB LIMITED/NV — Call Transcript 2026

Thank you for your patience. The call will begin momentarily. Thank you for your patience. The call will begin momentarily. Good morning. My name is Megan. I'll be your conference operator today and would like to welcome everyone to the fourth quarter and full year 2025 SLB earnings call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a Q&A session. If you would like to ask a question during the time, simply press star followed by the number one on your telephone keypad. You may remove yourself from the queue by pressing star two. As a reminder, this call is being recorded. I will now turn the call over to James R. McDonald, Senior Vice President of Investor Relations and Industry Affairs. Please go ahead. Thank you, Megan. Good morning and welcome to the SLB fourth quarter and full year 2025 earnings conference call. Today's call is being hosted from Houston following our board meeting held earlier this week. Joining us on the call are Olivier Le Peuch, Chief Executive Officer, and Stéphane Biguet, Chief Financial Officer. Before we begin, I would like to remind all participants that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause the results to differ materially from those projected in these statements. For more information, please refer to our latest 10-K filing and other SEC filings, which can be found on our website. Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our fourth quarter and full year earnings press release, which is on our website. With that, I will turn the call over to Olivier. Thank you, James. Ladies and gentlemen, thank you for joining us today. I will begin by reviewing our fourth quarter performance, followed by an update on market conditions and the unique opportunities we see developing for our business. I will then share our outlook for the first quarter and expectations for the full year 2026. Stéphane will then provide additional details on our financial results. And finally, we will open the line for your questions. Let's begin. We ended the year with strong operational and financial performance in the fourth quarter, achieving sequential revenue growth, margin expansion, and substantial cash flow generation. This performance reflects the breadth of our portfolio and the impact of our strategy in a challenging macro environment. Sequentially, revenue increased by 9%, driven by high single-digit growth internationally and mid-teens growth in North America. Excluding ChampionX, organic revenue increased by 7% internationally and 6% in North America. We saw sequential growth across all our geographies for the first time since the second quarter of 2024. This demonstrates that global upstream activity has stabilized, with key markets showing early signs of a rebound. This helped us to deliver approximately $500 million of organic revenue growth this quarter, in addition to a roughly $300 million contribution from ChampionX, resulting from an extra month of consolidation. Let me briefly discuss a few highlights from the quarter. First, we benefited from stronger end product sales in production systems globally, higher exploration data sales, and strong demand for digital operations across all areas. Second, activity increased across the Middle East, led by Saudi Arabia, and with momentum in UAE due to a combination of sustained gas development and increased oil field intervention activity. Third, we delivered strong results across Asia, with increased activity in Australasia, East Asia, and Indonesia, as these markets continue to benefit from offshore gas development. Notably, this quarter also marked the return of growth in Saudi Arabia and across sub-Saharan Africa, with flat revenue in Mexico. These three bases actually accounted for the entire organic revenue decline in the full year of 2025. And directionally, we expect activity in this market to improve as we move throughout 2026. Turning to the divisions, in the fourth quarter, Production Systems and Digital led the way, where Reservoir Performance was up slightly and Well Construction revenue was steady. The strength in Production Systems was driven by increased demand for Production Chemicals, Asset Performance Solutions, and Process Technology and Solutions, as well as backlog execution, Completions, and OneSubsea. When excluding the ChampionX contribution, this division still grew by double digits sequentially and maintained its momentum with several contract awards during the quarter, as you can see from today's highlights. Digital also continued to grow at a healthy rate, driven by strong growth in digital exploration with year-end sales in the Gulf of Mexico, Brazil, and Angola, as well as robust increase in digital operation and platform application. Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%. We also announced several exciting digital milestones in the fourth quarter, including launching Tela, an agentic AI system purpose-built to transform the upstream energy sector and forming a partnership with ADNOC to launch an AI-powered production system optimization platform. These underscore the opportunity for AI to continue to reshape industry operations. Meanwhile, in Reservoir Performance, sequential growth was the result of increased stimulation activity in the Middle East and Asia and higher intervention activity in Europe and Africa. In Well Construction, higher offshore drilling activity in North America and Europe and Africa was offset by declines in some land markets. Additionally, our fourth quarter revenue benefited from the resumption of production in the APS projects of Ecuador. Overall, our fourth quarter results are a positive indication of the opportunity that lies ahead. I want to thank the entire SLB team for delivering excellent performance for our customers throughout 2025 and finishing the year on such a strong note. Turning to the market environment, near-term oversupply may continue to exert downward pressure on commodity prices throughout the first half of 2026, while elevated geopolitical uncertainties should provide a price floor. E&P operators are therefore expected to remain cautious and to back-load their 2026 budget. As supply and demand continue to rebalance into 2027, conditions will likely support a gradual recovery in upstream investment, with activity in key international markets and offshore deployment exiting 2026 at a higher level than 2025. Indeed, economic growth, increasing population and large-scale manufacturing and infrastructure investments, particularly in the U.S. and China related to AI, will inherently drive more demand in both oil and gas. Coupled with the natural decline of existing oil and gas assets, we believe these will be the key drivers for the rebalancing of supply and demand. In the meantime, our customers are focused on delivering the lowest-cost incremental barrel. This means capturing efficiencies at scale. In our view, that requires more technology, more integration, and more digital solutions. Today, operators are increasingly prioritizing performance assurance across the asset lifecycle, reducing development timelines and accelerating optimization through digital solutions. SLB is uniquely positioned to deliver value in this environment by integrating equipment with intelligent and autonomous digital capabilities to reduce downtime, improve efficiency, and increase productivity, as witnessed by the rapid uptake in our digital operations. Additionally, production recovery has emerged as a critical domain for value creation, not only in brownfield and mature assets, but also across greenfield developments and tiebacks. This is not an either/or proposition between CapEx and OPEC, but an opportunity to increase our share of CapEx spend and capture OPEC white space with new solutions. With SLB's expanded production portfolio, including the addition of ChampionX, we are uniquely positioned to meet the developing demand in the production space. Globally, the international markets are stabilizing and trending upwards directionally, with Latin America and Middle East and Asia leading the rebound in 2026. Regionally, Middle East continues to represent the largest international market, with positive investment outlook. Indeed, there is a resurgence of oil production across the region, driven by OPEC+ policy, while gas remains a strategic priority to meet regional demand and long-term capacity expansion. In 2025, we witnessed double-digit growth in the United Arab Emirates, Iraq, and Kuwait, which was more than offset by the decline in Saudi Arabia. In 2026, the Middle East market will be characterized by rebounds in drilling and workover activity in Saudi Arabia, with rig counts potentially returning to early 2025 levels by the end of 2026. This has already begun. Offshore also continues to present compelling long-term growth opportunities for SLB, particularly in deepwater, where we expect activity to inflect toward the end of 2026 as white space subsides. With OneSubsea, we have the unique ability to combine Subsea processing capabilities, digital solutions, and SLB's integrated pore-to-process expertise across Subsea intervention and integrated well construction to create differentiated value for customers. Specific to the Subsea market, more than 500 Subsea trees are expected to be awarded across 2026 and 2027, about 20% higher than 2025 run rate. And this is an opportunity we aim to capitalize on. In 2025, OneSubsea was awarded approximately $4 billion Subsea bookings, and we see a path for cumulative bookings exceeding $9 billion over the next two years, supported by this tendering activity. Finally, we're excited about the strong progress in our data center solution business since its launch less than two years ago. This year, we plan to expand our range of offering, our customer base, and the geography we serve, paving the way for future growth. The opportunity is growing faster than anticipated, and we expect to exit the year at a quarterly revenue run rate of $1 billion per year. Overall, SLB is clearly positioned to fully benefit from a rebound in international activity as supply-demand rebalance, supported by ongoing investments for oil capacity, gas expansion projects, and a constructive long-term outlook for deep water. Regional activity dynamics further reinforce this favorable directional trajectory beginning in 2026. Let me now share our outlook for the year. The headwinds we face in 2025 in certain markets may become tailwinds for our business this year. We anticipate this will translate into a higher fourth-quarter revenue exit rate in 2026 compared to the fourth quarter of 2025. For the full year, assuming oil price remains rangebound in the high 50s to low 60s range, we expect 2026 revenue to be between $36.9 billion-$37.7 billion. In North America, we will benefit from the addition of seven months of activity from ChampionX, stronger offshore activity tied to customer plans, and accelerated growth in data centers, while upstream land activity will continue to decline year-on-year. In international markets, revenue is expected to trend upwards over the year, resulting in a slight year-over-year increase. Growth will come from Latin America and the Middle East and Asia, while Europe and Africa is anticipated to decline slightly. Let me now describe how these dynamics will unfold across the divisions. In Digital, revenue is expected to grow at the same pace as 2025, driven by Digital Operations. Production Systems will increase, mostly benefiting from a full year of ChampionX revenue. Reservoir Performance will be flattish, while Well Construction will decline slightly. Revenue in the All Other category will be flat year-on-year, considering the loss of revenue from the divested Palliser asset will be offset by growth in the Data Center Solutions. This revenue outlook translates into Adjusted EBITDA between $8.6 billion-$9.1 billion, with margins remaining in line with full year 2025 levels. Finally, with visibility into another year of strong cash flow, we will return more than $4 billion to shareholders in 2026 through the combination of the increased dividend that we announced this morning and share repurchase. Turning to the first quarter, we anticipate revenue to decline by high single digits sequentially, similar to the prior year, due to outsized year-end product sales and project milestones in Production Systems in the prior quarter. We also expect Adjusted EBITDA margin to decrease by 150-200 basis points versus the prior quarter. This seasonal dip will be followed by a rebound of activity during the second quarter, with further expansion into the second half driven primarily by international markets. Finally, before I hand over to Stéphane, let me briefly touch on Venezuela. SLB is the only international service company actively operating in Venezuela today, as we are delivering a diverse set of services for NOC under their license. With nearly a century of experience in Venezuela, we did maintain active facilities, equipment, and local personnel on the ground. Historically, we have been a leader in the country, and we remain confident that with appropriate licensing, safety parameters, and compliance measures in place, we can rapidly ramp up activities in support of the oil and gas industry in Venezuela. We are excited, and we are already receiving a lot of inquiries from our customers. I will now turn the call over to Stéphane to discuss our financial results in more detail. Thank you, Olivier, and good morning, ladies and gentlemen. Fourth quarter earnings per share, excluding charges and credits, was $0.78. This represents an increase of $0.09 sequentially and a decrease of $0.14 compared to the fourth quarter of last year. We recorded $0.23 of net charges during the fourth quarter. This includes an $0.11 goodwill impairment charge relating to our carbon capture business, $0.08 of merger and integration charges, $0.07 related to workforce reductions, and $0.03 of other charges. Offsetting these charges is a $0.06 credit relating to the reversal of a valuation allowance that was recorded against certain deferred tax assets. Overall, our fourth quarter revenue of $9.7 billion increased $817 million, or 9% sequentially. Approximately $300 million of this increase is due to an additional month of activity from the acquired ChampionX businesses. Excluding the impact of this transaction, SLB's fourth quarter global revenue increased 6% sequentially. The sequential revenue step-up was higher than expected and was driven by strong year-end digital sales, significant backlog deliveries, and project milestones in production systems, as well as higher reservoir performance activity in international markets. Fourth quarter adjusted EBITDA margin of 23.9% increased 83 basis points sequentially, primarily driven by very strong digital performance. Margin growth during the quarter was, however, constrained by a loss in a carbon capture project that negatively impacted margins by approximately 50 basis points. Let me now go through the fourth quarter results for each division. Fourth quarter Digital revenue of $825 million increased 25% sequentially, while pre-tax operating margin expanded 557 basis points to 34%. These results were driven by strong year-end sales in Digital exploration and increased revenue in both Digital operations and platforms and applications. Notably, for the full year, Digital revenue of $2.7 billion grew 9%. The combination of this growth rate and the full year EBITDA margin of 35% well exceeded the widely recognized Rule of 40. In addition, Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%. Finally, trailing 12-month net recurring revenue was 103% at the end of the fourth quarter. Reservoir Performance revenue of $1.7 billion increased 4% sequentially, driven by strong international activity, particularly in Saudi Arabia, East Asia, Qatar, Indonesia, and Guyana. Pre-tax operating margin of 19.6% increased 105 basis points, largely due to a favorable activity mix in the Middle East. Well Construction revenue of $2.9 billion decreased 1% sequentially, primarily driven by declines in Middle East and Asia, while pre-tax operating margin of 18.7% was slightly down. Production Systems revenue of $4.1 billion increased 17% sequentially, reflecting a full quarter of activity from ChampionX. Excluding the impact of this acquisition, Production Systems revenue increased 11%, driven by strong sales of Completions and Artificial Lift, as well as project milestones in Process Technologies, Subsea, and Valves. Pre-tax operating margin of 16% increased 20 basis points due to improved profitability in Completions and Production Chemicals. Now turning to liquidity. During the fourth quarter, we generated $3 billion of cash flow from operations and $2.3 billion of free cash flow. This strong performance was due to the unwinding of working capital on significant customer collections and reduced inventory driven by year-end product deliveries. For the full year, we generated free cash flow of $4.1 billion, marking the third year in a row with free cash flow at or above $4 billion. As a result, net debt reduced by $1.8 billion during the quarter to end the year at $7.4 billion. Capital investments, including CapEx and investments in APS projects and exploration data, were $716 million in the fourth quarter and $2.4 billion for the full year. For the full year, we returned a total of $4 billion to our shareholders, with approximately $2.4 billion in stock repurchases and $1.6 billion in dividends. Looking ahead, let me now provide some additional color on our outlook for 2026, building on the details Olivier shared earlier. We expect revenue to benefit from a full year of ChampionX, which will result in incremental revenue of approximately $1.8 billion in 2026. This increase will be partially offset by the effects of the 2025 divestitures of our interest in the Palliser APS project in Canada and of our rig business in the Middle East. These two businesses accounted for approximately $350 million in combined revenue in 2025. As Olivier mentioned, adjusted EBITDA margin for 2026 will be relatively consistent with 2025 levels, with differing dynamics by division. Digital margin will increase slightly year-on-year on continued top-line growth. Production systems margin will increase, primarily driven by synergies from the ChampionX acquisition, where we still expect to achieve approximately half of the $400 million of total synergies by the end of 2026, $30 million of which were achieved in 2025. About 75% of the synergies will benefit production systems, with the remaining portion benefiting well-construction and reservoir performance. The positive effect of ChampionX synergies on production system margins will be partially offset by unfavorable technology mix within the division. In reservoir performance and well-construction, despite activity levels stabilizing, margins will be down year-over-year due to activity mix and pricing headwinds in select markets. From a below-the-line perspective, corporate costs will increase year-over-year, driven by an incremental $70 million of intangible asset amortization expense as a result of a full year of ChampionX. Additionally, we expect our effective tax rate to be approximately 20%, representing a slight increase from 2025. While we expect overall activity to stabilize and increase from today's level in certain key international markets, we will remain disciplined in our capital allocation. In this regard, we expect our total capital investments to be approximately $2.5 billion in 2026. This should lead to another year of strong free cash flow generation. As a result, today, we announced a 3.5% dividend increase, and we expect to return more than $4 billion to our shareholders in 2026 through a combination of dividends and stock buybacks. We are currently targeting to buy back the same $2.4 billion that we repurchased in 2025. However, this amount could increase as the year unfolds, depending on our free cash flow generation progress and our visibility on the business outlook. I will now turn the conference call back to Olivier. Thank you, Stéphane. I believe, Megan, that we are ready for the Q&A session. We will now begin the Q&A session. If you would like to ask a question, please press star followed by one on your telephone keypad. Your first question comes from the line of Stephen Richardson from Evercore ISI. Your line is open. Hi, good morning. Good morning, Steve. Hi. I was wondering if we could talk a little bit about CapEx. I understand, appreciate you've given some outlook here on 2026. There seems to be something with investors of an old rule of thumb about your CapEx leading revenue expectations. And I thought it'd be helpful if you could maybe give us some context around the trend line of CapEx, but also how is the capital intensity of your forward business different than perhaps it was in the past? Thanks for the question. Yes, so we increased CapEx slightly compared to last year in total with APS and exploration to $2.5 billion, as I just said. We think this is what we need to operate this year and to capture new opportunity as activity recovers gradually throughout the year, particularly in international markets. So yes, compared to the past, our capital efficiency has improved quite a bit in the last few years. We can do more with less, basically, but clearly, we will not miss any opportunity if activity recovers faster. We want to be ready for the ramp-up, and we'll bring more equipment and tools as needed. By division, clearly, Reservoir Performance is probably the highest capital intensity followed by Well Construction and Production Systems, especially with the addition of ChampionX as a quite lower capital intensity. Thank you. On the Middle East, your comments are appreciated about the other regions picking up the slack in Saudi and your view on the full year improving. I was wondering if you could talk what we're seeing is the IOCs are seeing a lot more opportunity across North Africa and the Middle East. And I was wondering if you could talk a little bit about your mix or your expectation of your kind of customer mix as you go into 2026 and how much of that is driving some of this optimism on improvement versus some of your traditional customers on the national companies. No, first, I would come out to reinforce the trust and the confidence we have in our national company to continue to execute the capital program. And I think, indeed, we are foreseeing and already witnessing the rebound of the Saudi Arabian drilling and workover activity, which is very favorable. And I think, as I said, coming from a dip in 2025, rebounding at the end of 2026 to, as we expect, to the level we entered 2025, which is a V-shaped recovery. I think that will set the year very well and also the 2027 as a much stronger year going forward. So beyond that, obviously, the region still continues momentum, high momentum in Kuwait, in UAE, and has been witnessing significant growth. But coming to international, indeed, Libya, I think, is attracting and has a conference this week and next week. And Libya is attracting a lot of investment, and we have been the early beneficiaries of this. And we see Libya's high trajectory of growth. We have seen it in the last couple of years. And we foresee this will continue well into 2026 and 2027, driven by investment coming back in country from an international company. Algeria has been successful in the licensing round, and I think is exploring unconventional in the south and also getting additional investment coming back into country. So we see a rebound in Algeria that will strengthen in 2027. Egypt, Egypt in the region, I think, is back in offshore. Additional rigs will mobilize in deep water offshore Egypt as well as in Egypt due to the support that the government has provided and gained a return of investment into Egypt. And Iraq, I think, has been an area of growth last year, will continue to be significant going forward. So Iraq is where some international companies are investing. And I think we are associated with this directly. So we have a strong exposure in all of these markets where international companies are joining. And finally, I would say that the unconventional UAE is a place where newcomers are appraising the resource and ready to scale their investments from appraisal in 2026 to 2027 developments going forward. A combination of oil attractiveness in the region, Libya, Iraq, particularly for international companies, and gas in the region, Qatar obviously steady, but also the upcoming UAE and unconventional and deepwater offshore East Med. So that's the template. And I would say the favorable outlook from NOC and international company in the Middle East. Thanks so much. Thank you. Thank you. Your next question comes from the line of James West with Melius Research. Your line is open. Thanks. Good morning, Olivier, Stéphane. Good morning. Morning, James. So Olivier, curious, so with the headwinds bottoming here, Saudi, Mexico, some of the white space in deepwater, sub-Saharan Africa, and everything looking kind of up and to the right, how are you thinking about the exit rate for 2026 versus the exit rate we saw in 2025? Certainly, it's going to be higher, but what kind of, if you give us some observations or thoughts on kind of magnitude of how this upcycle will begin? I think first, I think we have guided into our prepared remark that we expect the fourth quarter of 2026 to be higher than the fourth quarter of 2025. And this will be led by the international rebound. Secondly, as we guided the first quarter as a marked decline compared to last year before, we will see a gradual recovery, again, driven mostly by international markets throughout the year. That is setting the scene, I would say, for 2027 to be favorable, driven by, first and foremost, continuous regain momentum in the Middle East with the addition of the rebound activity in Saudi and the combination of what the factor I mentioned before. Asia, I think, has been on a momentum. Latin America as well, I think, a bit offshore-based in Latin America, a bit in Argentina. We are experiencing a slight rebound of Mexico, driven by deepwater activity in Mexico coming back. And we will see, we expect that gradually and into 2027, the activity in Sub-Saharan deepwater will resume to higher level, visibly higher level. The combination of FID in Namibia, in Mozambique, in Angola, and the early pickup of activity in Algeria are already showing signs of a very promising 2027, 2028 cycle. So directionally, international gradually recovering and the exit rate in the end of this year to be driven by international addition so that it will result in Q4 of this year being higher than last year. Okay. That's helpful. Thank you. Thanks, Olivier. And then maybe a follow-up on the digital side of the business. Obviously, strong results in the fourth quarter, but my sense is we're still fairly underpenetrated on Lumi and Delfi and the cloud platforms and the AI platforms that you have. My numbers may be a little bit dated, but I think a couple of 300 or so customers out of your 1,500 or so customers were on the cloud as of maybe a year ago. Could you give us a sense of kind of where that stands now or where you see that heading? I'm assuming everybody eventually goes there. Most everybody goes there. But just the magnitude of what that could mean for your digital business, I'm assuming it's pretty accretive. No, long term, I think we believe that the potential of digital to transform our industry from the asset team productivity to the efficiency of digital operation between drilling or producing assets, I think, is very significant. I think we are just touching the early innings of that transformation. We're using a multi-pronged approach towards this, first and foremost, a strategy built on a platform approach to it. I think you mentioned the combination of Delfi, Lumi, and Tela. We have been indeed gradually gaining a lot of traction for customers to recognize that a platform is the approach to have the most benefit to combine the geoscience, the production, the drilling, the operation workflow improvement that everybody is looking for. But if we look at the momentum that we are benefiting from today, the momentum comes from digital operation that I think you have seen is getting significant benefits because it's where I think the river hits the ground and where the customer is seeing and materializing the savings in drilling performance, in production NPT reduction, in production optimization, and we are benefiting from that. But obviously, we are pursuing adoption of data and AI. Lumi, which we launched four or five quarters ago, is already having more than 50 customers of an adoption. Tela, that we launched less than three months ago, has already more than a dozen customers that are engaging and working with us to create this foundation model that can transform their own geoscience workflow or that can automatically detect and optimize autonomously some producing assets, as you have seen with the ADNOC announcement that we have done. So we are pleased with the progress. Surprised with the effect on digital operation. I believe this momentum continues. And very confident that the secular trend that the industry is continuing to witness will benefit our platform approach and that Lumi, Delfi, and Tela will be at the core of this industry transformation going forward. Thanks, Olivier. Thank you. Thank you. Your next question will go to line of Arun Jayaram with J.P. Morgan. Your line is open. Yeah. Good morning, Olivier. I was wondering if you could frame. Yeah. Good morning. I was wondering if you could frame your thoughts on the near-term and longer-term opportunity for SLB in Venezuela. You mentioned you're the only international service company now actively operating. But talk to us about what type of product lines could benefit if we do get a revitalization of the oil industry in Venezuela. Obviously, I will have to preface this with the condition, the right condition, including licensing, including payments, and the operating license will have to be put in place. But assuming that the conditions are set for investment to resume and to accelerate, not only from the customer that we are serving today, but from new customers re-entering or entering the country, we have historically been the largest supplier, the largest partner of the national company, and the largest supplier in service technology in country. Historically, we had had about 10 years ago more than 3,000 people, and we were recording visibly more than $1 billion revenue at that time. So we have the track record in integration. We have a unique subsurface digital leading role that we had at that time that we can resume. And we have today a significant set of assets that are ready to be deployed across the drilling services, across production with no less than 10 production sets, across rig operations with rigs that we are ready to mobilize. And I think across intervention, across drilling for infill drilling or production optimization, we believe to have a capacity in country. And we believe that we have the access to the Venezuelan nationals. About 80 of them are already in country. We have more than 1,000 Venezuelan and African country employees in the company. Some of them will be welcoming to work back in Venezuela. We have almost 2,000 alumni that I think we have kept in touch with that will be also ready to be joining us as we move forward. So as I said, long term, under the right conditions, we can be the leading partner for customers there. I think I've quoted the number where we were before. I think the future will tell us when and as this can accelerate. But we are ready. We are already receiving a lot of incoming calls, as I would say, to explore options going forward. Great. That's helpful. Olivier, my follow-up is wondering if you could talk a little bit about your data center infrastructure business. You mentioned that you expect to reach a $1 billion run rate in revenue, if I heard you correct, by year-end. Can you talk a little bit about the solutions you're providing today and maybe how you're thinking about organic and even inorganic opportunities to grow that business over time? Yeah. I think you heard me correctly. I think this is amazing what we have put together in less than 18 months. I think the rate of growth, the customer engagement that we are getting, the traction we are getting with hyperscalers, and I think is amazing. And yes, we put together a setup that is focused on the modular manufacturing capability and co-engineering of data center solutions from server room and cooling solutions. And we are aiming at increasing not only our scope, but also our footprint, as we have announced last quarter, doubling our capacity to respond to the pipeline and to respond to the backlog we have. We continue to be expanding both in terms of scope, in terms of around this manufacturing design capability for modular data center solutions. We will be this year going and growing internationally. We'll be this year adding new customers to our portfolio and preparing ourselves to grow throughout the year. In 2027, $1 billion is the wrong way, but we'll be significantly above this in 2027. We believe that we see growth through the rest of the decade internationally. And indeed, as we explore and respond to the requests from our customers who are looking for integrators in this space, we will look for complementing our current capability that we have built organically and to look at what could help complement this and accelerate our market penetration and make us as a fulfilled partner for customers going forward, technology throughout the lifecycle of the data center for construction and operation. Great. Thanks. Thank you. Thank you. Your next question comes from the line of David Anderson with Barclays. Your line is open. Great. Thank you. Good morning, Olivier. If we compare Schlumberger today or SLB, if we compare SLB today versus 10 years ago, in addition to digital, I think the biggest shift is now the emphasis on production and recovery. I was wondering if you could talk a little bit more specifically about the growth opportunity in the next few years as we think about OneSubsea, ChampionX, Artificial Lift. If I think about OneSubsea, I'm thinking about backlog conversion accelerating. Guyana, Venezuela, and potentially Venezuela could be growth engines in chemicals, and then Artificial Lift in the Middle East. Could you sort of frame this growth opportunity for us over the next few years on this side of your business? No, absolutely. Dave, I think production recovery, as we call it, is a new chapter for the company, something that we have decided strategically to invest because we believe that this is a market that has significant opportunity for value creation through technology, through integration, through digital. And we believe that we needed to own and have access to a broader portfolio, hence the access to the Schlumberger chemical, OPEC, and artificial lift technology and the digital platform addition that put us very well placed into that market. So now the customer response is very positive. And indeed, I think as you look at the priority of our customers today into the changing commodity pricing environment, it's all about getting more from the asset that they have under production. And hence, the return of the higher barrel for lower cost is a priority. So we are getting a lot of intake into our lift solution, into our digital production, as you have heard. And indeed, trying to realize and realizing today the benefit of chemistry, chemistry for not only production assurance, but also chemistry for reservoir performance or recovery. So we believe that the integrated capability that we have built together will give us the opportunity to create solutions for the market, end-to-end solutions that will help to improve the performance of existing producing assets, will help transform existing assets with a solution for recovery, solution for optimization, and will help across to bring digital solutions. So yes, lift solution in the major basin or into the most producing oil basin in the world, including the Middle East. Yes, SLB as a beneficiary for the long-term deep water, but also the boosting processing capability we have in SLB that are quite unique and contribute to this recovery production gain and goal we have. So yes, it is a new story for us. It's a new chapter. We're excited. Customer feedback is very strong because they believe that they need somebody that has the subsurface, has the technology, and has the full integrated portfolio to respond to the transformation of production recovery landscape as we have contributed and helped the industry transform the well construction or exploration historically. That makes a lot of sense. Shifting gears a little bit to another area of potential growth in geothermal. You've been dabbling there for a number of years, but now, as you noted in the release here, you're working with Ormat on a pilot project, I believe, later this year in enhanced geothermal. It looks a lot like as when we look at geothermal, a lot of this sounds a lot like shale in the early 2000s. We know the resources there, but it's a matter of process and technique to solve for the economics. Do you agree with that conceptually? Where's your confidence that this can be scaled up to create, say, 100+ MW geothermal plants in the next few years? Absolutely. I think, Dave, I think let me first step back and explain the reason why we have partnered with Ormat and the potential we see in this partnership. First is to put together the two leading companies in their field. We are subsurface leader in geothermal, helping to characterize the geothermal source and then develop the wells and develop the solution to produce the heat and the hot water from those wells. And Ormat is leaders into building geothermal power plants and understanding the full lifecycle. So putting this together and providing the industry for one integrated offering, I think, was very well received by the industry and will help accelerate providing conventional geothermal bridge power or base power for some of the data centers in the future. So that's clearly the first aspect. The second, obviously, we have put this together because we believe that we want to together optimize, explore, and optimize through a development of an asset or two assets in the future, in the near future, into the unconventional geothermal. And yes, we believe this is a field that has significant potential, but we want to do it right. We want to do it with science. We want to do it with technology. We want to do it with digital modeling of the process so that we get it right and we understand how to scale it economically, how to make it viable, how to make it safe, and then how to offer it together to the market in the near future. So that's the ambition. So we have done this for a reason. And I think we will be developing this asset, will be experimenting in this asset, appraising, and then getting ready for with technology, with digital, and with joint offering to offer this at scale to the market in the U.S. and beyond. Very exciting. Thank you. Thank you. Thank you. Your next question comes from the line of Neil Mehta with Goldman Sachs. Your line is open. Yeah. Thank you so much, Olivier and team. I guess the first question is more of a macro question, Olivier. You have a unique perspective on this big debate that's in the market right now about how much OPEC spare capacity really lives there in markets like the Middle East. And of course, recognizing that there's probably limitations about what you could say, your perspective on that question, I think, would be helpful for us as we think about the back end of the oil curve. I think you have been reading what I'm reading, and I think I don't want to reveal more, but I think OPEC+ has been unwinding 2.2 million barrels. I think when you fast forward a year from now, when the imbalance that still exists today will start to subside and then the market will balance itself, I don't think there will be much spare capacity available, sign of which you see by the reinvestment into oil capacity sustenance, investments that are happening to the cost across the Middle East, and oil intervention and intervention activity in which we have a strong exposure is benefiting from this. So yes, I don't think you have some of the OPEC members beyond the Middle East that are not necessarily having an easy path towards sustaining their existing production. So Iran, I think it bodes very well to our focus on production recovery, which is focusing on providing a technology and integrated capability to sustain production and enhance recovery. And I think that's where we will see adoption of this. But I don't think there is significant spare beyond what has been released back to the market. Hence, the market will tighten in rebalance into 2027 and beyond. Hence, we'll set the condition for a better outlook as an investment backdrop for the industry from 2027 and beyond. Yeah. That makes sense. And then another market we'd love to get your perspective on is Mexico. Olivier, this is probably the most constructive I've heard you on Mexico in a little bit, that we're in a bottoming phase and maybe even a cash recovery phase. Your perspective on that market and how it should evolve from here as we think about SLB? Yeah. The market, I would say, has normalized from a market that has dropped significantly and has had a need for getting the confidence of the oil industry to reinvest. I think it has normalized in the last few months. I think we anticipate it to be steady from the land activity for the first of all, short to midterm. And we expect the conditions are gradually in place, getting in place for reinvestment going forward. In 2026, however, where we see the upside is in offshore activity in Mexico, where the deep water asset that we are developing that is being developed by the Woodside will give us an upside, whereas the activity in land now will make the assumption it is steady, but with the potential to start to strengthen as we move into 2027. Thank you, sir. Thank you. Thank you. Your next question comes from the line of Marc Bianchi with TD Cowen. Your line is open. Hey. Hey. Thank you. Good morning. I wanted to ask on. Good morning, Mark. So we've got these activity in good morning. We've got these activity increases in your outlook for 2026 for certain international markets. Earlier, I think a few months ago, there was some discussion of some pricing potential weakness. Can you talk about what that looks like today and what your expectation is embedded in the outlook here? Yeah. I think first to comment that I think the industry has been under pricing pressure in the last couple of years, starting with North America, and I don't see a change there. I think although we believe in North America, we are shielded to the mix of the portfolio we have and exposure where data center and digital and our exposure in deepwater and Gulf of Mexico is proportionally bigger. And also the OPEC exposure where Schlumberger is a bit of a shield towards some of the pricing pressure in North America. Internationally, the market has been, and I keep repeating every time I get to comment on this, has remained highly competitive for a large tender in international markets. And the market has been keeping pressure considering that the market has been declining the last 18 months or 12 months in the international market. Hence, the pricing pressure has been sustained in some critical markets. And we have been responding to this pressure when we felt it was the appropriate things to do to keep us into the market. At the same time, I think we are able to maintain our margin steady in 2026 compared to 2025, building on our Schlumberger synergy, building on the digital growth margin-accretive business, and the effort we are doing to continue to use technology performance as differential to protect where we can margin against the pricing pressure. Okay. Thank you for that. The other question I had was related to the offshore outlook. You've talked about an expectation for improvement in offshore. I think if we go back a year or two, there was an expectation for offshore improvement that didn't really materialize. What are you seeing now that you think is different from that prior period and gives you the confidence to make those comments? Well, the comments I'm making is that I believe that the FID and the booking will improve in 2026, setting the right setup and context for 2027, 2028 offshore cycle rebound. Whether this is material in 2026, yes, in certain markets, in East Asia, the activity of Indonesia, the market will strengthen in deepwater. And I think this will reflect into this year. In Sub-Saharan Africa, this is more a trend of FID, of project from Namibia to Angola and Mozambique that will set the context for a marked rebound going forward. And these FID are happening as we speak, being negotiated and being pending. And in the Americas, I think the continuous momentum in Brazil, in Guyana, or Suriname, and, I think, are here to stay with the mature basin Gulf of Mexico, mature basin of the North Sea remaining steady somehow, although with a slight decline in the North Sea. So we believe that the FID, the economics are favorable, and the pipeline of FID across Africa and Asia are set to create a rebound of activity going forward as we turn into 2027. Thank you very much. Thank you. Thank you. Your last question comes from the line of Scott Gruber with Citigroup. Your line is open. Good morning. So I want to come back to the data center solutions business. Olivier, you mentioned expanding the business abroad. But does the billion-dollar target capture any of that international growth opportunity, or would that be future upside? And how quickly could this materialize? Ultimately, as you leverage your global relationships, could the international opportunity become even larger than your U.S. business? Difficult to say whether it could become larger, but easy to tell you that it will grow. This year will be the first step into establishing ourselves in Asia and to provide this modular manufacturing solution to our customer there. Also, we initiate a partnership to design a next-generation data center in one country in the Asia region. Then we expect to also look at our relationship to embed and go further, including Middle East, in the near future. So these are the places where we have ambition to leverage our hyperscale relationship and our modular manufacturing capability, ability to source locally, ability to manufacture everywhere. I think it's something unique that not so many companies can do and scale and replicate what we have done in the last 18 months. So that's what we look forward to, and that's where we are excited about the international market. But the US is still the hot market, and the US is where we believe we have the most exciting pipeline in 2026 and in 2027 coming our way, and we'll not miss that market. I got it. Appreciate that color. And then I want to come back to the question Stephen asked at the beginning on CapEx. So your $2.5 billion of CapEx this year will support the second-half growth rate that you'll achieve, which will be led by digital and data center solutions, some contribution from the core. But overall, the capital intensity of the portfolio is improving. So my question is, can you sustain similar growth rate for a couple of years into the future at a CapEx level that's still broadly around $2.5 billion, given those kind of less capital-intensive drivers of growth, or do you think CapEx will need to creep a bit higher? Look, as I said before, we'll do what it takes to not miss any opportunity. But again, we have really improved our capital efficiency over the last five to six years, so we can really operate with less. But if growth really comes at high growth rates, we will have to increase beyond the $2.5 billion for sure. But as a percentage of revenue, that will still remain pretty low compared to what we were doing before and still quite in the low end of the range we had guided before of 5%-7% of revenue. That's excluding APS and exploration data. So yes, we'll increase as necessary, but it will go with increased cash flow as well. And some of the growth that we will be seeing is production and recovery, as we elaborated on before, as well as digital. And that doesn't require as much CapEx as the well-centric businesses. So this is how we can maneuver within that range, basically. So without some acceleration in the kind of core business, you would expect the CapEx to sales ratio to continue to improve over the next couple of years? Is that fair? It will be more or less as a percentage of revenue. It will stay within that 5%-7% we've guided before, but it's more below. As you have seen, we've been closer to 5 than 7. So we will remain at the low end of that range in the future. Okay. I appreciate the color. Thank you. Thank you. Thank you, Scott. Ladies and gentlemen, Thank you. Thank you, Megan. Ladies and gentlemen, as we conclude today's call, I would like to leave you with the following takeaways. First, our strategy focused on production recovery, including ChampionX. Digital and Data Center solutions present new pathways for growth, supporting a full-year revenue and margin guidance. Second, I'm confident that we continue to generate strong cash flows, enabling us to return more than $4 billion of shareholder returns in 2026. Third, in the longer term, the outlook is becoming more positive for SLB. The recovery of Saudi Arabia, the positive pipeline in Subsea, the growth dynamic in both digital and data centers are all catalysts, and Venezuela represents an upside. In summary, the current cycle is recovering toward the strength of SLB. With this, I will conclude today's call. Thank you all for joining. This concludes today's conference call. You may now disconnect.

Speaker 8: Thank you for your patience. The call will begin momentarily. Thank you for your patience. The call will begin momentarily. Good morning. My name is Megan. I'll be your conference operator today and would like to welcome everyone to the fourth quarter and full year 2025 SLB earnings call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a Q&A session. If you would like to ask a question during the time, simply press star followed by the number one on your telephone keypad. You may remove yourself from the queue by pressing star two. As a reminder, this call is being recorded. I will now turn the call over to James R. McDonald, Senior Vice President of Investor Relations and Industry Affairs. Please go ahead. Thank you for your patience. thank you for your patience The call will begin momentarily. the call will begin momentarily Thank you for your patience. thank you for your patience The call will begin momentarily. the call will begin momentarily Good morning. good morning My name is Megan. my name is megan I'll be your conference operator today and would like to welcome everyone to the fourth quarter and full year 2025 SLB earnings call. i'll be your conference operator today and would like to welcome everyone to the fourth quarter and full year 2025 slb earnings call At this time, all participants are in a listen-only mode. at this time all participants are in a listen-only mode After the speaker's remarks, there will be a Q&A session. after the speaker's remarks there will be a q&a session If you would like to ask a question during the time, simply press star followed by the number one on your telephone keypad. if you would like to ask a question during the time simply press star followed by the number one on your telephone keypad You may remove yourself from the queue by pressing star two. you may remove yourself from the queue by pressing star two As a reminder, this call is being recorded. as a reminder this call is being recorded I will now turn the call over to James R. i will now turn the call over to james r McDonald, Senior Vice President of Investor Relations and Industry Affairs. mcdonald senior vice president of investor relations and industry affairs Please go ahead. please go ahead

Speaker 3: Thank you, Megan. Good morning and welcome to the SLB fourth quarter and full year 2025 earnings conference call. Today's call is being hosted from Houston following our board meeting held earlier this week. Joining us on the call are Olivier Le Peuch, Chief Executive Officer, and Stéphane Biguet, Chief Financial Officer. Before we begin, I would like to remind all participants that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause the results to differ materially from those projected in these statements. For more information, please refer to our latest 10-K filing and other SEC filings, which can be found on our website. Our comments today also include non-GAAP financial measures. Thank you, Megan. thank you megan Good morning and welcome to the SLB fourth quarter and full year 2025 earnings conference call. good morning and welcome to the slb fourth quarter and full year 2025 earnings conference call Today's call is being hosted from Houston following our board meeting held earlier this week. today's call is being hosted from houston following our board meeting held earlier this week Joining us on the call are Olivier Le Peuch, Chief Executive Officer, and Stéphane Biguet, Chief Financial Officer. joining us on the call are olivier le peuch chief executive officer and stéphane biguet chief financial officer Before we begin, I would like to remind all participants that some of the statements we will be making today are forward-looking. before we begin i would like to remind all participants that some of the statements we will be making today are forward-looking These matters involve risks and uncertainties that could cause the results to differ materially from those projected in these statements. these matters involve risks and uncertainties that could cause the results to differ materially from those projected in these statements For more information, please refer to our latest 10-K filing and other SEC filings, which can be found on our website. for more information please refer to our latest 10-k filing and other sec filings which can be found on our website Our comments today also include non-GAAP financial measures. our comments today also include non-gaap financial measures Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our fourth quarter and full year earnings press release, which is on our website. With that, I will turn the call over to Olivier. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our fourth quarter and full year earnings press release, which is on our website. additional details and reconciliations to the most directly comparable gaap financial measures can be found in our fourth quarter and full year earnings press release which is on our website With that, I will turn the call over to Olivier. with that i will turn the call over to olivier

Speaker 7: Thank you, James. Ladies and gentlemen, thank you for joining us today. I will begin by reviewing our fourth quarter performance, followed by an update on market conditions and the unique opportunities we see developing for our business. I will then share our outlook for the first quarter and expectations for the full year 2026. Stéphane will then provide additional details on our financial results. And finally, we will open the line for your questions. Let's begin. We ended the year with strong operational and financial performance in the fourth quarter, achieving sequential revenue growth, margin expansion, and substantial cash flow generation. This performance reflects the breadth of our portfolio and the impact of our strategy in a challenging macro environment. Sequentially, revenue increased by 9%, driven by high single-digit growth internationally and mid-teens growth in North America. Thank you, James. thank you james Ladies and gentlemen, thank you for joining us today. ladies and gentlemen thank you for joining us today I will begin by reviewing our fourth quarter performance, followed by an update on market conditions and the unique opportunities we see developing for our business. i will begin by reviewing our fourth quarter performance followed by an update on market conditions and the unique opportunities we see developing for our business I will then share our outlook for the first quarter and expectations for the full year 2026. i will then share our outlook for the first quarter and expectations for the full year 2026 Stéphane will then provide additional details on our financial results. stéphane will then provide additional details on our financial results And finally, we will open the line for your questions. and finally we will open the line for your questions Let's begin. let's begin We ended the year with strong operational and financial performance in the fourth quarter, achieving sequential revenue growth, margin expansion, and substantial cash flow generation. we ended the year with strong operational and financial performance in the fourth quarter achieving sequential revenue growth margin expansion and substantial cash flow generation This performance reflects the breadth of our portfolio and the impact of our strategy in a challenging macro environment. this performance reflects the breadth of our portfolio and the impact of our strategy in a challenging macro environment Sequentially, revenue increased by 9%, driven by high single-digit growth internationally and mid-teens growth in North America. sequentially revenue increased by 9% driven by high single-digit growth internationally and mid-teens growth in north america Excluding ChampionX, organic revenue increased by 7% internationally and 6% in North America. We saw sequential growth across all our geographies for the first time since the second quarter of 2024. This demonstrates that global upstream activity has stabilized, with key markets showing early signs of a rebound. This helped us to deliver approximately $500 million of organic revenue growth this quarter, in addition to a roughly $300 million contribution from ChampionX, resulting from an extra month of consolidation. Let me briefly discuss a few highlights from the quarter. First, we benefited from stronger end product sales in production systems globally, higher exploration data sales, and strong demand for digital operations across all areas. Second, activity increased across the Middle East, led by Saudi Arabia, and with momentum in UAE due to a combination of sustained gas development and increased oil field intervention activity. Excluding ChampionX, organic revenue increased by 7% internationally and 6% in North America. excluding championx organic revenue increased by 7% internationally and 6% in north america We saw sequential growth across all our geographies for the first time since the second quarter of 2024. we saw sequential growth across all our geographies for the first time since the second quarter of 2024 This demonstrates that global upstream activity has stabilized, with key markets showing early signs of a rebound. this demonstrates that global upstream activity has stabilized with key markets showing early signs of a rebound This helped us to deliver approximately $500 million of organic revenue growth this quarter, in addition to a roughly $300 million contribution from ChampionX, resulting from an extra month of consolidation. this helped us to deliver approximately $500 million of organic revenue growth this quarter in addition to a roughly $300 million contribution from championx resulting from an extra month of consolidation Let me briefly discuss a few highlights from the quarter. let me briefly discuss a few highlights from the quarter First, we benefited from stronger end product sales in production systems globally, higher exploration data sales, and strong demand for digital operations across all areas. first we benefited from stronger end product sales in production systems globally higher exploration data sales and strong demand for digital operations across all areas Second, activity increased across the Middle East, led by Saudi Arabia, and with momentum in UAE due to a combination of sustained gas development and increased oil field intervention activity. second activity increased across the middle east led by saudi arabia and with momentum in uae due to a combination of sustained gas development and increased oil field intervention activity Third, we delivered strong results across Asia, with increased activity in Australasia, East Asia, and Indonesia, as these markets continue to benefit from offshore gas development. Notably, this quarter also marked the return of growth in Saudi Arabia and across sub-Saharan Africa, with flat revenue in Mexico. These three bases actually accounted for the entire organic revenue decline in the full year of 2025. And directionally, we expect activity in this market to improve as we move throughout 2026. Turning to the divisions, in the fourth quarter, Production Systems and Digital led the way, where Reservoir Performance was up slightly and Well Construction revenue was steady. The strength in Production Systems was driven by increased demand for Production Chemicals, Asset Performance Solutions, and Process Technology and Solutions, as well as backlog execution, Completions, and OneSubsea. Third, we delivered strong results across Asia, with increased activity in Australasia, East Asia, and Indonesia, as these markets continue to benefit from offshore gas development. third we delivered strong results across asia with increased activity in australasia east asia and indonesia as these markets continue to benefit from offshore gas development Notably, this quarter also marked the return of growth in Saudi Arabia and across sub-Saharan Africa, with flat revenue in Mexico. notably this quarter also marked the return of growth in saudi arabia and across sub-saharan africa with flat revenue in mexico These three bases actually accounted for the entire organic revenue decline in the full year of 2025. these three bases actually accounted for the entire organic revenue decline in the full year of 2025 And directionally, we expect activity in this market to improve as we move throughout 2026. and directionally we expect activity in this market to improve as we move throughout 2026 Turning to the divisions, in the fourth quarter, Production Systems and Digital led the way, where Reservoir Performance was up slightly and Well Construction revenue was steady. turning to the divisions in the fourth quarter production systems and digital led the way where reservoir performance was up slightly and well construction revenue was steady The strength in Production Systems was driven by increased demand for Production Chemicals, Asset Performance Solutions, and Process Technology and Solutions, as well as backlog execution, Completions, and OneSubsea. the strength in production systems was driven by increased demand for production chemicals asset performance solutions and process technology and solutions as well as backlog execution completions and onesubsea When excluding the ChampionX contribution, this division still grew by double digits sequentially and maintained its momentum with several contract awards during the quarter, as you can see from today's highlights. Digital also continued to grow at a healthy rate, driven by strong growth in digital exploration with year-end sales in the Gulf of Mexico, Brazil, and Angola, as well as robust increase in digital operation and platform application. Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%. We also announced several exciting digital milestones in the fourth quarter, including launching Tela, an agentic AI system purpose-built to transform the upstream energy sector and forming a partnership with ADNOC to launch an AI-powered production system optimization platform. These underscore the opportunity for AI to continue to reshape industry operations. When excluding the ChampionX contribution, this division still grew by double digits sequentially and maintained its momentum with several contract awards during the quarter, as you can see from today's highlights. when excluding the championx contribution this division still grew by double digits sequentially and maintained its momentum with several contract awards during the quarter as you can see from today's highlights Digital also continued to grow at a healthy rate, driven by strong growth in digital exploration with year-end sales in the Gulf of Mexico, Brazil, and Angola, as well as robust increase in digital operation and platform application. digital also continued to grow at a healthy rate driven by strong growth in digital exploration with year-end sales in the gulf of mexico brazil and angola as well as robust increase in digital operation and platform application Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%. digital annual recurring revenue surpassed $1 billion reflecting year-on-year growth of 15% We also announced several exciting digital milestones in the fourth quarter, including launching Tela, an agentic AI system purpose-built to transform the upstream energy sector and forming a partnership with ADNOC to launch an AI-powered production system optimization platform. we also announced several exciting digital milestones in the fourth quarter including launching tela an agentic ai system purpose-built to transform the upstream energy sector and forming a partnership with adnoc to launch an ai-powered production system optimization platform These underscore the opportunity for AI to continue to reshape industry operations. these underscore the opportunity for ai to continue to reshape industry operations Meanwhile, in Reservoir Performance, sequential growth was the result of increased stimulation activity in the Middle East and Asia and higher intervention activity in Europe and Africa. In Well Construction, higher offshore drilling activity in North America and Europe and Africa was offset by declines in some land markets. Additionally, our fourth quarter revenue benefited from the resumption of production in the APS projects of Ecuador. Overall, our fourth quarter results are a positive indication of the opportunity that lies ahead. I want to thank the entire SLB team for delivering excellent performance for our customers throughout 2025 and finishing the year on such a strong note. Turning to the market environment, near-term oversupply may continue to exert downward pressure on commodity prices throughout the first half of 2026, while elevated geopolitical uncertainties should provide a price floor. Meanwhile, in Reservoir Performance, sequential growth was the result of increased stimulation activity in the Middle East and Asia and higher intervention activity in Europe and Africa. meanwhile in reservoir performance sequential growth was the result of increased stimulation activity in the middle east and asia and higher intervention activity in europe and africa In Well Construction, higher offshore drilling activity in North America and Europe and Africa was offset by declines in some land markets. in well construction higher offshore drilling activity in north america and europe and africa was offset by declines in some land markets Additionally, our fourth quarter revenue benefited from the resumption of production in the APS projects of Ecuador. additionally our fourth quarter revenue benefited from the resumption of production in the aps projects of ecuador Overall, our fourth quarter results are a positive indication of the opportunity that lies ahead. overall our fourth quarter results are a positive indication of the opportunity that lies ahead I want to thank the entire SLB team for delivering excellent performance for our customers throughout 2025 and finishing the year on such a strong note. i want to thank the entire slb team for delivering excellent performance for our customers throughout 2025 and finishing the year on such a strong note Turning to the market environment, near-term oversupply may continue to exert downward pressure on commodity prices throughout the first half of 2026, while elevated geopolitical uncertainties should provide a price floor. turning to the market environment near-term oversupply may continue to exert downward pressure on commodity prices throughout the first half of 2026 while elevated geopolitical uncertainties should provide a price floor E&P operators are therefore expected to remain cautious and to back-load their 2026 budget. As supply and demand continue to rebalance into 2027, conditions will likely support a gradual recovery in upstream investment, with activity in key international markets and offshore deployment exiting 2026 at a higher level than 2025. Indeed, economic growth, increasing population and large-scale manufacturing and infrastructure investments, particularly in the U.S. and China related to AI, will inherently drive more demand in both oil and gas. Coupled with the natural decline of existing oil and gas assets, we believe these will be the key drivers for the rebalancing of supply and demand. In the meantime, our customers are focused on delivering the lowest-cost incremental barrel. This means capturing efficiencies at scale. In our view, that requires more technology, more integration, and more digital solutions. E&P operators are therefore expected to remain cautious and to back-load their 2026 budget. e&p operators are therefore expected to remain cautious and to back-load their 2026 budget As supply and demand continue to rebalance into 2027, conditions will likely support a gradual recovery in upstream investment, with activity in key international markets and offshore deployment exiting 2026 at a higher level than 2025. as supply and demand continue to rebalance into 2027 conditions will likely support a gradual recovery in upstream investment with activity in key international markets and offshore deployment exiting 2026 at a higher level than 2025 Indeed, economic growth, increasing population and large-scale manufacturing and infrastructure investments, particularly in the U.S. and China related to AI, will inherently drive more demand in both oil and gas. indeed economic growth increasing population and large-scale manufacturing and infrastructure investments particularly in the u.s and china related to ai will inherently drive more demand in both oil and gas Coupled with the natural decline of existing oil and gas assets, we believe these will be the key drivers for the rebalancing of supply and demand. coupled with the natural decline of existing oil and gas assets we believe these will be the key drivers for the rebalancing of supply and demand In the meantime, our customers are focused on delivering the lowest-cost incremental barrel. in the meantime our customers are focused on delivering the lowest-cost incremental barrel This means capturing efficiencies at scale. this means capturing efficiencies at scale In our view, that requires more technology, more integration, and more digital solutions. in our view that requires more technology more integration and more digital solutions Today, operators are increasingly prioritizing performance assurance across the asset lifecycle, reducing development timelines and accelerating optimization through digital solutions. SLB is uniquely positioned to deliver value in this environment by integrating equipment with intelligent and autonomous digital capabilities to reduce downtime, improve efficiency, and increase productivity, as witnessed by the rapid uptake in our digital operations. Additionally, production recovery has emerged as a critical domain for value creation, not only in brownfield and mature assets, but also across greenfield developments and tiebacks. This is not an either/or proposition between CapEx and OPEC, but an opportunity to increase our share of CapEx spend and capture OPEC white space with new solutions. With SLB's expanded production portfolio, including the addition of ChampionX, we are uniquely positioned to meet the developing demand in the production space. Today, operators are increasingly prioritizing performance assurance across the asset lifecycle, reducing development timelines and accelerating optimization through digital solutions. today operators are increasingly prioritizing performance assurance across the asset lifecycle reducing development timelines and accelerating optimization through digital solutions SLB is uniquely positioned to deliver value in this environment by integrating equipment with intelligent and autonomous digital capabilities to reduce downtime, improve efficiency, and increase productivity, as witnessed by the rapid uptake in our digital operations. slb is uniquely positioned to deliver value in this environment by integrating equipment with intelligent and autonomous digital capabilities to reduce downtime improve efficiency and increase productivity as witnessed by the rapid uptake in our digital operations Additionally, production recovery has emerged as a critical domain for value creation, not only in brownfield and mature assets, but also across greenfield developments and tiebacks. additionally production recovery has emerged as a critical domain for value creation not only in brownfield and mature assets but also across greenfield developments and tiebacks This is not an either/or proposition between CapEx and OPEC, but an opportunity to increase our share of CapEx spend and capture OPEC white space with new solutions. this is not an either/or proposition between capex and opec but an opportunity to increase our share of capex spend and capture opec white space with new solutions With SLB's expanded production portfolio, including the addition of ChampionX, we are uniquely positioned to meet the developing demand in the production space. with slb's expanded production portfolio including the addition of championx we are uniquely positioned to meet the developing demand in the production space Globally, the international markets are stabilizing and trending upwards directionally, with Latin America and Middle East and Asia leading the rebound in 2026. Regionally, Middle East continues to represent the largest international market, with positive investment outlook. Indeed, there is a resurgence of oil production across the region, driven by OPEC+ policy, while gas remains a strategic priority to meet regional demand and long-term capacity expansion. In 2025, we witnessed double-digit growth in the United Arab Emirates, Iraq, and Kuwait, which was more than offset by the decline in Saudi Arabia. In 2026, the Middle East market will be characterized by rebounds in drilling and workover activity in Saudi Arabia, with rig counts potentially returning to early 2025 levels by the end of 2026. This has already begun. Globally, the international markets are stabilizing and trending upwards directionally, with Latin America and Middle East and Asia leading the rebound in 2026. globally the international markets are stabilizing and trending upwards directionally with latin america and middle east and asia leading the rebound in 2026 Regionally, Middle East continues to represent the largest international market, with positive investment outlook. regionally middle east continues to represent the largest international market with positive investment outlook Indeed, there is a resurgence of oil production across the region, driven by OPEC+ policy, while gas remains a strategic priority to meet regional demand and long-term capacity expansion. indeed there is a resurgence of oil production across the region driven by opec+ policy while gas remains a strategic priority to meet regional demand and long-term capacity expansion In 2025, we witnessed double-digit growth in the United Arab Emirates, Iraq, and Kuwait, which was more than offset by the decline in Saudi Arabia. in 2025 we witnessed double-digit growth in the united arab emirates iraq and kuwait which was more than offset by the decline in saudi arabia In 2026, the Middle East market will be characterized by rebounds in drilling and workover activity in Saudi Arabia, with rig counts potentially returning to early 2025 levels by the end of 2026. in 2026 the middle east market will be characterized by rebounds in drilling and workover activity in saudi arabia with rig counts potentially returning to early 2025 levels by the end of 2026 This has already begun. this has already begun Offshore also continues to present compelling long-term growth opportunities for SLB, particularly in deepwater, where we expect activity to inflect toward the end of 2026 as white space subsides. With OneSubsea, we have the unique ability to combine Subsea processing capabilities, digital solutions, and SLB's integrated pore-to-process expertise across Subsea intervention and integrated well construction to create differentiated value for customers. Specific to the Subsea market, more than 500 Subsea trees are expected to be awarded across 2026 and 2027, about 20% higher than 2025 run rate. And this is an opportunity we aim to capitalize on. In 2025, OneSubsea was awarded approximately $4 billion Subsea bookings, and we see a path for cumulative bookings exceeding $9 billion over the next two years, supported by this tendering activity. Offshore also continues to present compelling long-term growth opportunities for SLB, particularly in deepwater, where we expect activity to inflect toward the end of 2026 as white space subsides. offshore also continues to present compelling long-term growth opportunities for slb particularly in deepwater where we expect activity to inflect toward the end of 2026 as white space subsides With OneSubsea, we have the unique ability to combine Subsea processing capabilities, digital solutions, and SLB's integrated pore-to-process expertise across Subsea intervention and integrated well construction to create differentiated value for customers. with onesubsea we have the unique ability to combine subsea processing capabilities digital solutions and slb's integrated pore-to-process expertise across subsea intervention and integrated well construction to create differentiated value for customers Specific to the Subsea market, more than 500 Subsea trees are expected to be awarded across 2026 and 2027, about 20% higher than 2025 run rate. specific to the subsea market more than 500 subsea trees are expected to be awarded across 2026 and 2027 about 20% higher than 2025 run rate And this is an opportunity we aim to capitalize on. and this is an opportunity we aim to capitalize on In 2025, OneSubsea was awarded approximately $4 billion Subsea bookings, and we see a path for cumulative bookings exceeding $9 billion over the next two years, supported by this tendering activity. in 2025 onesubsea was awarded approximately $4 billion subsea bookings and we see a path for cumulative bookings exceeding $9 billion over the next two years supported by this tendering activity Finally, we're excited about the strong progress in our data center solution business since its launch less than two years ago. This year, we plan to expand our range of offering, our customer base, and the geography we serve, paving the way for future growth. The opportunity is growing faster than anticipated, and we expect to exit the year at a quarterly revenue run rate of $1 billion per year. Overall, SLB is clearly positioned to fully benefit from a rebound in international activity as supply-demand rebalance, supported by ongoing investments for oil capacity, gas expansion projects, and a constructive long-term outlook for deep water. Regional activity dynamics further reinforce this favorable directional trajectory beginning in 2026. Let me now share our outlook for the year. The headwinds we face in 2025 in certain markets may become tailwinds for our business this year. Finally, we're excited about the strong progress in our data center solution business since its launch less than two years ago. finally we're excited about the strong progress in our data center solution business since its launch less than two years ago This year, we plan to expand our range of offering, our customer base, and the geography we serve, paving the way for future growth. this year we plan to expand our range of offering our customer base and the geography we serve paving the way for future growth The opportunity is growing faster than anticipated, and we expect to exit the year at a quarterly revenue run rate of $1 billion per year. the opportunity is growing faster than anticipated and we expect to exit the year at a quarterly revenue run rate of $1 billion per year Overall, SLB is clearly positioned to fully benefit from a rebound in international activity as supply-demand rebalance, supported by ongoing investments for oil capacity, gas expansion projects, and a constructive long-term outlook for deep water. overall slb is clearly positioned to fully benefit from a rebound in international activity as supply-demand rebalance supported by ongoing investments for oil capacity gas expansion projects and a constructive long-term outlook for deep water Regional activity dynamics further reinforce this favorable directional trajectory beginning in 2026. regional activity dynamics further reinforce this favorable directional trajectory beginning in 2026 Let me now share our outlook for the year. let me now share our outlook for the year The headwinds we face in 2025 in certain markets may become tailwinds for our business this year. the headwinds we face in 2025 in certain markets may become tailwinds for our business this year We anticipate this will translate into a higher fourth-quarter revenue exit rate in 2026 compared to the fourth quarter of 2025. For the full year, assuming oil price remains rangebound in the high 50s to low 60s range, we expect 2026 revenue to be between $36.9 billion-$37.7 billion. In North America, we will benefit from the addition of seven months of activity from ChampionX, stronger offshore activity tied to customer plans, and accelerated growth in data centers, while upstream land activity will continue to decline year-on-year. In international markets, revenue is expected to trend upwards over the year, resulting in a slight year-over-year increase. Growth will come from Latin America and the Middle East and Asia, while Europe and Africa is anticipated to decline slightly. Let me now describe how these dynamics will unfold across the divisions. We anticipate this will translate into a higher fourth-quarter revenue exit rate in 2026 compared to the fourth quarter of 2025. we anticipate this will translate into a higher fourth-quarter revenue exit rate in 2026 compared to the fourth quarter of 2025 For the full year, assuming oil price remains rangebound in the high 50s to low 60s range, we expect 2026 revenue to be between $36.9 billion-$37.7 billion. for the full year assuming oil price remains rangebound in the high 50s to low 60s range we expect 2026 revenue to be between $36.9 billion-$37.7 billion In North America, we will benefit from the addition of seven months of activity from ChampionX, stronger offshore activity tied to customer plans, and accelerated growth in data centers, while upstream land activity will continue to decline year-on-year. in north america we will benefit from the addition of seven months of activity from championx stronger offshore activity tied to customer plans and accelerated growth in data centers while upstream land activity will continue to decline year-on-year In international markets, revenue is expected to trend upwards over the year, resulting in a slight year-over-year increase. in international markets revenue is expected to trend upwards over the year resulting in a slight year-over-year increase Growth will come from Latin America and the Middle East and Asia, while Europe and Africa is anticipated to decline slightly. growth will come from latin america and the middle east and asia while europe and africa is anticipated to decline slightly Let me now describe how these dynamics will unfold across the divisions. let me now describe how these dynamics will unfold across the divisions In Digital, revenue is expected to grow at the same pace as 2025, driven by Digital Operations. Production Systems will increase, mostly benefiting from a full year of ChampionX revenue. Reservoir Performance will be flattish, while Well Construction will decline slightly. Revenue in the All Other category will be flat year-on-year, considering the loss of revenue from the divested Palliser asset will be offset by growth in the Data Center Solutions. This revenue outlook translates into Adjusted EBITDA between $8.6 billion-$9.1 billion, with margins remaining in line with full year 2025 levels. Finally, with visibility into another year of strong cash flow, we will return more than $4 billion to shareholders in 2026 through the combination of the increased dividend that we announced this morning and share repurchase. In Digital, revenue is expected to grow at the same pace as 2025, driven by Digital Operations. in digital revenue is expected to grow at the same pace as 2025 driven by digital operations Production Systems will increase, mostly benefiting from a full year of ChampionX revenue. production systems will increase mostly benefiting from a full year of championx revenue Reservoir Performance will be flattish, while Well Construction will decline slightly. reservoir performance will be flattish while well construction will decline slightly Revenue in the All Other category will be flat year-on-year, considering the loss of revenue from the divested Palliser asset will be offset by growth in the Data Center Solutions. revenue in the all other category will be flat year-on-year considering the loss of revenue from the divested palliser asset will be offset by growth in the data center solutions This revenue outlook translates into Adjusted EBITDA between $8.6 billion-$9.1 billion, with margins remaining in line with full year 2025 levels. this revenue outlook translates into adjusted ebitda between $8.6 billion-$9.1 billion with margins remaining in line with full year 2025 levels Finally, with visibility into another year of strong cash flow, we will return more than $4 billion to shareholders in 2026 through the combination of the increased dividend that we announced this morning and share repurchase. finally with visibility into another year of strong cash flow we will return more than $4 billion to shareholders in 2026 through the combination of the increased dividend that we announced this morning and share repurchase Turning to the first quarter, we anticipate revenue to decline by high single digits sequentially, similar to the prior year, due to outsized year-end product sales and project milestones in Production Systems in the prior quarter. We also expect Adjusted EBITDA margin to decrease by 150-200 basis points versus the prior quarter. This seasonal dip will be followed by a rebound of activity during the second quarter, with further expansion into the second half driven primarily by international markets. Finally, before I hand over to Stéphane, let me briefly touch on Venezuela. SLB is the only international service company actively operating in Venezuela today, as we are delivering a diverse set of services for NOC under their license. With nearly a century of experience in Venezuela, we did maintain active facilities, equipment, and local personnel on the ground. Turning to the first quarter, we anticipate revenue to decline by high single digits sequentially, similar to the prior year, due to outsized year-end product sales and project milestones in Production Systems in the prior quarter. turning to the first quarter we anticipate revenue to decline by high single digits sequentially similar to the prior year due to outsized year-end product sales and project milestones in production systems in the prior quarter We also expect Adjusted EBITDA margin to decrease by 150-200 basis points versus the prior quarter. we also expect adjusted ebitda margin to decrease by 150-200 basis points versus the prior quarter This seasonal dip will be followed by a rebound of activity during the second quarter, with further expansion into the second half driven primarily by international markets. this seasonal dip will be followed by a rebound of activity during the second quarter with further expansion into the second half driven primarily by international markets Finally, before I hand over to Stéphane, let me briefly touch on Venezuela. finally before i hand over to stéphane let me briefly touch on venezuela SLB is the only international service company actively operating in Venezuela today, as we are delivering a diverse set of services for NOC under their license. slb is the only international service company actively operating in venezuela today as we are delivering a diverse set of services for noc under their license With nearly a century of experience in Venezuela, we did maintain active facilities, equipment, and local personnel on the ground. with nearly a century of experience in venezuela we did maintain active facilities equipment and local personnel on the ground Historically, we have been a leader in the country, and we remain confident that with appropriate licensing, safety parameters, and compliance measures in place, we can rapidly ramp up activities in support of the oil and gas industry in Venezuela. We are excited, and we are already receiving a lot of inquiries from our customers. I will now turn the call over to Stéphane to discuss our financial results in more detail. Historically, we have been a leader in the country, and we remain confident that with appropriate licensing, safety parameters, and compliance measures in place, we can rapidly ramp up activities in support of the oil and gas industry in Venezuela. historically we have been a leader in the country and we remain confident that with appropriate licensing safety parameters and compliance measures in place we can rapidly ramp up activities in support of the oil and gas industry in venezuela We are excited, and we are already receiving a lot of inquiries from our customers. we are excited and we are already receiving a lot of inquiries from our customers I will now turn the call over to Stéphane to discuss our financial results in more detail. i will now turn the call over to stéphane to discuss our financial results in more detail

Speaker 11: Thank you, Olivier, and good morning, ladies and gentlemen. Fourth quarter earnings per share, excluding charges and credits, was $0.78. This represents an increase of $0.09 sequentially and a decrease of $0.14 compared to the fourth quarter of last year. We recorded $0.23 of net charges during the fourth quarter. This includes an $0.11 goodwill impairment charge relating to our carbon capture business, $0.08 of merger and integration charges, $0.07 related to workforce reductions, and $0.03 of other charges. Thank you, Olivier, and good morning, ladies and gentlemen. thank you olivier and good morning ladies and gentlemen Fourth quarter earnings per share, excluding charges and credits, was $0.78. fourth quarter earnings per share excluding charges and credits was $0.78 This represents an increase of $0.09 sequentially and a decrease of $0.14 compared to the fourth quarter of last year. this represents an increase of $0.09 sequentially and a decrease of $0.14 compared to the fourth quarter of last year We recorded $0.23 of net charges during the fourth quarter. we recorded $0.23 of net charges during the fourth quarter This includes an $0.11 goodwill impairment charge relating to our carbon capture business, $0.08 of merger and integration charges, $0.07 related to workforce reductions, and $0.03 of other charges. this includes an $0.11 goodwill impairment charge relating to our carbon capture business $0.08 of merger and integration charges $0.07 related to workforce reductions and $0.03 of other charges Offsetting these charges is a $0.06 credit relating to the reversal of a valuation allowance that was recorded against certain deferred tax assets. Overall, our fourth quarter revenue of $9.7 billion increased $817 million, or 9% sequentially. Approximately $300 million of this increase is due to an additional month of activity from the acquired ChampionX businesses. Excluding the impact of this transaction, SLB's fourth quarter global revenue increased 6% sequentially. The sequential revenue step-up was higher than expected and was driven by strong year-end digital sales, significant backlog deliveries, and project milestones in production systems, as well as higher reservoir performance activity in international markets. Fourth quarter adjusted EBITDA margin of 23.9% increased 83 basis points sequentially, primarily driven by very strong digital performance. Margin growth during the quarter was, however, constrained by a loss in a carbon capture project that negatively impacted margins by approximately 50 basis points. Offsetting these charges is a $0.06 credit relating to the reversal of a valuation allowance that was recorded against certain deferred tax assets. offsetting these charges is a $0.06 credit relating to the reversal of a valuation allowance that was recorded against certain deferred tax assets Overall, our fourth quarter revenue of $9.7 billion increased $817 million, or 9% sequentially. overall our fourth quarter revenue of $9.7 billion increased $817 million or 9% sequentially Approximately $300 million of this increase is due to an additional month of activity from the acquired ChampionX businesses. approximately $300 million of this increase is due to an additional month of activity from the acquired championx businesses Excluding the impact of this transaction, SLB's fourth quarter global revenue increased 6% sequentially. excluding the impact of this transaction slb's fourth quarter global revenue increased 6% sequentially The sequential revenue step-up was higher than expected and was driven by strong year-end digital sales, significant backlog deliveries, and project milestones in production systems, as well as higher reservoir performance activity in international markets. the sequential revenue step-up was higher than expected and was driven by strong year-end digital sales significant backlog deliveries and project milestones in production systems as well as higher reservoir performance activity in international markets Fourth quarter adjusted EBITDA margin of 23.9% increased 83 basis points sequentially, primarily driven by very strong digital performance. fourth quarter adjusted ebitda margin of 23.9% increased 83 basis points sequentially primarily driven by very strong digital performance Margin growth during the quarter was, however, constrained by a loss in a carbon capture project that negatively impacted margins by approximately 50 basis points. margin growth during the quarter was however constrained by a loss in a carbon capture project that negatively impacted margins by approximately 50 basis points Let me now go through the fourth quarter results for each division. Fourth quarter Digital revenue of $825 million increased 25% sequentially, while pre-tax operating margin expanded 557 basis points to 34%. These results were driven by strong year-end sales in Digital exploration and increased revenue in both Digital operations and platforms and applications. Notably, for the full year, Digital revenue of $2.7 billion grew 9%. The combination of this growth rate and the full year EBITDA margin of 35% well exceeded the widely recognized Rule of 40. In addition, Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%. Finally, trailing 12-month net recurring revenue was 103% at the end of the fourth quarter. Reservoir Performance revenue of $1.7 billion increased 4% sequentially, driven by strong international activity, particularly in Saudi Arabia, East Asia, Qatar, Indonesia, and Guyana. Let me now go through the fourth quarter results for each division. let me now go through the fourth quarter results for each division Fourth quarter Digital revenue of $825 million increased 25% sequentially, while pre-tax operating margin expanded 557 basis points to 34%. fourth quarter digital revenue of $825 million increased 25% sequentially while pre-tax operating margin expanded 557 basis points to 34% These results were driven by strong year-end sales in Digital exploration and increased revenue in both Digital operations and platforms and applications. these results were driven by strong year-end sales in digital exploration and increased revenue in both digital operations and platforms and applications Notably, for the full year, Digital revenue of $2.7 billion grew 9%. notably for the full year digital revenue of $2.7 billion grew 9% The combination of this growth rate and the full year EBITDA margin of 35% well exceeded the widely recognized Rule of 40. the combination of this growth rate and the full year ebitda margin of 35% well exceeded the widely recognized rule of 40 In addition, Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%. in addition digital annual recurring revenue surpassed $1 billion reflecting year-on-year growth of 15% Finally, trailing 12-month net recurring revenue was 103% at the end of the fourth quarter. finally trailing 12-month net recurring revenue was 103% at the end of the fourth quarter Reservoir Performance revenue of $1.7 billion increased 4% sequentially, driven by strong international activity, particularly in Saudi Arabia, East Asia, Qatar, Indonesia, and Guyana. reservoir performance revenue of $1.7 billion increased 4% sequentially driven by strong international activity particularly in saudi arabia east asia qatar indonesia and guyana Pre-tax operating margin of 19.6% increased 105 basis points, largely due to a favorable activity mix in the Middle East. Well Construction revenue of $2.9 billion decreased 1% sequentially, primarily driven by declines in Middle East and Asia, while pre-tax operating margin of 18.7% was slightly down. Production Systems revenue of $4.1 billion increased 17% sequentially, reflecting a full quarter of activity from ChampionX. Excluding the impact of this acquisition, Production Systems revenue increased 11%, driven by strong sales of Completions and Artificial Lift, as well as project milestones in Process Technologies, Subsea, and Valves. Pre-tax operating margin of 16% increased 20 basis points due to improved profitability in Completions and Production Chemicals. Now turning to liquidity. During the fourth quarter, we generated $3 billion of cash flow from operations and $2.3 billion of free cash flow. Pre-tax operating margin of 19.6% increased 105 basis points, largely due to a favorable activity mix in the Middle East. Well Construction revenue of $2.9 billion decreased 1% sequentially, primarily driven by declines in Middle East and Asia, while pre-tax operating margin of 18.7% was slightly down. pre-tax operating margin of 19.6% increased 105 basis points largely due to a favorable activity mix in the middle east. well construction revenue of $2.9 billion decreased 1% sequentially primarily driven by declines in middle east and asia while pre-tax operating margin of 18.7% was slightly down Production Systems revenue of $4.1 billion increased 17% sequentially, reflecting a full quarter of activity from ChampionX. production systems revenue of $4.1 billion increased 17% sequentially reflecting a full quarter of activity from championx Excluding the impact of this acquisition, Production Systems revenue increased 11%, driven by strong sales of Completions and Artificial Lift, as well as project milestones in Process Technologies, Subsea, and Valves. excluding the impact of this acquisition production systems revenue increased 11% driven by strong sales of completions and artificial lift as well as project milestones in process technologies subsea and valves Pre-tax operating margin of 16% increased 20 basis points due to improved profitability in Completions and Production Chemicals. pre-tax operating margin of 16% increased 20 basis points due to improved profitability in completions and production chemicals Now turning to liquidity. now turning to liquidity During the fourth quarter, we generated $3 billion of cash flow from operations and $2.3 billion of free cash flow. during the fourth quarter we generated $3 billion of cash flow from operations and $2.3 billion of free cash flow This strong performance was due to the unwinding of working capital on significant customer collections and reduced inventory driven by year-end product deliveries. For the full year, we generated free cash flow of $4.1 billion, marking the third year in a row with free cash flow at or above $4 billion. As a result, net debt reduced by $1.8 billion during the quarter to end the year at $7.4 billion. Capital investments, including CapEx and investments in APS projects and exploration data, were $716 million in the fourth quarter and $2.4 billion for the full year. For the full year, we returned a total of $4 billion to our shareholders, with approximately $2.4 billion in stock repurchases and $1.6 billion in dividends. Looking ahead, let me now provide some additional color on our outlook for 2026, building on the details Olivier shared earlier. This strong performance was due to the unwinding of working capital on significant customer collections and reduced inventory driven by year-end product deliveries. this strong performance was due to the unwinding of working capital on significant customer collections and reduced inventory driven by year-end product deliveries For the full year, we generated free cash flow of $4.1 billion, marking the third year in a row with free cash flow at or above $4 billion. for the full year we generated free cash flow of $4.1 billion marking the third year in a row with free cash flow at or above $4 billion As a result, net debt reduced by $1.8 billion during the quarter to end the year at $7.4 billion. as a result net debt reduced by $1.8 billion during the quarter to end the year at $7.4 billion Capital investments, including CapEx and investments in APS projects and exploration data, were $716 million in the fourth quarter and $2.4 billion for the full year. capital investments including capex and investments in aps projects and exploration data were $716 million in the fourth quarter and $2.4 billion for the full year For the full year, we returned a total of $4 billion to our shareholders, with approximately $2.4 billion in stock repurchases and $1.6 billion in dividends. for the full year we returned a total of $4 billion to our shareholders with approximately $2.4 billion in stock repurchases and $1.6 billion in dividends Looking ahead, let me now provide some additional color on our outlook for 2026, building on the details Olivier shared earlier. looking ahead let me now provide some additional color on our outlook for 2026 building on the details olivier shared earlier We expect revenue to benefit from a full year of ChampionX, which will result in incremental revenue of approximately $1.8 billion in 2026. This increase will be partially offset by the effects of the 2025 divestitures of our interest in the Palliser APS project in Canada and of our rig business in the Middle East. These two businesses accounted for approximately $350 million in combined revenue in 2025. As Olivier mentioned, adjusted EBITDA margin for 2026 will be relatively consistent with 2025 levels, with differing dynamics by division. Digital margin will increase slightly year-on-year on continued top-line growth. Production systems margin will increase, primarily driven by synergies from the ChampionX acquisition, where we still expect to achieve approximately half of the $400 million of total synergies by the end of 2026, $30 million of which were achieved in 2025. We expect revenue to benefit from a full year of ChampionX, which will result in incremental revenue of approximately $1.8 billion in 2026. we expect revenue to benefit from a full year of championx which will result in incremental revenue of approximately $1.8 billion in 2026 This increase will be partially offset by the effects of the 2025 divestitures of our interest in the Palliser APS project in Canada and of our rig business in the Middle East. this increase will be partially offset by the effects of the 2025 divestitures of our interest in the palliser aps project in canada and of our rig business in the middle east These two businesses accounted for approximately $350 million in combined revenue in 2025. these two businesses accounted for approximately $350 million in combined revenue in 2025 As Olivier mentioned, adjusted EBITDA margin for 2026 will be relatively consistent with 2025 levels, with differing dynamics by division. as olivier mentioned adjusted ebitda margin for 2026 will be relatively consistent with 2025 levels with differing dynamics by division Digital margin will increase slightly year-on-year on continued top-line growth. digital margin will increase slightly year-on-year on continued top-line growth Production systems margin will increase, primarily driven by synergies from the ChampionX acquisition, where we still expect to achieve approximately half of the $400 million of total synergies by the end of 2026, $30 million of which were achieved in 2025. production systems margin will increase primarily driven by synergies from the championx acquisition where we still expect to achieve approximately half of the $400 million of total synergies by the end of 2026 $30 million of which were achieved in 2025 About 75% of the synergies will benefit production systems, with the remaining portion benefiting well-construction and reservoir performance. The positive effect of ChampionX synergies on production system margins will be partially offset by unfavorable technology mix within the division. In reservoir performance and well-construction, despite activity levels stabilizing, margins will be down year-over-year due to activity mix and pricing headwinds in select markets. From a below-the-line perspective, corporate costs will increase year-over-year, driven by an incremental $70 million of intangible asset amortization expense as a result of a full year of ChampionX. Additionally, we expect our effective tax rate to be approximately 20%, representing a slight increase from 2025. While we expect overall activity to stabilize and increase from today's level in certain key international markets, we will remain disciplined in our capital allocation. In this regard, we expect our total capital investments to be approximately $2.5 billion in 2026. About 75% of the synergies will benefit production systems, with the remaining portion benefiting well-construction and reservoir performance. about 75% of the synergies will benefit production systems with the remaining portion benefiting well-construction and reservoir performance The positive effect of ChampionX synergies on production system margins will be partially offset by unfavorable technology mix within the division. the positive effect of championx synergies on production system margins will be partially offset by unfavorable technology mix within the division In reservoir performance and well-construction, despite activity levels stabilizing, margins will be down year-over-year due to activity mix and pricing headwinds in select markets. in reservoir performance and well-construction despite activity levels stabilizing margins will be down year-over-year due to activity mix and pricing headwinds in select markets From a below-the-line perspective, corporate costs will increase year-over-year, driven by an incremental $70 million of intangible asset amortization expense as a result of a full year of ChampionX. from a below-the-line perspective corporate costs will increase year-over-year driven by an incremental $70 million of intangible asset amortization expense as a result of a full year of championx Additionally, we expect our effective tax rate to be approximately 20%, representing a slight increase from 2025. additionally we expect our effective tax rate to be approximately 20% representing a slight increase from 2025 While we expect overall activity to stabilize and increase from today's level in certain key international markets, we will remain disciplined in our capital allocation. while we expect overall activity to stabilize and increase from today's level in certain key international markets we will remain disciplined in our capital allocation In this regard, we expect our total capital investments to be approximately $2.5 billion in 2026. in this regard we expect our total capital investments to be approximately $2.5 billion in 2026 This should lead to another year of strong free cash flow generation. As a result, today, we announced a 3.5% dividend increase, and we expect to return more than $4 billion to our shareholders in 2026 through a combination of dividends and stock buybacks. We are currently targeting to buy back the same $2.4 billion that we repurchased in 2025. However, this amount could increase as the year unfolds, depending on our free cash flow generation progress and our visibility on the business outlook. I will now turn the conference call back to Olivier. This should lead to another year of strong free cash flow generation. this should lead to another year of strong free cash flow generation As a result, today, we announced a 3.5% dividend increase, and we expect to return more than $4 billion to our shareholders in 2026 through a combination of dividends and stock buybacks. as a result today we announced a 3.5% dividend increase and we expect to return more than $4 billion to our shareholders in 2026 through a combination of dividends and stock buybacks We are currently targeting to buy back the same $2.4 billion that we repurchased in 2025. we are currently targeting to buy back the same $2.4 billion that we repurchased in 2025 However, this amount could increase as the year unfolds, depending on our free cash flow generation progress and our visibility on the business outlook. however this amount could increase as the year unfolds depending on our free cash flow generation progress and our visibility on the business outlook I will now turn the conference call back to Olivier. i will now turn the conference call back to olivier

Speaker 7: Thank you, Stéphane. I believe, Megan, that we are ready for the Q&A session. Thank you, Stéphane. thank you stéphane I believe, Megan, that we are ready for the Q&A session. i believe megan that we are ready for the q&a session

Speaker 8: We will now begin the Q&A session. If you would like to ask a question, please press star followed by one on your telephone keypad. Your first question comes from the line of Stephen Richardson from Evercore ISI. Your line is open. We will now begin the Q&A session. we will now begin the q&a session If you would like to ask a question, please press star followed by one on your telephone keypad. if you would like to ask a question please press star followed by one on your telephone keypad Your first question comes from the line of Stephen Richardson from Evercore ISI. your first question comes from the line of stephen richardson from evercore isi Your line is open. your line is open

Speaker 10: Hi, good morning. Hi, good morning. hi good morning

Speaker 7: Good morning, Steve. Good morning, Steve. good morning steve

Speaker 10: Hi. I was wondering if we could talk a little bit about CapEx. I understand, appreciate you've given some outlook here on 2026. There seems to be something with investors of an old rule of thumb about your CapEx leading revenue expectations. And I thought it'd be helpful if you could maybe give us some context around the trend line of CapEx, but also how is the capital intensity of your forward business different than perhaps it was in the past? Hi. hi I was wondering if we could talk a little bit about CapEx. i was wondering if we could talk a little bit about capex I understand, appreciate you've given some outlook here on 2026. i understand appreciate you've given some outlook here on 2026 There seems to be something with investors of an old rule of thumb about your CapEx leading revenue expectations. there seems to be something with investors of an old rule of thumb about your capex leading revenue expectations And I thought it'd be helpful if you could maybe give us some context around the trend line of CapEx, but also how is the capital intensity of your forward business different than perhaps it was in the past? and i thought it'd be helpful if you could maybe give us some context around the trend line of capex but also how is the capital intensity of your forward business different than perhaps it was in the past

Speaker 11: Thanks for the question. Yes, so we increased CapEx slightly compared to last year in total with APS and exploration to $2.5 billion, as I just said. We think this is what we need to operate this year and to capture new opportunity as activity recovers gradually throughout the year, particularly in international markets. So yes, compared to the past, our capital efficiency has improved quite a bit in the last few years. We can do more with less, basically, but clearly, we will not miss any opportunity if activity recovers faster. We want to be ready for the ramp-up, and we'll bring more equipment and tools as needed. By division, clearly, Reservoir Performance is probably the highest capital intensity followed by Well Construction and Production Systems, especially with the addition of ChampionX as a quite lower capital intensity. Thanks for the question. thanks for the question Yes, so we increased CapEx slightly compared to last year in total with APS and exploration to $2.5 billion, as I just said. yes so we increased capex slightly compared to last year in total with aps and exploration to $2.5 billion as i just said We think this is what we need to operate this year and to capture new opportunity as activity recovers gradually throughout the year, particularly in international markets. we think this is what we need to operate this year and to capture new opportunity as activity recovers gradually throughout the year particularly in international markets So yes, compared to the past, our capital efficiency has improved quite a bit in the last few years. so yes compared to the past our capital efficiency has improved quite a bit in the last few years We can do more with less, basically, but clearly, we will not miss any opportunity if activity recovers faster. we can do more with less basically but clearly we will not miss any opportunity if activity recovers faster We want to be ready for the ramp-up, and we'll bring more equipment and tools as needed. we want to be ready for the ramp-up and we'll bring more equipment and tools as needed By division, clearly, Reservoir Performance is probably the highest capital intensity followed by Well Construction and Production Systems, especially with the addition of ChampionX as a quite lower capital intensity. by division clearly reservoir performance is probably the highest capital intensity followed by well construction and production systems especially with the addition of championx as a quite lower capital intensity

Speaker 10: Thank you. On the Middle East, your comments are appreciated about the other regions picking up the slack in Saudi and your view on the full year improving. I was wondering if you could talk what we're seeing is the IOCs are seeing a lot more opportunity across North Africa and the Middle East. And I was wondering if you could talk a little bit about your mix or your expectation of your kind of customer mix as you go into 2026 and how much of that is driving some of this optimism on improvement versus some of your traditional customers on the national companies. Thank you. thank you On the Middle East, your comments are appreciated about the other regions picking up the slack in Saudi and your view on the full year improving. on the middle east your comments are appreciated about the other regions picking up the slack in saudi and your view on the full year improving I was wondering if you could talk what we're seeing is the IOCs are seeing a lot more opportunity across North Africa and the Middle East. i was wondering if you could talk what we're seeing is the iocs are seeing a lot more opportunity across north africa and the middle east And I was wondering if you could talk a little bit about your mix or your expectation of your kind of customer mix as you go into 2026 and how much of that is driving some of this optimism on improvement versus some of your traditional customers on the national companies. and i was wondering if you could talk a little bit about your mix or your expectation of your kind of customer mix as you go into 2026 and how much of that is driving some of this optimism on improvement versus some of your traditional customers on the national companies

Speaker 7: No, first, I would come out to reinforce the trust and the confidence we have in our national company to continue to execute the capital program. And I think, indeed, we are foreseeing and already witnessing the rebound of the Saudi Arabian drilling and workover activity, which is very favorable. And I think, as I said, coming from a dip in 2025, rebounding at the end of 2026 to, as we expect, to the level we entered 2025, which is a V-shaped recovery. No, first, I would come out to reinforce the trust and the confidence we have in our national company to continue to execute the capital program. no first i would come out to reinforce the trust and the confidence we have in our national company to continue to execute the capital program And I think, indeed, we are foreseeing and already witnessing the rebound of the Saudi Arabian drilling and workover activity, which is very favorable. and i think indeed we are foreseeing and already witnessing the rebound of the saudi arabian drilling and workover activity which is very favorable And I think, as I said, coming from a dip in 2025, rebounding at the end of 2026 to, as we expect, to the level we entered 2025, which is a V-shaped recovery. and i think as i said coming from a dip in 2025 rebounding at the end of 2026 to as we expect to the level we entered 2025 which is a v-shaped recovery I think that will set the year very well and also the 2027 as a much stronger year going forward. So beyond that, obviously, the region still continues momentum, high momentum in Kuwait, in UAE, and has been witnessing significant growth. But coming to international, indeed, Libya, I think, is attracting and has a conference this week and next week. And Libya is attracting a lot of investment, and we have been the early beneficiaries of this. And we see Libya's high trajectory of growth. We have seen it in the last couple of years. And we foresee this will continue well into 2026 and 2027, driven by investment coming back in country from an international company. Algeria has been successful in the licensing round, and I think is exploring unconventional in the south and also getting additional investment coming back into country. I think that will set the year very well and also the 2027 as a much stronger year going forward. i think that will set the year very well and also the 2027 as a much stronger year going forward So beyond that, obviously, the region still continues momentum, high momentum in Kuwait, in UAE, and has been witnessing significant growth. so beyond that obviously the region still continues momentum high momentum in kuwait in uae and has been witnessing significant growth But coming to international, indeed, Libya, I think, is attracting and has a conference this week and next week. but coming to international indeed libya i think is attracting and has a conference this week and next week And Libya is attracting a lot of investment, and we have been the early beneficiaries of this. and libya is attracting a lot of investment and we have been the early beneficiaries of this And we see Libya's high trajectory of growth. and we see libya's high trajectory of growth We have seen it in the last couple of years. we have seen it in the last couple of years And we foresee this will continue well into 2026 and 2027, driven by investment coming back in country from an international company. and we foresee this will continue well into 2026 and 2027 driven by investment coming back in country from an international company Algeria has been successful in the licensing round, and I think is exploring unconventional in the south and also getting additional investment coming back into country. algeria has been successful in the licensing round and i think is exploring unconventional in the south and also getting additional investment coming back into country So we see a rebound in Algeria that will strengthen in 2027. Egypt, Egypt in the region, I think, is back in offshore. Additional rigs will mobilize in deep water offshore Egypt as well as in Egypt due to the support that the government has provided and gained a return of investment into Egypt. And Iraq, I think, has been an area of growth last year, will continue to be significant going forward. So Iraq is where some international companies are investing. And I think we are associated with this directly. So we have a strong exposure in all of these markets where international companies are joining. And finally, I would say that the unconventional UAE is a place where newcomers are appraising the resource and ready to scale their investments from appraisal in 2026 to 2027 developments going forward. So we see a rebound in Algeria that will strengthen in 2027. so we see a rebound in algeria that will strengthen in 2027 Egypt, Egypt in the region, I think, is back in offshore. egypt egypt in the region i think is back in offshore Additional rigs will mobilize in deep water offshore Egypt as well as in Egypt due to the support that the government has provided and gained a return of investment into Egypt. additional rigs will mobilize in deep water offshore egypt as well as in egypt due to the support that the government has provided and gained a return of investment into egypt And Iraq, I think, has been an area of growth last year, will continue to be significant going forward. and iraq i think has been an area of growth last year will continue to be significant going forward So Iraq is where some international companies are investing. so iraq is where some international companies are investing And I think we are associated with this directly. and i think we are associated with this directly So we have a strong exposure in all of these markets where international companies are joining. so we have a strong exposure in all of these markets where international companies are joining And finally, I would say that the unconventional UAE is a place where newcomers are appraising the resource and ready to scale their investments from appraisal in 2026 to 2027 developments going forward. and finally i would say that the unconventional uae is a place where newcomers are appraising the resource and ready to scale their investments from appraisal in 2026 to 2027 developments going forward A combination of oil attractiveness in the region, Libya, Iraq, particularly for international companies, and gas in the region, Qatar obviously steady, but also the upcoming UAE and unconventional and deepwater offshore East Med. So that's the template. And I would say the favorable outlook from NOC and international company in the Middle East. A combination of oil attractiveness in the region, Libya, Iraq, particularly for international companies, and gas in the region, Qatar obviously steady, but also the upcoming UAE and unconventional and deepwater offshore East Med. a combination of oil attractiveness in the region libya iraq particularly for international companies and gas in the region qatar obviously steady but also the upcoming uae and unconventional and deepwater offshore east med So that's the template. so that's the template And I would say the favorable outlook from NOC and international company in the Middle East. and i would say the favorable outlook from noc and international company in the middle east

Speaker 10: Thanks so much. Thanks so much. thanks so much

Speaker 7: Thank you. Thank you. thank you

Speaker 8: Thank you. Your next question comes from the line of James West with Melius Research. Your line is open. Thank you. thank you Your next question comes from the line of James West with Melius Research. your next question comes from the line of james west with melius research Your line is open. your line is open

Speaker 4: Thanks. Good morning, Olivier, Stéphane. Thanks. thanks Good morning, Olivier, Stéphane. good morning olivier stéphane

Speaker 11: Good morning. Good morning. good morning

Speaker 7: Morning, James. Morning, James. morning james

Speaker 4: So Olivier, curious, so with the headwinds bottoming here, Saudi, Mexico, some of the white space in deepwater, sub-Saharan Africa, and everything looking kind of up and to the right, how are you thinking about the exit rate for 2026 versus the exit rate we saw in 2025? Certainly, it's going to be higher, but what kind of, if you give us some observations or thoughts on kind of magnitude of how this upcycle will begin? So Olivier, curious, so with the headwinds bottoming here, Saudi, Mexico, some of the white space in deepwater, sub-Saharan Africa, and everything looking kind of up and to the right, how are you thinking about the exit rate for 2026 versus the exit rate we saw in 2025? so olivier curious so with the headwinds bottoming here saudi mexico some of the white space in deepwater sub-saharan africa and everything looking kind of up and to the right how are you thinking about the exit rate for 2026 versus the exit rate we saw in 2025 Certainly, it's going to be higher, but what kind of, if you give us some observations or thoughts on kind of magnitude of how this upcycle will begin? certainly it's going to be higher but what kind of if you give us some observations or thoughts on kind of magnitude of how this upcycle will begin

Speaker 7: I think first, I think we have guided into our prepared remark that we expect the fourth quarter of 2026 to be higher than the fourth quarter of 2025. And this will be led by the international rebound. Secondly, as we guided the first quarter as a marked decline compared to last year before, we will see a gradual recovery, again, driven mostly by international markets throughout the year. That is setting the scene, I would say, for 2027 to be favorable, driven by, first and foremost, continuous regain momentum in the Middle East with the addition of the rebound activity in Saudi and the combination of what the factor I mentioned before. Asia, I think, has been on a momentum. I think first, I think we have guided into our prepared remark that we expect the fourth quarter of 2026 to be higher than the fourth quarter of 2025. i think first i think we have guided into our prepared remark that we expect the fourth quarter of 2026 to be higher than the fourth quarter of 2025 And this will be led by the international rebound. and this will be led by the international rebound Secondly, as we guided the first quarter as a marked decline compared to last year before, we will see a gradual recovery, again, driven mostly by international markets throughout the year. secondly as we guided the first quarter as a marked decline compared to last year before we will see a gradual recovery again driven mostly by international markets throughout the year That is setting the scene, I would say, for 2027 to be favorable, driven by, first and foremost, continuous regain momentum in the Middle East with the addition of the rebound activity in Saudi and the combination of what the factor I mentioned before. that is setting the scene i would say for 2027 to be favorable driven by first and foremost continuous regain momentum in the middle east with the addition of the rebound activity in saudi and the combination of what the factor i mentioned before Asia, I think, has been on a momentum. asia i think has been on a momentum Latin America as well, I think, a bit offshore-based in Latin America, a bit in Argentina. We are experiencing a slight rebound of Mexico, driven by deepwater activity in Mexico coming back. And we will see, we expect that gradually and into 2027, the activity in Sub-Saharan deepwater will resume to higher level, visibly higher level. The combination of FID in Namibia, in Mozambique, in Angola, and the early pickup of activity in Algeria are already showing signs of a very promising 2027, 2028 cycle. So directionally, international gradually recovering and the exit rate in the end of this year to be driven by international addition so that it will result in Q4 of this year being higher than last year. Latin America as well, I think, a bit offshore-based in Latin America, a bit in Argentina. latin america as well i think a bit offshore-based in latin america a bit in argentina We are experiencing a slight rebound of Mexico, driven by deepwater activity in Mexico coming back. we are experiencing a slight rebound of mexico driven by deepwater activity in mexico coming back And we will see, we expect that gradually and into 2027, the activity in Sub-Saharan deepwater will resume to higher level, visibly higher level. and we will see we expect that gradually and into 2027 the activity in sub-saharan deepwater will resume to higher level visibly higher level The combination of FID in Namibia, in Mozambique, in Angola, and the early pickup of activity in Algeria are already showing signs of a very promising 2027, 2028 cycle. the combination of fid in namibia in mozambique in angola and the early pickup of activity in algeria are already showing signs of a very promising 2027 2028 cycle So directionally, international gradually recovering and the exit rate in the end of this year to be driven by international addition so that it will result in Q4 of this year being higher than last year. so directionally international gradually recovering and the exit rate in the end of this year to be driven by international addition so that it will result in q4 of this year being higher than last year

Speaker 4: Okay. That's helpful. Thank you. Thanks, Olivier. And then maybe a follow-up on the digital side of the business. Obviously, strong results in the fourth quarter, but my sense is we're still fairly underpenetrated on Lumi and Delfi and the cloud platforms and the AI platforms that you have. My numbers may be a little bit dated, but I think a couple of 300 or so customers out of your 1,500 or so customers were on the cloud as of maybe a year ago. Could you give us a sense of kind of where that stands now or where you see that heading? I'm assuming everybody eventually goes there. Most everybody goes there. But just the magnitude of what that could mean for your digital business, I'm assuming it's pretty accretive. Okay. okay That's helpful. that's helpful Thank you. thank you Thanks, Olivier. thanks olivier And then maybe a follow-up on the digital side of the business. and then maybe a follow-up on the digital side of the business Obviously, strong results in the fourth quarter, but my sense is we're still fairly underpenetrated on Lumi and Delfi and the cloud platforms and the AI platforms that you have. obviously strong results in the fourth quarter but my sense is we're still fairly underpenetrated on lumi and delfi and the cloud platforms and the ai platforms that you have My numbers may be a little bit dated, but I think a couple of 300 or so customers out of your 1,500 or so customers were on the cloud as of maybe a year ago. my numbers may be a little bit dated but i think a couple of 300 or so customers out of your 1,500 or so customers were on the cloud as of maybe a year ago Could you give us a sense of kind of where that stands now or where you see that heading? could you give us a sense of kind of where that stands now or where you see that heading I'm assuming everybody eventually goes there. i'm assuming everybody eventually goes there Most everybody goes there. most everybody goes there But just the magnitude of what that could mean for your digital business, I'm assuming it's pretty accretive. but just the magnitude of what that could mean for your digital business i'm assuming it's pretty accretive

Speaker 7: No, long term, I think we believe that the potential of digital to transform our industry from the asset team productivity to the efficiency of digital operation between drilling or producing assets, I think, is very significant. I think we are just touching the early innings of that transformation. We're using a multi-pronged approach towards this, first and foremost, a strategy built on a platform approach to it. I think you mentioned the combination of Delfi, Lumi, and Tela. We have been indeed gradually gaining a lot of traction for customers to recognize that a platform is the approach to have the most benefit to combine the geoscience, the production, the drilling, the operation workflow improvement that everybody is looking for. No, long term, I think we believe that the potential of digital to transform our industry from the asset team productivity to the efficiency of digital operation between drilling or producing assets, I think, is very significant. no long term i think we believe that the potential of digital to transform our industry from the asset team productivity to the efficiency of digital operation between drilling or producing assets i think is very significant I think we are just touching the early innings of that transformation. i think we are just touching the early innings of that transformation We're using a multi-pronged approach towards this, first and foremost, a strategy built on a platform approach to it. we're using a multi-pronged approach towards this first and foremost a strategy built on a platform approach to it I think you mentioned the combination of Delfi, Lumi, and Tela. i think you mentioned the combination of delfi lumi and tela We have been indeed gradually gaining a lot of traction for customers to recognize that a platform is the approach to have the most benefit to combine the geoscience, the production, the drilling, the operation workflow improvement that everybody is looking for. we have been indeed gradually gaining a lot of traction for customers to recognize that a platform is the approach to have the most benefit to combine the geoscience the production the drilling the operation workflow improvement that everybody is looking for But if we look at the momentum that we are benefiting from today, the momentum comes from digital operation that I think you have seen is getting significant benefits because it's where I think the river hits the ground and where the customer is seeing and materializing the savings in drilling performance, in production NPT reduction, in production optimization, and we are benefiting from that. But obviously, we are pursuing adoption of data and AI. Lumi, which we launched four or five quarters ago, is already having more than 50 customers of an adoption. But if we look at the momentum that we are benefiting from today, the momentum comes from digital operation that I think you have seen is getting significant benefits because it's where I think the river hits the ground and where the customer is seeing and materializing the savings in drilling performance, in production NPT reduction, in production optimization, and we are benefiting from that. but if we look at the momentum that we are benefiting from today the momentum comes from digital operation that i think you have seen is getting significant benefits because it's where i think the river hits the ground and where the customer is seeing and materializing the savings in drilling performance in production npt reduction in production optimization and we are benefiting from that But obviously, we are pursuing adoption of data and AI. but obviously we are pursuing adoption of data and ai Lumi, which we launched four or five quarters ago, is already having more than 50 customers of an adoption. lumi which we launched four or five quarters ago is already having more than 50 customers of an adoption Tela, that we launched less than three months ago, has already more than a dozen customers that are engaging and working with us to create this foundation model that can transform their own geoscience workflow or that can automatically detect and optimize autonomously some producing assets, as you have seen with the ADNOC announcement that we have done. So we are pleased with the progress. Surprised with the effect on digital operation. I believe this momentum continues. And very confident that the secular trend that the industry is continuing to witness will benefit our platform approach and that Lumi, Delfi, and Tela will be at the core of this industry transformation going forward. Tela, that we launched less than three months ago, has already more than a dozen customers that are engaging and working with us to create this foundation model that can transform their own geoscience workflow or that can automatically detect and optimize autonomously some producing assets, as you have seen with the ADNOC announcement that we have done. tela that we launched less than three months ago has already more than a dozen customers that are engaging and working with us to create this foundation model that can transform their own geoscience workflow or that can automatically detect and optimize autonomously some producing assets as you have seen with the adnoc announcement that we have done So we are pleased with the progress. so we are pleased with the progress Surprised with the effect on digital operation. surprised with the effect on digital operation I believe this momentum continues. i believe this momentum continues And very confident that the secular trend that the industry is continuing to witness will benefit our platform approach and that Lumi, Delfi, and Tela will be at the core of this industry transformation going forward. and very confident that the secular trend that the industry is continuing to witness will benefit our platform approach and that lumi delfi and tela will be at the core of this industry transformation going forward

Speaker 4: Thanks, Olivier. Thanks, Olivier. thanks olivier

Speaker 7: Thank you. Thank you. thank you

Speaker 8: Thank you. Your next question will go to line of Arun Jayaram with J.P. Morgan. Your line is open. Thank you. thank you Your next question will go to line of Arun Jayaram with J.P. your next question will go to line of arun jayaram with j.p Morgan. morgan Your line is open. your line is open

Speaker 1: Yeah. Good morning, Olivier. I was wondering if you could frame. Yeah. Good morning. I was wondering if you could frame your thoughts on the near-term and longer-term opportunity for SLB in Venezuela. You mentioned you're the only international service company now actively operating. But talk to us about what type of product lines could benefit if we do get a revitalization of the oil industry in Venezuela. Yeah. yeah Good morning, Olivier. good morning olivier I was wondering if you could frame. i was wondering if you could frame Yeah. yeah Good morning. good morning I was wondering if you could frame your thoughts on the near-term and longer-term opportunity for SLB in Venezuela. i was wondering if you could frame your thoughts on the near-term and longer-term opportunity for slb in venezuela You mentioned you're the only international service company now actively operating. you mentioned you're the only international service company now actively operating But talk to us about what type of product lines could benefit if we do get a revitalization of the oil industry in Venezuela. but talk to us about what type of product lines could benefit if we do get a revitalization of the oil industry in venezuela

Speaker 7: Obviously, I will have to preface this with the condition, the right condition, including licensing, including payments, and the operating license will have to be put in place. But assuming that the conditions are set for investment to resume and to accelerate, not only from the customer that we are serving today, but from new customers re-entering or entering the country, we have historically been the largest supplier, the largest partner of the national company, and the largest supplier in service technology in country. Obviously, I will have to preface this with the condition, the right condition, including licensing, including payments, and the operating license will have to be put in place. obviously i will have to preface this with the condition the right condition including licensing including payments and the operating license will have to be put in place But assuming that the conditions are set for investment to resume and to accelerate, not only from the customer that we are serving today, but from new customers re-entering or entering the country, we have historically been the largest supplier, the largest partner of the national company, and the largest supplier in service technology in country. but assuming that the conditions are set for investment to resume and to accelerate not only from the customer that we are serving today but from new customers re-entering or entering the country we have historically been the largest supplier the largest partner of the national company and the largest supplier in service technology in country Historically, we had had about 10 years ago more than 3,000 people, and we were recording visibly more than $1 billion revenue at that time. So we have the track record in integration. We have a unique subsurface digital leading role that we had at that time that we can resume. And we have today a significant set of assets that are ready to be deployed across the drilling services, across production with no less than 10 production sets, across rig operations with rigs that we are ready to mobilize. And I think across intervention, across drilling for infill drilling or production optimization, we believe to have a capacity in country. And we believe that we have the access to the Venezuelan nationals. About 80 of them are already in country. We have more than 1,000 Venezuelan and African country employees in the company. Historically, we had had about 10 years ago more than 3,000 people, and we were recording visibly more than $1 billion revenue at that time. historically we had had about 10 years ago more than 3,000 people and we were recording visibly more than $1 billion revenue at that time So we have the track record in integration. so we have the track record in integration We have a unique subsurface digital leading role that we had at that time that we can resume. we have a unique subsurface digital leading role that we had at that time that we can resume And we have today a significant set of assets that are ready to be deployed across the drilling services, across production with no less than 10 production sets, across rig operations with rigs that we are ready to mobilize. and we have today a significant set of assets that are ready to be deployed across the drilling services across production with no less than 10 production sets across rig operations with rigs that we are ready to mobilize And I think across intervention, across drilling for infill drilling or production optimization, we believe to have a capacity in country. and i think across intervention across drilling for infill drilling or production optimization we believe to have a capacity in country And we believe that we have the access to the Venezuelan nationals. and we believe that we have the access to the venezuelan nationals About 80 of them are already in country. about 80 of them are already in country We have more than 1,000 Venezuelan and African country employees in the company. we have more than 1,000 venezuelan and african country employees in the company Some of them will be welcoming to work back in Venezuela. We have almost 2,000 alumni that I think we have kept in touch with that will be also ready to be joining us as we move forward. So as I said, long term, under the right conditions, we can be the leading partner for customers there. I think I've quoted the number where we were before. I think the future will tell us when and as this can accelerate. But we are ready. We are already receiving a lot of incoming calls, as I would say, to explore options going forward. Some of them will be welcoming to work back in Venezuela. some of them will be welcoming to work back in venezuela We have almost 2,000 alumni that I think we have kept in touch with that will be also ready to be joining us as we move forward. we have almost 2,000 alumni that i think we have kept in touch with that will be also ready to be joining us as we move forward So as I said, long term, under the right conditions, we can be the leading partner for customers there. so as i said long term under the right conditions we can be the leading partner for customers there I think I've quoted the number where we were before. i think i've quoted the number where we were before I think the future will tell us when and as this can accelerate. i think the future will tell us when and as this can accelerate But we are ready. but we are ready We are already receiving a lot of incoming calls, as I would say, to explore options going forward. we are already receiving a lot of incoming calls as i would say to explore options going forward

Speaker 1: Great. That's helpful. Olivier, my follow-up is wondering if you could talk a little bit about your data center infrastructure business. You mentioned that you expect to reach a $1 billion run rate in revenue, if I heard you correct, by year-end. Can you talk a little bit about the solutions you're providing today and maybe how you're thinking about organic and even inorganic opportunities to grow that business over time? Great. great That's helpful. that's helpful Olivier, my follow-up is wondering if you could talk a little bit about your data center infrastructure business. olivier my follow-up is wondering if you could talk a little bit about your data center infrastructure business You mentioned that you expect to reach a $1 billion run rate in revenue, if I heard you correct, by year-end. you mentioned that you expect to reach a $1 billion run rate in revenue if i heard you correct by year-end Can you talk a little bit about the solutions you're providing today and maybe how you're thinking about organic and even inorganic opportunities to grow that business over time? can you talk a little bit about the solutions you're providing today and maybe how you're thinking about organic and even inorganic opportunities to grow that business over time

Speaker 7: Yeah. I think you heard me correctly. I think this is amazing what we have put together in less than 18 months. I think the rate of growth, the customer engagement that we are getting, the traction we are getting with hyperscalers, and I think is amazing. And yes, we put together a setup that is focused on the modular manufacturing capability and co-engineering of data center solutions from server room and cooling solutions. And we are aiming at increasing not only our scope, but also our footprint, as we have announced last quarter, doubling our capacity to respond to the pipeline and to respond to the backlog we have. Yeah. yeah I think you heard me correctly. i think you heard me correctly I think this is amazing what we have put together in less than 18 months. i think this is amazing what we have put together in less than 18 months I think the rate of growth, the customer engagement that we are getting, the traction we are getting with hyperscalers, and I think is amazing. i think the rate of growth the customer engagement that we are getting the traction we are getting with hyperscalers and i think is amazing And yes, we put together a setup that is focused on the modular manufacturing capability and co-engineering of data center solutions from server room and cooling solutions. and yes we put together a setup that is focused on the modular manufacturing capability and co-engineering of data center solutions from server room and cooling solutions And we are aiming at increasing not only our scope, but also our footprint, as we have announced last quarter, doubling our capacity to respond to the pipeline and to respond to the backlog we have. and we are aiming at increasing not only our scope but also our footprint as we have announced last quarter doubling our capacity to respond to the pipeline and to respond to the backlog we have We continue to be expanding both in terms of scope, in terms of around this manufacturing design capability for modular data center solutions. We will be this year going and growing internationally. We'll be this year adding new customers to our portfolio and preparing ourselves to grow throughout the year. In 2027, $1 billion is the wrong way, but we'll be significantly above this in 2027. We believe that we see growth through the rest of the decade internationally. We continue to be expanding both in terms of scope, in terms of around this manufacturing design capability for modular data center solutions. we continue to be expanding both in terms of scope in terms of around this manufacturing design capability for modular data center solutions We will be this year going and growing internationally. we will be this year going and growing internationally We'll be this year adding new customers to our portfolio and preparing ourselves to grow throughout the year. we'll be this year adding new customers to our portfolio and preparing ourselves to grow throughout the year In 2027, $1 billion is the wrong way, but we'll be significantly above this in 2027. in 2027 $1 billion is the wrong way but we'll be significantly above this in 2027 We believe that we see growth through the rest of the decade internationally. we believe that we see growth through the rest of the decade internationally And indeed, as we explore and respond to the requests from our customers who are looking for integrators in this space, we will look for complementing our current capability that we have built organically and to look at what could help complement this and accelerate our market penetration and make us as a fulfilled partner for customers going forward, technology throughout the lifecycle of the data center for construction and operation. And indeed, as we explore and respond to the requests from our customers who are looking for integrators in this space, we will look for complementing our current capability that we have built organically and to look at what could help complement this and accelerate our market penetration and make us as a fulfilled partner for customers going forward, technology throughout the lifecycle of the data center for construction and operation. and indeed as we explore and respond to the requests from our customers who are looking for integrators in this space we will look for complementing our current capability that we have built organically and to look at what could help complement this and accelerate our market penetration and make us as a fulfilled partner for customers going forward technology throughout the lifecycle of the data center for construction and operation

Speaker 1: Great. Thanks. Great. great Thanks. thanks

Speaker 7: Thank you. Thank you. thank you

Speaker 8: Thank you. Your next question comes from the line of David Anderson with Barclays. Your line is open. Thank you. thank you Your next question comes from the line of David Anderson with Barclays. your next question comes from the line of david anderson with barclays Your line is open. your line is open

Speaker 2: Great. Thank you. Good morning, Olivier. If we compare Schlumberger today or SLB, if we compare SLB today versus 10 years ago, in addition to digital, I think the biggest shift is now the emphasis on production and recovery. I was wondering if you could talk a little bit more specifically about the growth opportunity in the next few years as we think about OneSubsea, ChampionX, Artificial Lift. If I think about OneSubsea, I'm thinking about backlog conversion accelerating. Guyana, Venezuela, and potentially Venezuela could be growth engines in chemicals, and then Artificial Lift in the Middle East. Could you sort of frame this growth opportunity for us over the next few years on this side of your business? Great. great Thank you. thank you Good morning, Olivier. good morning olivier If we compare Schlumberger today or SLB, if we compare SLB today versus 10 years ago, in addition to digital, I think the biggest shift is now the emphasis on production and recovery. if we compare schlumberger today or slb if we compare slb today versus 10 years ago in addition to digital i think the biggest shift is now the emphasis on production and recovery I was wondering if you could talk a little bit more specifically about the growth opportunity in the next few years as we think about OneSubsea, ChampionX, Artificial Lift. i was wondering if you could talk a little bit more specifically about the growth opportunity in the next few years as we think about onesubsea championx artificial lift If I think about OneSubsea, I'm thinking about backlog conversion accelerating. if i think about onesubsea i'm thinking about backlog conversion accelerating Guyana, Venezuela, and potentially Venezuela could be growth engines in chemicals, and then Artificial Lift in the Middle East. guyana venezuela and potentially venezuela could be growth engines in chemicals and then artificial lift in the middle east Could you sort of frame this growth opportunity for us over the next few years on this side of your business? could you sort of frame this growth opportunity for us over the next few years on this side of your business

Speaker 7: No, absolutely. Dave, I think production recovery, as we call it, is a new chapter for the company, something that we have decided strategically to invest because we believe that this is a market that has significant opportunity for value creation through technology, through integration, through digital. No, absolutely. no absolutely Dave, I think production recovery, as we call it, is a new chapter for the company, something that we have decided strategically to invest because we believe that this is a market that has significant opportunity for value creation through technology, through integration, through digital. dave i think production recovery as we call it is a new chapter for the company something that we have decided strategically to invest because we believe that this is a market that has significant opportunity for value creation through technology through integration through digital And we believe that we needed to own and have access to a broader portfolio, hence the access to the Schlumberger chemical, OPEC, and artificial lift technology and the digital platform addition that put us very well placed into that market. So now the customer response is very positive. And indeed, I think as you look at the priority of our customers today into the changing commodity pricing environment, it's all about getting more from the asset that they have under production. And hence, the return of the higher barrel for lower cost is a priority. So we are getting a lot of intake into our lift solution, into our digital production, as you have heard. And indeed, trying to realize and realizing today the benefit of chemistry, chemistry for not only production assurance, but also chemistry for reservoir performance or recovery. And we believe that we needed to own and have access to a broader portfolio, hence the access to the Schlumberger chemical, OPEC, and artificial lift technology and the digital platform addition that put us very well placed into that market. and we believe that we needed to own and have access to a broader portfolio hence the access to the schlumberger chemical opec and artificial lift technology and the digital platform addition that put us very well placed into that market So now the customer response is very positive. so now the customer response is very positive And indeed, I think as you look at the priority of our customers today into the changing commodity pricing environment, it's all about getting more from the asset that they have under production. and indeed i think as you look at the priority of our customers today into the changing commodity pricing environment it's all about getting more from the asset that they have under production And hence, the return of the higher barrel for lower cost is a priority. and hence the return of the higher barrel for lower cost is a priority So we are getting a lot of intake into our lift solution, into our digital production, as you have heard. so we are getting a lot of intake into our lift solution into our digital production as you have heard And indeed, trying to realize and realizing today the benefit of chemistry, chemistry for not only production assurance, but also chemistry for reservoir performance or recovery. and indeed trying to realize and realizing today the benefit of chemistry chemistry for not only production assurance but also chemistry for reservoir performance or recovery So we believe that the integrated capability that we have built together will give us the opportunity to create solutions for the market, end-to-end solutions that will help to improve the performance of existing producing assets, will help transform existing assets with a solution for recovery, solution for optimization, and will help across to bring digital solutions. So yes, lift solution in the major basin or into the most producing oil basin in the world, including the Middle East. Yes, SLB as a beneficiary for the long-term deep water, but also the boosting processing capability we have in SLB that are quite unique and contribute to this recovery production gain and goal we have. So yes, it is a new story for us. It's a new chapter. We're excited. So we believe that the integrated capability that we have built together will give us the opportunity to create solutions for the market, end-to-end solutions that will help to improve the performance of existing producing assets, will help transform existing assets with a solution for recovery, solution for optimization, and will help across to bring digital solutions. so we believe that the integrated capability that we have built together will give us the opportunity to create solutions for the market end-to-end solutions that will help to improve the performance of existing producing assets will help transform existing assets with a solution for recovery solution for optimization and will help across to bring digital solutions So yes, lift solution in the major basin or into the most producing oil basin in the world, including the Middle East. so yes lift solution in the major basin or into the most producing oil basin in the world including the middle east Yes, SLB as a beneficiary for the long-term deep water, but also the boosting processing capability we have in SLB that are quite unique and contribute to this recovery production gain and goal we have. yes slb as a beneficiary for the long-term deep water but also the boosting processing capability we have in slb that are quite unique and contribute to this recovery production gain and goal we have So yes, it is a new story for us. so yes it is a new story for us It's a new chapter. it's a new chapter We're excited. we're excited Customer feedback is very strong because they believe that they need somebody that has the subsurface, has the technology, and has the full integrated portfolio to respond to the transformation of production recovery landscape as we have contributed and helped the industry transform the well construction or exploration historically. Customer feedback is very strong because they believe that they need somebody that has the subsurface, has the technology, and has the full integrated portfolio to respond to the transformation of production recovery landscape as we have contributed and helped the industry transform the well construction or exploration historically. customer feedback is very strong because they believe that they need somebody that has the subsurface has the technology and has the full integrated portfolio to respond to the transformation of production recovery landscape as we have contributed and helped the industry transform the well construction or exploration historically

Speaker 2: That makes a lot of sense. Shifting gears a little bit to another area of potential growth in geothermal. You've been dabbling there for a number of years, but now, as you noted in the release here, you're working with Ormat on a pilot project, I believe, later this year in enhanced geothermal. It looks a lot like as when we look at geothermal, a lot of this sounds a lot like shale in the early 2000s. We know the resources there, but it's a matter of process and technique to solve for the economics. Do you agree with that conceptually? Where's your confidence that this can be scaled up to create, say, 100+ MW geothermal plants in the next few years? That makes a lot of sense. that makes a lot of sense Shifting gears a little bit to another area of potential growth in geothermal. shifting gears a little bit to another area of potential growth in geothermal You've been dabbling there for a number of years, but now, as you noted in the release here, you're working with Ormat on a pilot project, I believe, later this year in enhanced geothermal. you've been dabbling there for a number of years but now as you noted in the release here you're working with ormat on a pilot project i believe later this year in enhanced geothermal It looks a lot like as when we look at geothermal, a lot of this sounds a lot like shale in the early 2000s. it looks a lot like as when we look at geothermal a lot of this sounds a lot like shale in the early 2000s We know the resources there, but it's a matter of process and technique to solve for the economics. we know the resources there but it's a matter of process and technique to solve for the economics Do you agree with that conceptually? do you agree with that conceptually Where's your confidence that this can be scaled up to create, say, 100+ MW geothermal plants in the next few years? where's your confidence that this can be scaled up to create say 100+ mw geothermal plants in the next few years

Speaker 7: Absolutely. I think, Dave, I think let me first step back and explain the reason why we have partnered with Ormat and the potential we see in this partnership. First is to put together the two leading companies in their field. We are subsurface leader in geothermal, helping to characterize the geothermal source and then develop the wells and develop the solution to produce the heat and the hot water from those wells. And Ormat is leaders into building geothermal power plants and understanding the full lifecycle. Absolutely. absolutely I think, Dave, I think let me first step back and explain the reason why we have partnered with Ormat and the potential we see in this partnership. i think dave i think let me first step back and explain the reason why we have partnered with ormat and the potential we see in this partnership First is to put together the two leading companies in their field. first is to put together the two leading companies in their field We are subsurface leader in geothermal, helping to characterize the geothermal source and then develop the wells and develop the solution to produce the heat and the hot water from those wells. we are subsurface leader in geothermal helping to characterize the geothermal source and then develop the wells and develop the solution to produce the heat and the hot water from those wells And Ormat is leaders into building geothermal power plants and understanding the full lifecycle. and ormat is leaders into building geothermal power plants and understanding the full lifecycle So putting this together and providing the industry for one integrated offering, I think, was very well received by the industry and will help accelerate providing conventional geothermal bridge power or base power for some of the data centers in the future. So that's clearly the first aspect. The second, obviously, we have put this together because we believe that we want to together optimize, explore, and optimize through a development of an asset or two assets in the future, in the near future, into the unconventional geothermal. And yes, we believe this is a field that has significant potential, but we want to do it right. We want to do it with science. We want to do it with technology. So putting this together and providing the industry for one integrated offering, I think, was very well received by the industry and will help accelerate providing conventional geothermal bridge power or base power for some of the data centers in the future. so putting this together and providing the industry for one integrated offering i think was very well received by the industry and will help accelerate providing conventional geothermal bridge power or base power for some of the data centers in the future So that's clearly the first aspect. so that's clearly the first aspect The second, obviously, we have put this together because we believe that we want to together optimize, explore, and optimize through a development of an asset or two assets in the future, in the near future, into the unconventional geothermal. the second obviously we have put this together because we believe that we want to together optimize explore and optimize through a development of an asset or two assets in the future in the near future into the unconventional geothermal And yes, we believe this is a field that has significant potential, but we want to do it right. and yes we believe this is a field that has significant potential but we want to do it right We want to do it with science. we want to do it with science We want to do it with technology. we want to do it with technology We want to do it with digital modeling of the process so that we get it right and we understand how to scale it economically, how to make it viable, how to make it safe, and then how to offer it together to the market in the near future. So that's the ambition. So we have done this for a reason. And I think we will be developing this asset, will be experimenting in this asset, appraising, and then getting ready for with technology, with digital, and with joint offering to offer this at scale to the market in the U.S. and beyond. We want to do it with digital modeling of the process so that we get it right and we understand how to scale it economically, how to make it viable, how to make it safe, and then how to offer it together to the market in the near future. we want to do it with digital modeling of the process so that we get it right and we understand how to scale it economically how to make it viable how to make it safe and then how to offer it together to the market in the near future So that's the ambition. so that's the ambition So we have done this for a reason. so we have done this for a reason And I think we will be developing this asset, will be experimenting in this asset, appraising, and then getting ready for with technology, with digital, and with joint offering to offer this at scale to the market in the U.S. and beyond. and i think we will be developing this asset will be experimenting in this asset appraising and then getting ready for with technology with digital and with joint offering to offer this at scale to the market in the u.s and beyond

Speaker 2: Very exciting. Thank you. Very exciting. very exciting Thank you. thank you

Speaker 7: Thank you. Thank you. thank you

Speaker 8: Thank you. Your next question comes from the line of Neil Mehta with Goldman Sachs. Your line is open. Thank you. thank you Your next question comes from the line of Neil Mehta with Goldman Sachs. your next question comes from the line of neil mehta with goldman sachs Your line is open. your line is open

Speaker 6: Yeah. Thank you so much, Olivier and team. I guess the first question is more of a macro question, Olivier. You have a unique perspective on this big debate that's in the market right now about how much OPEC spare capacity really lives there in markets like the Middle East. And of course, recognizing that there's probably limitations about what you could say, your perspective on that question, I think, would be helpful for us as we think about the back end of the oil curve. Yeah. yeah Thank you so much, Olivier and team. thank you so much olivier and team I guess the first question is more of a macro question, Olivier. i guess the first question is more of a macro question olivier You have a unique perspective on this big debate that's in the market right now about how much OPEC spare capacity really lives there in markets like the Middle East. you have a unique perspective on this big debate that's in the market right now about how much opec spare capacity really lives there in markets like the middle east And of course, recognizing that there's probably limitations about what you could say, your perspective on that question, I think, would be helpful for us as we think about the back end of the oil curve. and of course recognizing that there's probably limitations about what you could say your perspective on that question i think would be helpful for us as we think about the back end of the oil curve

Speaker 7: I think you have been reading what I'm reading, and I think I don't want to reveal more, but I think OPEC+ has been unwinding 2.2 million barrels. I think you have been reading what I'm reading, and I think I don't want to reveal more, but I think OPEC+ has been unwinding 2.2 million barrels. i think you have been reading what i'm reading and i think i don't want to reveal more but i think opec+ has been unwinding 2.2 million barrels I think when you fast forward a year from now, when the imbalance that still exists today will start to subside and then the market will balance itself, I don't think there will be much spare capacity available, sign of which you see by the reinvestment into oil capacity sustenance, investments that are happening to the cost across the Middle East, and oil intervention and intervention activity in which we have a strong exposure is benefiting from this. So yes, I don't think you have some of the OPEC members beyond the Middle East that are not necessarily having an easy path towards sustaining their existing production. So Iran, I think it bodes very well to our focus on production recovery, which is focusing on providing a technology and integrated capability to sustain production and enhance recovery. I think when you fast forward a year from now, when the imbalance that still exists today will start to subside and then the market will balance itself, I don't think there will be much spare capacity available, sign of which you see by the reinvestment into oil capacity sustenance, investments that are happening to the cost across the Middle East, and oil intervention and intervention activity in which we have a strong exposure is benefiting from this. i think when you fast forward a year from now when the imbalance that still exists today will start to subside and then the market will balance itself i don't think there will be much spare capacity available sign of which you see by the reinvestment into oil capacity sustenance investments that are happening to the cost across the middle east and oil intervention and intervention activity in which we have a strong exposure is benefiting from this So yes, I don't think you have some of the OPEC members beyond the Middle East that are not necessarily having an easy path towards sustaining their existing production. so yes i don't think you have some of the opec members beyond the middle east that are not necessarily having an easy path towards sustaining their existing production So Iran, I think it bodes very well to our focus on production recovery, which is focusing on providing a technology and integrated capability to sustain production and enhance recovery. so iran i think it bodes very well to our focus on production recovery which is focusing on providing a technology and integrated capability to sustain production and enhance recovery And I think that's where we will see adoption of this. But I don't think there is significant spare beyond what has been released back to the market. Hence, the market will tighten in rebalance into 2027 and beyond. Hence, we'll set the condition for a better outlook as an investment backdrop for the industry from 2027 and beyond. And I think that's where we will see adoption of this. and i think that's where we will see adoption of this But I don't think there is significant spare beyond what has been released back to the market. but i don't think there is significant spare beyond what has been released back to the market Hence, the market will tighten in rebalance into 2027 and beyond. hence the market will tighten in rebalance into 2027 and beyond Hence, we'll set the condition for a better outlook as an investment backdrop for the industry from 2027 and beyond. hence we'll set the condition for a better outlook as an investment backdrop for the industry from 2027 and beyond

Speaker 6: Yeah. That makes sense. And then another market we'd love to get your perspective on is Mexico. Olivier, this is probably the most constructive I've heard you on Mexico in a little bit, that we're in a bottoming phase and maybe even a cash recovery phase. Your perspective on that market and how it should evolve from here as we think about SLB? Yeah. yeah That makes sense . that makes sense And then another market we'd love to get your perspective on is Mexico. and then another market we'd love to get your perspective on is mexico Olivier, this is probably the most constructive I've heard you on Mexico in a little bit, that we're in a bottoming phase and maybe even a cash recovery phase. olivier this is probably the most constructive i've heard you on mexico in a little bit that we're in a bottoming phase and maybe even a cash recovery phase Your perspective on that market and how it should evolve from here as we think about SLB? your perspective on that market and how it should evolve from here as we think about slb

Speaker 7: Yeah. The market, I would say, has normalized from a market that has dropped significantly and has had a need for getting the confidence of the oil industry to reinvest. I think it has normalized in the last few months. I think we anticipate it to be steady from the land activity for the first of all, short to midterm. And we expect the conditions are gradually in place, getting in place for reinvestment going forward. In 2026, however, where we see the upside is in offshore activity in Mexico, where the deep water asset that we are developing that is being developed by the Woodside will give us an upside, whereas the activity in land now will make the assumption it is steady, but with the potential to start to strengthen as we move into 2027. Yeah. yeah The market, I would say, has normalized from a market that has dropped significantly and has had a need for getting the confidence of the oil industry to reinvest. the market i would say has normalized from a market that has dropped significantly and has had a need for getting the confidence of the oil industry to reinvest I think it has normalized in the last few months. i think it has normalized in the last few months I think we anticipate it to be steady from the land activity for the first of all, short to midterm. i think we anticipate it to be steady from the land activity for the first of all short to midterm And we expect the conditions are gradually in place, getting in place for reinvestment going forward. and we expect the conditions are gradually in place getting in place for reinvestment going forward in In 2026, however, where we see the upside is in offshore activity in Mexico, where the deep water asset that we are developing that is being developed by the Wood side will give us an upside, whereas the activity in land now will make the assumption it is steady, but with the potential to start to strengthen as we move into 2027. in 2026 however where we see the upside is in offshore activity in mexico where the deep water asset that we are developing that is being developed by the wood side will give us an upside whereas the activity in land now will make the assumption it is steady but with the potential to start to strengthen as we move into 2027

Speaker 6: Thank you, sir. Thank you, sir. thank you sir

Speaker 7: Thank you. Thank you. thank you

Speaker 8: Thank you. Your next question comes from the line of Marc Bianchi with TD Cowen. Your line is open. Thank you. thank you Your next question comes from the line of Marc Bianchi with TD Cowen. your next question comes from the line of marc bianchi with td cowen Your line is open. your line is open

Speaker 5: Hey. Hey. Thank you. Good morning. I wanted to ask on. Hey. hey Hey. hey Thank you. thank you Good morning. good morning I wanted to ask on. i wanted to ask on

Speaker 7: Good morning, Mark. Good morning, Mark. good morning mark

Speaker 5: So we've got these activity in good morning. We've got these activity increases in your outlook for 2026 for certain international markets. Earlier, I think a few months ago, there was some discussion of some pricing potential weakness. Can you talk about what that looks like today and what your expectation is embedded in the outlook here? So we've got these activity in good morning. so we've got these activity in good morning We've got these activity increases in your outlook for 2026 for certain international markets. we've got these activity increases in your outlook for 2026 for certain international markets Earlier, I think a few months ago, there was some discussion of some pricing potential weakness. earlier i think a few months ago there was some discussion of some pricing potential weakness Can you talk about what that looks like today and what your expectation is embedded in the outlook here? can you talk about what that looks like today and what your expectation is embedded in the outlook here

Speaker 7: Yeah. I think first to comment that I think the industry has been under pricing pressure in the last couple of years, starting with North America, and I don't see a change there. Yeah. yeah I think first to comment that I think the industry has been under pricing pressure in the last couple of years, starting with North America, and I don't see a change there. i think first to comment that i think the industry has been under pricing pressure in the last couple of years starting with north america and i don't see a change there I think although we believe in North America, we are shielded to the mix of the portfolio we have and exposure where data center and digital and our exposure in deepwater and Gulf of Mexico is proportionally bigger. And also the OPEC exposure where Schlumberger is a bit of a shield towards some of the pricing pressure in North America. Internationally, the market has been, and I keep repeating every time I get to comment on this, has remained highly competitive for a large tender in international markets. And the market has been keeping pressure considering that the market has been declining the last 18 months or 12 months in the international market. Hence, the pricing pressure has been sustained in some critical markets. And we have been responding to this pressure when we felt it was the appropriate things to do to keep us into the market. I think although we believe in North America, we are shielded to the mix of the portfolio we have and exposure where data center and digital and our exposure in deepwater and Gulf of Mexico is proportionally bigger. i think although we believe in north america we are shielded to the mix of the portfolio we have and exposure where data center and digital and our exposure in deepwater and gulf of mexico is proportionally bigger And also the OPEC exposure where Schlumberger is a bit of a shield towards some of the pricing pressure in North America. and also the opec exposure where schlumberger is a bit of a shield towards some of the pricing pressure in north america Internationally, the market has been, and I keep repeating every time I get to comment on this, has remained highly competitive for a large tender in international markets. internationally the market has been and i keep repeating every time i get to comment on this has remained highly competitive for a large tender in international markets And the market has been keeping pressure considering that the market has been declining the last 18 months or 12 months in the international market. and the market has been keeping pressure considering that the market has been declining the last 18 months or 12 months in the international market Hence, the pricing pressure has been sustained in some critical markets. hence the pricing pressure has been sustained in some critical markets And we have been responding to this pressure when we felt it was the appropriate things to do to keep us into the market. and we have been responding to this pressure when we felt it was the appropriate things to do to keep us into the market At the same time, I think we are able to maintain our margin steady in 2026 compared to 2025, building on our Schlumberger synergy, building on the digital growth margin-accretive business, and the effort we are doing to continue to use technology performance as differential to protect where we can margin against the pricing pressure. At the same time, I think we are able to maintain our margin steady in 2026 compared to 2025, building on our Schlumberger synergy, building on the digital growth margin-accretive business, and the effort we are doing to continue to use technology performance as differential to protect where we can margin against the pricing pressure. at the same time i think we are able to maintain our margin steady in 2026 compared to 2025 building on our schlumberger synergy building on the digital growth margin-accretive business and the effort we are doing to continue to use technology performance as differential to protect where we can margin against the pricing pressure

Speaker 5: Okay. Thank you for that. The other question I had was related to the offshore outlook. You've talked about an expectation for improvement in offshore. I think if we go back a year or two, there was an expectation for offshore improvement that didn't really materialize. What are you seeing now that you think is different from that prior period and gives you the confidence to make those comments? Okay. okay Thank you for that. thank you for that The other question I had was related to the offshore outlook. the other question i had was related to the offshore outlook You've talked about an expectation for improvement in offshore. you've talked about an expectation for improvement in offshore I think if we go back a year or two, there was an expectation for offshore improvement that didn't really materialize. i think if we go back a year or two there was an expectation for offshore improvement that didn't really materialize What are you seeing now that you think is different from that prior period and gives you the confidence to make those comments? what are you seeing now that you think is different from that prior period and gives you the confidence to make those comments

Speaker 7: Well, the comments I'm making is that I believe that the FID and the booking will improve in 2026, setting the right setup and context for 2027, 2028 offshore cycle rebound. Whether this is material in 2026, yes, in certain markets, in East Asia, the activity of Indonesia, the market will strengthen in deepwater. And I think this will reflect into this year. In Sub-Saharan Africa, this is more a trend of FID, of project from Namibia to Angola and Mozambique that will set the context for a marked rebound going forward. And these FID are happening as we speak, being negotiated and being pending. Well, the comments I'm making is that I believe that the FID and the booking will improve in 2026, setting the right setup and context for 2027, 2028 offshore cycle rebound. well the comments i'm making is that i believe that the fid and the booking will improve in 2026 setting the right setup and context for 2027 2028 offshore cycle rebound Whether this is material in 2026, yes, in certain markets, in East Asia, the activity of Indonesia, the market will strengthen in deepwater. whether this is material in 2026 yes in certain markets in east asia the activity of indonesia the market will strengthen in deepwater And I think this will reflect into this year. and i think this will reflect into this year In Sub-Saharan Africa, this is more a trend of FID, of project from Namibia to Angola and Mozambique that will set the context for a marked rebound going forward. in sub-saharan africa this is more a trend of fid of project from namibia to angola and mozambique that will set the context for a marked rebound going forward And these FID are happening as we speak, being negotiated and being pending. and these fid are happening as we speak being negotiated and being pending And in the Americas, I think the continuous momentum in Brazil, in Guyana, or Suriname, and, I think, are here to stay with the mature basin Gulf of Mexico, mature basin of the North Sea remaining steady somehow, although with a slight decline in the North Sea. So we believe that the FID, the economics are favorable, and the pipeline of FID across Africa and Asia are set to create a rebound of activity going forward as we turn into 2027. And in the Americas, I think the continuous momentum in Brazil, in Guyana, or Suriname, and, I think, are here to stay with the mature basin Gulf of Mexico, mature basin of the North Sea remaining steady somehow, although with a slight decline in the North Sea. and in the americas i think the continuous momentum in brazil in guyana or suriname and i think are here to stay with the mature basin gulf of mexico mature basin of the north sea remaining steady somehow although with a slight decline in the north sea So we believe that the FID, the economics are favorable, and the pipeline of FID across Africa and Asia are set to create a rebound of activity going forward as we turn into 2027. so we believe that the fid the economics are favorable and the pipeline of fid across africa and asia are set to create a rebound of activity going forward as we turn into 2027

Speaker 5: Thank you very much. Thank you very much. thank you very much

Speaker 7: Thank you. Thank you. thank you

Speaker 8: Thank you. Your last question comes from the line of Scott Gruber with Citigroup. Your line is open. Thank you. thank you Your last question comes from the line of Scott Gruber with Citigroup. your last question comes from the line of scott gruber with citigroup Your line is open. your line is open

Speaker 9: Good morning. So I want to come back to the data center solutions business. Olivier, you mentioned expanding the business abroad. But does the billion-dollar target capture any of that international growth opportunity, or would that be future upside? And how quickly could this materialize? Ultimately, as you leverage your global relationships, could the international opportunity become even larger than your U.S. business? Good morning. good morning So I want to come back to the data center solutions business. so i want to come back to the data center solutions business Olivier, you mentioned expanding the business abroad. olivier you mentioned expanding the business abroad But does the billion-dollar target capture any of that international growth opportunity, or would that be future upside? but does the billion-dollar target capture any of that international growth opportunity or would that be future upside And how quickly could this materialize? and how quickly could this materialize Ultimately, as you leverage your global relationships, could the international opportunity become even larger than your U.S. business? ultimately as you leverage your global relationships could the international opportunity become even larger than your u.s business

Speaker 7: Difficult to say whether it could become larger, but easy to tell you that it will grow. This year will be the first step into establishing ourselves in Asia and to provide this modular manufacturing solution to our customer there. Also, we initiate a partnership to design a next-generation data center in one country in the Asia region. Then we expect to also look at our relationship to embed and go further, including Middle East, in the near future. So these are the places where we have ambition to leverage our hyperscale relationship and our modular manufacturing capability, ability to source locally, ability to manufacture everywhere. Difficult to say whether it could become larger, but easy to tell you that it will grow. difficult to say whether it could become larger but easy to tell you that it will grow This year will be the first step into establishing ourselves in Asia and to provide this modular manufacturing solution to our customer there. this year will be the first step into establishing ourselves in asia and to provide this modular manufacturing solution to our customer there Also, we initiate a partnership to design a next-generation data center in one country in the Asia region. also we initiate a partnership to design a next-generation data center in one country in the asia region Then we expect to also look at our relationship to embed and go further, including Middle East, in the near future. then we expect to also look at our relationship to embed and go further including middle east in the near future So these are the places where we have ambition to leverage our hyperscale relationship and our modular manufacturing capability, ability to source locally, ability to manufacture everywhere. so these are the places where we have ambition to leverage our hyperscale relationship and our modular manufacturing capability ability to source locally ability to manufacture everywhere I think it's something unique that not so many companies can do and scale and replicate what we have done in the last 18 months. So that's what we look forward to, and that's where we are excited about the international market. But the US is still the hot market, and the US is where we believe we have the most exciting pipeline in 2026 and in 2027 coming our way, and we'll not miss that market. I think it's something unique that not so many companies can do and scale and replicate what we have done in the last 18 months. i think it's something unique that not so many companies can do and scale and replicate what we have done in the last 18 months So that's what we look forward to, and that's where we are excited about the international market. so that's what we look forward to and that's where we are excited about the international market But the US is still the hot market, and the US is where we believe we have the most exciting pipeline in 2026 and in 2027 coming our way, and we'll not miss that market. but the us is still the hot market and the us is where we believe we have the most exciting pipeline in 2026 and in 2027 coming our way and we'll not miss that market

Speaker 9: I got it. Appreciate that color. And then I want to come back to the question Stephen asked at the beginning on CapEx. So your $2.5 billion of CapEx this year will support the second-half growth rate that you'll achieve, which will be led by digital and data center solutions, some contribution from the core. But overall, the capital intensity of the portfolio is improving. I got it. i got it Appreciate that color. appreciate that color And then I want to come back to the question Stephen asked at the beginning on CapEx. and then i want to come back to the question stephen asked at the beginning on capex So your $2.5 billion of CapEx this year will support the second-half growth rate that you'll achieve, which will be led by digital and data center solutions, some contribution from the core. so your $2.5 billion of capex this year will support the second-half growth rate that you'll achieve which will be led by digital and data center solutions some contribution from the core But overall, the capital intensity of the portfolio is improving. but overall the capital intensity of the portfolio is improving So my question is, can you sustain similar growth rate for a couple of years into the future at a CapEx level that's still broadly around $2.5 billion, given those kind of less capital-intensive drivers of growth, or do you think CapEx will need to creep a bit higher? So my question is, can you sustain similar growth rate for a couple of years into the future at a CapEx level that's still broadly around $2.5 billion, given those kind of less capital-intensive drivers of growth, or do you think CapEx will need to creep a bit higher? so my question is can you sustain similar growth rate for a couple of years into the future at a capex level that's still broadly around $2.5 billion given those kind of less capital-intensive drivers of growth or do you think capex will need to creep a bit higher

Speaker 11: Look, as I said before, we'll do what it takes to not miss any opportunity. But again, we have really improved our capital efficiency over the last five to six years, so we can really operate with less. But if growth really comes at high growth rates, we will have to increase beyond the $2.5 billion for sure. But as a percentage of revenue, that will still remain pretty low compared to what we were doing before and still quite in the low end of the range we had guided before of 5%-7% of revenue. Look, as I said before, we'll do what it takes to not miss any opportunity. look as i said before we'll do what it takes to not miss any opportunity But again, we have really improved our capital efficiency over the last five to six years, so we can really operate with less. but again we have really improved our capital efficiency over the last five to six years so we can really operate with less But if growth really comes at high growth rates, we will have to increase beyond the $2.5 billion for sure. but if growth really comes at high growth rates we will have to increase beyond the $2.5 billion for sure But as a percentage of revenue, that will still remain pretty low compared to what we were doing before and still quite in the low end of the range we had guided before of 5%-7% of revenue. but as a percentage of revenue that will still remain pretty low compared to what we were doing before and still quite in the low end of the range we had guided before of 5%-7% of revenue That's excluding APS and exploration data. So yes, we'll increase as necessary, but it will go with increased cash flow as well. And some of the growth that we will be seeing is production and recovery, as we elaborated on before, as well as digital. And that doesn't require as much CapEx as the well-centric businesses. So this is how we can maneuver within that range, basically. That's excluding APS and exploration data. that's excluding aps and exploration data So yes, we'll increase as necessary, but it will go with increased cash flow as well. so yes we'll increase as necessary but it will go with increased cash flow as well And some of the growth that we will be seeing is production and recovery, as we elaborated on before, as well as digital. and some of the growth that we will be seeing is production and recovery as we elaborated on before as well as digital And that doesn't require as much CapEx as the well-centric businesses. and that doesn't require as much capex as the well-centric businesses So this is how we can maneuver within that range, basically. so this is how we can maneuver within that range basically

Speaker 9: So without some acceleration in the kind of core business, you would expect the CapEx to sales ratio to continue to improve over the next couple of years? Is that fair? So without some acceleration in the kind of core business, you would expect the CapEx to sales ratio to continue to improve over the next couple of years? so without some acceleration in the kind of core business you would expect the capex to sales ratio to continue to improve over the next couple of years Is that fair? is that fair

Speaker 11: It will be more or less as a percentage of revenue. It will stay within that 5%-7% we've guided before, but it's more below. As you have seen, we've been closer to 5 than 7. So we will remain at the low end of that range in the future. It will be more or less as a percentage of revenue. it will be more or less as a percentage of revenue It will stay within that 5%-7% we've guided before, but it's more below. it will stay within that 5%-7% we've guided before but it's more below As you have seen, we've been closer to 5 than 7. as you have seen we've been closer to 5 than 7 So we will remain at the low end of that range in the future. so we will remain at the low end of that range in the future

Speaker 9: Okay. I appreciate the color. Thank you. Okay. okay I appreciate the color. i appreciate the color Thank you. thank you

Speaker 11: Thank you. Thank you. thank you

Speaker 7: Thank you, Scott. Thank you, Scott. thank you scott Ladies and gentlemen, Thank you. Thank you, Megan. Ladies and gentlemen, as we conclude today's call, I would like to leave you with the following takeaways. First, our strategy focused on production recovery, including ChampionX. Digital and Data Center solutions present new pathways for growth, supporting a full-year revenue and margin guidance. Second, I'm confident that we continue to generate strong cash flows, enabling us to return more than $4 billion of shareholder returns in 2026. Third, in the longer term, the outlook is becoming more positive for SLB. The recovery of Saudi Arabia, the positive pipeline in Subsea, the growth dynamic in both digital and data centers are all catalysts, and Venezuela represents an upside. In summary, the current cycle is recovering toward the strength of SLB. With this, I will conclude today's call. Thank you all for joining. Ladies and gentlemen, Thank you. ladies and gentlemen thank you Thank you, Megan. thank you megan Ladies and gentlemen, as we conclude today's call, I would like to leave you with the following takeaways. ladies and gentlemen as we conclude today's call i would like to leave you with the following takeaways First, our strategy focused on production recovery, including ChampionX . first our strategy focused on production recovery including championx Digital and Data Center solutions present new pathways for growth, supporting a full-year revenue and margin guidance. digital and data center solutions present new pathways for growth supporting a full-year revenue and margin guidance Second, I'm confident that we continue to generate strong cash flows, enabling us to return more than $4 billion of shareholder returns in 2026. second i'm confident that we continue to generate strong cash flows enabling us to return more than $4 billion of shareholder returns in 2026 Third, in the longer term, the outlook is becoming more positive for SLB. third in the longer term the outlook is becoming more positive for slb The recovery of Saudi Arabia, the positive pipeline in Subsea, the growth dynamic in both digital and data centers are all catalysts, and Venezuela represents an upside. the recovery of saudi arabia the positive pipeline in subsea the growth dynamic in both digital and data centers are all catalysts and venezuela represents an upside In summary, the current cycle is recovering toward the strength of SLB. in summary the current cycle is recovering toward the strength of slb With this, I will conclude today's call. with this i will conclude today's call Thank you all for joining. thank you all for joining

Speaker 8: This concludes today's conference call. You may now disconnect. This concludes today's conference call. this concludes today's conference call You may now disconnect. you may now disconnect