Shell plc announced on 18 December 2025 that it had completed a $3.5 billion share‑buyback transaction, purchasing shares for cancellation under its buy‑back programme launched on 30 October 2025. The transaction was executed by Merrill Lynch International and falls within the on‑ and off‑market limbs of the programme, reducing Shell’s issued share capital and reinforcing its commitment to returning capital to shareholders.
The buy‑back comes after a period of mixed financial performance. For the twelve months ending 30 September 2025, Shell reported revenue of $273.812 billion, a 9.44 % decline year‑over‑year, and earnings per share of $4.92, a modest 0.41 % increase. In 2024, revenue fell 10.57 % to $289.029 billion and EPS dropped 11.23 % to $5.06. The $3.5 billion programme is the sixth consecutive quarter in which Shell has announced at least $3 billion of buybacks, underscoring a disciplined capital‑return strategy amid a challenging energy market.
Management explained that the timing of the buy‑back is driven by strong cash generation and a favourable share price. CEO Wael Sawan said the company’s “strong delivery this quarter enables us to commence another USD 3.5 billion of buybacks for the next three months.” CFO Sinead Gorman added that the programme “provides an opportunity to buy back shares while maintaining our dividend and buy‑back targets.” The decision reflects confidence in the company’s ability to fund shareholder returns without compromising investment in growth areas such as renewable energy and digital platforms.
Segment analysis shows that Shell’s Marketing business and deep‑water assets in the Gulf of America and Brazil performed well, offsetting weaker performance in other areas. The Marketing segment’s revenue growth helped lift overall earnings, while the deep‑water segment’s operational efficiency contributed to a 21.08 % EBITDA margin. Despite a 9.44 % revenue decline, the company’s cost‑control measures and favorable commodity price movements allowed EPS to rise slightly year‑over‑year, beating analyst expectations by $0.24 per share. The buy‑back therefore serves to return excess cash to shareholders while the company maintains a robust margin profile.
The completion of the buy‑back signals Shell’s continued focus on shareholder value and its confidence in sustaining cash flow generation. By reducing share capital, the company improves earnings per share and supports its long‑term dividend policy. The programme also demonstrates that Shell can balance capital returns with ongoing investment in low‑carbon initiatives, positioning the company for a transition‑focused future while maintaining financial flexibility.
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