SLB Announces First-Quarter 2025 Results; Remains Committed to Return a Minimum of $4 Billion to Shareholders in 2025

 

• Revenue of $8.49 billion decreased 3% year on year
• GAAP EPS of $0.58 decreased 22% year on year
• EPS, excluding charges and credits, of $0.72 decreased 4% year on year
• Net income attributable to SLB of $797 million decreased 25% year on year
• Adjusted EBITDA of $2.02 billion decreased 2% year on year
• Cash flow from operations of $660 million increased $333 million year on year
• Board approved quarterly cash dividend of $0.285 per share

 

(BUSINESS WIRE)--SLB (NYSE: SLB) today announced results for the first-quarter 2025.

First-Quarter Results

(Stated in millions, except per share amounts)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
Revenue	$8,490		$9,284		$8,707		-9%		-3%
Income before taxes - GAAP basis	$1,063		$1,387		$1,357		-23%		-22%
Income before taxes margin - GAAP basis	12.5%		14.9%		15.6%		-241 bps		-306 bps
Net income attributable to SLB - GAAP basis	$797		$1,095		$1,068		-27%		-25%
Diluted EPS - GAAP basis	$0.58		$0.77		$0.74		-25%		-22%
Adjusted EBITDA*	$2,020		$2,382		$2,057		-15%		-2%
Adjusted EBITDA margin*	23.8%		25.7%		23.6%		-186 bps		18 bps
Pretax segment operating income*	$1,556		$1,918		$1,649		-19%		-6%
Pretax segment operating margin*	18.3%		20.7%		18.9%		-232 bps		-60 bps
Net income attributable to SLB, excluding charges & credits*	$988		$1,311		$1,082		-25%		-9%
Diluted EPS, excluding charges & credits*	$0.72		$0.92		$0.75		-22%		-4%
Revenue by Geography
International	$6,727		$7,483		$7,056		-10%		-5%
North America	1,719		1,752		1,598		-2%		8%
Other	44		49		53		n/m		n/m
	$8,490		$9,284		$8,707		-9%		-3%

	(Stated in millions)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
Revenue by Division
Digital & Integration	$1,006		$1,156		$953		-13%		6%
Reservoir Performance	1,700		1,810		1,725		-6%		-1%
Well Construction	2,977		3,267		3,368		-9%		-12%
Production Systems	2,938		3,197		2,818		-8%		4%
Other	(131)		(146)		(157)		n/m		n/m
	$8,490		$9,284		$8,707		-9%		-3%
Pretax Operating Income by Division
Digital & Integration	$306		$442		$254		-31%		21%
Reservoir Performance	282		370		339		-24%		-17%
Well Construction	589		681		690		-14%		-15%
Production Systems	475		506		400		-6%		19%
Other	(96)		(81)		(34)		n/m		n/m
	$1,556		$1,918		$1,649		-19%		-6%
Pretax Operating Margin by Division
Digital & Integration	30.4%		38.3%		26.6%		-784 bps		380 bps
Reservoir Performance	16.6%		20.5%		19.7%		-391 bps		-311 bps
Well Construction	19.8%		20.8%		20.5%		-106 bps		-71 bps
Production Systems	16.2%		15.8%		14.2%		34 bps		197 bps
Other	n/m		n/m		n/m		n/m		n/m
	18.3%		20.7%		18.9%		-232 bps		-60 bps
*These are non-GAAP financial measures. See sections titled "Charges & Credits", "Divisions" and "Supplementary Information" for details.
n/m = not meaningful

Adjusted EBITDA Margin Protected Despite Market Softness

“First-quarter adjusted EBITDA margin was slightly up year on year despite softer revenue as we continued to navigate the evolving market dynamics,” said SLB Chief Executive Officer, Olivier Le Peuch.

“It was a subdued start to the year as revenue declined 3% year on year. Higher activity in parts of the Middle East, North Africa, Argentina and offshore U.S., along with strong growth in our data center infrastructure solutions and digital businesses in North America, were more than offset by a sharper-than-expected slowdown in Mexico, a slow start to the year in Saudi Arabia and offshore Africa, and steep decline in Russia.

“The expansion of our accretive margin digital business and the strength of our Production Systems division, combined with our cost reduction initiatives, have driven another consecutive quarter of year-on-year adjusted EBITDA margin growth.

“These results demonstrate SLB's resilience in changing market conditions. We are continuously exercising cost discipline and aligning our resources with activity levels, leveraging our global reach and industry-leading innovation capabilities, expanding our differentiated digital offerings, and strategically diversifying the portfolio beyond oil and gas,” Le Peuch said.

Core Benefiting from Late-Cycle Customer Spend and Growth in International Unconventional Markets

“In the Core, we continue to see rising demand for production solutions as customers seek to offset declines and maintain or grow production from maturing assets. This is an area that will continue to present strong opportunities for SLB. As a result, Production Systems revenue grew 4% and expanded pretax operating margins by 197 bps year on year, with strong demand for surface production systems, completions, and artificial lift. In addition, Reservoir Performance was supported by strong international unconventional stimulation and intervention activity although it was offset by lower evaluation activity.

“Overall, the combined revenue of the Core divisions was down 4% year on year, as growth in Production Systems was more than offset by declines in Reservoir Performance and Well Construction. Despite the year-on-year decline, our diversified portfolio and broad market position helped to offset lower rig activity,” Le Peuch said.

Digital and AI Growth Increasingly Decoupled from Upstream Cycle Dynamics

“The energy industry is focused on efficiency and performance, and our customers are recognizing the opportunity to unlock value from their data. As a result, operators are increasing their digital capabilities, strengthening partnerships with technology companies, and investing in digital and AI solutions.

“This is translating into highly accretive revenue growth, and as a result, our quarterly digital revenue grew 17% year on year, contributing to a 6% increase in Digital & Integration revenue over that same period.

“When we designed our strategy around three engines of growth, we envisioned digital leading the second phase of revenue expansion, complementing our leading offering in the Core. Today, that vision is materializing, and we will continue to enhance our leadership in AI, cloud computing and digital operations,” Le Peuch said.

Committing to Return a Minimum of $4 Billion to Shareholders in 2025

“SLB is committed to returning more than 50% of its free cash flow to our shareholders, and we will materially exceed this target in 2025. We continue to have confidence in our ability to generate strong cash flow in the current environment and will return a minimum of $4 billion to shareholders through dividends and share repurchases this year.

“The industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services. In this uncertain environment, we remain committed to protecting our margins, generating strong cash flow and delivering consistent value to our customers and shareholders in 2025,” Le Peuch concluded.