SLB (SLB) investor relations material

Executive summary

• Revenue reached $8.97 billion, up 3% sequentially and 5% year over year, with broad-based international growth and a rebound in North America offsetting Middle East disruptions.

• Offshore activity increased in Latin America, Europe, Africa, and Asia, while U.S. land saw higher sales in production chemicals and artificial lift.

• Production Systems and Digital divisions showed strong momentum, with Production Systems adjusted EBITDA margins above 20% and Digital adjusted EBITDA margins at 35%.

• Data center solutions revenue grew 33% sequentially and 80% year-over-year, driven by new hyperscaler customers and expanded offerings.

• ChampionX acquisition contributed $870 million in revenue and $207 million in adjusted EBITDA.

Financial highlights

• Q2 revenue was $9 billion, up 3% sequentially, with strong performance in Latin America, Europe, Africa, U.S. land, and Asia offsetting a 13% revenue decline in the Middle East.

• Adjusted EPS was $0.55, up $0.03 sequentially but down $0.19 year-over-year; $0.03 in merger and integration charges recorded.

• Adjusted EBITDA was $1.90 billion, up 7% sequentially but down 7% year over year; margin was 21.2%, up 83 bps sequentially but down 284 bps year over year.

• Digital revenue grew 9% sequentially to $697 million, with adjusted EBITDA margin of 34.7%.

• Production Systems revenue rose 7% sequentially to $3.8 billion, with pre-tax operating margin up 138 basis points to 15.5%.

Outlook and guidance

• Q3 global sequential revenue growth expected between 3% and 4%, with adjusted EBITDA margin expansion of ~75 basis points.

• Q4 revenue projected to surpass $10 billion, up ~5% year-over-year, with adjusted EBITDA margin around 24%.

• Data Center Solutions business on track to exceed $1 billion annualized revenue run rate by year-end, targeting $2 billion by end of 2027.

• Middle East activity expected to gradually recover, reaching 95% of Q4 2025 revenue by Q4 2026; full recovery remains uncertain and depends on conflict resolution.

• Capital investment for 2026 expected to be ~$2.5 billion.