SLB (SLB) Q1 2025 earnings summary

Executive summary

• First quarter 2025 revenue was $8.5 billion, down 3% year-on-year, with international softness offset by 8% North America growth.

• Net income attributable to SLB was $797 million, a 25% decrease year over year, with diluted EPS at $0.58.

• Adjusted EBITDA margin expanded to 23.8%, supported by cost actions and favorable activity mix.

• The company remains focused on cost discipline, margin protection, and shareholder returns amid market uncertainty.

• Significant charges included $158 million in severance and $48 million in merger and integration costs related to the ChampionX and Aker Solutions transactions.

Financial highlights

• Revenue: $8.5 billion (down 3% year-over-year, down 9% sequentially).

• Net income attributable to SLB: $797 million (down from $1,068 million year-over-year).

• Adjusted EPS (excluding charges and credits): $0.72, down $0.03 year-on-year; GAAP EPS: $0.58, down 22%.

• Adjusted EBITDA was $2.02 billion, down 2% year over year; margin reached 23.8%, up 18 basis points.

• Free cash flow for Q1 2025 was $103 million; cash flow from operations was $660 million.

Outlook and guidance

• Capital investment for full-year 2025 is expected to be ~$2.3 billion, excluding ChampionX.

• Second quarter revenue expected to be flat sequentially, with adjusted EBITDA margin expansion of 50-100 basis points, assuming stable oil prices and tariffs.

• Flat to mid-single-digit revenue growth is expected in the second half versus the first half, excluding ChampionX.

• Commitment to return at least $4 billion to shareholders in 2025 remains unchanged.

• Management expects to return more than 50% of free cash flow to shareholders and will exceed this in 2025.