SLB (SLB) Q1 2025 earnings summary

Executive summary

• First quarter 2025 revenue was $8.5 billion, down 3% year-over-year, with North America growth offset by declines in Mexico, Saudi Arabia, and Russia.

• Net income attributable to SLB was $797 million, a 25% decrease year-over-year, with diluted EPS at $0.58 versus $0.74 last year.

• Adjusted EBITDA margin expanded year-on-year despite a challenging macro environment and seasonal activity declines.

• North America revenue grew 8% year-over-year, while international revenue declined 5%, led by a 10% drop in Latin America.

• The company remains focused on cost management, margin protection, and shareholder returns amid global economic uncertainty.

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-over-year; GAAP EPS: $0.58, down 22%.

• Adjusted EBITDA margin reached 23.8%, up 18 basis points year-on-year; pre-tax segment operating margin was 18.3%, down 60 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, excluding ChampionX, with adjusted EBITDA margin expansion of 50-100 basis points.

• For the full year, flat to mid-single-digit revenue growth is anticipated in the second half versus the first half, assuming stable oil prices and no further tariff escalation.

• 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.