SLB (SLB) Q1 2025 earnings summary

Executive summary

• First-quarter 2025 revenue was $8.5 billion, down 3% year over year, with strong North America results (+8%) 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.

• Adjusted EBITDA margin expanded to 23.8% year over year despite macroeconomic uncertainty and seasonal activity declines.

• Digital & Integration and Production Systems led growth, while Well Construction and Reservoir Performance faced declines.

• The company remains focused on cost management, margin protection, and returning at least $4 billion to shareholders in 2025.

Financial highlights

• Revenue: $8.5 billion (down 3% year over year); North America revenue up 8%, international revenue down 5%.

• Adjusted EPS: $0.72 (down $0.03 year over year); GAAP EPS: $0.58 (down 22%).

• Adjusted EBITDA margin: 23.8% (up 18 bps year over year); pretax segment operating margin: 18.3% (down 60 bps).

• Free cash flow: $103 million; cash flow from operations: $660 million.

• Net debt increased to $10.1 billion, mainly due to a $2.3 billion accelerated share repurchase.

Outlook and guidance

• Second-quarter revenue expected to be flat sequentially, with adjusted EBITDA margin expansion of 50–100 basis points.

• Full-year 2025 capital investment expected at ~$2.3 billion, excluding ChampionX.

• Flat to mid-single-digit revenue growth anticipated in H2 versus H1, assuming stable oil prices.

• Margin expansion expected to continue, but tariffs and global economic uncertainty remain key risks.

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