SLB (SLB) Q2 2024 earnings summary

Executive summary

• Second-quarter 2024 revenue reached $9.14 billion, up 13% year-over-year and 5% sequentially, driven by strong international growth, especially in the Middle East & Asia, and robust digital acceleration.

• Adjusted EPS was $0.85, up $0.10 sequentially and 18% year-over-year; GAAP EPS was $0.77, up 4% sequentially and 7% year-over-year.

• Net income attributable to SLB was $1.11 billion, up 4% sequentially and 8% year-over-year; adjusted EBITDA was $2.29 billion, up 11% sequentially and 17% year-over-year.

• Free cash flow reached $776 million for the quarter, and $1.4 billion in cash flow from operations was generated; $1.5 billion was returned to shareholders in H1 2024 via dividends and buybacks, on track for $3.0 billion for the year.

• International revenue hit its highest quarterly level since 2014, led by Middle East & Asia, deepwater basins, and digital adoption.

Financial highlights

• Adjusted EBITDA margin expanded 142 basis points sequentially to 25.0%; pretax segment operating margin rose to 20.3%.

• Earnings per share (excluding charges/credits): $0.85, up $0.10 sequentially and 18% year-over-year.

• Cash flow from operations was $1.44 billion; capital investment guidance for 2024 is $2.6 billion, flat year-over-year.

• Net debt at June 30, 2024 was $9.19 billion, up from $7.98 billion at year-end 2023.

• Dividend: $0.275 per share approved for Q3 2024.

Outlook and guidance

• Full-year adjusted EBITDA growth is expected in the 14–15% range, with margins at or above 25%.

• Third quarter revenue is expected to grow sequentially in the low single digits, with further margin expansion; Q4 to see accelerated topline and margin growth due to seasonally higher digital and product sales.

• Strong exit for 2024 anticipated, positioning for continued revenue growth, margin expansion, and cash generation into 2025.

• Capital investment for 2024 expected at $2.6 billion, unchanged from 2023.

• $3 billion total returns to shareholders targeted for 2024, increasing to $4 billion in 2025.