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, digital acceleration, and margin expansion across all divisions.

• Net income attributable to SLB was $1.11 billion, with GAAP EPS of $0.77 and adjusted EPS of $0.85, both increasing year-over-year; adjusted EBITDA was $2.29 billion, up 11% sequentially and 17% year-over-year.

• Free cash flow was $776 million for Q2, with $1.49 billion 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.

• The acquisition of Aker's subsea business contributed significantly to year-over-year revenue growth.

Financial highlights

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

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

• Net debt increased to $9.19 billion at quarter end, up from $7.98 billion at year end 2023.

• Effective tax rate for Q2 2024 was 19.4% GAAP, 19.1% excluding charges and credits.

• Working capital consumed $2.0 billion in liquidity in the first half, mainly due to receivables and payables.

Outlook and guidance

• Expects continued international momentum, strong digital sales, and cost efficiency to drive margin expansion and mid-teens full-year adjusted EBITDA growth, with margins at or above 25%.

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

• Total returns to shareholders targeted at $3 billion in 2024 and $4 billion in 2025.

• Third quarter revenue is expected to grow sequentially in the low single digits, with further margin expansion.

• Long-term growth supported by gas and deepwater projects, production and recovery activity, and digital and decarbonization trends.