SLB (SLB) Q2 2025 earnings summary

Executive summary

• Completed the acquisition of ChampionX, enhancing capabilities in production chemicals, artificial lift, and digital production technologies, and expanding exposure to production and recovery markets.

• Delivered steady revenue and slight EBITDA margin expansion despite macro headwinds and market volatility.

• International revenue grew 2% sequentially, with strong performance in the Middle East, Asia, North Africa, and notable growth in Iraq, UAE, Kuwait, China, and Australia.

• North America revenue declined sequentially, but outperformed the market due to strength in production systems and digital sales.

• Continued growth in CCS projects and digital adoption, with over 7,800 users on the Delfi platform.

Financial highlights

• Second quarter revenue was $8.55 billion, up 1% sequentially, driven by international growth, but down 6% year over year.

• Adjusted EPS was $0.74, up $0.02 sequentially but down $0.11 year-over-year; net income was $1.01 billion.

• Adjusted EBITDA was $2.05 billion, up 2% sequentially and down 10% year over year; adjusted EBITDA margin was 24.0%, up 21 bps sequentially.

• Free cash flow was $622 million, up $519 million from the previous quarter.

• Capital investments for the quarter were $520 million; full-year guidance is $2.4 billion, reflecting ChampionX impact.

Outlook and guidance

• Second half 2025 revenue expected between $18.2 billion and $18.8 billion, with growth backloaded in Q4 due to full quarter of ChampionX and seasonal digital/product sales uplift.

• Second half EBITDA margins expected to be flat versus Q2, including 20–40 bps tariff impact.

• Digital revenue and margin expansion anticipated in H2, with Digital reported as a separate segment from Q3.

• Transaction with ChampionX expected to be accretive to margins and EPS on a full-year basis in 2026.

• Management remains constructive for H2 2025, assuming stable commodity prices and citing portfolio strength.