SLB (SLB) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with adjusted EBITDA margin expansion to 25.6%, free cash flow of $1.8 billion, and net income of $1.19 billion, despite flat sequential revenue at $9.2 billion.

• Digital business achieved record revenue and margin, with continued high-teens growth expected for the full year.

• Announced sale of Palliser asset in Canada for $430 million and progress on ChampionX acquisition, expected to close in Q1 2025.

• Closed a carbon capture JV with Aker Carbon Capture ASA, paying $0.4 billion for 80% of the business.

• Nine-month 2024 revenue reached $27.0 billion, up 12% year-over-year, with international revenue up 16% and North America down 3%.

Financial highlights

• Q3 2024 revenue: $9.16 billion, up 10% year over year; net income attributable to SLB: $1.19 billion; adjusted EPS: $0.89, up 5% sequentially and 14% year over year.

• Adjusted EBITDA margin rose 55 bps sequentially to 25.6%, highest since Q1 2016.

• Free cash flow reached $1.8 billion, up $1 billion from Q2, driven by strong customer collections.

• Capital investments for the year expected at $2.6 billion.

• Total shareholder returns YTD at $2.4 billion; buybacks expected to continue in Q4.

Outlook and guidance

• Q4 revenue growth expected to be muted, with favorable digital/product sales mix and continued EBITDA margin expansion.

• Full-year 2024 adjusted EBITDA margin projected at or above 25%.

• 2025 international upstream spending seen growing low- to mid-single digits; North America flat to slightly down.

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

• Capital investment for 2024 is expected to be approximately $2.6 billion, in line with 2023.