SLB (SLB) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $8.93 billion, up 4% sequentially, driven by the ChampionX acquisition and digital business expansion, despite APS divestiture and Ecuador pipeline disruption.

• Net income attributable to shareholders was $739 million, with GAAP EPS at $0.50 and adjusted EPS at $0.69, both down year-over-year due to integration and restructuring charges.

• Digital is now a standalone division, reporting 11% sequential revenue growth, 32.7% EBITDA margin, and ARR of $926 million, up 7% year-over-year.

• Integration of ChampionX exceeded expectations, contributing $579 million in revenue and margin growth, while the disposal of ChampionX Drilling Technologies generated $286 million.

• Data Center Solutions revenue more than doubled year-over-year, with global expansion and new customer onboarding.

Financial highlights

• Q3 revenue was $8.93 billion, up 4% sequentially but down 3% year-over-year; adjusted EBITDA was $2.06 billion with a 23.1% margin.

• Adjusted EPS was $0.69, down $0.05 sequentially and $0.20 year-over-year; $0.19 in charges mainly from ChampionX integration.

• Free cash flow was $1.1 billion in Q3; cash flow from operations was $1.7 billion; $114 million in stock repurchases during Q3 and $2.4 billion year-to-date.

• Board approved a quarterly dividend of $0.285 per share; $1.6 billion dividend commitment for the year.

• Net debt at quarter-end was $9.18 billion.

Outlook and guidance

• Q4 is expected to deliver high single-digit sequential topline growth, with a full quarter of ChampionX and seasonally higher digital and product sales.

• Second-half revenue to be within the midpoint of $18.2–$18.8 billion guidance; Q4 adjusted EBITDA margin expected to expand 50–150 basis points.

• Digital division projected to achieve double-digit year-on-year growth and 35% EBITDA margin for the full year.

• Free cash flow anticipated to increase in Q4 due to lower inventory and higher collections.

• Full-year 2025 capital investment guidance remains at $2.4 billion.