SLB (SLB) Q3 2025 earnings summary

Executive summary

• Q3 revenue reached $8.93 billion, up 4% sequentially, driven by the ChampionX acquisition, digital business expansion, and resilient core performance, though revenue was down 3% year on year.

• ChampionX contributed $579 million in revenue, with integration exceeding expectations and strengthening production and recovery business.

• Digital is now a standalone division, with 11% sequential revenue growth, ARR at $926 million (up 7% YoY), and a 28%–32.7% margin.

• Net income attributable to shareholders was $739 million, down 27% sequentially and 38% year on year; adjusted EPS was $0.69, down $0.05 sequentially and $0.20 year-over-year, with $0.19 in charges mainly from ChampionX integration.

• 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 on year; $579 million of the increase came from ChampionX.

• Adjusted EBITDA was $2.06 billion, margin 23.1%, down 92 basis points sequentially and from 25.6% a year ago.

• Free cash flow was $1.1 billion in Q3; $1.7 billion cash from operations; $114 million in stock repurchases; $2.4 billion YTD.

• 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, up from $7.4 billion at year-end 2024.

Outlook and guidance

• Q4 expected to deliver high single-digit sequential top-line 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 expected to achieve double-digit year-on-year growth and 35% EBITDA margin for the full year.

• Capital investments for 2025 projected at $2.4 billion.

• Management expects sufficient liquidity to meet business requirements for at least the next 12 months.