SLB (SLB) Q4 2024 earnings summary

Executive summary

• Achieved solid Q4 and full-year 2024 results, with revenue and free cash flow growth both sequentially and year-over-year, maintaining cycle-high margins.

• International revenue reached a new cycle high in Q4, led by strong performance in the Middle East and North America, offsetting declines in Saudi Arabia and Mexico.

• Digital revenue surpassed $1 billion for the first time, growing 20% year-over-year, exceeding high-teens growth targets, driven by cloud, AI, and strategic partnerships.

• Expanded exposure to low-carbon and digital infrastructure markets, with related revenue exceeding $850 million in 2024 and significant growth expected in 2025.

• Board approved a 3.6% increase in quarterly dividend and initiated $2.3 billion in accelerated share repurchases, reflecting confidence in undervalued stock and to offset shares issued for ChampionX acquisition.

Financial highlights

• Full-year 2024 revenue was $36.3 billion, up 10% year-over-year; organic revenue grew 5%, led by international markets.

• Adjusted EBITDA margin reached 25% for the year, up 52 basis points, the highest since 2015; Q4 adjusted EBITDA margin was 25.7%.

• Q4 revenue was $9.3 billion, up 1% sequentially, with adjusted EBITDA for Q4 at $2.38 billion, up 2% sequentially and 5% year-over-year.

• Q4 earnings per share, excluding charges and credits, was $0.92, up $0.03 sequentially and $0.06 year-over-year; full-year adjusted EPS was $3.41, up 14% year-over-year.

• Generated $4 billion in free cash flow for the year, supporting $3.3 billion in shareholder returns and a $1.1 billion reduction in net debt.

Outlook and guidance

• Global upstream investment expected to remain steady in 2025, with regional growth offsetting declines elsewhere.

• Revenue and adjusted EBITDA for 2025 projected to be flat or above 2024 levels, excluding ChampionX; capital investments for 2025 expected to decrease to ~$2.3 billion.

• Q1 2025 expected to be seasonally low, with a rebound in Q2 and stronger activity in H2, especially internationally.

• Digital revenue growth to remain in the high teens, with continued strong momentum.

• At least $4 billion targeted for shareholder returns in 2025, with flexibility to increase based on free cash flow and M&A.