SLB (SLB) Q4 2024 earnings summary

Executive summary

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

• Fourth-quarter revenue reached $9.28 billion, up 1% sequentially and 3% year over year, with full-year revenue at $36.29 billion, up 10% year over year.

• Digital revenue surpassed $1 billion for the first time, growing 20% year-over-year, and software revenue exceeded targets.

• Board approved a 3.6% increase in quarterly dividend and initiated $2.3 billion in accelerated share repurchases.

• Free cash flow for 2024 was $3.99 billion, supporting $3.27 billion in shareholder returns and a $571 million reduction in net debt.

Financial highlights

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

• Adjusted EBITDA for Q4 was $2.38 billion (up 2% sequentially, 5% year over year); full-year adjusted EBITDA was $9.07 billion, up 12% year over year.

• Q4 adjusted EPS was $0.92 (up 3% sequentially, up 7% year over year); full-year adjusted EPS was $3.41 (up 14% year over year).

• Q4 adjusted EBITDA margin was 25.7% (up 8 bps sequentially, up 33 bps year over year); full-year margin was 25.0% (up 52 bps year over year).

• Generated $4 billion in free cash flow for the year and returned $3.3 billion to shareholders.

Outlook and guidance

• Revenue and adjusted EBITDA for 2025 projected to be flat or above 2024 levels, excluding ChampionX.

• At least $4 billion targeted for shareholder returns in 2025, with potential for more depending on free cash flow.

• Capital investment for 2025 is expected to be $2.3 billion, excluding the impact of the ChampionX acquisition.

• Management anticipates subdued upstream investment growth in the short term due to global oversupply but expects long-term support from energy demand and digital adoption.

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