SLB Announces First-Quarter 2025 Results

• Revenue of $8.49 billion decreased 3% year on year
• GAAP EPS of $0.58 decreased 22% year on year
• EPS, excluding charges and credits, of $0.72 decreased 4% year on year
• Net income attributable to SLB of $797 million decreased 25% year on year
• Adjusted EBITDA of $2.02 billion decreased 2% year on year
• Cash flow from operations of $660 million increased $333 million year on year
• Board approved quarterly cash dividend of $0.285 per share

HOUSTON–(BUSINESS WIRE)–SLB (NYSE: SLB) today announced results for the first-quarter 2025.

First-Quarter Results

(Stated in millions, except per share amounts)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
Revenue	$8,490		$9,284		$8,707		-9%		-3%
Income before taxes – GAAP basis	$1,063		$1,387		$1,357		-23%		-22%
Income before taxes margin – GAAP basis	12.5%		14.9%		15.6%		-241 bps		-306 bps
Net income attributable to SLB – GAAP basis	$797		$1,095		$1,068		-27%		-25%
Diluted EPS – GAAP basis	$0.58		$0.77		$0.74		-25%		-22%
Adjusted EBITDA*	$2,020		$2,382		$2,057		-15%		-2%
Adjusted EBITDA margin*	23.8%		25.7%		23.6%		-186 bps		18 bps
Pretax segment operating income*	$1,556		$1,918		$1,649		-19%		-6%
Pretax segment operating margin*	18.3%		20.7%		18.9%		-232 bps		-60 bps
Net income attributable to SLB, excluding charges & credits*	$988		$1,311		$1,082		-25%		-9%
Diluted EPS, excluding charges & credits*	$0.72		$0.92		$0.75		-22%		-4%
Revenue by Geography
International	$6,727		$7,483		$7,056		-10%		-5%
North America	1,719		1,752		1,598		-2%		8%
Other	44		49		53		n/m		n/m
	$8,490		$9,284		$8,707		-9%		-3%

	(Stated in millions)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
Revenue by Division
Digital & Integration	$1,006		$1,156		$953		-13%		6%
Reservoir Performance	1,700		1,810		1,725		-6%		-1%
Well Construction	2,977		3,267		3,368		-9%		-12%
Production Systems	2,938		3,197		2,818		-8%		4%
Other	(131)		(146)		(157)		n/m		n/m
	$8,490		$9,284		$8,707		-9%		-3%
Pretax Operating Income by Division
Digital & Integration	$306		$442		$254		-31%		21%
Reservoir Performance	282		370		339		-24%		-17%
Well Construction	589		681		690		-14%		-15%
Production Systems	475		506		400		-6%		19%
Other	(96)		(81)		(34)		n/m		n/m
	$1,556		$1,918		$1,649		-19%		-6%
Pretax Operating Margin by Division
Digital & Integration	30.4%		38.3%		26.6%		-784 bps		380 bps
Reservoir Performance	16.6%		20.5%		19.7%		-391 bps		-311 bps
Well Construction	19.8%		20.8%		20.5%		-106 bps		-71 bps
Production Systems	16.2%		15.8%		14.2%		34 bps		197 bps
Other	n/m		n/m		n/m		n/m		n/m
	18.3%		20.7%		18.9%		-232 bps		-60 bps
*These are non-GAAP financial measures. See sections titled “Charges & Credits”, “Divisions” and “Supplementary Information” for details.
n/m = not meaningful

Adjusted EBITDA Margin Protected Despite Market Softness

“First-quarter adjusted EBITDA margin was slightly up year on year despite softer revenue as we continued to navigate the evolving market dynamics,” said SLB Chief Executive Officer, Olivier Le Peuch.

“It was a subdued start to the year as revenue declined 3% year on year. Higher activity in parts of the Middle East, North Africa, Argentina and offshore U.S., along with strong growth in our data center infrastructure solutions and digital businesses in North America, were more than offset by a sharper-than-expected slowdown in Mexico, a slow start to the year in Saudi Arabia and offshore Africa, and steep decline in Russia.

“The expansion of our accretive margin digital business and the strength of our Production Systems division, combined with our cost reduction initiatives, have driven another consecutive quarter of year-on-year adjusted EBITDA margin growth.

“These results demonstrate SLB’s resilience in changing market conditions. We are continuously exercising cost discipline and aligning our resources with activity levels, leveraging our global reach and industry-leading innovation capabilities, expanding our differentiated digital offerings, and strategically diversifying the portfolio beyond oil and gas,” Le Peuch said.

Core Benefiting from Late-Cycle Customer Spend and Growth in International Unconventional Markets

“In the Core, we continue to see rising demand for production solutions as customers seek to offset declines and maintain or grow production from maturing assets. This is an area that will continue to present strong opportunities for SLB. As a result, Production Systems revenue grew 4% and expanded pretax operating margins by 197 bps year on year, with strong demand for surface production systems, completions, and artificial lift. In addition, Reservoir Performance was supported by strong international unconventional stimulation and intervention activity although it was offset by lower evaluation activity.

“Overall, the combined revenue of the Core divisions was down 4% year on year, as growth in Production Systems was more than offset by declines in Reservoir Performance and Well Construction. Despite the year-on-year decline, our diversified portfolio and broad market position helped to offset lower rig activity,” Le Peuch said.

Digital and AI Growth Increasingly Decoupled from Upstream Cycle Dynamics

“The energy industry is focused on efficiency and performance, and our customers are recognizing the opportunity to unlock value from their data. As a result, operators are increasing their digital capabilities, strengthening partnerships with technology companies, and investing in digital and AI solutions.

“This is translating into highly accretive revenue growth, and as a result, our quarterly digital revenue grew 17% year on year, contributing to a 6% increase in Digital & Integration revenue over that same period.

“When we designed our strategy around three engines of growth, we envisioned digital leading the second phase of revenue expansion, complementing our leading offering in the Core. Today, that vision is materializing, and we will continue to enhance our leadership in AI, cloud computing and digital operations,” Le Peuch said.

Committing to Return a Minimum of $4 Billion to Shareholders in 2025

“SLB is committed to returning more than 50% of its free cash flow to our shareholders, and we will materially exceed this target in 2025. We continue to have confidence in our ability to generate strong cash flow in the current environment and will return a minimum of $4 billion to shareholders through dividends and share repurchases this year.

“The industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services. In this uncertain environment, we remain committed to protecting our margins, generating strong cash flow and delivering consistent value to our customers and shareholders in 2025,” Le Peuch concluded.

Other Events

On February 2, 2025, SLB entered into an agreement to purchase the operations of Interactive Network Technologies, Inc. (INT), a global leader in energy data visualization. INT provides data visualization technology that empowers geoscientists, engineers and data scientists with the desktop and web-based domain data visualization required to make business and operational decisions. Incorporating this technology directly into the Delfi™ digital platform and Lumi™ data and AI platform will further enhance the ability of asset teams to accelerate data driven insights via a single, unified interface.

Under the previously announced accelerated share repurchase (ASR) transaction, SLB entered into agreements to repurchase $2.3 billion of its common stock commencing on January 13, 2025, and ending no later than May 31, 2025. The ASR was completed on April 7, 2025, and SLB received a total of 56.8 million shares of its common stock, of which 47.6 million were received in January and the remaining 9.2 million shares were received in April. These shares were repurchased by SLB at an average price of $40.51, representing the volume-weighted average price of SLB’s common stock during this period less a discount.

In April 2024, SLB and ChampionX announced that they entered into a definitive agreement for SLB to purchase ChampionX. The combined portfolios will drive customer value through deep industry expertise and digital integration, as well as enhanced equipment life and production optimization. On April 10, 2025, SLB announced that the United Kingdom Competition and Markets Authority (CMA) has agreed to consider SLB’s proposed actions to address concerns around the ChampionX acquisition as part of the CMA’s Phase 1 review. SLB is pleased with this further progress and will continue its collaboration with the CMA and other regulators toward an anticipated closing in the second quarter or early third quarter of 2025.

On April 17, 2025, SLB’s Board of Directors approved a quarterly cash dividend of $0.285 per share of outstanding common stock, payable on July 10, 2025, to stockholders of record on June 4, 2025.

First-Quarter Revenue by Geographical Area

(Stated in millions)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
North America	$1,719		$1,752		$1,598		-2%		8%
Latin America	1,495		1,634		1,654		-9%		-10%
Europe & Africa*	2,235		2,473		2,322		-10%		-4%
Middle East & Asia	2,997		3,376		3,080		-11%		-3%
Eliminations & other	44		49		53		n/m		n/m
	$8,490		$9,284		$8,707		-9%		-3%
International	$6,727		$7,483		$7,056		-10%		-5%
North America	$1,719		$1,752		$1,598		-2%		8%
*Includes Russia and the Caspian region
n/m = not meaningful

International

Revenue in Latin America of $1.49 billion declined 10% year on year primarily due to a significant reduction in drilling activity in Mexico. The decline was also driven by a temporary production interruption in our Asset Performance Solutions (APS) project in Ecuador due to pipeline disruption, partially offset by higher stimulation activity in Argentina.

Sequentially, revenue decreased 9% due to lower drilling activity in Mexico, reduced APS revenue in Ecuador and seasonally lower revenue in Brazil following strong year-end production systems sales last quarter. These declines were partially offset by increased revenue in Argentina due to higher stimulation activity.

Europe & Africa revenue of $2.23 billion decreased 4% year on year due to reduced offshore exploration, drilling and production activity in West Africa and lower activity in Russia. This decline was partially offset by increased revenue in North Africa and the North Sea.

Sequentially, revenue declined 10% due to seasonally lower activity following strong year-end product and digital sales across the area in the fourth quarter of 2024.

Revenue in the Middle East & Asia of $3.00 billion declined 3% year on year due to a meaningful reduction in drilling and stimulation activity in Saudi Arabia, lower production systems sales in Egypt and Australia, and reduced drilling activity in India. These declines were partially offset by significantly higher revenue in the United Arab Emirates and Kuwait.

Sequentially, revenue declined 11% due to seasonally lower activity following strong year-end product and digital sales across the area in the fourth quarter of 2024.

North America

North America revenue of $1.72 billion increased 8% year on year due to higher digital sales and sales of subsea production systems offshore U.S., strong growth in data center infrastructure solutions, and increased intervention activity. These increases were partially offset by lower drilling revenue in U.S. land.

Sequentially, revenue declined 2% due to lower drilling activity both on land and offshore North America, partially offset by higher revenue from data center infrastructure solutions.

First-Quarter Results by Division

Digital & Integration

(Stated in millions)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
Revenue
International	$717		$824		$717		-13%		–
North America	289		331		236		-13%		22%
Other	–		1		–		n/m		n/m
	$1,006		$1,156		$953		-13%		6%
Pretax operating income	$306		$442		$254		-31%		21%
Pretax operating margin	30.4%		38.3%		26.6%		-784 bps		380 bps
n/m = not meaningful

Digital & Integration revenue of $1.01 billion increased 6% year on year driven by 17% growth in digital revenue, supported by greater adoption of digital technologies and higher sales of exploration data, particularly offshore U.S. This increase was partially offset by lower APS revenue due to a temporary pipeline disruption on an APS project in Ecuador.

Sequentially, revenue experienced a seasonal decline of 13% following strong year-end digital sales while APS revenue was lower in Ecuador due to the pipeline disruption.

Digital & Integration pretax operating margin of 30% expanded 380 bps year on year, mostly due to improved profitability in digital, following higher uptake of digital technologies and higher sales of exploration data, and cost efficiency benefits.

Sequentially, pretax operating margin decreased 784 bps due to seasonally lower sales of digital and exploration data as well as lower APS revenue.

Reservoir Performance

(Stated in millions)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
Revenue
International	$1,557		$1,669		$1,592		-7%		-2%
North America	142		139		130		2%		9%
Other	1		2		3		n/m		n/m
	$1,700		$1,810		$1,725		-6%		-1%
Pretax operating income	$282		$370		$339		-24%		-17%
Pretax operating margin	16.6%		20.5%		19.7%		-391 bps		-311 bps
n/m = not meaningful

Reservoir Performance revenue of $1.70 billion declined 1% year on year with strong unconventional stimulation and intervention activity offset by lower evaluation and exploration activity across the international markets. Revenue was supported by increased stimulation and intervention activity in United Arab Emirates and Argentina, offset by lower revenue in Saudi Arabia, Russia, West Africa and East Asia.

Sequentially, revenue declined 6% due to seasonal activity reductions in Europe & Africa and the Middle East & Asia. These declines were partially offset by strong stimulation activity in Latin America, mainly in Argentina, while North America revenue was essentially flat.

Reservoir Performance pretax operating margin of 17% decreased 311 bps year on year and 391 bps sequentially due to reduced profitability from lower evaluation activity and project startup costs.

Well Construction

(Stated in millions)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
Revenue
International	$2,381		$2,625		$2,707		-9%		-12%
North America	541		583		604		-7%		-10%
Other	55		59		57		n/m		n/m
	$2,977		$3,267		$3,368		-9%		-12%
Pretax operating income	$589		$681		$690		-14%		-15%
Pretax operating margin	19.8%		20.8%		20.5%		-106 bps		-71 bps
n/m = not meaningful

Well Construction revenue of $2.98 billion declined 12% year on year reflecting lower drilling activity in Mexico, Saudi Arabia, U.S. land, India and offshore West Africa, partially offset by improved performance in United Arab Emirates, Kuwait, Argentina, North Africa and China.

Sequentially, revenue was 9% lower due to seasonal activity reductions across all areas.

Well Construction pretax operating margin of 20% declined 71 bps year on year and 106 bps sequentially. Reduced activity across North America and international markets contributed to the margin contraction, partially mitigated by the effects of cost efficiencies.

Production Systems

(Stated in millions)
	Three Months Ended						Change
	Mar. 31, 2025		Dec. 31, 2024		Mar. 31, 2024		Sequential		Year-on-year
Revenue
International	$2,166		$2,471		$2,164		-12%		–
North America	768		716		647		7%		19%
Other	4		10		7		n/m		n/m
	$2,938		$3,197		$2,818		-8%		4%
Pretax operating income	$475		$506		$400		-6%		19%
Pretax operating margin	16.2%		15.8%		14.2%		34 bps		197 bps
n/m = not meaningful

Production Systems revenue of $2.94 billion increased 4% year on year due to strong demand for surface production systems, completions and artificial lift along with strong growth in data center infrastructure solutions in North America.

Sequentially, revenue declined 8% driven by seasonally lower sales of artificial lift, midstream and surface production systems and completions, partially offset by higher revenue from data center infrastructure solutions.

Production Systems pretax operating margin of 16% increased 197 bps year on year due to improved profitability across a number of business lines driven by activity mix, execution efficiency and conversion of improved-price backlog.

Sequentially, pretax operating margin increased by 34 bps due to cost efficiencies and improved profitability particularly in subsea production systems despite seasonally lower sales.

Quarterly Highlights

CORE

Contract Awards

SLB continues to win new contract awards that align with SLB’s strengths in the Core. Notable highlights include the following:

• In Mexico, SLB has been awarded a major drilling contract by Australian independent Woodside Energy for its ultra-deepwater Trion development project. SLB will oversee the delivery of 18 ultra-deepwater wells using an integrated services approach and AI-enabled drilling capabilities to improve operational efficiency and well quality. The full scope of the contract includes digital directional drilling services and hardware, logging while drilling (LWD), surface logging, cementing, drilling and completions fluids, completions, and wireline services. Services will begin in early 2026 and will be managed through SLB’s Performance Live™ digital service delivery centers.

• In Norway, SLB has announced an agreement between its OneSubsea™ joint venture and Vår Energi to deliver a sizeable subsea production systems work scope. This award leverages the existing strategic subsea partnership agreement between the two companies for standardized subsea equipment, supporting multiple upcoming oil and gas developments on the Norwegian Continental Shelf.

• Also in Norway, SLB, Aker BP, and StimWell Services have extended the Well Intervention and Stimulation Alliance for another five years. Formed in 2019 with the goal of boosting production in the Norwegian Continental Shelf, the alliance has set new benchmarks for safer, more efficient and cost-effective operations. Moving forward, the alliance aims to scale up digital transformation through deeper integration between subsurface and operational domains, expand the use of remote operations, and accelerate the deployment of new technologies.

• In Azerbaijan, bp awarded SLB a two-year contract extension for well construction measurements, fluids and well integrity services. This extension follows a previous three-year award and will run through April 2027.

• In the Kingdom of Saudi Arabia, Aramco awarded SLB a significant corporate purchase agreement for drilling fluid chemicals. The award covers a comprehensive portfolio, including innovative drilling fluid technologies and pioneering sustainable practices, such as transitioning from wooden pallets to reusable plastic pallets and introducing reusable bags for materials.

• In Australia, a consortium of offshore operators has awarded SLB a major service contract for exploration and appraisal, development drilling and plug and abandonment. The contract includes services such as directional drilling, measurement while drilling, LWD, mud logging, drilling fluid, cementing, solids control, wireline, drillstem testing and tubing-conveyed perforating. The contract has a confirmed scope of one year, with an option to renew for an additional two years.

Technology and Innovation

Notable technology introductions and deployment in the quarter include the following:

• SLB launched EWC™ electric well control technologies, which include the pressure on-demand BOP control system, replacing traditional hydraulic systems with an electric power system to reduce capital and operating costs while enhancing the performance and safety of drilling operations. The first EWC technology enables precise, real-time control and monitoring of BOPs (blowout preventers) onshore and offshore, leveraging industrial internet of things (IIoT) components for instant pressure readouts without conventional gauges. This will help customers make better-informed decisions about the operation and maintenance of the well control system.

• SLB introduced NovoSphere™, the industry’s only sourceless formation evaluation LWD service, delivering accurate formation density and porosity measurements without a chemical radioactive source. Advanced hardware and digital modeling enable sourceless density measurements for enhanced precision and accuracy across various lithologies. Combined with SLB’s high-speed telemetry system, the NovoSphere service transmits high-quality formation evaluation data to the surface in real time, enabling rapid and informed decisions on optimizing well placement and improving drilling efficiency.

• In the United Arab Emirates, ADNOC has initiated its electric completions campaign across its Onshore fields, in partnership with SLB. This campaign is a joint commitment to scale up installations and implement high-volume deployment to address drilling challenges and enhance water management, monitoring, control, data transmission and production optimization. Following ADNOC Onshore’s successful installation of six electric interval control valves in Bu Hasa field, the campaign will continue evaluating this technology’s value with additional wells.

• In Egypt, SLB and ExxonMobil Egypt (Upstream) Limited uncovered a significant natural gas discovery in the offshore Mediterranean region using Quanta Geo™ photorealistic reservoir geology service. With this fast and accurate logging technology, SLB provided critical real-time and post-operation insights to complement the findings of the ExxonMobil team.

• In India, SLB and Cairn Oil & Gas, Vedanta Ltd., successfully implemented the low-temperature OneSTEP EF™ sandstone stimulation solution in its western offshore field to solve productivity challenges caused by traditional acid treatments and stabilization fluids. This innovative low temperature, single-stage sandstone acidizing system improved operational efficiency by reducing fluid volume, storage needs and freshwater use. The treatment led to a remarkable 360% increase in oil production without water cut.

• In Kuwait’s Burgan Field, SLB and Kuwait Oil Company (KOC) significantly boosted production while reducing costs using the SLB Hi-Ex™ cement platform. This solution provided permanent zonal isolation, eliminating a 94% water cut and increasing productivity by 198% after reperforation. This success marks a major step forward in production enhancement and transforms KOC’s workover planning. The cost-effective approach minimizes intervention time and expenses by avoiding a workover rig for similar wells in the field.

DIGITAL

SLB is deploying digital technology at scale, partnering with customers to migrate their technology and workflows into the cloud, to embrace new AI-enabled capabilities, and to leverage insights to elevate their performance. Notable highlights include the following:

• In Kuwait, KOC has awarded SLB a five-year contract to support its Kuwait Integrated Digital Field project. This initiative aims to develop a unified digital infrastructure that connects all parties and phases from planning to implementation, using advanced workflows and automation. SLB will deploy artificial intelligence (AI) and machine learning to deliver trend recognition and diagnostics automation.

Contacts

Investors
James R. McDonald – SVP, Investor Relations & Industry Affairs, SLB

Joy V. Domingo – Director of Investor Relations, SLB

Tel: +1 (713) 375-3535

Email: investor-relations@slb.com

Media
Josh Byerly – SVP of Communications, SLB

Moira Duff – Director of External Communications, SLB

Tel: +1 (713) 375-3407

Email: media@slb.com

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