01—Abstract
Summary
Summary of the 10-Q filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.
SLB's Q2 2025 10-Q shows revenue of $8.55 billiona, down 6% year over year from $9.14 billion, with six-month revenue of $17.04 billion (down 5%).
Net income attributable to SLB fell 9% to $1.01 billionb in the quarter, and diluted EPS was $0.74 versus $0.77. Results were pressured by activity reductions in Saudi Arabia, Mexico and key offshore markets, with Well Construction revenue down 12% over six months. Margins were partly protected by Digital & Integration and Production Systems, and quarter-over-quarter revenue rose 1%, with international up 2% sequentially.
Cash generation and capital returns were the other focus. Operating cash flow was $1.80 billionc for the first half, and free cash flow was $725 million versus $554 million a year earlier. SLB returned capital through $773 million in dividends and a $2.3 billion accelerated share repurchase, completed in April at an average price of $40.51.
Net debt rose to $9.95 billiond from $7.41 billion at year-end 2024, driven largely by buybacks and about $495 million of FX impact on net debt. Liquidity remained solid at $3.7 billion of cash and short-term investments plus $5.0 billion of undrawn committed facilities.
The filing was made shortly after the July 16, 2025 closing of the all-stock ChampionX acquisition, which added roughly 141 million shares and is expected to strengthen SLB's production and recovery exposure. Investors should watch the sequential improvement in Digital & Integration and Production Systems margins, the Mexico receivables exposure (9% of net accounts receivable, with recent payment delays), and the planned 2025 capital investments of about $2.4 billion including ChampionX.
02—Key points
Key Highlights
- Q2 2025 revenue of $8.55B, down 6% YoY from $9.14B; sequentially up 1% from Q1, with international up 2% and North America down 4%
- Q2 diluted EPS of $0.74 vs. $0.77 a year earlier; six-month diluted EPS of $1.32 vs. $1.51
- Free cash flow of $725M for the first six months of 2025, up from $554M, on operating cash flow of $1.80B
- $2.3B accelerated share repurchase completed April 7, 2025 at an average price of $40.51; net debt rose to $9.95B from $7.41B at year-end 2024
- ChampionX acquisition closed July 16, 2025 in an all-stock deal (about 141M SLB shares, valued at $4.9B), adding production and recovery exposure
- Q2 included $228M of pretax charges and credits (net $194M after tax and NCI), including a $149M gain on the Palliser APS sale offset by a $69M equity investment impairment and workforce reduction charges
- Mexico accounted for 9% of net receivables; the primary Mexican customer has recently delayed payments, though amounts are not in dispute, and $1.0B of credit default swaps are outstanding on related customer borrowings
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 24, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $8.55B$9.14B | −6.5% |
| R&D Expenses | $180.00M$188.00M | −4.3% |
| Interest Expense | $142.00M$132.00M | +7.6% |
| Net Income | $1.01B$1.11B | −8.8% |
| EPS (Basic) | $0.75$0.78 | −3.8% |
| EPS (Diluted) | $0.74$0.77 | −3.9% |
| Shares Outstanding (Basic) | 1.35B1.43B | −5.3% |
| Shares Outstanding (Diluted) | 1.37B1.44B | −5.3% |
05—Questions
Frequently Asked Questions
Why did SLB's revenue and earnings decline year over year?
Six-month revenue fell 5% to $17.0B, driven by activity reductions in Saudi Arabia, Mexico and certain offshore markets. Well Construction revenue dropped 12% due to broad drilling declines, and Reservoir Performance fell 4% on lower evaluation and stimulation activity. Net income attributable to SLB decreased about 17% for the six months, to $1.81B from $2.18B, which also reflects higher restructuring charges and interest expense.
How strong is SLB's cash generation and balance sheet?
First-half operating cash flow was $1.80B, and free cash flow reached $725M, up from $554M. Net debt increased to $9.95B from $7.41B at year-end 2024, largely due to the $2.3B buyback and dividends, plus a $495M FX effect. SLB reported $3.7B of cash and short-term investments and $5.0B of undrawn committed credit facilities, which management says is sufficient for at least the next 12 months.
What does the ChampionX acquisition mean for SLB shareholders?
ChampionX shareholders received 0.735 SLB shares per ChampionX share, about 141 million SLB shares in total, valued at $4.9B. ChampionX generated roughly $3.4B of 2024 revenue, excluding its Drilling Technology business, which was divested at closing. The deal adds chemistry, artificial lift and production solutions, and it increases the share count, which can dilute per-share metrics in future periods.
Are there concerns about SLB's customer credit risk?
Yes. Mexico represented 9% of SLB's net accounts receivable as of June 30, 2025, and SLB has recently experienced payment delays from its primary Mexican customer. Management states the receivables are not in dispute and that SLB has not historically had material write-offs with this customer. SLB has also issued about $1.0B of credit default swaps tied to borrowings that the customer used to pay SLB's receivables.
What capital return and capital spending plans were disclosed?
SLB raised its quarterly dividend 3.6% to $0.285 per share starting with the April 2025 payment, and paid $773M in dividends in the first half. The $10B buyback program has about $4.2B of remaining authorization as of June 30, 2025. Full-year 2025 capital investments are expected to be about $2.4B, including the impact of ChampionX.
06—Continue