10-QPeriod: Q3 FY2025

SLB LIMITED/NV Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 22, 2025For Securities:SLB

Summary

SLB Limited/NV (SLB) reported a decrease in revenue and net income for the third quarter and nine months ended September 29, 2025, compared to the same periods in 2024. This decline is attributed to various factors including reduced activity in certain international markets, the divestiture of assets, and the full quarter impact of certain project disruptions. However, the acquisition of ChampionX Corporation in July 2025 is a significant strategic move, expected to bolster SLB's position in the production and recovery space. The company generated substantial free cash flow, underscoring its operational efficiency and financial discipline. Despite the revenue headwinds, SLB's strategic focus on international markets, digital transformation, and integration of acquired businesses positions it to benefit from an anticipated activity rebound. The company continues its disciplined capital allocation, including a significant share repurchase program and dividend increases, demonstrating a commitment to returning value to shareholders. Investors should monitor the integration progress of ChampionX and the company's ability to navigate a dynamic global energy landscape.

Financial Highlights

46 data points
Beta

Revenue

$8.93B

Net Income

$739.00M

8.3% Net Margin

EPS (Diluted)

$0.50

Total Assets

$55.09B

Cash & Equivalents

$3.01B

Free Cash Flow

$1.27B

Financial Statements
Beta
Revenue$8.93B
R&D Expenses$170.00M
Interest Expense$142.00M
Net Income$739.00M
EPS (Basic)$0.50
EPS (Diluted)$0.50
Shares Outstanding (Basic)1.47B
Shares Outstanding (Diluted)1.49B

Key Highlights

  • 1Total revenue for Q3 2025 was $8.93 billion, down from $9.16 billion in Q3 2024. Nine-month revenue decreased to $25.96 billion from $27.01 billion.
  • 2Net income attributable to SLB for Q3 2025 was $739 million ($0.50 diluted EPS), a decrease from $1.19 billion ($0.83 diluted EPS) in Q3 2024. Nine-month net income fell to $2.55 billion ($1.80 diluted EPS) from $3.37 billion ($2.34 diluted EPS).
  • 3The acquisition of ChampionX Corporation was completed in July 2025 for $5.0 billion, significantly strengthening SLB's production and recovery capabilities and contributing $0.6 billion in revenue in the third quarter.
  • 4Free cash flow for the nine months ended September 30, 2025, was $1.83 billion, demonstrating strong cash generation despite lower revenue.
  • 5The company repurchased $2.41 billion of its stock in the first nine months of 2025 as part of its ongoing $10 billion share repurchase program.
  • 6Despite overall revenue declines, the Digital segment showed a 6% year-over-year revenue increase for the nine months, indicating resilience and strategic growth in this area.
  • 7SLB reported substantial charges in 2025 related to restructuring, merger integration, and impairments, impacting profitability. These charges totaled $546 million pre-tax for the nine months of 2025.

Frequently Asked Questions

The decrease in revenue and net income was primarily driven by reduced activity in certain international markets, specifically Saudi Arabia, Mexico, and some offshore regions. Additionally, the company experienced lower revenue from Asset Performance Solutions (APS) projects due to production interruptions and asset divestitures. The impact of these factors outweighed the initial revenue contribution from the ChampionX acquisition in the third quarter.

The acquisition of ChampionX in July 2025 for $5.0 billion is a key strategic development aimed at strengthening SLB's position in production and recovery. In the third quarter, ChampionX contributed $0.6 billion in revenue. While the acquisition added to merger and integration costs, its inclusion is expected to enhance SLB's overall offering and future growth potential, particularly within the Production Systems segment.

SLB anticipates revenue growth in the fourth quarter, driven by international markets, its Digital segment, and a full quarter of contribution from the acquired ChampionX businesses. The company expects international markets to lead an activity rebound, supported by sustained investment in oil capacity and gas expansion projects, particularly in the Middle East and Asia. SLB believes it is well-positioned to benefit from this recovery.

SLB continues to demonstrate strong liquidity, generating $1.83 billion in free cash flow for the first nine months of 2025. The company increased its quarterly cash dividend by 3.6% to $0.285 per share and has repurchased approximately $5.9 billion of its stock under its $10 billion share repurchase program as of September 30, 2025. These actions underscore a commitment to returning capital to shareholders.