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SLB 8-K Report, Financial Results (Apr 25, 2025)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed April 25, 2025
Period End
April 25, 2025
Security
SLB
In the record · 2016–202610-K1110-Q338-K144

SLB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 144 current reports (8-K) between 2016 and 2026.

  1. Impairment8-K · Dec ’16Dec ’16
  2. Restructuring8-K · Jun ’20Jun ’20
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed April 25, 2025. Cited figures are marked; the original filing is the authoritative source.

SLB reported first-quarter 2025 results that reflected a subdued start to the year.

Revenue was $8.49 billiona, down 3% year on year and 9% sequentially, with GAAP diluted EPS of $0.58 (down 22% YoY) and EPS excluding charges and credits of $0.72 (down 4% YoY). Adjusted EBITDA was $2.02 billion, down 2% YoY, but the adjusted EBITDA margin rose slightly to 23.8%, the second consecutive quarter of year-on-year margin improvement. Management cited a sharp slowdown in Mexico, a slow start in Saudi Arabia and offshore Africa, and a steep decline in Russia, offset by strength in Production Systems (revenue up 4%, pretax margin up 197 bps) and digital (digital revenue up 17% YoY).

Cash generation was weaker on a free cash flow basis. Cash flow from operations was $660 millionb and free cash flow was $103 million, while net debt rose to $10.1 billion from $7.4 billion at year-end, reflected in a $2.3 billion accelerated share repurchase that was completed in April. Management reiterated a commitment to return at least $4 billion to shareholders in 2025 through dividends and buybacks, and said it will 'materially exceed' its target of returning more than 50% of free cash flow.

The board declared a quarterly dividend of $0.285c per share. Investors should weigh the margin resilience and digital growth against the top-line decline, the increase in leverage, and the uncertainty flagged around tariffs, commodity prices, and upstream investment. The pending ChampionX acquisition, now expected to close in Q2 or early Q3 2025 after progress with the UK CMA, remains a key item to monitor.

02—Key points

Key Highlights

  1. Revenue of $8.49B, down 3% YoY; Latin America down 10% (Mexico drilling slowdown), Middle East & Asia down 3%, North America up 8%.
  2. GAAP diluted EPS of $0.58 (down 22% YoY); EPS excluding charges and credits of $0.72 (down 4% YoY), with $206M of pretax charges including restructuring.
  3. Adjusted EBITDA of $2.02B (down 2% YoY) with margin of 23.8%, up 18 bps YoY, marking another quarter of year-on-year margin expansion.
  4. Production Systems revenue up 4% YoY with pretax margin up 197 bps to 16.2%; Digital & Integration revenue up 6% YoY with margin up 380 bps to 30.4%.
  5. Free cash flow of $103M on cash flow from operations of $660M; net debt increased to $10.1B from $7.4B at year-end 2024 after the $2.3B ASR.
  6. Board declared a quarterly dividend of $0.285 per share; management reaffirmed at least $4B in 2025 shareholder returns.
  7. ChampionX acquisition pending; UK CMA is reviewing proposed remedies under Phase 1, with closing anticipated in Q2 or early Q3 2025.

03—Questions

Frequently Asked Questions

  1. How did SLB perform in the first quarter of 2025?

    Revenue fell 3% year on year to $8.49 billion, and EPS excluding charges and credits declined 4% to $0.72. Adjusted EBITDA margin edged up to 23.8%, showing continued cost discipline and mix benefits despite softer activity in several international markets.

  2. Why did GAAP earnings decline more sharply than underlying results?

    GAAP diluted EPS fell 22% to $0.58, versus a 4% decline excluding charges and credits. The gap reflects $206 million of pretax charges in the quarter, mainly $158 million of restructuring and other costs and $48 million of merger and integration expenses.

  3. Is SLB still committed to returning cash to shareholders?

    Yes. SLB reiterated a commitment to return at least $4 billion to shareholders in 2025 through dividends and share repurchases, and said it will materially exceed its target of returning more than 50% of free cash flow. The quarterly dividend is $0.285 per share, payable July 10, 2025.

  4. What is the outlook for capital investment and the ChampionX deal?

    SLB expects full-year 2025 capital investment of about $2.3 billion, excluding ChampionX. The ChampionX acquisition is expected to close in Q2 or early Q3 2025, pending final regulatory review, including the UK CMA's Phase 1 review.

  5. What are the main risks flagged by management?

    Management cited a potential shift in industry priorities due to global economic changes, fluctuating commodity prices, and evolving tariffs, all of which could reduce upstream oil and gas investment and demand for SLB's products. Specific headwinds this quarter included a sharp slowdown in Mexico, a steep decline in Russia, and slow starts in Saudi Arabia and offshore Africa.

04—Continue

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