What is the primary reason for the downward revision in EBITDA expectations?

The primary reason for the downward revision in EBITDA expectations is an unfavorable geographical activity mix. While revenue is expected to be flat sequentially, the shift in activity levels, particularly a decline in Saudi Arabia and Latin America, is impacting margins. This impact is most pronounced in the Well Construction division.

When will investors receive updated financial guidance for the remainder of 2025?

SLB plans to provide updated guidance for the second half of the year during its second-quarter earnings call, which is expected to occur in a few weeks.

Which business divisions are most affected by the current operational environment?

The Well Construction division is most notably affected by the unfavorable geographical activity mix and its impact on margins. However, the company notes that margins in Production Systems, Reservoir Performance, and Digital and Integration remain resilient.

SLB 8-K: Regulation FD — Jun 24, 2025

Q: Has SLB changed its shareholder return commitment for 2025?

No, SLB has explicitly stated that its commitment to returning a minimum of $4 billion to shareholders in 2025 remains unchanged.

Summary

SLB LIMITED/NV (SLB) has filed an 8-K report detailing an operational update provided by CEO Olivier Le Peuch at the J.P. Morgan Energy, Power & Renewables Conference on June 24, 2025. The company is experiencing a divergence in its second-quarter 2025 activity mix compared to initial plans, largely due to a decline in activity in Saudi Arabia and lower short-cycle activity in Latin America. These headwinds are being partially offset by growth in other Middle East and North Africa regions. Despite these geographical shifts, SLB anticipates second-quarter revenue to be approximately flat sequentially. However, the less favorable activity mix is expected to impact margins, leading to a revision in the full-company EBITDA guidance. SLB now projects EBITDA to be flat sequentially in dollar terms, a slight downward adjustment from previous expectations shared during the first-quarter earnings call. The Well Construction division is most notably affected, while other divisions like Production Systems, Reservoir Performance, and Digital and Integration are showing resilient margins. The company reaffirmed its commitment to returning a minimum of $4 billion to shareholders in 2025 and will provide updated guidance for the second half of the year during its upcoming second-quarter earnings call.

Key Highlights

1SLB CEO provided a Q2 2025 operational update, highlighting market uncertainties including OPEC+ announcements, tariff negotiations, and geopolitical escalations.
2Activity mix has diverged from expectations, with notable declines in Saudi Arabia (rig demobilizations, Jafurah pause) and lower short-cycle activity in Latin America.
3Revenue for Q2 2025 is expected to be flat sequentially, despite unfavorable geographical activity mix.
4Company-wide EBITDA is now projected to be flat sequentially in dollar terms, a slight downward revision from prior expectations due to margin impacts.
5The Well Construction division is experiencing the most significant margin impact, while other divisions show resilient margins.
6SLB reaffirms its commitment to returning a minimum of $4 billion to shareholders in 2025.
7Updated guidance for the second half of 2025 will be provided during the Q2 earnings call.

SLB LIMITED/NV 8-K Report, Regulation FD Disclosure (Jun 24, 2025)

Summary

Key Highlights

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