01—Abstract
Summary
Summary of the 8-K filed July 18, 2025. Cited figures are marked; the original filing is the authoritative source.
SLB reported second-quarter 2025 results that were steady on a sequential basis but weaker year over year.
Revenue was $8.55 billiona, up 1% sequentially but down 6% from a year earlier. GAAP diluted EPS was $0.74, up 28% sequentially and down 4% year on year, while EPS excluding charges and credits was also $0.74, up 3% sequentially and down 13% year on year. Adjusted EBITDA reached $2.05 billion (24.0% margin), up 2% sequentially and down 10% year on year.
Free cash flow was $622 millionb on cash flow from operations of $1.14 billion. Management characterized the environment as resilient but cautious. CEO Olivier Le Peuch pointed to fully supplied oil markets, OPEC+ supply releases, trade negotiations, and geopolitical conflicts, noting that customers have selectively adjusted activity, particularly in offshore deepwater.
Production Systems was the standout, growing 3%c sequentially and marking its 17th consecutive quarter of year-on-year growth. Well Construction was the weakest division, with revenue down 13% year on year and pretax margin compressing 315 bps. International revenue rose 2% sequentially, while North America fell 4%.
Significant corporate events included the closing of the ChampionX acquisition on July 16, 2025, which SLB says will increase its exposure to the production and recovery market. SLB also sold its Palliser Block working interests in Alberta and declared a quarterly dividend of $0.285d per share. Management guided to full-year 2025 capital investment of about $2.4 billion, including ChampionX, and said it remains constructive on the second half assuming commodity prices stay range bound.
02—Key points
Key Highlights
- Revenue of $8.55B: +1% sequentially, -6% year on year; International +2% sequentially, North America -4% sequentially
- GAAP diluted EPS of $0.74 (+28% sequentially, -4% year on year); EPS excluding charges and credits of $0.74 (+3% sequentially, -13% year on year)
- Adjusted EBITDA of $2.05B with a 24.0% margin, up 2% sequentially but down 10% year on year (margin down 103 bps)
- Free cash flow of $622M on $1.14B cash flow from operations in Q2 2025; first-half free cash flow of $725M
- Production Systems revenue rose 3% sequentially to $3.04B, its 17th consecutive quarter of year-on-year growth; Well Construction revenue fell 13% year on year
- ChampionX acquisition closed July 16, 2025, expanding exposure to production and recovery; full-year 2025 capital investment guided to about $2.4B
- Quarterly dividend of $0.285 per share declared July 17, 2025, payable October 9, 2025 to holders of record on September 3, 2025
03—Questions
Frequently Asked Questions
How did SLB perform in Q2 2025 compared with Q2 2024?
Revenue fell 6% to $8.55 billion, and GAAP diluted EPS fell 4% to $0.74. Adjusted EBITDA declined 10% to $2.05 billion, with the margin down 103 bps to 24.0%. The decline was driven mainly by Well Construction, where drilling activity dropped broadly across Mexico, Namibia, Saudi Arabia, and North America, and by lower Reservoir Performance revenue.
What is the impact of the ChampionX acquisition on SLB?
The acquisition closed on July 16, 2025, after the quarter ended. SLB says it increases exposure to the less cyclical production and recovery market and strengthens its position in production chemicals and artificial lift. The company's full-year 2025 capital investment guidance of about $2.4 billion reflects the acquisition.
Is SLB's dividend changing?
No change was announced. The Board approved a quarterly cash dividend of $0.285 per share on July 17, 2025, payable October 9, 2025, to stockholders of record on September 3, 2025. Dividends paid in the first half of 2025 totaled $773 million.
What were the main risks management highlighted?
Management cited fully supplied oil markets, OPEC+ supply releases, trade negotiations, and geopolitical conflicts. It said customers were selectively cutting activity, especially in offshore deepwater, and that Well Construction margins were compressed by activity reductions in North America and several international markets. Management described its outlook for the second half as constructive, assuming commodity prices stay range bound.
What was the cash flow and balance sheet position at quarter end?
Q2 cash flow from operations was $1.14 billion and free cash flow was $622 million. Net debt was $9.95 billion at June 30, 2025, essentially unchanged from March 31, 2025. Cash and short-term investments were $3.75 billion, against $13.7 billion of total debt.
04—Continue