SLB Announces Third-Quarter 2025 Results

Business Wire India

• Revenue of $8.93 billion increased 4% sequentially and decreased 3% year on year
• GAAP EPS of $0.50 decreased 32% sequentially and 40% year on year
• EPS, excluding charges and credits, of $0.69 decreased 7% sequentially and 22% year on year
• Net income attributable to SLB of $739 million decreased 27% sequentially and 38% year on year
• Adjusted EBITDA of $2.06 billion was flat sequentially and decreased 12% year on year
• Cash flow from operations was $1.68 billion and free cash flow was $1.10 billion, including $153 million of acquisition-related payments
• Board approved quarterly cash dividend of $0.285 per share

 

SLB (NYSE: SLB) today announced results for the third-quarter 2025.

 

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251015948706/en/

 

 

 

Third-Quarter Results

 

	(Stated in millions, except per share amounts)
	Three Months Ended						Change
	Sept. 30, 2025		Jun. 30, 2025		Sept. 30, 2024		Sequential		Year-on-year
Revenue	$8,928		$8,546		$9,159		4%		-3%
Income before taxes - GAAP basis	$1,000		$1,285		$1,507		-22%		-34%
Income before taxes margin - GAAP basis	11.2%		15.0%		16.5%		-383 bps		-525 bps
Net income attributable to SLB - GAAP basis	$739		$1,014		$1,186		-27%		-38%
Diluted EPS - GAAP basis	$0.50		$0.74		$0.83		-32%		-40%
Adjusted EBITDA*	$2,061		$2,051		$2,343		0%		-12%
Adjusted EBITDA margin*	23.1%		24.0%		25.6%		-92 bps		-249 bps
Pretax segment operating income*	$1,626		$1,584		$1,902		3%		-14%
Pretax segment operating margin*	18.2%		18.5%		20.8%		-32 bps		-255 bps
Net income attributable to SLB, excluding charges & credits*	$1,027		$1,016		$1,271		1%		-19%
Diluted EPS, excluding charges & credits*	$0.69		$0.74		$0.89		-7%		-22%
Revenue by Geography
International	$6,916		$6,847		$7,425		1%		-7%
North America	1,930		1,655		1,687		17%		14%
Other	82		44		47		n/m		n/m
	$8,928		$8,546		$9,159		4%		-3%
SLB acquired ChampionX during the third quarter of 2025. Third-quarter 2025 results reflect two months of activity from the acquired ChampionX businesses, which contributed $579 million of revenue, $139 million of adjusted EBITDA and $108 million of pretax segment operating income. Excluding the impact of this acquisition, SLB's third-quarter 2025 global revenue decreased 2% sequentially and 9% year on year; international third-quarter 2025 revenue decreased 1% sequentially and 9% year on year; and North America third-quarter 2025 revenue decreased 7% sequentially and 9% year on year.
*These are non-GAAP financial measures. See sections titled "Charges & Credits", "Divisions" and "Supplementary Information" for details.
n/m = not meaningful

 

							(Stated in millions)
	Three Months Ended						Change
	Sept. 30, 2025		Jun. 30, 2025		Sept. 30, 2024		Sequential		Year-on-year
Revenue by Division
Digital	$658		$591		$638		11%		3%
Reservoir Performance	1,682		1,691		1,823		-1%		-8%
Well Construction	2,967		2,963		3,312		0%		-10%
Production Systems	3,474		2,932		3,037		18%		14%
All Other	397		583		554		-32%		-28%
Eliminations	(250)		(214)		(205)		n/m		n/m
	$8,928		$8,546		$9,159		4%		-3%
Pretax segment operating income
Digital	$187		$153		$190		22%		-2%
Reservoir Performance	312		314		367		-1%		-15%
Well Construction	558		551		714		1%		-22%
Production Systems	559		491		518		14%		8%
All Other	96		155		188		-38%		-49%
Eliminations	(86)		(80)		(75)		n/m		n/m
	$1,626		$1,584		$1,902		3%		-14%
Pretax segment operating margin
Digital	28.4%		25.9%		29.8%		250 bps		-135 bps
Reservoir Performance	18.5%		18.6%		20.1%		-7 bps		-159 bps
Well Construction	18.8%		18.6%		21.5%		22 bps		-273 bps
Production Systems	16.1%		16.7%		17.1%		-66 bps		-98 bps
All Other	24.2%		26.7%		34.0%		-244 bps		-975 bps
Eliminations	n/m		n/m		n/m		n/m		n/m
	18.2%		18.5%		20.8%		-32 bps		-255 bps
Digital and Production Systems third-quarter 2025 results reflect two months of activity from ChampionX, which contributed $20 million of Digital revenue and $575 million of Production Systems revenue. Excluding the impact of this acquisition, Digital third-quarter 2025 revenue increased 8% sequentially and was flat year on year, while Production Systems revenue decreased 1% sequentially and 5% year on year.
Commencing in the third quarter of 2025, SLB began reporting its Digital business as a standalone Division and its Asset Performance Solutions (APS), Data Center Solutions and SLB Capturi businesses in the All Other category. Prior periods have been recast to conform to the current period presentation.
n/m = not meaningful

Resilience Amidst Evolving Market Dynamics

 

“The third quarter played out in line with our expectations as our revenue increased sequentially supported by two months’ additional ChampionX revenue, further growth in Digital and the resilient performance of our Core business. SLB improved revenue despite the backdrop of a fully supplied oil market, an uncertain geopolitical environment and subdued commodity prices.

 

 

“In this context, international markets — while facing challenges in some regions — are demonstrating resilience, with several countries across the Middle East and Asia continuing to show robust growth. Looking ahead, we expect OPEC+ production releases to support investment across many countries where SLB is well established,” said SLB Chief Executive Officer Olivier Le Peuch.

 

 

Production and Recovery Business Aligned to Enable Customers’ Changing Priorities

 

 

“As industry economics tighten, customers are increasingly prioritizing production and recovery solutions to offset decline by unlocking incremental barrels at the lowest possible cost. At the same time, they continue to accelerate the most critical FIDs and execute in-flight development projects.

 

 

“SLB has a differentiated opportunity to support customers on this journey — leveraging our subsurface expertise, production technology, portfolio integration and digital/AI capabilities — to unlock new value for mature assets and consequently expand our addressable market.

 

 

“ChampionX enhances our portfolio and underscores the value of expanding our presence in the less cyclical production market.

 

 

“I am confident in the position we are taking in the production and recovery market, and I look forward to deepening our collaboration with our customers to unlock more barrels. I am also excited by the progress we have made integrating the ChampionX team into SLB, and I am thankful for their performance and contribution this quarter,” said Le Peuch.

 

 

Digital Delivering Differentiated Growth and Margins

 

 

“Digital continues to transform the oil and gas industry, and this has been our fastest-growing business in recent years. We have been on a long journey to digitize the oilfield — from modeling and planning to operations and automation — recognizing that digital transformation is essential for unlocking the highest levels of efficiency, safety and sustainability in prospect selection, reservoir management and hydrocarbon recovery.

 

 

“By leveraging software, AI, data analytics, automation and IoT, we are unlocking productivity for geoscientists and engineers, driving a step change in efficiency and safety in operations, and supporting our customers to deliver better wells and higher-producing assets. As such, SLB Digital solutions are increasingly mission critical for our customers to stay ahead on innovation, efficiency and AI deployment.

 

 

“We are reporting Digital as a standalone division for the first time and are sharing details of the four revenue categories where SLB offers solutions for our customers: Platforms & Applications, Digital Operations, Digital Exploration and Professional Services.

 

 

“Our Digital business delivered revenue growth both sequentially and year on year. This high-margin and growing business is a true differentiator and reflects our industry leadership in this domain,” Le Peuch said.

 

 

International Markets to Lead Future Activity Rebound

 

 

“Looking ahead, it is more likely that the international markets will lead an activity rebound when supply and demand rebalance, supported by sustained investment for oil capacity, gas expansion projects and a constructive outlook for deepwater. SLB is well positioned to benefit from such a recovery.

 

 

“In the near term, we foresee revenue growth in the fourth quarter driven by the international markets, Digital and a full quarter of activity from the acquired ChampionX businesses,” Le Peuch concluded.

 

 

Other Events

 

 

During the quarter, SLB repurchased 3.2 million shares of its common stock for a total purchase price of $114 million. For the first nine-months of 2025, SLB repurchased a total of 60.0 million shares of its common stock for a total purchase price of $2.41 billion.

 

 

On July 16, 2025, SLB completed its acquisition of ChampionX. The combined portfolio, technology capabilities and digital leadership will position SLB to create value for its customers and stakeholders by increasing its exposure to the growing production and recovery market while delivering best-in-class workflow integration across production chemicals and artificial lift.

 

 

On October 16, 2025, SLB’s Board of Directors approved a quarterly cash dividend of $0.285 per share of outstanding common stock, payable on January 8, 2026, to stockholders of record on December 3, 2025.

 

 

Third-Quarter Revenue by Geographical Area

 

 

Third-quarter revenue of $8.93 billion increased 4% sequentially with international revenue increasing 1% and North America revenue increasing 17%. This reflects two months of activity from the acquired ChampionX businesses, which contributed revenue of $579 million, consisting of $387 million in North America and $171 million in the international markets. Excluding the impact of this acquisition, international third-quarter 2025 revenue declined 1% and North America third-quarter 2025 revenue declined 7% sequentially. International revenue slightly decreased due to the production interruption on the APS project in Ecuador and North America revenue declined d