SLB's Q1 2025 Earnings: A Deep Dive into the Energy Giant's Performance

As an investor, you're always on the lookout for the next big opportunity. Today, we're diving into SLB's first-quarter 2025 earnings report, which was released on April 25, 2025. This energy giant has been making waves in the market, and its recent performance is worth a closer look.

First, let's talk about the numbers. slb reported a 13% year-on-year increase in revenue, reaching $8.71 billion. This growth was driven by robust year-on-year revenue and EBITDA growth, consistent with the company's guidance. The company's GAAP EPS for the first quarter of 2025 was $0.74, a 14% increase from $0.65 in the same period last year. Adjusted EBITDA for the first quarter of 2025 was $2.06 billion, a 15% increase from $1.788 billion in the first quarter of 2024. The adjusted EBITDA margin expanded year on year for the 13th consecutive quarter, indicating strong operational efficiency and cost management.



Now, let's break down the key insights from these numbers. The year-on-year revenue increase was partially driven by the Aker subsea business, which was added as part of the OneSubsea joint venture in the fourth quarter of 2023. This acquisition has contributed to a 18% year-on-year growth in international revenue, compensating for a softer North American market where revenue declined by 6%. Excluding the contribution of the Aker subsea business, international revenue grew 10%. These insights suggest that SLB's strategic investments and operational improvements are driving strong financial performance and margin expansion, positioning the company for continued growth in the energy sector.

But the story doesn't stop at the numbers. SLB's strategic initiatives and acquisitions, such as the proposed acquisition of championx, are expected to significantly impact its future financial performance and market position. The acquisition of ChampionX, valued at $8 billion, is anticipated to bolster SLB's production and recovery portfolio, enhancing its capabilities in the energy sector. This strategic move is part of SLB's broader goal to drive energy innovation and accelerate the energy transition.

The first-quarter results for 2024 reflect the positive impact of these initiatives. For instance, SLB reported a 13% year-on-year increase in revenue, reaching $8.71 billion. This growth was driven by robust year-on-year revenue and EBITDA growth, consistent with the company's guidance. Approximately half of the year-on-year revenue increase came from the Aker subsea business, which was added as part of the OneSubsea joint venture in the fourth quarter of 2023. This acquisition has contributed to a 18% year-on-year growth in international revenue, compensating for a softer North American market where revenue declined by 6%.

Additionally, the first-quarter results show that international revenue grew by 18% year on year, with remarkable growth of 29% in the Middle East and Asia, and 18% in Europe and Africa. This growth highlights SLB's favorable exposure to international markets and its strategic investments in long-cycle developments and production capacity expansions, particularly in the Middle East, Asia, and Latin America.

SLB's CEO, Olivier Le Peuch, commented on the first-quarter performance, stating, "We have had an exciting start to the year with our announced agreement to acquire ChampionX Corporation, which will bolster our production and recovery portfolio. We also continued our growth momentum, with a strong first-quarter performance resulting from robust year-on-year revenue and EBITDA growth consistent with our first quarter and full-year guidance." This statement underscores the strategic importance of the ChampionX acquisition and its expected positive impact on SLB's future financial performance and market position.



In conclusion, SLB's first-quarter 2025 earnings report is a testament to the company's strong financial performance and strategic initiatives. As an investor, you should keep a close eye on SLB's future developments, particularly its proposed acquisition of ChampionX. This acquisition has the potential to significantly impact SLB's future financial performance and market position, making it a compelling investment opportunity.