SLB Reports 1% Revenue Increase Sequentially Amid Economic Challenges

SLB, a prominent player in the energy sector, has released its financial results for the second quarter of 2025, showcasing a resilient performance amidst economic challenges. The company reported a revenue of $8.55 billion, reflecting a 1% increase from the previous quarter but a 6% decrease year-on-year. The earnings per share (EPS) stood at $0.74, surpassing the expected EPS of $0.73, which was predicted by analysts. This sequential improvement in revenue and EPS underscores SLB's ability to navigate through difficult market conditions.

The company's net income attributable to SLB increased by 27% sequentially to $1.01 billion, although it saw a 9% decline year-on-year. Adjusted EBITDA also rose 2% sequentially to $2.05 billion but declined 10% year-on-year. These figures indicate that while SLB has managed to improve its performance from the previous quarter, it is still facing challenges compared to the same period last year.

Geographically, international revenue contributed significantly to SLB’s overall performance, with a 2% sequential increase driven by growth in the Middle East, Asia, Europe, and North Africa. However, North America experienced a 4% sequential decline in revenue due to lower asset performance solutions revenue and reduced drilling activity.

Looking ahead, SLB remains optimistic about the second half of 2025, with expectations of continued stability in commodity prices and a constructive market environment. The company anticipates leveraging its diversified portfolio and recent acquisition of ChampionX to enhance its position in the growing production and recovery market. This strategic acquisition is expected to increase SLB’s exposure to less cyclical markets, providing a more stable revenue stream.

SLB’s capital investment for 2025 is projected to be approximately $2.4 billion, reflecting the impact of the ChampionX acquisition. This investment is slightly lower than the $2.6 billion capital investment in 2024, indicating a focus on strategic allocation of resources to maximize returns. The company plans to maintain its focus on cost management while delivering peer-leading adjusted EBITDA margins.

Overall, SLB’s management remains confident in its ability to deliver positive results for shareholders, supported by its differentiated technology and global footprint. The company aims to continue innovating and expanding its digital capabilities, which are expected to play a crucial role in driving future growth and operational efficiency. As SLB navigates the evolving energy landscape, it remains committed to creating value for its customers and stakeholders.