SLB announced its first-quarter 2025 results, reporting revenue of $8.490 billion, a 9% sequential decrease and 3% year-on-year decline, missing analysts' estimates. Adjusted earnings per share were $0.58, a 25% sequential decrease and 22% year-on-year decline, also falling short of expectations.
The company's adjusted EBITDA margin for the quarter was 23.8%, showing an 18-basis point year-on-year increase despite the revenue softness, but a 186-basis point sequential decrease. This indicates margin protection efforts amidst challenging market conditions.
International revenue declined 10% year-on-year in Latin America due to a significant reduction in drilling activity in Mexico and a temporary production interruption in Ecuador. Europe & Africa revenue decreased 4% year-on-year, and Middle East & Asia revenue declined 3% year-on-year, impacted by activity reductions in Saudi Arabia and other regions.
Despite the overall revenue decline, North America revenue increased 8% year-on-year, driven by higher digital sales, subsea production systems, and data center infrastructure solutions. Digital revenue grew 17% year-on-year, contributing to a 6% increase in Digital & Integration revenue over the same period, with its pretax operating margin expanding 380 basis points year-on-year.
SLB generated $725 million in free cash flow for the first six months of 2025, an increase from $554 million in the prior year, and remains committed to returning a minimum of $4 billion to shareholders in 2025. The company completed its $2.3 billion accelerated share repurchase, acquiring 56.8 million shares at an average price of $40.51.
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