Schlumberger(SLB) - 2025 Q3 - Quarterly Results

Executive Summary Third-Quarter 2025 Financial Highlights SLB's Q3 2025 revenue increased sequentially but declined year-on-year, with GAAP EPS and Net Income down, and Adjusted EBITDA flat sequentially but lower year-on-year, impacted by ChampionX Financial Highlights (Million USD) | Metric | Sept. 30, 2025 (Million USD) | Jun. 30, 2025 (Million USD) | Sept. 30, 2024 (Million USD) | Sequential Change (%) | Year-on-year Change (%) | | :-------------------------------- | :------------- | :------------ | :------------- | :---------------- | :------------------ | | Revenue | $8,928M | $8,546M | $9,159M | 4% | -3% | | Income before taxes - GAAP | $1,000M | $1,285M | $1,507M | -22% | -34% | | Net income attributable to SLB - GAAP | $739M | $1,014M | $1,186M | -27% | -38% | | Diluted EPS - GAAP | $0.50 | $0.74 | $0.83 | -32% | -40% | | Adjusted EBITDA* | $2,061M | $2,051M | $2,343M | 0% | -12% | | Cash flow from operations | $1,680M | N/A | N/A | N/A | N/A | | Free cash flow | $1,100M | N/A | N/A | N/A | N/A | | Quarterly cash dividend | $0.285 per share | N/A | N/A | N/A | N/A | ChampionX Acquisition Impact ChampionX added $579 million revenue to Q3 2025; excluding it, global revenue declined 2% sequentially and 9% year-on-year - ChampionX acquisition contributed $579 million of revenue, $139 million of adjusted EBITDA, and $108 million of pretax segment operating income to Q3 2025 results[3] - Excluding ChampionX, SLB's Q3 2025 global revenue decreased 2% sequentially and 9% year-on-year[3] Management Commentary & Strategic Outlook Resilience Amidst Evolving Market Dynamics SLB's CEO noted Q3 revenue increased sequentially, supported by ChampionX acquisition and Digital growth, despite market challenges, with International markets showing resilience - Q3 revenue increased sequentially, supported by ChampionX, Digital growth, and resilient Core business performance, despite challenging market conditions[7] - International markets are demonstrating resilience, with robust growth in several Middle East & Asia countries, and OPEC+ production releases expected to support future investment[8] Production and Recovery Business Alignment Customers prioritize production and recovery solutions for lower-cost decline offset, which SLB addresses by leveraging expertise, technology, and ChampionX acquisition to expand its presence in this less cyclical market - Customers are prioritizing production and recovery solutions to unlock incremental barrels at the lowest possible cost[9] - SLB is leveraging subsurface expertise, production technology, portfolio integration, and digital/AI capabilities to support customers in production and recovery[10] - ChampionX acquisition enhances SLB's portfolio and expands its presence in the less cyclical production market[11] Digital Delivering Differentiated Growth and Margins Digital is SLB's fastest-growing business, transforming the oil and gas industry through AI and data, now reported as a standalone division highlighting its high-margin growth and industry leadership - Digital is SLB's fastest-growing business, leveraging software, AI, data analytics, automation, and IoT for efficiency, safety, and sustainability[12][13] - SLB is reporting Digital as a standalone division, emphasizing its high-margin growth and differentiation[14] International Markets to Lead Future Activity Rebound SLB anticipates International markets will drive future activity rebound as supply and demand rebalance, supported by sustained investment in oil capacity, gas expansion, and deepwater projects, leading Q4 revenue growth - International markets are expected to lead an activity rebound, supported by sustained investment in oil capacity, gas expansion, and deepwater[15] - SLB forecasts Q4 revenue growth driven by International markets, Digital, and a full quarter of ChampionX operations[16] Key Events & Corporate Actions Share Repurchase Program During Q3 2025, SLB repurchased 3.2 million shares for $114 million, bringing total repurchases for the first nine months of 2025 to 60.0 million shares for $2.41 billion - Q3 2025: Repurchased 3.2 million shares for $114 million[17] - First nine months of 2025: Repurchased 60.0 million shares for $2.41 billion[17] ChampionX Acquisition Completion SLB completed the ChampionX acquisition on July 16, 2025, enhancing its portfolio, technology, and digital leadership, and increasing exposure to the production and recovery market - Acquisition of ChampionX completed on July 16, 2025[18] - The acquisition is expected to increase SLB's exposure to the production and recovery market and deliver best-in-class workflow integration[18] Quarterly Cash Dividend SLB's Board of Directors approved a quarterly cash dividend of $0.285 per share, payable on January 8, 2026, to stockholders of record on December 3, 2025 - Board approved a quarterly cash dividend of $0.285 per share[19] Financial Performance by Geography Overall Geographical Revenue SLB's Q3 2025 revenue of $8.93 billion increased 4% sequentially, driven by 1% international and 17% North America growth, including $579 million from ChampionX, but excluding it, international revenue declined 1% and North America revenue declined 7% sequentially Overall Geographical Revenue (Million USD) | Geography | Sept. 30, 2025 (Million USD) | Jun. 30, 2025 (Million USD) | Sept. 30, 2024 (Million USD) | Sequential Change (%) | Year-on-year Change (%) | | :---------------- | :------------- | :------------ | :------------- | :---------------- | :------------------ | | North America | $1,930M | $1,655M | $1,687M | 17% | 14% | | Latin America | $1,482M | $1,492M | $1,689M | -1% | -12% | | Europe & Africa | $2,434M | $2,369M | $2,434M | 3% | 0% | | Middle East & Asia | $3,000M | $2,986M | $3,302M | 0% | -9% | | International Total | $6,916M | $6,847M | $7,425M | 1% | -7% | | North America Total | $1,930M | $1,655M | $1,687M | 17% | 14% | | Total Revenue | $8,928M | $8,546M | $9,159M | 4% | -3% | - ChampionX contributed $579 million to Q3 2025 revenue ($387 million in North America, $171 million in International markets)[20] - Excluding ChampionX, International revenue declined 1% sequentially and North America revenue declined 7% sequentially[20](index=20&