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SLB Q2 Earnings & Revenues Beat Estimates on Digital Strength
ZACKSยท 2025-07-18 14:56
Core Insights - SLB reported Q2 2025 earnings of 74 cents per share, exceeding the Zacks Consensus Estimate of 73 cents, but down from 85 cents in the same quarter last year [1][10] - Total quarterly revenues reached $8.55 billion, surpassing the Zacks Consensus Estimate of $8.49 billion, but decreased from $9.14 billion year-over-year [1][10] - The positive quarterly results were mainly driven by international growth, strong digital revenues, and increased demand for production systems [2] Segment Performance - Digital & Integration unit revenues totaled $995 million, a 5% decline from the previous year, with pre-tax operating income slightly up to $327 million, missing the Zacks estimate of $330 million [3] - Reservoir Performance unit revenues decreased by 7% to $1.69 billion, with pre-tax operating income down 16% to $314 million, but beating the Zacks estimate of $297 million [4] - Well Construction segment revenues fell 13% to $2.96 billion, with pre-tax operating income down 26% to $551 million, aligning with the Zacks estimate [5] - Production Systems segment revenues increased slightly to $3.04 billion, with pre-tax operating income up 5% to $499 million, exceeding the Zacks estimate of $488 million [6] Financials - SLB reported free cash flow of $622 million for Q2 2025 [7] - As of June 30, 2025, the company had approximately $3.75 billion in cash and short-term investments, with long-term debt at $10.89 billion [7] Outlook - SLB's full-year 2025 capital investment guidance is approximately $2.4 billion, lower than the 2024 level of $2.6 billion [8] Stock Performance - SLB currently holds a Zacks Rank 5 (Strong Sell) [9]