Financial Data and Key Metrics Changes - First quarter revenue decreased by 3% year on year, totaling $8.5 billion, primarily due to lower international revenue offsetting strong North American results [9][24] - Earnings per share excluding charges and credits was $0.72, a decrease of $0.03 compared to the same quarter last year [23] - Adjusted EBITDA margin for the first quarter was 23.8%, up 18 basis points year on year [24] Business Line Data and Key Metrics Changes - Digital and Integration revenue increased by 6% year on year, driven by a 17% growth in digital revenue [28] - Reservoir Performance revenue decreased by 1% year on year, with margins declining due to less favorable activity mix and project startup costs [29] - Well Construction revenue declined by 12% year on year, primarily due to lower drilling activity in North America and international markets [29] - Production Systems revenue increased by 4%, with margins growing by 197 basis points year on year, supported by strong demand in production and recovery activities [30] Market Data and Key Metrics Changes - International revenue decreased by 5% year on year, largely driven by reduced activity in Mexico, Saudi Arabia, and Russia [24] - North America revenue increased by 8% year on year, attributed to higher digital and subsea production system sales [24] - Double-digit growth was achieved in several markets, including the UAE, North Africa, Kuwait, Argentina, and China [10] Company Strategy and Development Direction - The company remains focused on executing its strategy, managing costs, and delivering differentiated performance for customers amid global economic uncertainty [16] - There is an increased emphasis on production recovery and technology deployment to unlock new growth potential [17] - The company is capitalizing on low carbon markets and expanding its Data Center Infrastructure Solutions business [19][63] Management's Comments on Operating Environment and Future Outlook - The management expects global upstream investment to decline compared to 2024, with more resilient customer spending in the Middle East and Asia [15] - The company anticipates flat to mid-single-digit revenue growth in the second half of the year, assuming stable oil prices [20] - Management expressed confidence in the company's ability to generate strong margins and cash flows despite market uncertainties [21] Other Important Information - The company is committed to returning at least $4 billion to shareholders in 2025 [20] - The pending acquisition of ChampionX is progressing, with confidence in closing by the end of the second quarter or early third quarter of 2025 [33][75] Q&A Session Summary Question: Outlook for international and North American markets - Management clarified that upstream spending is expected to decline year on year, with North America facing more downside exposure than international markets [38] Question: Activity in Saudi Arabia - Management indicated that while there are many moving parts, they expect an uptick in activity in Saudi Arabia driven by gas ambitions and OPEC production stabilization [44][46] Question: EBITDA margin expectations - Management aims to maintain an EBITDA margin around 25% for the full year, but tariffs could impact this goal [52] Question: Digital growth resilience - Management believes that the secular trend of digital adoption is accelerating, with mid to high teens growth expected in the digital business [55] Question: Diversification strategy beyond oil and gas - Management outlined steps taken to diversify into low carbon markets, including carbon capture and geothermal projects, with revenue expected to exceed $1 billion in 2025 [60][65] Question: Confidence in free cash flow generation - Management expressed confidence in strong free cash flow generation throughout the year, supporting their commitment to return capital to shareholders [103]