SLB N.V. reported a soft start to 2025 in Q1, with revenue of $8.49 billion and a YoY decline of 2.5% (QoQ -8.6%), driven by weaker activity in international markets and offset by North America strength in offshore, digital, and data-center solutions. Management emphasized continued execution discipline and margin resilience, delivering an adjusted EBITDA margin of 23.8%, up 18 bps YoY, and Q1 operating margin of ~15.8%. Digital revenue grew 17% YoY, led by digital solutions within the Digital & Integration segment, while Production Systems and data-center related offerings contributed meaningfully to margin expansion and growth. The company reaffirmed its commitment to returning at least $4 billion to shareholders in 2025 and highlighted a large-scale cost-out program that supported margin resilience amid softer end-market demand.
Looking ahead, SLB provided Q2 guidance of flat revenue sequentially (excluding ChampionX) with 50–100 bps of adjusted EBITDA margin expansion, and projected full-year revenue in the flat to low-single-digit growth range (excluding ChampionX) with continued margin expansion. Tariffs and geopolitical dynamics remain meaningful overhangs, with approximately 80% of revenue sourced internationally and ongoing mitigation efforts (supply chain optimization, tariff exemptions, and customer contract adjustments). Management reiterated a belief that digital adoption will continue to decouple from upstream CapEx, enabling continued growth in the data-center and low-carbon solutions, including CCS/geothermal/lithium for critical minerals. In summary, the QQ1 2025 results underscore a resilient, diversified portfolio—anchored by digital/data-center earnings, a recovering production-system mix, and a disciplined capital program that prioritizes cash flow generation and shareholder returns, even as tariff and macro uncertainties persist.