SLB delivered a solid Q3 2024 despite a cautious macro backdrop, with revenue essentially flat QoQ at $9.159B and robust margin expansion. Company-wide adjusted EBITDA margin rose to 25.6% (up 55 bps QoQ), underpinned by a standout Digital & Integration segment (revenue $1.1B, margin 35.5%, up 456 bps). The quarter featured meaningful cash-generation strength (operating cash flow of $2.449B and free cash flow of $1.849B), supporting continued shareholder returns and a disciplined balance sheet. Long-cycle businesses—Production Systems and Reservoir Performance—demonstrated resilience and backlog-driven earnings progression, while Well Construction faced activity headwinds in North America and certain offshore markets.
Management maintains a margin-expansion trajectory into 2025, aided by digital technology premium, cost-out initiatives, and a favorable mix shift toward international and offshore activity. The company reiterated 2024 EBITDA margin target at or above 25% and signaled a constructive 2025 international spend outlook (low- to mid-single digits) with North America flat to down. Strategic portfolio actions—Palliser sale (approximately $430M cash proceeds, removal of $280M in asset retirement obligations) and ongoing ChampionX integration—are expected to enhance cash flow quality and reduce capital intensity. SLB also updated on its new energy ambitions, including a Nevada direct lithium extraction (DLE) pilot with positive early results and Lumi, its cloud-based data and AI platform, as a growth engine for data-enabled optimization across the value chain.