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• Revenue: $8.5 billion, decreased 3% year on year.

• North America Revenue: Increased 8% year on year.

• International Revenue: Decreased 5% year on year.

• Adjusted EBITDA Margin: 23.8%, up 18 basis points year on year.

• Pretax Segment Operating Margin: 18.3%, declined 60 basis points year on year.

• Digital & Integration Revenue: $1 billion, increased 6% year on year.

• Digital Revenue Growth: 17% year on year.

• Reservoir Performance Revenue: $1.7 billion, decreased 1% year on year.

• Well Construction Revenue: $3 billion, declined 12% year on year.

• Production Systems Revenue: $2.9 billion, increased 4% year on year.

• Cash Flow from Operations: $660 million.

• Free Cash Flow: $103 million.

• Capital Investments: $557 million in the first quarter.

• Net Debt: Increased to $10.1 billion.

• Earnings Per Share (EPS): $0.72, excluding charges and credits.

• Warning! GuruFocus has detected 1 Warning Sign with EBC.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Schlumberger Ltd (NYSE:SLB) achieved further adjusted EBITDA margin expansion year on year despite a challenging market environment.

• The company reported double-digit revenue growth in several international markets, including the United Arab Emirates, North Africa, Kuwait, Argentina, and China.

• North America showed positive results driven by the offshore market, with higher sales of digital and subsea production systems.

• Production Systems division experienced steady revenue growth and further margin expansion, supported by strong demand for surface production systems, completions, and artificial lift.

• Digital & Integration division saw a 17% year-on-year revenue growth as customers increasingly adopted digital technologies and solutions.

Negative Points

• First-quarter revenues decreased by 3% year on year, with lower revenue in international markets due to reduced drilling activity in Mexico, Saudi Arabia, and a steep decline in Russia.

• Reservoir Performance division faced revenue decline and margin impact due to challenges on new projects and lower evaluation and exploration activity.

• Well Construction division experienced a year-on-year revenue decline due to lower drilling activity across North America and international markets.

• The macroeconomic environment remains uncertain, with global upstream investment expected to decline compared to 2024.

• Tariff-related uncertainties pose potential risks to margins, particularly affecting imports of raw materials into the US and exports subject to retaliatory tariffs.