Total Revenue

Declined 2.4% (from $8,707M to $8,490M)

Overall revenue weakened due to lower performance in key segments such as Well Construction (–11%) and Services (–5.6%), despite partial gains in Digital & Integration (+5.5%) and North America (+7.7%); these changes reflect both seasonal and operational shifts compared to Q1 2024. " " " "

Digital & Integration Revenue

Increased 5.5% (from $953M to $1,006M)

Growth in digital technologies—driven by increased adoption of cloud, AI, and exploration data solutions—helped boost revenue, continuing a trend seen in previous periods where digital revenue improvements partially offset flat APS revenue. " " "

Well Construction Revenue

Declined 11% (from $3,368M to $2,977M)

Lower drilling activity in key geographies, including reduced operations in regions like Mexico and Saudi Arabia, significantly reduced well construction revenue compared to a stronger Q1 2024 performance. " " "

Services Revenue

Declined 5.6% (from $5,676M to $5,366M)

Services revenue dropped primarily due to lower activity levels and service demand relative to Q1 2024, reflecting challenges in maintaining the previously higher revenue levels amidst shifting operational dynamics. "

North America Revenue

Increased 7.7% (from $1,598M to $1,719M)

Revenue gains in North America were driven by higher digital sales, increased subsea production systems in the U.S. Gulf, and robust growth in data center infrastructure, which more than compensated for declines in U.S. land drilling compared to the prior period. " " "

Latin America Revenue

Declined 9.5% (from $1,654M to $1,495M)

A significant drop in Latin America was caused by reduced drilling activity in Mexico and temporary production interruptions (e.g., pipeline disruptions in Ecuador), despite some mitigation from robust stimulation and production sales in regions like Argentina, marking a reversal from previous period trends. " " "

Net Income

Declined 24% (from $1,098M to $829M)

Net income contracted sharply due to the combined impact of lower overall revenue, increased restructuring and merger integration costs, and higher interest expenses, which markedly worsened profitability compared to Q1 2024. "

Diluted Earnings per Share

Declined 21.6% (from 0.74 to 0.58)

EPS was heavily impacted by the net income decline and headwinds such as cost pressures and restructuring expenses, leading to a significant drop relative to the stronger EPS performance in Q1 2024. " "

Revenue

Q2 2025

no prior guidance

Expected to be flat sequentially, excluding ChampionX "

no prior guidance

Adjusted EBITDA Margin Expansion

Q2 2025

no prior guidance

Anticipated to expand between 50 to 100 basis points " "

no prior guidance

Revenue Growth

FY 2025

no prior guidance

Expected to be flat to mid-single-digit growth in the second half, excluding ChampionX "

no prior guidance

Margin Expansion

FY 2025

no prior guidance

Further margin expansion expected throughout the year, supported by seasonal activity uptick, new starts and growth in digital and data center business "

no prior guidance

EBITDA Margin Ambition

FY 2025

no prior guidance

Targeting approximately 25% EBITDA margin, excluding the impact of ChampionX "

no prior guidance

Tariff Impact

FY 2025

no prior guidance

Assumes current tariffs remain unchanged, but acknowledges that the final tariff framework could impact margin expansion " "

no prior guidance

Cash Flow Generation

FY 2025

no prior guidance

Expected to remain strong and grow throughout the year "

no prior guidance

Capital Investments

FY 2025

$2.3 billion "

Approximately $2.3 billion "

no change

Digital Growth & Integration

Consistently discussed in Q4 2024 ( " " " ), Q3 2024 ( " " " ), and Q2 2024 ( " " " )—emphasizing robust digital revenue growth, cloud/AI adoption, and enhanced margin contribution.

In Q1 2025, digital revenue grew by 6% YoY with a notable 17% digital revenue increase and margins expanding by 380bps, reflecting strong digital adoption and integration ( " " " " ).

Positive and steady improvement with enhanced digital adoption and profitability.

Margin Expansion & Cost Discipline

Highlighted across Q4 2024 ( " " " ), Q3 2024 ( " " " " ), and Q2 2024 ( " " " ) with detailed discussions on sequential margin growth, cost-out programs, and capital discipline.

Q1 2025 achieved a 23.8% adjusted EBITDA margin with further sequential improvement guidance, showcasing disciplined cost management despite external pressures ( " " " " " ).

Consistent focus on improving margins through operational efficiencies and strict cost control.

Production Systems & Recovery Technologies

Q4 2024 emphasized 24% YoY growth, robust subsea performance, and integration with recovery technologies ( " " ); Q3 2024 detailed record highs in revenue and margin expansion ( " " ); Q2 2024 noted 7% sequential revenue gains and improved margins ( " ).

In Q1 2025, Production Systems grew 4% YoY with margins rising by 197bps and strong customer demand, while Recovery Technologies focused on production recovery and digital technology adoption ( " " " " ).

Steady performance in Production Systems with emerging focus on recovery technologies, indicating long-term resilience.

International, Offshore & Middle Eastern Market Opportunities

Q4 2024 showcased strong Middle Eastern performance (e.g. 19% growth) and positive international revenue trends ( " " ); Q3 2024 noted low to mid-single digit growth internationally with resilient deepwater and offshore projects ( " " ); Q2 2024 emphasized growth in Asia and offshore deepwater opportunities ( " " " ).

Q1 2025 experienced mixed results with declines in regions like Mexico, Saudi Arabia, and Russia, but strong growth in the UAE, North Africa, Kuwait, Argentina, and China, alongside resilient offshore and Middle Eastern opportunities ( " " " ).

Mixed regional performance with persistent resilience in key growth areas such as the Middle East and Asia.

Tariff Uncertainty Risk

Not mentioned in previous periods (Q4, Q3, Q2 2024).

Q1 2025 provided a detailed discussion on potential tariff impacts on imports/exports, outlining mitigation strategies and recognizing it as a headwind for margin expansion ( " " " " ).

Emerging as a new concern, highlighting increased exposure and the need for proactive cost management.

M&A Integration & Regulatory Delays

Q4 2024 reported integration charges and regulatory progress with pending approvals ( " " ); Q3 2024 reaffirmed integration synergies and adjusted closing timelines ( " " ); Q2 2024 described active integration planning amidst regulatory clearance for the ChampionX acquisition ( " " " ).

Q1 2025 discussed merger/integration charges along with progress on regulatory remedies for acquisitions, anticipating closure in Q2/Q3 despite some delays ( " " " ).

Ongoing focus with consistent integration efforts; slight delays noted but overall synergy execution remains strong.

Declining Upstream Spending & Exploration Activity

Q2 2024 painted an optimistic picture with strong exploration licensing rounds and robust upstream investments ( " " ); Q3 2024 highlighted healthy exploration activity driving substantial FIDs ( " ); Q4 2024 showed a mix of declining activity in regions (e.g., Mexico) offset by emerging deepwater opportunities ( " " ).

Q1 2025 noted a decline in global upstream spending—with lower activity in some regions—while also mentioning a cautious rebound in exploration commitments ( " " " " " ).

A shift to a more cautious tone in the current period, reflecting declining upstream spending amid continuing—but regionally mixed—exploration potential.

Regional Market Challenges & Asset Divestitures

Q2 2024 discussed North American adjustments and the initiation of divesting the APS asset ( " " ); Q3 2024 detailed the sale of the Palliser project and regional performance nuances ( " ); Q4 2024 emphasized challenges in Mexico and Russia and associated asset divestitures in Canada ( " " " ).

In Q1 2025, SLB reported declines in revenue from regions such as Mexico, Saudi Arabia, and Russia and continued pursuing asset divestitures (e.g., Palliser EPS), alongside pending transactions to streamline the portfolio ( " " " " " ).

Persistent regional challenges with ongoing strategic asset divestitures to rebalance and optimize the portfolio.

Macroeconomic & Commodity Price Uncertainty

Q3 2024 focused on commodity price pressures and oversupply impacts while remaining optimistic about long-cycle projects ( " " " ); Q4 2024 cited cautious near-term spending amid oversupply, yet maintained a positive long-term outlook ( " " ). Q2 2024 did not cover this topic.

Q1 2025 emphasized global economic uncertainty driven by supply-demand imbalances and OPEC+ production increases, resulting in cautious near-term investment but affirming long-term fundamentals ( " " " " " ).

Consistent caution across periods, with current commentary highlighting near-term volatility balanced by a strong long-term strategic view.