SLB and Baker Hughes report Q2 2025 results
Two of the world's leading oilfield services companies presented contrasting pictures in their second-quarter 2025 results, with both navigating challenging market conditions through strategic diversification and operational efficiency measures.
SLB reported revenue of $8.55 billion, representing a modest 1% sequential increase but a 6% year-on-year decline. The Paris-based company achieved GAAP earnings per share of $0.74, up 28% sequentially, whilst net income attributable to SLB reached $1.01 billion. The firm's adjusted EBITDA of $2.05 billion increased 2% quarter-on-quarter but fell 10% compared to the same period last year.
"SLB reported solid second-quarter results, leveraging our diversified portfolio and broad market exposure to deliver steady revenue," said Chief Executive Olivier Le Peuch. The company's international operations proved resilient, with revenue growing 2% sequentially to $6.85 billion, offsetting weaker North American performance.
The company's Production Systems division showed particular strength, achieving 3% sequential revenue growth and marking its 17th consecutive quarter of year-on-year growth. SLB's cash flow from operations reached $1.14 billion, with free cash flow of $622 million, enabling the board to approve a quarterly dividend of $0.285 per share.
Meanwhile, Baker Hughes delivered stronger momentum with revenue of $6.91 billion, up 8% sequentially despite a 3% year-on-year decline. The Houston-based company's adjusted EBITDA surged 17% sequentially to $1.21 billion, whilst GAAP diluted earnings per share reached $0.71, marking a 76% sequential improvement.
"We delivered strong second-quarter results, with total adjusted EBITDA margins increasing 170 basis points year-over-year to 17.5%," said Chairman and Chief Executive Lorenzo Simonelli. Baker Hughes' Industrial & Energy Technology segment secured $3.5 billion in orders, including substantial data centre-related contracts worth over $550 million.
The company's remaining performance obligations reached a record $34 billion, with IET's backlog hitting $31.3 billion. Baker Hughes returned $423 million to shareholders during the quarter, including $196 million in share repurchases, demonstrating strong cash generation capabilities with operating cash flow of $510 million.
Both companies highlighted strategic portfolio optimisation efforts. SLB completed its acquisition of ChampionX in July, expanding its production and recovery capabilities, whilst Baker Hughes announced three strategic transactions including a joint venture with Cactus Inc. and the planned acquisition of Continental Disc Corporation.
The results underscore the industry's resilience amid softer upstream spending and geopolitical uncertainties, with both companies demonstrating their ability to adapt through diversification strategies and operational improvements whilst maintaining shareholder returns through dividends and share buyback programmes.
