SLB posts solid Q3 profit beat despite revenue dip
Global oilfield-services giant SLB has reported its third-quarter results for the period ending 30 September 2025, revealing a solid earnings performance despite softening revenues and persistent challenges in the upstream energy market. The results highlight the company’s continued ability to generate profit and cash flow while navigating an industry marked by subdued investment and volatile commodity prices.
The company posted revenue of US$8.93 billion, representing a 4% sequential rise but a 3% decline compared with the same quarter last year. On a GAAP basis, earnings per share (EPS) stood at US$0.50, around 40% lower than in 2024. Excluding one-off charges and credits, adjusted EPS reached US$0.69, comfortably beating analyst forecasts of roughly US$0.66. Free cash flow came in at US$1.10 billion, which included US$153 million in payments linked to acquisitions. The board declared a quarterly dividend of US$0.285 per share, reflecting the company’s ongoing commitment to shareholder returns.
Financials at a glance
A closer look at the divisional performance shows mixed fortunes. The newly-formed Digital division generated US$658 million in revenue, up 11% sequentially and 3% year-on-year. The Production Systems segment, bolstered by the acquisition of ChampionX earlier this year, reported US$3.47 billion in revenue, up 18% from the previous quarter and 14% from last year. Excluding the acquisition’s impact, however, Production Systems revenue fell slightly, reflecting broader softness in international spending.
Regional results underscored similar dynamics. North American revenue rose to US$1.93 billion, a 17% sequential increase driven by strong demand for production-related services and digital solutions. International revenue, which accounts for about 80% of SLB’s total, edged up just 1% sequentially but was down 7% year-on-year, reflecting weaker exploration and drilling activity across several key markets.
SLB's Chief Executive Officer Olivier Le Peuch described the quarter as “resilient” given the backdrop of a fully supplied oil market and uneven recovery in global upstream investment. He emphasised that growth opportunities remain strongest in the Middle East and parts of Asia, where national oil companies are continuing to invest in capacity expansion and recovery programmes. Le Peuch added that the company is increasingly focused on helping clients optimise production from mature fields—a shift he believes will define the next phase of global energy investment.
Despite the headline earnings beat, several challenges remain. Excluding the ChampionX acquisition, overall revenue declined about 2% sequentially and 9% year-on-year. The Reservoir Performance business dropped 8% from a year earlier, while Well Construction was down 10%. Margins also softened, with the adjusted EBITDA margin falling to 23.1%, compared with 25.6% in the third quarter of 2024. Analysts noted that these figures underscore the competitive pressure in SLB’s core markets and the continued caution among exploration and production customers.
Outlook and strategic positioning
Looking ahead, SLB’s strategy is focused on three main themes. First, accelerating growth in digital technologies—including cloud-based software, automation, and data analytics—designed to deliver higher-margin, recurring revenue. Second, expanding in production and recovery services, which are seeing rising demand as operators seek to maximise value from existing assets. Third, capturing renewed momentum in international upstream investment, particularly in deep-water and gas-development projects where SLB holds a strong market position.
Management expects fourth-quarter growth to be supported by steady international demand, continued progress in digital solutions, and a full-quarter contribution from the ChampionX acquisition. “Our strategy remains clear,” said Le Peuch. “We are combining the scale of our traditional oilfield expertise with the agility and innovation of digital solutions to deliver long-term value.”
Despite the positive tone, investor reaction was muted. While the adjusted profit beat offered reassurance about the company’s cost discipline, the revenue shortfall and margin compression tempered enthusiasm. Analysts from several firms characterised the results as “steady rather than spectacular,” noting that a sustained turnaround depends on a broader rebound in upstream spending.
