SLB reported revenue of $8.93bn for the third quarter of 2025, up 4% from the previous quarter but down 3% year on year. The increase was largely driven by a $579mn contribution over two months from recently acquired ChampionX operations. However, net income attributable to SLB dropped 27% sequentially to $739mn, and 38% compared to the same period in 2024.
Margins under pressure despite ChampionX integration
Income before taxes on a generally accepted accounting principles (GAAP) basis totalled $1bn, down 22% quarter over quarter and 34% year on year. Diluted earnings per share stood at $0.50, reflecting a 32% sequential drop and a 40% annual decline. Excluding charges and credits, net income reached $1.03bn, with adjusted earnings per share at $0.69 — down 7% from the prior quarter and 22% from a year earlier.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) remained flat at $2.06bn, but decreased 12% year on year. Adjusted EBITDA margin stood at 23.1%, compared to 25.6% in the third quarter of 2024.
ChampionX drives North America revenue surge
North American revenue rose 17% quarter over quarter, boosted by ChampionX’s $387mn contribution in the region. Without the acquisition impact, revenue would have declined by 7%. International revenue increased 1% sequentially but would have fallen by 1% without ChampionX. Performance in Latin America and Asia was affected by production disruptions, notably in Ecuador and Saudi Arabia.
Digital and Production Systems lead activity
The Digital division, now reported independently, grew 11% during the quarter, reaching $658mn in revenue. Operating margin stood at 28.4%, up 250 basis points from the previous quarter. ChampionX added $20mn in Digital revenue. Production Systems revenue rose to $3.47bn, with $575mn contributed by ChampionX. Excluding the acquisition, this segment’s revenue declined 1% sequentially and 5% year on year.
The Well Construction division held steady at $2.97bn, while Reservoir Performance edged down to $1.68bn. Both segments experienced margin compression due to lower volumes in several key markets.
Stable revenues expected next quarter
SLB anticipates sequential revenue growth in the fourth quarter, supported by a full quarter of ChampionX activity and stronger international performance. The board of directors approved a quarterly dividend of $0.285 per share. Additionally, 3.2mn shares were repurchased during the quarter for $114mn under the shareholder return programme.
Revenue from the Core divisions (Production Systems, Well Construction and Reservoir Performance) reached $8.12bn, up 7% from the second quarter but down 1% year on year. These divisions remain central to the company’s financial structure.
