Key Awards And Outlook: In Q3 2025, SLB secured a five-year integrated services contract with Saudi Aramco for drilling, completions, and production optimization. It was awarded subsea and well construction projects by Petrobras in Brazil, strengthening its offshore presence. In West Africa, SLB expanded reservoir performance and digital solutions work with TotalEnergies and Chevron. Across Asia, the company signed new technology deployment contracts with Petronas and ONGC. In North America, SLB gained additional stimulation and production systems work with ExxonMobil and Pioneer Natural Resources. It also earned multiple industry awards for AI-based well optimization and low-emission drilling technologies.
SLB expects steady global oilfield activity through 2026, supported by resilient upstream investment and rising offshore demand. North America is projected to stabilize. Digital solutions and lower-carbon technologies are expected to strengthen margins and sustain long-term expansion. Overall, the company’s outlook remains strongly positive towards international activities as the management cited “international markets will lead an activity rebound when supply and demand rebalance, supported by sustained investment for oil capacity, gas expansion projects and a constructive outlook for deepwater.”
North American Sales Up in Q3
SLB's Production Systems segment witnessed the sharpest quarter-over-quarter revenue rise (18% up), while the segment operating income increased by 14% in Q3. Operating income growth in the Digital segment was the highest in Q3 (22% up), while revenues moved up by 11%. The Well Construction and Reservoir Performance segments, on the other hand, saw revenues and operating income nearly unchanged in Q3. Overall, the company's adjusted EBITDA increased modestly, by 0.5%, in Q3’25 compared to Q2’25. Geographically, the company's sales from North America (16.6% up) fared much better than the International business in Q3.
The higher North American sales and margins in Q3 2025 were driven by increased land drilling and completions activity, especially in the Permian Basin. The company benefited from strong uptake of integrated stimulation and production systems, which boosted efficiency and pricing. Margins expanded due to better utilization of high-efficiency equipment and disciplined cost control, which improved profitability across key basins.
Cash Flows and Equity: SLB's cash flow from operations decreased in 9M 2025 compared to a year ago, driven by lower revenues during this period. Its FCF, too, fell by 20% in this period. Due to higher shareholders’ equity, debt-to-equity decreased (0.47x) compared to 0.54x in FY2024. Higher retained earnings from prior periods and favorable comprehensive income adjustments contributed to the growth in shareholders’ equity in 9M 2025.
Thanks for reading the SLB take three, which is designed to give you three critical takeaways from SLB's earnings report. Soon, we will present a second update on SLB earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.
