Schlumberger (SLB) Financials

Schlumberger (NYSE:SLB) Financial Summary and Analysis (Last 4 Years through Q2 2025)

Schlumberger’s recent financial statements reveal several key trends and insights across income, cash flow, and balance sheet metrics. The company has demonstrated solid revenue growth, steady profitability, and active capital allocation over the period analyzed.

• Consistent Revenue Growth: Operating revenue increased from approximately $7.7 billion in Q1 2023 to $8.5 billion in Q2 2025, showing a roughly 10% growth over two years with quarter-over-quarter increases in recent quarters.
• Improved Net Income and Earnings Per Share (EPS): Net income attributable to common shareholders grew from $934 million in Q1 2023 to $1.014 billion in Q2 2025. Basic EPS increased from $0.65 to $0.75 over the same time frame, indicating improved profitability on a per-share basis.
• Strong Operating Cash Flow Generation: Net cash from continuing operating activities improved significantly from $327 million in Q1 2023 to $1.142 billion in Q2 2025, highlighting improved cash efficiency and operational strength.
• Healthy Capital Expenditures & Investments: The company has maintained substantial purchases of property, plant, and equipment averaging around $370–$950 million quarterly, indicating continued investment in growth and capacity. Investment activities also show active portfolio management with acquisitions and divestitures.
• Equity and Retained Earnings Growth: Total common equity increased from roughly $18.1 billion in Q1 2023 to $20.3 billion by Q2 2025, supported by growing retained earnings ($11.3 billion to $17.4 billion), reflecting dividend reinvestments and earnings retention.
• Controlled Debt Levels: Total liabilities remained in the range of $25 billion to $27 billion over the years. Quarterly long-term debt fluctuated but was managed around $10-$13 billion, indicating consistent debt management without material increases.
• Stable Gross Profit Margins: Gross profit margins hovered around 19-22% during the period, showing stable cost management but limited margin expansion potential.
• Fluctuations in Restructuring Charges: Restructuring expenses varied quarter to quarter, with some elevated charges indicating ongoing organizational adjustments.
• Share Repurchases and Dividend Payments: The company repurchased shares actively (including multi-hundred million dollar repurchase transactions) resulting in treasury stock increasing negatively, which can exert pressure on liquidity. Dividend payments consistently range around $350-$390 million quarterly, reflecting cash outflow pressures.
• Variability in Non-Cash Adjustments and Operating Capital: Changes in operating assets and liabilities have shown volatility impacting cash flows negatively in some quarters (e.g., -$890 million in Q1 2025), which could indicate working capital challenges.

Overall Analysis:

Schlumberger demonstrates steady growth in revenue and net income with strong operational cash flow improvements supporting its capital expenditure and shareholder return programs. The company is investing selectively while managing its capital structure prudently. However, investors should watch the variability in operating capital changes and restructuring costs that impact cash flow volatility. The active share repurchase program and sustained dividend payments reflect shareholder-friendly policies but also suggest significant cash outflows.

Given Schlumberger's industry position and financial health as of Q2 2025, it remains positioned for continued operational success with a disciplined capital allocation strategy, balanced by some uncertainty around cash flow variability and restructuring impacts.