NYSE:SLB
SLB LIMITED/NV
SLB is a leading global energy technology company delivering integrated services to optimize oil and gas field development and accelerate the energy transition.
Key Metrics
Investment Thesis
Bull Case
Investors may buy SLB as a defensive play within the energy sector that benefits from the continued need to extract existing reserves despite lower price environments. The company's strong free cash flow generation supports a consistent dividend and allows for strategic acquisitions in the growing low-carbon solutions market. Valuation appears attractive relative to peers given the recent pullback in net income, potentially offering a margin of safety for long-term compounding.
Bear Case
Concerns persist regarding the potential for further revenue contraction if oil prices remain suppressed or if major operators delay capital expenditure plans. The significant goodwill balance of $16.79B creates vulnerability to impairment charges if asset valuations decline due to lower energy prices. Recent earnings miss and declining net income trend suggest cyclical headwinds may persist longer than anticipated, impacting total shareholder return.
About SLB LIMITED/NV
SLB Limited provides integrated energy solutions including oilfield services, digitalization, and low-carbon technologies to the global upstream oil and gas industry. The company serves major international operators across exploration, production, drilling, and completion phases while expanding its portfolio in renewable energy projects. Key products span subsea engineering, well construction, reservoir management software, and carbon capture solutions.
Analysis
Management Discussion
Revenue declined slightly to $35.71B in 2025 compared to $36.29B the prior year, reflecting a normalization of activity after strong growth periods. Net income dropped to $3.45B from $4.58B in 2024, indicating margin compression despite stable top-line performance. Cash flow from operations remained robust at $6.49B, allowing for significant capital expenditures of $1.69B and substantial debt repayments of $1.60B.
Industry Overview
The global oilfield services industry is highly cyclical and closely tied to the health of the upstream oil and gas sector which depends on crude and natural gas prices. Companies in this space must continuously innovate to offer more efficient drilling techniques and digital solutions that help operators reduce costs per barrel. The industry is currently navigating a transition where traditional service models are being complemented by renewable energy and carbon management offerings.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $28.09B | $33.13B | $36.29B | $35.71B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $28.09B | $33.13B | $36.29B | $35.71B |
| Operating Expenses | $23.08B | $26.61B | $30.62B | $31.42B |
| Operating Income | $5.01B | $6.52B | $5.67B | $4.29B |
| R&D | $634.0M | $711.0M | $749.0M | $709.0M |
| G&A | $376.0M | $364.0M | $385.0M | $340.0M |
| Stock-Based Comp | $313.0M | $293.0M | $316.0M | $332.0M |
| D&A | $2.15B | $2.31B | $2.52B | $2.64B |
| Depreciation | $1.37B | $1.45B | $1.55B | $1.73B |
| Amortization | $301.0M | $314.0M | $334.0M | $376.0M |
| Other OpEx | $22.07B | $25.54B | $29.48B | $30.37B |
| Non-Operating Income | $-740.0M | $-1.24B | $0 | $0 |
| Interest Expense | $490.0M | $503.0M | $512.0M | $558.0M |
| Interest Income | $99.0M | $100.0M | $174.0M | $136.0M |
| Pre-Tax Income | $4.27B | $5.28B | $5.67B | $4.29B |
| Income Tax | $779.0M | $1.01B | $1.09B | $840.0M |
| Continuing Ops | $3.49B | $4.28B | $4.58B | $3.45B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $3.49B | $4.28B | $4.58B | $3.45B |
| Minority Interest | $51.0M | $72.0M | $118.0M | $77.0M |
| Net to Common | $3.44B | $4.20B | $4.46B | $3.37B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $15.00B | $17.72B | $18.57B | $19.51B |
| Marketable Securities | $1.24B | $1.09B | $1.12B | $1.18B |
| Inventory | $4.00B | $4.39B | $4.38B | $5.03B |
| Other Current Assets | $9.77B | $12.24B | $13.07B | $13.30B |
| Long-Term Assets | $28.13B | $30.24B | $30.36B | $35.35B |
| PP&E (Net) | $6.61B | $7.24B | $7.36B | $7.89B |
| Goodwill | $12.98B | $14.08B | $14.59B | $16.79B |
| Other LT Assets | $8.54B | $8.91B | $8.41B | $10.67B |
| Total Assets | $43.13B | $47.96B | $48.94B | $54.87B |
| Current Liabilities | $12.02B | $13.39B | $12.81B | $14.72B |
| Taxes Payable | $1.00B | $994.0M | $982.0M | $894.0M |
| Other Current Liab | $10.75B | $12.03B | $11.43B | $13.38B |
| Long-Term Liabilities | $13.13B | $13.20B | $13.77B | $12.86B |
| Long-Term Debt | $10.59B | $10.84B | $11.02B | $9.74B |
| Other LT Liab | $2.53B | $2.36B | $2.75B | $3.11B |
| Total Liabilities | $25.15B | $26.60B | $26.59B | $27.58B |
| Shareholders' Equity | $17.99B | $21.36B | $22.35B | $27.29B |
| Retained Earnings | $10.72B | $13.50B | $16.39B | $18.07B |
| AOCI | $-3.85B | $-4.25B | $-4.95B | $-4.74B |
| Treasury Stock | $1.02B | $678.0M | $1.77B | $3.58B |
| Total L&E | $43.13B | $47.96B | $48.94B | $54.87B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $3.49B | $4.28B | $4.58B | $3.45B |
| Non-Cash Adjustments | $-3.17B | $941.0M | $2.75B | $2.86B |
| Working Capital Changes | $3.40B | $1.42B | $-732.0M | $177.0M |
| Cash from Operations | $3.72B | $6.64B | $6.60B | $6.49B |
| Capital Expenditures | $1.62B | $1.94B | $1.93B | $1.69B |
| Cash from Investing | $-1.39B | $-2.78B | $-3.15B | $-1.41B |
| Debt Issuances | — | $994.0M | $1.48B | — |
| Debt Repayments | $1.65B | $1.58B | $955.0M | $1.60B |
| Dividends Paid | $848.0M | $1.32B | $1.53B | $1.60B |
| Cash from Financing | $-2.38B | $-2.51B | $-2.77B | $-5.64B |
| FX Effect | $-52.0M | $-97.0M | $-41.0M | $57.0M |
| Net Change in Cash | $-50.0M | $1.34B | $685.0M | $-565.0M |
| Beginning Cash | $1.76B | $1.66B | $2.90B | $3.54B |
| Ending Cash | $1.66B | $2.90B | $3.54B | $3.04B |
Frequently Asked Questions
How does SLB LIMITED/NV make money?
The company operates primarily through its Oilfield Services segment offering drilling, completion, production, and subsea engineering solutions. A significant portion of revenue comes from Digital Solutions providing data analytics and artificial intelligence platforms for reservoir management. Additionally, SLB has a growing Low Carbon Solutions portfolio focusing on carbon capture, hydrogen production, and biofuels technologies.
What are the main risks for SLB?
Profitability is highly sensitive to the volatility of global oil prices which directly impacts client spending on exploration and production activities. The company faces significant exposure to geopolitical instability in key operating regions such as the Middle East and parts of Africa. Intense competition from both traditional service providers and new technology entrants pressures margins and accelerates innovation cycles. Regulatory shifts towards decarbonization pose challenges for legacy hydrocarbon projects while requiring substantial capital investment in green technologies.
What is SLB's competitive advantage?
SLB possesses the largest global portfolio of energy technology products and services with deep customer relationships across major international oil companies. The company leverages advanced digitalization capabilities to optimize field operations and reduce costs for its clients in a capital-constrained environment. Its diversified product mix spanning traditional services, software, and emerging low-carbon technologies provides resilience against cyclical downturns.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.