SLB N.V. (SLB) SEC Filings & Earnings Calls

Year-on-year margin compression in core divisions due to mix and acquisition dilution

“Pretax segment operating margin -153 bps YoY; Adjusted EBITDA margin -121 bps YoY”

Middle East disruptions could impact near-term activity

“despite late-quarter disruptions in the Middle East”

Transaction subject to regulatory approvals and customary closing conditions; may not close as expected.

“The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2027.” · word for word

Integration risks and synergy realization may fall short of targets.

“SLB also expects to generate approximately $120 million in annual EBITDA synergies within three years from cost efficiencies and incremental revenue opportunities.”

Middle East Conflict Disruption

“Middle East where revenue fell 13% sequentially to $1.66 billion.” · word for word

Pricing Headwinds in Select Markets

“Well Construction pretax operating margin of 15% contracted 401 bps year on year primarily due to lower profitability as a result of the Middle East conflict compounded by pricing headwinds in select markets.” · word for word

Middle East disruptions continue to impact revenue and margins; full recovery timing uncertain.

“Middle East revenue declined 13% sequentially due to persistent disruptions related to the conflict.”

Year-on-year revenue decline of 5% excluding ChampionX acquisition indicates organic weakness.

“Excluding the impact of this acquisition, second-quarter 2026 revenue decreased 5% year on year.” · word for word

Middle East conflict disruption

“This impact was most pronounced in the Well Construction and Reservoir Performance divisions, as SLB demobilized operations in a number of countries in response to customer actions to safeguard personnel and facilities.” · word for word

Pricing headwinds in select markets

“Well Construction pretax operating margin of 15% contracted 463 bps year on year primarily due to lower profitability as a result of the Middle East conflict, compounded by pricing headwinds in select markets.” · word for word

Middle East geopolitical disruptions impacting operations and revenue

“Widespread disruptions in the Middle East impacted our business; demobilized operations in a number of countries”

Significant margin compression across divisions

“Adjusted EBITDA margin down 346 bps YoY; pretax segment operating margin down 318 bps YoY”

Organic revenue decline excluding acquisitions

“Excluding ChampionX, global revenue decreased 7% year on year; international revenue decreased 7%”

Geopolitical instability in Middle East disrupts operations and revenue.

“unfolding situation in the Middle East; demobilize operations in a few countries”

Relative TSR underperformance

“Zero TSR Payout — Our three-year relative TSR percentile rank was below the minimum performance target for the TSR PSUs granted in 2023. As a result, our CEO and other NEOs earned no payout under the TSR component of our PSUs granted in 2023.” · word for word

Lower upstream spending pressure

“SLB’s 2025 adjusted EBITDA demonstrated consistent financial performance despite a difficult market environment and resulted in our current NEOs earning 76% of the target payout.” · word for word

Geopolitical and regulatory risks

“Risks and uncertainties that could cause our actual results to differ significantly from management’s expectations include, but are not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by SLB’s customers and changes in the level of oil and natural gas exploration and development;” · word for word

Core business declining ex-acquisition; international revenue flat, North America growth partly from acquisition

“Excluding ChampionX, global revenue -4% YoY; international -4% YoY; North America -7% YoY”

Margin compression YoY across most segments, especially Well Construction and All Other

“Adjusted EBITDA margin -175 bps YoY; pretax segment operating margin -211 bps YoY; Well Construction margin -219 bps YoY”

GAAP net income and EPS declined significantly YoY due to charges and credits

“GAAP net income -25% YoY; GAAP EPS -29% YoY; adjusted EPS -15% YoY”

Goodwill impairment risk in SLB Capturi

“SLB recorded a $210 million goodwill impairment charge during 2025 relating to this reporting unit.” · word for word

Geopolitical and regional concentration risk

“International revenue declined 5% year on year due to the lower activity in Saudi Arabia, Mexico and Sub-Saharan Africa.” · word for word