Schlumberger N.V. (NYSE:SLB) shares are trading lower on Friday after the company reported worse-than-expected first-quarter 2025 results.         

Revenue declined 3% year over year to $8.49 billion, missing estimates of $8.59 billion. Adjusted EPS slid 4% to 72 cents, missing the consensus of 74 cents.

North America revenue rose 8% YoY to $1.72B, driven by digital, subsea, and data center sales, but fell 2% sequentially on lower drilling activity.

International revenue declined 5% year-over-year to $6.73 billion, as revenue in Latin America fell 10% YoY, driven primarily by reduced drilling activity in Mexico.

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Revenue by Division: Digital & Integration $1.006 billion (+6% YoY); Reservoir Performance $1.70 billion (-1% YoY); Well Construction $2.98 billion (-12% YoY), and Production Systems $2.938 billion (+4% Y/Y).

"First-quarter adjusted EBITDA margin was slightly up year on year despite softer revenue as we continued to navigate the evolving market dynamics," stated SLB Chief Executive Officer Olivier Le Peuch.

Adjusted EBITDA was $2.02 billion for the quarter, down 1.8% YoY, and margin expanded 17 bps to 23.8%. The pretax segment operating margin contracted by 60 bps for the quarter to 18.3%.

Operating cash flow for the quarter totaled $660 million compared to $327 million a year ago, and free cash flow was $103 million. Cash and cash equivalents totaled $3.897 billion as of March 31, 2025

"SLB is committed to returning more than 50% of its free cash flow to our shareholders, and we will materially exceed this target in 2025. We continue to have confidence in our ability to generate strong cash flow in the current environment and will return a minimum of $4 billion to shareholders through dividends and share repurchases this year," Le Peuch added.

Dividend: Schlumberger declared a quarterly cash dividend of $0.285 per share, payable on July 10, 2025, to stockholders of record on June 4, 2025.

"The industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services. In this uncertain environment, we remain committed to protecting our margins, generating strong cash flow and delivering consistent value to our customers and shareholders in 2025," Le Peuch concluded.

SLB completed its $2.3B accelerated share repurchase program on April 7, 2025, buying back 56.8 million shares at an average price of $40.51.

Price Action: At the last check on Friday, SLB shares were trading lower by 0.04% at $34.92.

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